Correlation between factors of Organizational Attractiveness and Employee Retention in Philippine General Hospital

Abstract

The role of Organizational Attractiveness in the retention of an employee is important because it contributes to attract potential employees and retain existing staff. Moreover, attractiveness is important to set a competitive edge among other organizations. It was Organizational Attractiveness and its factors will be defined in this study based from Berthon, Ewing and Hair (2005) five-factor model which includes: (1) Interest value, (2) Social value, (3) Economic value, (4) Application value and (5) Development value. The researcher aims to determine if Organizational Attractiveness factors are correlated with Employee Retention which is defined in this study as the employees’ years of stay and decision to leave or stay. It uses a purely quantitative design to measure the variables. Gathering a sample of 94 administrative employees from various departments in Philippine General Hospital, the respondents answered a questionnaire regarding their perception and prioritization of the factors of organizational attractiveness and their stay in the organization. The researcher conducted a survey using simple random sampling to ensure that various departments will be represented. The results showed that among the factors, Economic value is perceived by most as factor for attractiveness. Social value is most important for the representative of employees in PGH. The results also suggest that the perception and employee retention was found to be positive. The correlation between the importance of attractiveness to employees and their years of stay is also positive. The perception and prioritization of employees of the factors of attractiveness was found to have positive correlation with their retention. This means that the given factors of Organizational Attractiveness are perceived to be important in retaining the administrative employees of Philippine General Hospital.