Employee Retention in Growth-Oriented Entrepreneurial Firms: An Exploratory Study

Authors

  • Bruce H. Kemelgor University of Louisville
  • William R. Meek University of Louisville

Abstract

This study uses a sample of 47 high-growth small firms to examine the understudied topic of employee retention. We found that firms reporting very low annual voluntary turnover (0-2%) rates engaged in creating a positive work environment, provided employees more freedom and flexibility, offered ample employee involvement and opportunities for growth; were clear about the processes associated with compensation and benefits, and frequently communicated with and provided assistance to their employees. Firms reporting turnover higher than 10% for the past year described their retention practices in much diminished frequency and richness along these same dimensions. Given that these firms were all part of a pool of 77 high growth small companies (over $1 million annual revenue, less than 12 years old and compound annual growth greater than 15%), retention of intellectual capital would be a prime issue. Industry differences among the companies are explored and theoretical and practical implications are discussed.

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Published

2008-01-21

Issue

Vol. 19 No. 1 (2008)

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Articles

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Employee Retention in Growth-Oriented Entrepreneurial Firms: An Exploratory Study. (2008). Journal of Small Business Strategy (archive Only), 19(1), 55-68. https://libjournals.mtsu.edu/index.php/jsbs/article/view/98