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Influence of Dispute Resolution on Employee Retention

Business Strategy and Innovation for Competitive Advantage

12/23/2018

Topic: Influence of Dispute Resolution on Employee Retention

Between 2013 and 2018, lack of appropriate dispute resolution mechanisms has led a remarkable increase in turnover rate among the US firms (James, 2016). Presbitero, Roxas, & Chadee (2016) notes that during the period in question, the rate of turnover has increased from 15% to 22%. While only 4.5% of the employees left as a result of retirement, 63.6% were compelled to resign. An additional 31.8 percent were dismissed. Presbitero et al. (2016) suggests that most of the 95% of the employees who were either fired or chose to resign might have been retained if managers facilitated amicable dispute resolution. The general business problem is that managers do not fully appreciate the importance of resolving work-related disputes. The specific business problem is that a predictive model which would facilitate the understanding of the relationship between dispute resolution and employee retention is lacking.

References

James, A.R. (2016). Because arbitration can be beneficial, it should never have to be mandatory: Making a case against compelled arbitration based upon pre-dispute agreements to arbitrate in consumer and employee adhesion contracts. Loyola Law Review, 62(2), 531–576

Presbitero, A., Roxas, B., & Chadee, D. (2016). Looking beyond HRM practices in enhancing employee retention in BPOs: focus on employee–organization value fit. International Journal of Human Resource Management, 27(6), 635–652. https://doi.org/10.1080/09585192.2015.1035306