Multiple Regression Model for The Prediction of Employee Retention in The Construction Firms in Egypt.

Abstract

The construction industry has a high workforce turnover rate all over the world, which has a negative effect on productivity and performance of the construction firms as well as the economy of the countries. The Egyptian construction industry is one of the industries that suffer from the turnover problem in the recent decades. In this respect, this research attempts to predict employee retention based on HRM practices and organizational factors which affect employee retention. A questionnaire was conducted with engineers working in various disciplines in the construction firms and with HR departments to explore the impact of various practices and factors on employee retention. Based on a data set of 132 questionnaires, Multiple regression model is developed to detect the significant variables that will be utilized to predict employee retention. The results reveal that four variables: compensation and recognition, promotion and career development, training, and empowerment appeared as significant variables in the regression model. The Model was validated on random sample of the collected data and another case study and the calculated percentage errors in both datasets are within 10% indicating that the developed model achieved a good level of accuracy in predicting employee turnover.