WHAT DO ESG REPORTS CAN SAY ABOUT STAFF TURNOVER?

Abstract

The interrelation between employees’ satisfaction with work and company’s staff turnover rate has aroused discussions since last century. Nonetheless, plenty of works in this field are based on surveys conducted among staff. However, it is even more interesting whether official reports of companies might give us useful information about factors which affect staff turnover. This research aimed to estimate which factors represented in ESG-reports of different companies have the highest correlation with employees’ turnover rate and, thus, might be predictive metrics for CEOs to forecast potential staff turnover rates. The results of the study demonstrate that indicators from official ESG-documents have very low correlation with published turnover rates, thus, it is hard to measure turnover rates in the future based on the given data. Nonetheless, based on the results of this study, employees Net Promoter Score (eNPS) has the strongest connection with turnover rates, thus, subjective metrics measuring satisfaction of employees with their occupation might give more information about possible turnover intention than objective ones such as salary gap, injury rate and average training hours. Such a result might be interpreted in the following way: subjective feeling of satisfaction plays primary role in the question of occupation change in most of the cases.

Keywords: injury rate, employees Net Promoter Score, ESG-reports, salary gap, training programs, turnover rate, wellbeing

References

• Van Praag B. M. S., Frijters P., Ferrer-i-Carbonell A. The Anatomy of Subjective Well-Being // Journal of economic behavior & organization. 2003. Vol. 51(1). Pp.29-49. DOI: 10.1016/S0167-2681(02)00140-3
• Alatartseva E., Barysheva G. Well-Being: Subjective and Objective Aspects // Procedia - Social and Behavioral Sciences. 2015. Vol. 166. Pp. 36-42. DOI: 10.1016/j.sbspro.2014.12.479
• Kislitsyna O.A. Measurement of the Quality of Life/Well-Being: International Experience. : Institute of Economics of the Russian Academy of Sciences, 2016. 62 р. (In Russ.).
• Voukelatou V., Gabrielli L., Miliou I., Cresci S., Sharma R., Tesconi M., Pappalardo L. Measuring Objective and Subjective Well-Being: Dimensions and Data Sources // International Journal of Data Science and Analytics. 2021. Vol. 11(4). Pp. 279-309. DOI: 10.1007/s41060-020-00224-2
• Diener E., Ryan K. Subjective Well-Being: A General Overview // South African Journal of Psychology. 2009. Vol. 39(4). Pp. 391-406. DOI: 10.1177/008124630903900402
• Wright T.A., Bonett D.G. Job Satisfaction and Psychological Well-Being as Nonadditive Predictors of Workplace Turnover // Journal of Management. 2007. Vol.33(2). Pp. 141-160. DOI: 1177/0149206306297582
• Courtney M., Whelan A., Majoor J., Ibrahim J.E., Day G.E. Work Design in Health Care. In book: Managing Health Services - Concepts and Practice. Publisher: Mosby Elsevier, 2006. Pp. 243-269.
• Scanlan J.N., Still M. Relationships Between Burnout, Turnover Intention, Job Satisfaction, Job Demands and Job Resources for Mental Health Personnel in an Australian Mental Health Service // BMC Health Services Research. 2019. Vol. 19(1). Pp. 1-11. DOI:1186/s12913-018-3841-z
• Sovold L.E., Naslund J.A., Kousoulis A.A., Saxena S., Qoronfleh M.W., Grobler C., Munter L. Prioritizing the Mental Health and Well-Being of Healthcare Workers: an Urgent Global Public Health Priority // Frontiers in Public Health. 2021. Vol. 9. Pp. 1-12. DOI: 10.3389/fpubh.2021.679397
• Tabur A., Elkefi S., Asan O., Emhan A. Anxiety, Burnout and Depression, Psychological Well-Being as Predictor of Healthcare Professionals’ Turnover during the COVID-19 Pandemic: Study in a Pandemic Hospital // Healthcare. 2022. Vol. 10(525). Pp. 1-12. DOI: 10.3390/healthcare10030525
• Norful A.A., Cato K., Chang B.P., Amberson T., Castner J. Emergency Nursing Workforce, Burnout, and Job Turnover in the United States: a National Sample Survey Analysis // Journal of Emergency Nursing. 2023. Vol.49(4). Pp. 574-585. DOI: 10.1016/j.jen.2022.12.014
• Zhang Q., Churchill S.A. Income inequality and Subjective Wellbeing: Panel Data Evidence from China // China Economic Review. 2020. Vol. 60. Pp. 1-10. DOI: 10.1016/j.chieco.2019.101392
• D’Ambrosio C., Jäntti M., Lepinteur A. Money and Happiness: Income, Wealth and Subjective Well-Being // Social Indicators Research. 2020. Vol. 148(1). Pp. 47-66. DOI: 10.1007/s11205-019-02186-w
• Sedlak P. Employee Net Promoter Score (eNPS) as a Single-item Measure of Employee Work Satisfaction. An empirical Evidence from Companies Operating in Poland // Wydawnictwo Uniwersytetu Łódzkiego eBooks. 2020. Pp. 347-357. DOI: 10.18778/8220-333-2.21
• Munasinghe S., Sperandei S., Freebairn L., Conroy E., Jani H., Marjanovic S., Page A. The Impact of Physical Distancing Policies during the COVID-19 Pandemic on Health and Well-Being among Australian Adolescents // Journal of Adolescent Health. 2019. Vol. 67(5). Pp.653-661. DOI: 10.1016/j.jadohealth.2020.08.008
• Alshawabkeh R. The impact of Employee Training Methods on Employee Wellbeing: the Mediating Effect of Employee Training Satisfaction and the Moderating Role of Employee Age // Test Engineering and Management. 2020. Vol. 83. Pp. 6452-6467.
• Boxall P., Macky K. High-involvement Work Processes, Work Intensification and Employee Well-Being // Work, Employment and Society. 2014. Vol. 28(6). Pp.963-984. DOI: 10.1177/0950017013512714
• Ahn Ji-Y., Huang S. Types of Employee Training, Organizational Identification, and Turnover Intention: Evidence from Korean Employees // Problems and Perspectives in Management. 2020. Vol. 18(4). Pp. 517-526. DOI: 10.21511/ppm.18(4).2020.41

About the Authors

Natalia A. Vukovich – Cand. Sci. (Economics), Docent; Associate Professor, HSE University, Moscow, Russia. E-mail: nvukovich@hse.ru. SPIN РИНЦ 8033-1010. ORCID 0000-0002-4593-2835. ResearcherID M-9931-2016. Scopus Author ID 57110136500

Rodion S. Sidorenko – Bachelor, HSE University, Moscow, Russia. E-mail: rsidorenko@hse.edu.ru. ORCID 0009-0002-8575-1446

For citation: Vukovich N.A., Sidorenko R.S. What do ESG Reports Can Say about Staff Turnover? // Beneficium. 2024. Vol. 2(51). Pp. 128-135. DOI: 10.34680/BENEFICIUM.2024.2(51).128-135