Job embeddedness and the importance of retaining small firm employees
Faculty of Business and Law
School of Business / Centre for Innovative Practice
Small firms identify retention of staff as a significant problem. Voluntary turnover of talented staff can be costly, especially in small firms where there are few slack resources. However, there is scant research on retention in small firms . We use the concept of Job Embeddedness to understand why small firm employees stay. The concept t refers to the totality of forces that embed employees in their jobs and it consists of three dimensions: fit, links, and sacrifice. Seven propositions are outlined comparing the ways fit, links and sacrifice might play out for small and large firm employees. Through testing these propositions small firm owner-managers may have a better understanding of what can be done to retain employees and maintain firm performance.