Factors Affecting Attrition: An Empirical Study Concerning Business School Faculty in the Hyderabad Metro

The authors investigated the impact of work-related factors such as employee performance, job satisfaction, training, work-life balance and salary on employee attrition concerning business school faculty employees. The data were collected via a structured questionnaire to measure six reflective constructs: employee performance, job satisfaction, training, salary hikes, work‒life balance and attrition. The data were gathered using convenience sampling to reach the target population. Five hundred valid responses were analyzed via exploratory factor analysis, confirmatory factor analysis, and structural equation modeling analysis. The factor analysis distributed 27 variables into 6 components. The structural equation modeling results indicate that the measurements were excellent, as revealed by the modification indices, and that the model fit was excellent. The structural equation modeling analysis results indicate that there is a statistically significant relationship between work-related dimensions and attrition. Furthermore, the impacts of employee performance (ß=0.399, t=10.708, p<0.001), job satisfaction (ß=0.132, t=3.219, p<0.001), training (ß=0.226 t=7550, p<0.001), work‒life balance (ß=0.136, t=4.689, p<0.001), and salary (ß=0.126, t=5.126, p<0.001) were statistically significant (p<0.001) and influenced employee attrition. The results of gender parity indicate a statistically significant group difference among the male and female employee attrition rates. The results have several theoretical and practical implications for the management of business schools. The study suggests that organizations should focus on employee training satisfaction, performance appraisals, salary hikes, work‒life balance, job satisfaction, and employee commitment to maintain healthy attrition. The authors suggest considering all the employee-related factors to mitigate attrition issues.