Do employees high in general human capital tend to have higher turnover intention? The moderating role of high-performance HR practices and P-O fit

Abstract

Purpose– The purpose of this paper is to examine how high-performance HR practices and person-organization fit (P-O fit) affect general human capital and turnover intention. The author introduce and test a multilevel model to measure the relationship.Design/methodology/approach– A longitudinal research study was conducted using survey data collected from 456 engineers and their immediate supervisors in 31 Taiwanese high-technology companies.Findings– The findings show: first, general human capital can positively predict turnover intention. Second, the P-O fit moderates the positive relationship between general human capital and turnover intention since the stronger the P-O fit, the weaker this relationship. Third, the P-O fit can negatively predict turnover intention. Fourth, high-performance HR practices are positively related to general human capital and weaken the relationship between general human capital and turnover intention.Practical implications– Companies should ensure employees are a good match with their organizations to reduce the negative impact of the loss of talented employees on the organization. In addition, organizations should build HR systems that attract and retain outstanding employees.Originality/value– This study integrates a strategic perspective and a person-environment fit perspective to understand the impact of general human capital on individual leaving attitudes. This paper contributes to the literature because, to the author’s knowledge, it is the first study to examine the effects of high-performance HR practices and P-O fit on talented employee retention.