High Performance Work Systems and Employee Turnover Intentions: Moderating Effect of Psychological Attachment

Abstract

In the world of business today, consolidating human resource policies and practices into High-Performance Work System has become crucial not only for employees and organisational success, but also for achieving competitive advantage. Accordingly, extant literature argues that high-performance work systems has a direct effect on individuals behaviour rather than been influenced by other variables. The aim of this paper is twofold. First, to examine the relationship between high-performance work systems and employee turnover intention. Second, to test the moderating effect of psychological attachment on high performance work systems and turnover intention. For the purpose of achieving the objectives of this study, the research adopted a cross-sectional and correlating survey design. A multi-staged sampling technique was used to sample two hundred and twenty-four (224) employees from the Ghanaian banking sector. Both correlation and regression analysis were used to test relationship and predictability of outcome variable by the predictor while Hayes PROCESS was used to test for moderation. Results revealed that there was a negative relationship between high-performance work systems and psychological attachment. It was also found that a negative relationship exist between high-performance work systems and employee turnover intention. Additionally, psychological attachment is found to moderate the relationship between high-performance work systems and turnover intention. It is however argued that employees will seek other opportunities elsewhere if human resource policies and practices does not lead to commitment or being psychologically attached to the organisation.