Linkage Analysis: Employee Retention Example

This chart is an illustrative representation of a linkage analysis. It shows that intention to stay is strongly influenced by employee commitment, which in turn is influenced by communication, teamwork, growth and development opportunities, immediate management, and honesty/integrity. Each of these factors, in turn, is influenced by senior management.

Everything to the left of actual employee retention rates is a survey-based measure. (The relationship between these and other variables is unique to this organization, as measured in their survey). The result of such an analysis enable the organization to determine that an X percent improvement in commitment would lead to a Y percent increase in intention to stay, which in turn would lead to a Z percent increase in actual retention.

In addition, if other data can be provided, it is possible to use survey data as a leading indicator of key business outcomes. In this case, we were able to demonstrate the relationship between stated intent to stay and turnover, as well as to show the relationship between turnover and customer retention. Understanding these relationships guides decisions about