The highest result of the labor turnover rate, 7.05 per cent was experienced by the company in 2001; in 2002 turnover rate was the second largest – reaching almost 3.85 per cent; whereas in 1999, the turnover rate reached almost 3.57 per cent. In contrast, labor turnover rate was the smallest in 2000 and 2003, whereas years 2004 and 2005 exhibit similar results of about 1.46 and 1.4 per cent, respectively.
When it comes to accession rate, it was the highest during 1999, which can be attributed to overall company growth. While the pick of employee turnover was in 2001, an increase in accession rate followed to make up for the employees that left company. Accession rate reached 18.13 percent in 2002. The lowest accession rate was in 2003 – only 2.15 per cent. During 2000, 2001, and 2004, results exhibit relatively similar accession rates patterns – 9.15, 8.97, and 11.17 per cent, respectively.
The average correlation between employee job level and longevity of employment is -0.54, as expected. As the data employed had 1 as the highest job level, an increase is the job level of an employee results in a higher possibility of a drop out. As such, employee empowerment and labor turnover are negatively related. At the same time, data exhibits significant differences across the five sub periods. Within years 2000 and up until 2004, the relationship between job level and labor turnover is the opposite of the general trends and correlation between 2003- 2005. The reason for this can be attributed to re-organization of the company within 2000 and 2004 with a change in top management.
The employee compensation and time employed are positively correlated, or, in other words, lower salary results in higher turnover rates. The average correlation for the period covered in the study is 0.11 with the highest being within 2001 to 2003, 0.17. The lowest correlation, as evident from the data covered, was within 2002 and up until 2004. The reason for this can be attributed to a change in human relations practices of the company.
Interestingly, the general tendency for the correlation is to increase from sup period to sub period, with the lowest rate being within 1999 and 2001 and the highest between 2003 and 2005. Close relationship between the two factors reveals that company management places high emphasis on employee compensation, as the job level and employee compensation are negatively related. The relationship results from the labor shortage and a narrowing market for skilled labor with a distinct need to attract employees with higher compensation rates. The increasing degree of correlation also proves that Ping An Insurance (Group) Company employs both distinctly Chinese human resource strategies that are typical for privately owned companies alongside with the Western practices such as employee empowerment.
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