Abstract
Measures taken to improve productivity are likely to involve an increased investment in human capital—that is, in the development of the skills, knowledge and experience of the employee. Personnel turnover can represent a loss on this investment and, in the case of some highly skilled employees, turnover can even jeopardize the functioning of the organization. The Aus tralian Army is examined as a case-study of turnover trends because it is an organization that is not able to replace personnel easily due to the unique nature of their military knowledge and experience, and can suffer a loss of capability if the turnover of skilled personnel is too high. Turnover in the Army was found to be related to the unemployment rate and salary level. These associations are consistent with other research, but still of significance since the Army culture with its emphasis on intrinsic motivation was expected to lead to a different pattern of turnover behaviour. The result has implications for human resource policy regarding employee skill development and the retention of skilled employees.
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