An Analysis of Major Factors Affecting Labor Turnover in the Apparel Industry in Sri Lanka: Policy Alternations for Solving the Problem

Abstract

The objective of this study is to investigate and analyze factors, which affect the labor turnover in the apparel industry in Sri Lanka and policy alternations for solving the problem. Population of this study is employees who are currently working in the apparel industry in Sri Lanka. Data was collecting through the questionnaire. The Cronbach's α value of the variables are in the range of 0.75 to 0.93. To test the hypotheses the structural equation modeling approach (SEM) was applied. According to the literature review thirteen research hypotheses were formulated and out of these nine hypotheses were accepted. Given the findings, employees’ turnover in the apparel industry is determined by living and social condition, personal characteristics and HRM activities. Among these three variables HRM activities has highest effect on turnover. The impact is moderating with job satisfaction and absenteeism. Hence, apparel industry should heavily focus on the HRM activities. This study suggests that the policy makers of this country should improve the existing laws and regulations regarding basic human rights, Recruitment and selection procedure, career planning and development, motivation, early socialization, labor administration, retirement benefits, and welfare of workers and legislation