The influence of supervisory‐support climate and unemployment rate on part‐time employee retention : A multilevel analysis

Purpose – Using “districts” nested within “regions”, this multi‐level analysis research aims to examine whether a climate of supervisory‐support at a “district”‐level (as measured by perceived supervisor support (PSS)), and “region”‐level unemployment rates were related to “district”‐level retention rates of blue‐collar part‐time employees (PTEs). Design/methodology/approach – Blue‐collar PTE retention rates (from company records) and PSS levels (from a company‐wide survey) of a large global service provider were gathered. “Regional” unemployment rates were collected via publicly‐accessible government statistics. Findings – The study finds that PSS levels of blue‐collar PTEs were related to retention rates. Additionally, through the nested relationship of the study, the “region”‐level unemployment rate was also related to PTE retention levels. Research limitation/implications – Limitations of the study included generalization to other companies, inability to collect demographic data, sample size and sampling issues, and concerns about the measurement of retention. Practical implications – This study revealed that supervisory‐support climate was important in PTE retention. This paper gives mechanisms that managers can use to improve PSS levels of employees. Additionally, since organizations exist in environments, results show that the external environment may affect organizational outcomes, no matter what occurs internally in the organization. Originality/value – This study is unique since it focused specifically on blue‐collar PTEs, a much‐needed group of people to research. The paper gave ways for managers to enhance their relationship with PTEs, thereby having special value for managers and those who study managerial development. Additionally, the study gave evidence that organizations exist in environments, and factors outside the organization may affect retention within organizations.