Job Satisfaction And Employee Turnover Intention: What .
Job Satisfaction and Employee Turnover Intention:What does Organizational Culture Have To Do With It?Elizabeth MedinaColumbia UniversityMasters of ArtsFall 2012Page 1
Table of ContentsAbstract . 3Introduction . 4Literature Review. 5Job Satisfaction and Turnover Intention . 5Job Satisfaction and Culture . 6Job Satisfaction, Culture and Turnover Intention . 9Summary . 10Data . 11Sample and Data Collection. 11Descriptive Statistics . 12Methodology and Results . 17Initial Model. 17Results: Model 1 . 18Results: Model 2 . 19Results: Model 3 . 23Results: Model 4 . 24Final Model . 26Results: Model 5 . 26Discussion . 27Conclusion . 30Works Cited . 33Appendix . 36Page 2
AbstractThis study explores the relationship between job satisfaction and employee turnover intention inthe context of organizational culture, using data from the Quality of Work Life (QWL) module, asub-section of the General Social Survey (GSS). Job satisfaction, the independent variable,assesses overall job satisfaction, while the dependent variable, turnover intention, measuresintent to find a new job, with another employer, within the next year. While organizationalculture varies by industry, employer and even by department, it is important in all workingenvironments. Organizational culture influences employee’s job satisfaction, and in priorstudies, high job satisfaction has been associated with better job performance. High performingcultures have also been shown to produce excellent results, attract, motivate, and retain talentedemployees, and adapt readily to change. Job satisfaction is inversely related to turnover intentionand low turnover has been shown to increase organizational productivity and performance. Thisstudy finds that job satisfaction is inversely associated with turnover intention and thatorganizational culture moderates the magnitude of this relationship. Sub-group analyses revealthat job satisfaction is more predictive of turnover intention for younger workers. These findingshave significant implications for the changing composition of workforce due to the agingpopulation.Page 3
IntroductionFor the past few decades, employee retention has been of interest to researchers andemployers in various fields. To remain competitive in the rapidly expanding global economyand to keep pace with technological advances requires a workforce with robust institutionalknowledge; therefore, employee retention is of great importance to business and academiccommunities (Benko & Weisberg, 2007; Becker, 2007; The Future of Work 2020, 2007). Priorresearch has shown that job satisfaction is strongly and inversely associated with employee’sintention to leave an organization (Egan, Yang & Bartlett, 2004; Lambert, Hogan & Barton,2001; MacIntosh & Doherty, 2010; Schwepker, 2001; Silverthorne, 2004). In other words, moresatisfied employees are less likely to seek a new job, with a new employer. For this reason,studying the factors associated with job satisfaction is practical and valuable.Two generalcategories are believed to influence employee job satisfaction: demographic characteristics andorganizational culture. Demographic characteristics include age, gender, education, income, andtenure of employment. Organizational culture is difficult to define succinctly, but it is generallydescribed as the shared thoughts, feelings and behaviors of a group (Christensen, 1999; Schein,1990; Schein, 1996; Sheridan, 1992; Sims, 2002). Research in a variety of settings suggests thatorganizational culture has a meaningful influence on job satisfaction and, in turn, employeeturnover intention.The purpose of this study is to explore the relationship between job satisfaction andemployee turnover intention in the context of organizational culture. More specifically, thefollowing research questions guided this study: Does increased job satisfaction predict decreased employee turnover intention?Page 4
o Do demographic characteristics, such as, age, influence the relationshipbetween job satisfaction and turnover intention? Does the level of satisfaction with organizational culture moderate the relationshipbetween job satisfaction and employee turnover intention?o Does increased satisfaction with organizational culture decrease employeeturnover intention?While most studies exploring the relationship between job satisfaction and turnover intentionhave examined employees in a single or handful of occupations, few have explored thisrelationship across a variety of industries and occupations. This analysis contributes to theliterature by examining the relationship between job satisfaction and employee turnover intentionon a nationally representative sample of adult workers, over a time-span of eight years.Additionally, this study explores how satisfaction with organizational culture influences jobsatisfaction, and its subsequent impact on employee turnover intention.Literature ReviewJob Satisfaction and Turnover IntentionResearchers have developed a variety of conceptual frameworks to model the turnoverprocess. As noted by Lambert et al. (2001), scholars speculate that employee turnover can bepredicted using comprehensive measures of job satisfaction; otherwise stated, high jobsatisfaction is associated with low employee turnover.Moreover, research shows that therelationship between job satisfaction and actual employee turnover is moderated by intentions.Schwepker (2001) noted that positive and statistically significant relationships have beenreported in dozens of studies exploring leaving intentions and actual leaving behavior. In otherwords, intention to leave a job is an immediate precursor to actually leaving. For this reason,Page 5
turnover intention has been incorporated into most employee turnover models in the publishedliterature. Turnover intention is defined as an employee’s intent to find a new job with anotheremployer within the next year. Generally, it is accepted that job satisfaction and employeeturnover intention are inversely related.The established, inverse relationship between job satisfaction and employee turnoverintention is very important to research in organizational behavior. One of the main goals ofturnover research is to measure actual employee turnover, however, employee turnover data isoften inaccessible to researchers. Frequently, this data is unavailable because it is not accuratelyor consistently collected. Thus, researchers must rely employee turnover intention as a proxy foractual employee turnover. After all, stated Lambert et al. (2001), measuring turnover intention isthe next best method, because it is the variable that consistently and immediately precedes actualemployee turnover. Throughout this paper, employee turnover and turnover intention will beused interchangeably.Job Satisfaction and CultureNow that the relationship between job satisfaction and turnover intention has beendiscussed, the relationship between job satisfaction and organizational culture will be explored.The conceptual model presented herein proposes that satisfaction with organizational culturemoderates the relationship between job satisfaction and employee turnover intention (see Figure1). In other words, if there are two employees with equal job satisfaction but one employee hashigh workplace cultural satisfaction and the other has low workplace cultural satisfaction, thenthe employee with high workplace cultural satisfaction will have lower turnover intention. Sinceno strong consensus has been formed on a definition of job satisfaction or organizational culture,these concepts are first defined and discussed.Page 6
Job satisfaction has been defined as “an employee’s affective reactions to a job based oncomparing desired outcomes with actual outcomes (Egan et al., 2004, Pg. 5).” To an extent,employee job satisfaction is a reflection of how well an employee’s expectations of a job arealigned with the reality of their work (Lund, 2003). Employees assess job satisfaction based onintrinsic job elements, such as feelings of purpose at work, and extrinsic job elements, such ascompensation. The level of employee job satisfaction reflects the cumulative level of fulfilled jobexpectations. That is, employees expect their job to provide a mix of these elements, for whicheach employee has distinct preferential values (Egan et al., 2004). While the range andimportance of these preferences vary across employees, when the accumulation of unsatisfiedexpectations reaches a critical threshold there is less job satisfaction and greater possibility ofdissatisfied employees, which results in greater employee turnover.Organizational culture has been identified as an important aspect of organizationalbehavior and it is useful in elucidating how organizations function (Silverthorne, 2004). Thereexists a consensus regarding the existence of "culture" in every organization, although, theconcept of culture connotes a certain degree of imprecision and it is difficult to find a measure ofagreement (Schrodt, 2002; Schein, 1990). Organizational psychologist, Edgar Schein (1996),suggested: “A culture is a set of basic tacit assumptions about how the world is and ought to bethat a group of people share and that determines their perceptions, thoughts, feelings, and tosome degree, their overt behavior (Pg. 3).” Organizational culture is the values, beliefs andprinciples underpinning an organization’s management structure, as well as the customs andconduct that represent and reinforce those basic principles (Adkins & Caldwell, 2004; Lee & Yu,2004). Culture is represented through an organization’s internal and external correspondence,strategy and decision-making, and daily work practices. The content of a company newsletter,Page 7
participation in employer sponsored events, and interaction of employees in meetings and e-mailexchanges all represent and create the culture of a workplace. In short, workplace culture is theestablished norms of behavior and shared ideals within an organization.Culture is based on perceptions and feelings, rather than facts, making it different fromother organizational processes. The complex, and somewhat intangible nature of organizationalculture makes is difficult to operationalize; however, it is a powerful and pervasive force in allorganizations (Deery & Shaw, 1999; Silverthorne, 2004). Scholars of organizational behaviorhave studied organizational culture with many different definitions and paradigms and have yetto find a unanimous measure of agreement.In the model proposed herein, culture isoperationally defined by: respectful treatment at work, trust in management, productivity atwork, smooth working environment and pride in employer. It is posited that the strength of therelationship between job satisfaction and turnover intention is dependent of the level of culturalsatisfaction in the workplace.1Employees are likely to assess elements of job satisfaction, especially intrinsic elements,more precisely when the workplace culture is harmonious and supportive. In this way, thecomponents of culture, such as respectful treatment at work, are viewed by some researchers asantecedents to job satisfaction (Johnson & McIntye, 1998; Knudsen, Johnson & Roman 2003;Lund, 2003). A study by MacIntosh and Doherty (2010) showed that job satisfaction stronglyand inversely influenced intention to leave the organization for employees in the fitness industry;furthermore, the authors found that that, of the dimensions shown to impact job satisfaction,atmosphere appeared to be most meaningful.A positive and friendly workplace was animportant indicator of job satisfaction in the study.Similarly, Schwepker (2001) found a1Satisfaction with workplace culture is similar to the definition of job satisfaction presented earlier, in that,workplace cultural satisfaction is a reflection of how well an employee’s expectations of workplace culture arealigned with the reality of the office culture.Page 8
positive relationship between professionalism in the workplace and job satisfaction. In hisresearch, Schwepker (2001) also noted that statistically significant, negative relationships havebeen found between turnover intention and climates that are innovative, as well as pleasant. Inresearching various types of organizational cultures, Silverthorne (2004) found that,“involvement in an organization that had a bureaucratic organizational culture resulted in thelowest levels of job satisfaction and organizational commitment,” relative to innovative culturesand supportive cultures. It is easy to imagine that a workplace with a culture of respect,harmony, trust, pride and productivity, lends itself to an environment hospitable to jobsatisfaction.Job Satisfaction, Culture and Turnover IntentionIn the United States there are a variety of industries, employers and jobs, andorganizational culture varies across all of them. Culture is important in all organizations becausehigh performing cultures produce consistently excellent results, attract, motivate, and retaintalented employees, and adapt readily to change. Often, a company will find that severalcandidates are at least minimally qualified for a position that they desire to fill. When faced withcomparably qualified candidates, the team will generally choose the single candidate who is the“best fit” for the position and team. Silverthorne (2004) found that the better the fit an employeeis within the organization, the higher the job satisfaction, the higher the organizationalcommitment and the lower the turnover rate. While cultural “fit” may vary across employers andeven within departments, culture is important in all working environments.Due to the practical implications and potential to impact worker productivity, researchersin a variety of disciplines have explored the relationship between job satisfaction, turnoverintention and productivity. Organizational scholars have shown that job satisfaction is positivelyPage 9
associated with worker productivity and negatively associated with employee turnover (Egan etal., 2004; Silverthorne, 2004). In other words, greater job satisfaction is associated with greaterproductivity, so more satisfied employees ought to be more productive, relative to lesser-satisfiedemployees (Silverthorne, 2004). These findings are aligned with research showing that jobsatisfaction is positively related to employee engagement.Research has shown that moresatisfied employees are more engaged in their work, while less satisfied employees are lessengaged. Lower levels of engagement are associated with employee withdrawal, particularly interms of voluntary turnover (Lambert et al., 2001). Therefore, it is accepted that job satisfactionand employee turnover intention are inversely related. For practical and performance reasons, itis essential that organizations identify specific factors associated with employees’ jobsatisfaction, especially in competitive, fast-paced environments (Benko & Weisberg, 2007;Becker, 2007).As Egan et al. (2004) noted, decreases in turnover led to increases in organizationalperformance and a reduction in costs associated with losses of firm and job-specific knowledge,hiring, and retraining of replacement employees. Furthermore, turnover is associated with manyindirect costs such as lower new employee productivity, additional time needed by managers insupport of new employees, and diminished productivity of established employees as they serveas mentors to new employees.Similarly, Silverthorne (2004) noted that, “turnover causessignificant expense to an organization,” including direct costs of replacing an employee andindirect cost related to loss of experience and lowered productivity. These costs have importantimplications for an organization, noted Silverthorne, and anything that can be done to reduceturnover will lead to significant benefits to an organization.Page 10
SummaryOrganizational culture has been identified as an important aspect of organizationalbehavior and as a concept that is useful in helping to understand how organizations function(Silverthorne, 2004).Culture permeates every aspect of an organization, therefore,understanding an organizations’ culture is only fully appreciated when explored from multipleangles (Schrodt, 2002). Scholars of organizational behavior have studied organizational culturewith many different definitions and paradigms, and from a variety of employee related variables.Organizational culture has been explored as it relates to job satisfaction, organizationalcommitment, productivity, and turnover intention (Lund, 2003; Sims, 2002). The purpose of thispaper is to contribute to the literature by exploring organizational culture in the context of jobsatisfaction and employee turnover intention.DataSample and Data CollectionThe data used herein are from the General Social Survey (GSS), a sociological surveyused to collect data on demographic characteristics and attitudes of residents of the UnitedStates. The GSS is a biannual, nationally representative survey of non-institutionalized adults,aged 18 and older. The survey is conducted by the National Opinion Research Center by phoneor in person. The Quality of Work Life (QWL) module, a special interest section in the GSS,assesses the quality of work life and work experience, as well as, organizational issues andcharacteristics of Americans. The QWL was
employee job satisfaction is a reflection of how well an employee’s expectations of a job are aligned with the reality of their work (Lund, 2003). Employees assess job satisfaction based on intrinsic job elements, such as feelings of purpose at work, and extrinsic job elements, such as compensation.
impact of working environment on employee job satisfaction. 1.1. Job Satisfaction According to Vroom (1964) Job satisfaction is an orientation of emotions that employees possess towards role they are performing at the work place. Job Satisfaction is the essential component for empl
theories of job satisfaction, organizational commitment, and turnover intention have been paired together in research from various academic and professional fields, revealing insights into K-12 online teachers’ satisfaction and commitment to the profession. Theory of Job Satisfaction
the turnover issues before they become a critical matter. Extensive studies have shown that the Mobley model (1977) which determined and explained how job dissatisfaction can lead to job turnover, yields seven consecutive stages between Job dissatisfaction and turnover rate (Lee, 1988). Mobley believed that job
actual turnover (the behavior) (Rizwan et al., 2013). The other reason for using turnover intention is that it is an attitude that can be assessed in the present time and in combination with other factors that are causing the turnover intention, which results in gaining a more accurate understanding of the causes of turnover (Perryer et al, 2010).
2012). According to Tett & Meyer (1993) Turnover intention has been described as the last in a sequence of withdrawal cognitions, a set of cognitions including thinking of quitting and the intent to search for alternative employment. The turnover intension is the main source of employee turnover. The cost of turnover to organizations can be high.
Assessment of the impact of those factors on the employee performance. 3. Assessment of the impact of those factors on employee retention. 4. Finding out the possible problems regarding employee turnover and minimizing the problems associated with employee turnover and retention. In this survey we aimed to find out the plausible reason for .
Employee Satisfaction Survey (ESS). Research Hypothesis It is hypothesized that factors of group cohesion will be associated with job satisfaction. Job satisfaction is important for organizations to address due to its impact on absenteeism, (1) turnover, (2) and pro-social "citizenship" behaviors such as helping
The level of management responsible for developing strategic goals is: A. line B. supervisor C. functional D. senior . D. other organisations that do business with the 14 Where a stakeholder is identified as having high interest and low power, an organisation should: keep them satisfied monitor their interests and power C. manage them closely keep them informed 15. Highfield Aeet 12 .
