Employee Retention on Job Satisfaction

 

One of the primary dilemmas confronting modern employees is the retention of staff within their respective organizations. In an era marked by intense competition, every company endeavors to provide optimal amenities to its workforce. Effectively meeting the needs of human resources stands as a formidable challenge encountered by the majority of businesses today. Deciphering the complexities of human psychology proves to be exceedingly arduous. Additionally, the abundance of opportunities available to skilled and talented professionals makes it increasingly strenuous for employers to adequately satisfy and retain them. There exists no singular strategy or retention scheme capable of appeasing every employee within an organization. Just as individuals possess diverse personalities, they harbor distinct demands and expectations from their employers.

Numerous scholars, including Arnold and Feldman (1982), Wotruba and Tyagi (1991), and Brodie (1995), have conducted research indicating that factors such as age, job satisfaction, tenure, job image, met expectations, and organizational commitment consistently correlate with turnover intentions and actual turnover. Findings by Jewell and Segall (1990) and Locke (1976) have explicitly stated that individuals who experience job satisfaction tend to remain in their positions for longer durations, resulting in lower turnover rates and reduced absenteeism. Carsten and Spector (1987) conducted a meta-analysis to explore the relationship between job satisfaction and turnover, revealing a negative correlation between the two variables. Harrington et al. (2001) examined various predictors of job departure intentions, identifying emotional exhaustion, lower levels of intrinsic job satisfaction, and dissatisfaction with salary and promotional opportunities as primary predictors. Furthermore, Gurpreet Randhawa (2007) concluded in her research that there exists a significant correlation between job satisfaction and turnover intentions, suggesting that higher levels of job satisfaction correspond to lower intentions to leave a job.

Figure 1: The Employee Retention & Job Satisfaction Model

The model presented above clearly illustrates that factors influencing employee retention are directly linked to job satisfaction. When these factors are present within an organization, the inclination to leave one's job or switch to another diminishes. Therefore, job satisfaction and employee turnover consistently exhibit a negative correlation. The model indicates that the presence of the aforementioned factors not only aids in attracting new employees to the organization but also contributes to retaining existing ones. Studies by Lee and Mowday (1987) and Tett and Meyer (1993) have similarly concluded that high levels of job satisfaction result in lower turnover rates, whereas low satisfaction corresponds to higher turnover.

Conclusion

Understanding human resources is a complex endeavor fraught with challenges. They represent assets capable of either fortifying or undermining an organization. Retaining them not only fosters the long-term growth of a company but also enhances its reputation. However, the foremost difficulty confronting organizations today is retaining and satisfying these valuable resources. Despite the concerted efforts of research papers to illuminate various studies and contributions by scholars in the realms of employee retention and job satisfaction, ample room for further exploration remains. This exploration should encompass factors such as compensation practices, leadership and supervision, career planning and development, alternative work schedules, working conditions, and flexible hours. Undoubtedly, such endeavors should be spearheaded by HR professionals.

References

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Das, B.L., Baruah, M. (2013) Employee Retention: A Review of Literature. Journal of Business and Management. Available from: https://www.researchgate.net/publication/272984584_Employee_Retention_A_Review_of_Literature [Accessed on : 5 April 2024].

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Carsten, J. M., and Spector, P. E. (1987) Unemployment, Job Satisfaction, and Employee Turnover: A Meta-Analytic Test of the Muchinsky Model. Journal of Applied Psychology. Vol. 72, pp. 374-381.

Harrington, D., Bean, N., Pintello, D., and Mathews, D.(2001) Job Satisfaction and Burnout: Predictors of Intentions to Leave a Job in a Military Setting. Administration in Social Work. Vol. 25, No.3, pp. 1-16.

Jewell, L. N., and Segall, M. (1990) Contemporary Industrial/Organizational Psychology, West Publishing Company, St. Paul.

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Locke, E.A.,(1976) The Nature and Cause of Job Satisfaction, In M. Dunnette(Ed.), Handbook of Industrial and Organizational Psychology(Rand McNally, Chicago) 1976. p.1300.

Randhawa, G. (2007) Relationship between Job Satisfaction and Turnover Intentions : An Empirical Analysis. Indian Management Studies Journal 11.

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Wotruba, T. R., and Tyagi, P. K. (1991) Met Expectations and Turnover in Direct Selling. Journal of Marketing. Vol. 55, pp. 2425.

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