Influence of job satisfaction on employee turnover

This report discusses the impact of job satisfaction on employee turnover. It defines job satisfaction and employee turnover, and explores the factors that contribute to employee turnover. The report also examines the different impacts of job satisfaction on employee turnover, as found in existing research.

Running Head: ASSIGNMENT ON JOB ISSUES 0
Influence of job satisfaction on employee turnover
STUDENT

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Contents
Introduction...........................................................................................................................................1
Section A...............................................................................................................................................1
Introduction of employee turnover....................................................................................................1
Section B................................................................................................................................................3
Introduction of Job satisfaction..........................................................................................................3
Section C...............................................................................................................................................4
Impacts of Job satisfaction on employee turnover............................................................................4
Section D...............................................................................................................................................7
Conclusion.........................................................................................................................................7
References.............................................................................................................................................9

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Introduction
Job satisfaction is described as the sense of accomplishment or the feeling of contentment,
which the employees derive from their job. This may help one to determine that at what
extent the employee like his or her job. The attitude of employees toward their jobs and the
employer become positive when they find that they are getting good facilities and achieving
their values and needs. In other words, it is the measure of employee's contentedness with his
or her job whether they like their job or not which can be measured by effective, cognitive
and behavioural components. It directly linked to the employee's turnover. Employees
turnover can be defined as the measurement of the number or the percentage of worker leave
the company and replaced with new workers. The turnover or labour turnover can be
understood as the rate at with the employer gains and lose their employees. Employee
turnover may help the employee to evaluate the main reason for leaving the job and cost to
the process of hiring. In this reporting job, satisfaction and employee turnover will be
explained in detail. How job satisfaction can impact employee turnover will also be discussed
in this particular report.
Section A
Introduction to employee turnover
Employee turnover is the term which is basically a measurement of how long the employee
stayed in an organization and how often the employer replaces them. When the employees
leave the organization for any reason they are known as turnover or the separation. This can
be calculated by dividing the separations by total workers.
Formula:

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Employee turnover = no. of separations/ average no. of workers
For example it an organization lost 6 staffers in last year out of 92, the annual employee
would be:
ET= 6/92
= 0.06521and 6.52 % annual turnover
There are two different types of turnover: one is voluntary and another is involuntary
turnover. A voluntary turnover is described as any instance in which the employees actively
decided to leave the company. This may occur due to the better job opportunities somewhere
else, any conflicts with colleagues or higher authority in the workplace, and disengagement.
Involuntary turnover is when the employer decided to terminate an employee, because of
negative or bad behaviours, and poor performance. Reasons for employee turnover are
approached differently by different scholars in the literature. According to Raza, Khan, and
Mujtaba (2018), all type of organization are prone to change, however, it can result in
dysfunctional employee turnover. They also found that the intention of the workers or
employees to leave their job is directly related to the human process & human resources, and
techno structural and strategic interventions. Hogh, Hoel and Carneiro (2016) reported
bullying as the reason for employee turnover in various companies. They also revealed that
negative and unwanted behavioral which occurs in different levels like bullying,
mistreatment, mobbing, abusive, and harassment may target the mental health and wellbeing
of the person and leads to a turnover. According to a study conducted by Yang, Wan, and Fu
(2012), the increased turnover has been the most common and important problem for many
hoteliers and became a focus of various researchers and scholars. A cross-sectional study
conducted by Samuel and Chipunza (2009) in public and private sectors revealed that in both
sectors the employees influence to stay in their organization by intrinsic and the extrinsic

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motivational factors like training and development, freedom for doing innovative thinking,
providing them challenging and interesting work, and security of the job. Other associated
reasons of employees leaving their jobs include they are motivated by higher pay provided by
another company, they are not engaged, they are bored, or they are poorly managed by the
employer. A survey conducted by the Australian HR Institute (2015) online, found that
among all the 603 respondents 31.67 revealed that employee turnover is higher in females
than males. They also categorize employee turnover on the basis of age and position in the
organization and found that nearly 14.36 per cent people with age group of 18-25 left their
jobs and percentage employee turnover is highest (38.40 %) among people aged between 26
to 35 years
Section B
Introduction of Job satisfaction
Job satisfaction can be defined as the feeling or state of mind of an employee regarding their
nature of the job. It can also be defined as the extent to which the employees feel satisfied
self-motivated and content with their job. This may happen when the workers feel they are
having job stability comfortable work-life balance and career growth. The most commonly
used of job satisfaction is ‘it is a feeling of completeness or enjoyment which an employee
derives from his or her job. But various people believe that defining the job happiness is not
just as simple as understanding what and how they feel about their organization and work.
Instead, some also believe that the definition of job satisfaction should be inclusive of the
psychological responses to a particular job. Various researchers defined job satisfaction in
their own ways. Statt (2004) stated that job satisfaction is basically the extent to which the
employees are content with the reward they get out of their job specifically in terms of
intrinsic encouragement or motivation.

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Armstrong (2006) defined job satisfaction as the attitude or behaviour and feeling a person
have about his or her work. The Favourable and positive behaviour for the job indicated the
job satisfaction. The unfavourable and negative behaviour towards the work or job indicates
that the worker is not satisfied with his or her work and employer. On the other hand, Kaliski
(2007) explained job satisfaction term as the key ingredients that may lead to income,
recognition, achievements, and promotion that result in a feeling of fulfilment. It is the
combination of beliefs, feelings that a person has about his or her present job. People may
also have an attitude towards the different aspects of their job like the type of work they do in
their respective organization, supervisors, their pay, subordinates, and co-workers (George et
al., 2008). A cross-sectional study conducted by Tsai (2011) concluded that organizational
cultures are positively correlated with the leadership attitude and work satisfaction and
leadership attitude is directly correlated with work (job) satisfaction.
Section C
Impacts of Job satisfaction on employee turnover
Job satisfaction as mentioned above is the most important factor which contributes to
employee turnover. There are some components or determinants of job satisfaction that have
direct impacts on turnover such as growth and upward mobility, co-workers, supervision,
employee empowerment performance, and work pressure. Various authors have reported
different impacts of job satisfaction on employee turnover. According to a meta-analysis
done by Zimmerman and Darnold (2009) the employees perform poorly are more likely to
leave their job even after a good job satisfaction. Another study conducted by Ramadhani
(2014) revealed that there are significant differences in the means score of the intention of
employees to leave due to some of the variables such as age, job position, education

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qualification and service category length. It was also reported that job satisfaction and some
gender and length of service may impact the intentions to leave negatively.
The job satisfaction is a key important factor in that help to deliver the good quality
services and products and help the company to be successful. Various researchers have
revealed that job satisfaction is significant for turnover or leaving the job (Koh, and Boo; Lee
and Liu, 2007). The Job satisfaction term has been describing as and recognized as the
important factor in different fields because of its effects on the commitment of an individual
towards his or her organization or employer, performance, and the intention to remain within
the company. It has also been reported that providing and maintaining job satisfaction for
employees is the most essential task of a company. According to Halter et al. (2017) when
considering an interaction and the impacts of construct related to the work, the measures of
job satisfaction are found to be the most useful and relevant approach or tool for predicting
the employee’s attitude or behaviours and have been said to be linked with various work
factors.
According to Sangaran and Jeetesh (2015), the job satisfaction is the important area
that should be recognised and understood by the employer and employees to make sure that
the supply of manpower to the company has been continued and the standard of the service of
the staff has been provided. The authors also stated that job performance also influenced the
turnover where the word choice does not impact the turnover and the key factor of the job
satisfaction which leads to turnover are wages, salary, opportunities for advancement, career
growth and career option. They further stated that job satisfaction is directly related to the
employee turnover, the job satisfaction and the effect on the workers should be the key area
that needs to be respected and priority should be given to the development. Another study
conducted by Kessler (2014) revealed that the employee voluntary turnover is the critical

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problems for the management as it may cause negative impacts for the organization. A
research work done by Judge and Hullin cited in that study concluded that employee
satisfaction is linked to the absenteeism and increased rate of turnover.
The lack of satisfaction related to the job in a company may result in problems of
absenteeism, lack of commitment and the increased rate of employee turnover. Job
satisfaction can be helpful to predict the retention of the highly skilled and experienced
worker's force in a company or organization. Kessler (2014) also revealed in his study that
the significant impacts of the job satisfaction on the employee turnover intention were not
found but in the terms of variance of the variables turnover intention specifically among the
IT workers, the latent variables explained ¼ of the explained variance turnover intentions. It
was also concluded that the reason of IT turnover intentions is the main factor art the extra
organizational cluster of the reason and therefore exist at the company level and the job
satisfaction is negatively related to the turnover intentions. Khan and Aleem (2012) stated
that the increased turnover rate enhance the cost and decreases that productivity and the
efficiency of the company. They also revealed that satisfaction in the job is considered as the
mediating variable and it also has the significance with the promotion, salary and working
conditions those results in employee turnover. Another survey conducted by Applebaum et al.
(2010) on 116 samples revealed that environmental noise was significantly linked to the
perceived stress which results in job satisfaction and the turnover intentions. It was also
revealed in that research study that job satisfaction was significantly linked and positively to
the employee’s turnover intentions, nearly 65 % of the respondents reported that job
satisfaction has the strongest influence in the turnover intentions.
Existing research found statistically Support from the literature (quantitative or

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non-significant results for the
influence of job satisfaction on the
employee turnover
qualitative) for the possible impacts of job
satisfaction on the employee turnover
1. Ramadhani (2014)
2. Koh, and Boo; Lee and Liu,
2007
3. Halter et al. (2017)
4. Kessler (2014)
5. Sangaran and jeetesh (2015)
6. Applebaum et al. (2010)
Section D
Conclusion
Employee turnover is the term that defined as the measurement of how long the worker
remains or stayed in a company and how commonly the organization replaces them. It can be
calculated dividing the total number of separation by the average number of the employees.
The factors associated with employee turnover include getting good opportunities in other
company, conflicts with higher authority or employer, and disengagement. There are two
types of employee turnover involuntary and voluntary turnover. The study conducted by
Hogh, Hoel, and Carneiro (2016), revealed that bullying in the workplace is the main reason
for turnover in the organization. Australia HR institute found that women are more likely to
turnover intention toward their job than men due to job dissatisfaction. Job satisfaction is the
feeling or state of the mind of the workers related to their job or work. Statt (2004) defined
the job satisfaction as the extent to which a worker is more content toward the achievement or
reward they receive out of their job. Job satisfaction can be influenced by various factors

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such as job instability or stability, career growth, work-life balance, and salary. Various
authors have found that job satisfaction has negative impacts on turnover and some reported
that it has no impact on the turnover intention. Ramadhani revealed that job satisfaction may
impacts the intentions of turnover, on the other hand, Sangaran and jeetesh (2015) found that
the work choice related to job satisfaction does jot impact employee turnover. It can be
concluded that most of the studies found that job satisfaction impacts turnover intention of an
employee.

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References
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turnover-2015.pdf [Accessed October 16, 2018]
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Kaliski, B.S., 2007. Encyclopedia of Business and Finance. 2nd ed. Thompson Gale,
Detroit, p. 446

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