Employee Turnover and Job Satisfaction: A Comprehensive Report

This report examines the relationship between job satisfaction and employee turnover, drawing on the balance theory of motivational psychology. It defines employee turnover and job satisfaction, highlighting their significance within organizations. The report explores the POX model, illustrating how factors like work type, working conditions, and promotions influence employee satisfaction and, consequently, turnover rates. It reviews research findings, differentiating between significant and non-significant relationships between the two concepts. Propositions are formulated based on the balance theory and research, and the report concludes with recommendations for improving job satisfaction to reduce employee turnover, such as providing adequate working conditions, fair compensation, and opportunities for advancement. The report emphasizes the importance of addressing cultural factors and fostering a positive organizational structure to enhance employee satisfaction and retention.

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Impact of Job Satisfaction over Employee Turnover

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Table of Contents
Introduction (Employee Turnover):.................................................................................................3
Job Satisfaction:...............................................................................................................................4
Balance Theory (Impact of Job Satisfaction over Employee Turnover):........................................5
Relation between Employee Turnover and Job Satisfaction:..........................................................7
Proposition:......................................................................................................................................9
Conclusion:....................................................................................................................................10
References:....................................................................................................................................12

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Introduction (Employee Turnover):
According to Chen et al, 2015, the stage at which the organizations are gaining and losing the
employees is defined as the employee turnover. The tendency of the employees to remain with
the organizations is also referred as employee turnover according to Andrews et al, 2014. This
rate is generally measured for the whole companies belong to same industry. If an organization
has high rate for employee turnover, then this indicates that employees work for that
organization have lesser average working period as compared to other organizations related to
same industry. The different actions taken by the organizations to replace the employees who
have left the organizations is also described as employee turnover according to Haider et al,
2015.
According to Andrews et al, 2014, the significance of employee turnover varies for the
organizations as per their size, scope and location. It has been described in different researches
that if rate of employee turnover would be high, then morale of other employees would be
certainly affected as they have to work for extra time which would resulted in extra stress or
burden at the workplace. This will result in lower productivity and absenteeism for the
organizations. This will also deteriorate public image of the organization and may also affect
their future hires (Gillet et al, 2013). Voluntarily and Involuntary are two major types of
employee turnovers observed within the organizations. If the employee himself opts to leave the
company, then it is defined as the voluntarily turnover. Retrenchment, dismissal, retirement,
physical or mental disability and relocation are some situations raised in case of involuntary
turnover of the employees.

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Job Satisfaction:
The positive or pleasurable emotional state resulted from the job experiences or appraisal of
individual’s job is defined as the job satisfaction. The individual who have high satisfaction level
for job always has positive feelings or experiences towards the job, whereas, on the other hand,
the individual who is no satisfied with the job always has negative experience or feeling towards
the job. Job always requires interaction with employer and colleagues, following policies or rules
of the organizations and at the same time, maintaining the performance standards at the
workplace. According to Sukriket (2015), job satisfaction is one of significant factors that have
attracted the top management within the organizations. The different researches have been
organised in order to analyse the impact of the job satisfaction over the productivity level of the
organizations. But it has been not found that the job satisfaction impacts the productivity level.
Ahmad and Rainyee (2014) also described that an attitude which reflects gratification from the
work accomplished by an individual is also defined as the job satisfaction. Personal inspirations
and needs of an individual are also some factors which determine altitude with organizational or
group factors has also been observed from different researches over the job satisfaction. The
degree which describes the negative or positive feelings of an individual for their jobs is also
defined as job satisfaction according to Mathieu et al, 2016. The environmental, physiological
and psychological conditions that enable an individual to satisfy with the workplace conditions is
also described as job satisfaction according to Terera and Ngirande, 2014. In addition, according
to Lu and Gursoy (2016), different unfavourable as well as favourable attitudes which an
employee has on their job or work are also described as the job satisfaction.
Job satisfaction is one of the significant factors for the organizations. The value based on
humanitarian enables the organizations to treat employee with respect and in honourable manner.

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Mental fitness or emotional wellness is some signs for high satisfaction level at the jobs
according to Mauno et al, 2014. Utilitarian position can be adopted by the organizations where
behaviour of employees will certainly affect business operations of the organizations due to the
dissatisfaction or satisfaction of the employees at their job. In addition, according to Helm
(2013), level of satisfaction also identifies different factors which can affect the job satisfaction
within the organizations and by which organizations can take appropriate measures or steps to
improve the conditions at the job or workplace in order to enhance the satisfaction level of the
employees.
Balance Theory (Impact of Job Satisfaction over Employee Turnover):
Balance theory described the theory for attitude change and Fritz Heider has proposed this theory
of motivational psychology. The consistency motive in terms of cognitive mainly balances the
psychological aspect for attitude according to the balance theory. The motive to maintain beliefs
as well as values within a prescribed time frame is consistent with the balance theory (Qureshi et
al, 2013). If the positive results are obtained from the affected factors due to liking relationships
or sentiments was the main concept behind the balance theory. The theory is mainly based on the
POX model in terms of analytical concept. According to this,
P – Person to be analysed
O – Person to be compared
X – Things to be compared that can be impersonal entities including event, idea or physical
object.
After this, relationship between different factors will be estimated including,

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L – Liking, approving or evaluating
U – Cognitive unit which is formed like belonging or similarity
(Source: Changing Minds, 2016)
From the balance theory, it has been analysed that there is a huge impact over the employee
turnover due to the job satisfaction. From the POX model, it has also described that there are
three factors which can provide the relevance for the research that needs to be done in the report.
P – Job Satisfaction
O – Employee Turnover
X – Type of work, working conditions, promotions, or payments.
This is the theoretical framework which defines the impact of the job satisfaction over the
employee turnover using the balance theory. From the theory, it can also be visualised that both
employee turnover as well as job satisfaction are analogous and interrelated to each other. There
are various factors which enhance level of satisfaction at the job or work for the employees
within the organizations that certainly help to reduce the employee turnover at the organizations
(Chan and Mai, 2015). If the employees are getting appropriate working conditions and type of

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the work or job at the work place as per their skills or knowledge then it is certain that they will
highly satisfied at the job which in result will help to reduce the employee turnover for the
organizations. In the same manner, if employees are also getting promotions on the basis of their
performance then it will certainly boost their performance level resulted in the enhanced job
satisfaction as well as reduced rate for the employee turnover.
Further, if the employees are getting adequate payments or bonuses on time, then it will also
encourage them to enhance productivity level for the organizations that will certainly help them
to improve their satisfaction level for the job (Bouckenooghe et al, 2013). This will certainly
help to reduce the level of employee turnover within the organizations due to which efficiency of
the organizations will also improved and at the same time, also build positive image within the
society as well as impact their future hiring. From all the above discussion, it has been concluded
that there is a huge and significant impact of the job satisfaction over the employee turnover.
Relation between Employee Turnover and Job Satisfaction:
From the balance theory, it has been found that both employee turnover as well as job
satisfaction is interrelated to each other. It is also analysed from different researches that there is
significant impact of the job satisfaction over the employee turnover.
Relation between Employee Turnover and Job Satisfaction
Significant relationship Non-significant relationship
Reference Researches:
 Haider et al, 2015
 Andrews et al, 2014
Reference Researches:
 Bouckenooghe et al, 2013
 Chen et al, 2015

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 Mathieu et al, 2016
 Terera and Ngirande, 2014
 Qureshi et al, 2013
Similarities:
The researches which provide significant
relationship between employee turnover and
job satisfaction defines the positive relation
between both of the concepts. Both of the
concepts are affected from similar factors
which have been described in the researches
which mainly include,
 Working conditions
 promotions
 management systems
 Leadership
 Policies or procedures
 Training
 Lu and Gursoy, 2016
 Helm, 2013
 Tschopp et al, 2013
Differences:
The researches which provide non-significant
relationship between employee turnover and
job satisfaction defines the negative relation
between both of the concepts. Both of the
terms have been affected from different factors
which have been analysed during the various
researches,
 Cultural values
 Attitudes
 Religious beliefs
 Financial status
 Educational status
 Gender
 Marital status
 Working experience
From the above table, one can analyse that there are two situations where one describes the
significant relationship between the employee turnover and job satisfaction and other describes
non-significant relation between the concepts which have been used during this research.

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According to Haider et al (2015) and Andrews et al (2014), it has been found that there is
significant relation between employee turnover and job satisfaction. These researches indicate
that if the employees are getting appropriate working conditions, payments, training,
management systems, policies or procedures, organizational structure, leadership, or promotions,
then the employees are highly satisfied at the workplace which in result would reduce the rate of
employee turnover within the organizations.
Further, Bouckenooghe et al (2013), Chen et al (2015) and Lu & Gursoy (2016) described that
non-significant relation exists between the employee turnover and job satisfaction. There are
various examples which prove non-significant relation between the two concepts. The factors
like religious beliefs, educational level, gender, marital status, working experience, or cultural
values indicate that if these found within the organizations, employee turnover would be high
(Tschopp et al, 2014). This means employees are satisfied with their performance level but
certain above factors make them to leave the organizations. In addition, retention, economical
crisis, non-working of companies are factors which can also cause employee turnover which also
indicates that in this cases, there is non-significant relation between the employee turnover and
job satisfaction.
Proposition:
Based on the balance theory and different researches, following propositions can be defined for
this research,
1. Job satisfaction has positive impact over the employee turnover.
2. Job satisfaction has negative impact over the employee turnover.

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3. There is significant relation between employee turnover and job satisfaction.
4. There is non-significant relation between employee turnover and job satisfaction.
Conclusion:
From the above discussion, it has been found that both of the employee turnover as well as job
satisfaction are deeply interrelated to each other which has also been described in various
research studies. There are various ways by which employee turnover can be effectively reduced
by affecting the job satisfaction within the organizations. The employee can be encouraged by
giving them promotions or bonuses that will certainly motivate them to enhance their
performance level which in result will surely improve their job satisfaction level and at the same
time, employee turnover will also be reduced in effective manner. Further, by providing standard
payment structure and adequate working conditions will also help the employee to improve their
satisfaction level for the job which in result will also enhance productivity level of the
organizations. This measure will also help to reduce rate of employee turnover within the
organizations. The adequate type of work also needs to be planned for the employees as per their
skills and knowledge which will surely motivate them to perform in more efficient manner which
tends to enhance the level of job satisfaction among the employees.
In addition, the cultural factors like cultural values, religious beliefs and attitudes also need to be
avoided within the organizations which tend to improve the satisfaction level of the employees
and also motivate them to perform in efficient organizational structure. This in result also helps
to prevent the employee turnover within the organizations. The various individual factors also
need not be considered by the organizations including age, marital status, educational level,
financial status or personality that will also enable the organizations to improve satisfaction level

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of the employees for the job. Due to this measure, employee turnover will also be reduced and
also help to enhance productivity and efficiency level of employees which in result provide
several profits to the organizations.

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References:
Ahmad, A. and Rainyee, R. (2014) Which is the better predictor of employee turnover intentions:
Job satisfaction or organizational commitment? A literature review. International Journal of
Information, Business and Management, 6(1), p.2.
Andrews, M., Michele, K. and Kacmar, C. (2014) The mediational effect of regulatory focus on
the relationships between mindfulness and job satisfaction and turnover intentions. Career
Development International, 19(5), pp.494-507.
Bouckenooghe, D., Raja, U. and Butt, A. (2013) Combined effects of positive and negative
affectivity and job satisfaction on job performance and turnover intentions. The Journal of
psychology, 147(2), pp.105-123.
Chan, S. and Mai, X. (2015) The relation of career adaptability to satisfaction and turnover
intentions. Journal of Vocational Behavior, 89, pp.130-139.
Chen, I., Brown, R., Bowers, B. and Chang, W. (2015) Work‐to‐family conflict as a mediator of
the relationship between job satisfaction and turnover intention. Journal of advanced nursing,
71(10), pp.2350-2363.
Gillet, N., Gagné, M., Sauvagère, S. and Fouquereau, E. (2013) The role of supervisor autonomy
support, organizational support, and autonomous and controlled motivation in predicting
employees' satisfaction and turnover intentions. European Journal of Work and Organizational
Psychology, 22(4), pp.450-460.