Influence Of Job Satisfaction On Employee Turnover Intentions Management Essay

For my paper I will research the influence of job satisfaction on employee turnover intentions. Job satisfaction is more commonly referred to as a collection of different feelings that a person has towards his/her job. In detail job satisfaction is the indicator of employee’s feelings about their job and a predictor of work behavior such as organizational turnover, absenteeism and citizenship. However employee turnover is the count of the movement of employees in and out of the organization and is measured in terms of turnover rate. The better the satisfaction the lower will be the turnover rate which directly states a good way of cost cutting. My research will be strictly relating to organizations working in Pakistan as there has been not enough research done on the falling standards of employee satisfaction. However a global perspective will also be highlighted contrasting the situation in Pakistan. Multi-national and national companies working in Pakistan are the main target of my research. My research will be relating to the current prevailing market situation as research has been conducted on these variables before.

The world has become a global village now and as life goes on it gets busier and busier with time, the researchers have shown that employees are the main pillars that hold the very foundations of an organization. This in turn has opened many doors for research on how to retain employees. As the cost that has to be barred with employee turnover is very high. So in order to retain employees and to decrease the turnover rate i.e. to reduce the main cost of employee retaining the factors that influence turnover are highly related to the job satisfaction of the employees. The whole concept of job satisfaction is make employees find comfort and pleasure in what they do, the more satisfied the employees are the more they are devoted not only towards their own work but to the organization as well. Satisfaction of job increases employee loyalty and commitment of work.

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There are several trigging factors which alter the satisfaction level of an employee surely job satisfaction mean basically mean that work does not remains work but it’s what an individual desires to do everyday probably an athlete or swimmer can achieve that levels of satisfaction but the issue arises with people working with manufacturing products or sitting on the desk and processing papers. Job satisfaction does not literally mean a fun way of making money, one can achieve job satisfaction but in the most unexpected ways. The heart of job satisfaction is in an individual’s attitude and expectations towards the job, the actual approach to the job rather than the job duties that have to be performed. The correct path is to understand completely the key recipe for acquiring job satisfaction.

The employee overall satisfaction level is the combination of several factors and compensation is just only one of them. Job satisfaction is to make sure the work environment should be positive, morale is high and the employees are being provided with sufficient resources so they are able to achieve their desires. Money is the biggest factors that provide ultimate satisfaction for jobs so better compensation plans lead to more satisfied employees. Cooperative leadership creates a sustainable healthy working environment; friendlier environment means low stress levels which motivates high job satisfaction.

Employee turnover is an unavoidable issue for the organization as there can be several reasons for employees to join or leave the organization. Turnover has been divided into two sub categories, voluntary and involuntary turnover. Gomez-Mejia, Balkan and candy (2007) described that voluntary turnover occurs when an employee decides to end the relationship between him and the employer for personal or professional reasons. In most of the cases the reason of leaving is directly associated to the levels of job satisfaction the employee could achieve by staying or retaining in the organization, and having attractive alternatives from other organizations.

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Employee turnover contributes to long term benefits for the organizations. The outcomes in return are higher performance, lower labor costs, lower training and development costs and providing new business ideas and improving promotional opportunities for the existing staff. The negative impacts are economic costs, productivity losses, lost business opportunities, increased administrative burden, higher training and development cost and loss of morale among existing staff (Griffith and hom. 1994). However employee turnover costs are not the only factor but also the loss of knowledge that is possessed by the departing employee is also of higher concern. The prevailing competitive challenges in the market, the loss of organizational knowledge can give birth to drastic challenges. Continual innovation and technological improvements are the source of long term employment and high levels of productivity and growth (Noe et al, 2002).

Research shows that different researchers have developed different theoretical models to elaborate the concept of turnover. The price-Mueller model is composed of three assumptions. Firstly the employees have expectations from the organization; fulfillment of them ensures satisfied and loyal employees. Secondly there is an exchange of reward between the employee and the employer which are at the disposal of the employer and thirdly the motivation level of employee and their commitment to work and organization and to achieve the reward and avoid costs. This model is the most applicable so far in the world for organizations who want to ensure healthy long term relationship with their employees. Other research shows that an increase in the turnover ratio may arise due to desirability and ease of movement (March and Simon, 2005). This model elaborates on relationship between intention to quit and the thought of quitting and job turnover.

Multiple researches and studies show us that job satisfaction and turnover is closely related to each other. It has been proved that the adequate amount of job satisfaction can decrease the level of employee turnover. Most of the international firms are taking this issue very seriously and are continuously working to improve the satisfaction levels of the employees so that they can retain them in the long run. In any type of the organization employees are the most important resource in the organizations development in the short and long run. it takes time and cost to train the employees according to the organizational structure, and after all that if they are unable to retain their employees they would incur losses not only in terms of higher costs but also loss of organizational structure and organizational knowledge.

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We can say that the relationship between the job satisfaction and employee turnover in indirectly proportional to each other. If the amount of satisfaction increases the level of turnover would decrease. Unfortunately our domestic firms are still unable to understand the close relationship between the employee satisfaction and the employee turnover and because of this particular reason their performances are not consistent and they are unable to work at the full capacity. Whenever the employee thinks of a quitting a job there are certain factors behind his decision and those factors are mostly related to job dissatisfaction.

They need to focus towards this particular issue so that they can retain their employees in the long run; this would help to increase their production levels and can work at their full capacity. This would ultimately help them to reduce their variable cost, which could give them competitive advantage compare to other firms in the market. In our country most of the firms are labor intensive so they need to built better working environments for the employees, and provide them adequate financial and fringe benefits which would help employees to be motivated and positive towards their work.


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