22751023 controllable vs uncontrollable factors of employee turnover intentions an empirical
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Controllable vs. Uncontrollable Factors of Employee Turnover Intentions: An Empirical Evidence from Textile sector of Pakistan.
DR. MAHMOOD A. BODLA1
ABDUL HAMEED2
Abstract Employee turnover has substantial cost as it is a loss of social capital. The paper examines one of the major human resource issues i.e. employee turnover intentions in to two dimensions: controllable and uncontrollable factors. Controllable factors are the organizational factors and uncontrollable factors are the environmental factors. Five variables are used for the measurement of controllable factors which include satisfaction with pay, satisfaction with working conditions, satisfaction with supervision, organizational commitment, and Job stress. Job hopping and perceived alternative employment opportunities are the two variables used for measurement of uncontrollable factors. The data is collected from 252 first line managers and supervisors of textile sector of Pakistan for ascertaining the reasons of employee turnover. The statistical tools employed to analyze the data are correlation and regression analyses. In the end, paper suggests guidelines for the Human Resource Managers and Researchers. Key Words: Employee Turnover Intentions, Controllable and Uncontrollable Factors Introduction Employee is a valuable asset for the organization. Employee means the individual who
performs certain tasks and duties for the accomplishment of organizational goals.
Turnover means voluntary cessation of membership of an organization by an employee of
that organization. (Morrell et al 2001). Turnover intention is broadly defined as
attitudinal (thinking of quitting), decisional (intention to leave), and behavioral (searching
for a new job) processes proceeding voluntary turnover (Sager et al., 1998, Khatri 2000).
Employee turnover incurs significant cost, both in terms of direct costs (replacement,
1 Director COMSATS Institute of Information Technology, Sahiwal,Pakistan
2 Lecturer Management Sciences, COMSATS Institute of IT. Islamabad, Pakistan
recruitment and selection, temporary staff, management time), and also (and perhaps
more significantly) in terms of indirect costs (morale, pressure on remaining staff, costs
of learning, product/service quality, organizational memory) and the loss of social capital
(Dess and Shaw, 2001).
Employee turnover is a major issue for companies in many Asian countries such as
Singapore, Hong Kong, South Korea, Malaysia, and Taiwan (Syrett, 1994; Barnett, 1995;
Chang, 1996; Khatri 2001). The importance of workforce turnover as a sustainability
issue has been recognized by the Global Reporting Initiative (GRI), which has included
turnover as a core social performance indicator in its Sustainability Reporting Guidelines
(GRI 2002).
Employee turnover is giving sleepless nights to human resource managers in textile
sector of Pakistan. The textile sector is selected due to two reasons. First of all, there is
an alarming employee turnover rate i.e. 12% (Majid et al 2000). Second reason is that
textile industry represents Pakistan’s largest employer as well as key sector for the
economy having almost 68% of total export earning (Bukhari 2005) is the largest sector
of Pakistan.
This study has three main objectives. First and foremost objective is to explore the
reasons and intentions of employee turnover. Most of the studies on turnover were
conducted in the Western Organizational context (Khatri et al., 2001) and there is a vast
difference in economic, social, and cultural environments. Therefore, second objective is
to find out the implications in the Asian context.
The last objective is to partition the effects of controllable factors (such as satisfaction
with pay, working condition and organizational commitment), and uncontrollable factors
(such as alternative employment opportunities and job-hopping) on turnover intention.
The partitioning of the effects would lead to better analysis of the turnover problem.
Theoretical Framework & Hypothesis There are two schools of thoughts on employee turnover research: the labor market
school and psychological school. The labor market school deals with the issues such as
demand & supply, job search, availability of job opportunities or perceived alternatives.
The psychological school concerns with those issues principally related to psychological
accounts such as job satisfaction, organizational commitment, organizational climate, and
job stress. Both schools of turnover research are unable to predict and explain the
adequately reasons and measures for organization to manage turnover effectively (Morrel
et al., 2001).
The framework for the study is presented in Figure 1. It includes two groups of
independent variables which include controllable and uncontrollable factors. Controllable
factors are the organizational & psychological factors i.e. job satisfaction, organizational
commitment, and job stress. Uncontrollable factors are the environmental or labor market
factors i.e. perceived alternative employment opportunities and job hopping. Turnover
Intention is the dependent variable in the study.
Mobley (1982) indicates that there are four primary determinants of turnover: Job
satisfaction-dissatisfaction; expected utility of alternative internal work roles; expected
utility of external work roles; and nonwork values and contingencies.
Job satisfaction describes how content an individual is with his or her job. There are a
variety of factors that can influence a person's level of job satisfaction; some of these
factors include the level of pay and benefits, the perceived fairness of the promotion
system within a company, the quality of the working conditions, and the job itself.
for Employee Turnover Model Including Controllable and Schematic Diagram: 1re FiguUncontrollable Factors
Controllable Factors
� Job Satisfaction � Organizational Commitment � Job Stress
Employee Turnover Intention
orsUncontrollable Fact
� Alternative Employment Opportunities
� Job Hopping
+ - -
+ +
Falkenburg and Schyns (2007) describe job satisfaction as a behavioral cycle; as a cause
of behavior consists of satisfaction with different aspects of the job and the work
situation. Satisfaction is the extent to which employees like their work. There is a
negative relationship between job satisfaction and withdrawal behavior.
Job satisfaction can be divided into three dimensions: satisfaction with pay, satisfaction
with nature of work, and satisfaction with supervision. The relationship between job
satisfaction and turnover is one of the thoroughly investigated variables in turnover
literature. Many studies report a negative relation between job satisfaction and turnover
(e.g. Khatri et al (2001), Bluedorn (1982), Arnold and Feldman (1982), Cotton and Tuttle
(1986), Mobley (1982), Price (1977). Employees are more likely to leave an organization
when they are dissatisfied.
Koh and Goh,s (1995) investigate the relationship between job satisfaction and employee
turnover intention in Singapore and classified job satisfaction into eight categories:
physical working conditions, co-workers, financial rewards, supervision, company
identity, kind of work, amount of work and career future.
Khatri et al. (2001) report job satisfaction into three perspectives; satisfaction with pay,
supervision, and nature of work. There is a negative relationship among all the three
dimensions of job satisfaction in the study of employee turnover intention. Thus:
Hypothesis 1: Job satisfaction is negatively associated with turnover intention.
Hypothesis 1a Satisfaction with pay is negatively associated with turnover intention.
Hypothesis 1b Satisfaction with work is negatively associated with turnover intention.
Hypothesis 1c Satisfaction with supervision is negatively associated with turnover
intention.
Organizational commitment is “the employee's psychological attachment and affiliation
to the organization”. It can be compared with other work-related attitudes, such as Job
Satisfaction, defined as an employee's feelings about their job, and Organizational
Identification, defined as the degree to which an employee experiences a 'sense of
oneness' with their organization.
According to Meyer and Allen's (1991) there are three "mind sets" which can depict an
employee's commitment to the organization: Affective Commitment: is defined as the
employee's positive emotional attachment to the organization. Continuance Commitment:
The individual commits to the organization because he/she perceives high costs of losing
organizational membership. Normative Commitment: The individual commits to and
remains with an organization because of feelings of obligation.
Aryee et al.’s (1991) shows a negative relationship between organizational commitment
and turnover intention of professional accountants in Singapore. In the same way, Wong
et al. (1996) in their longitudinal study of 485 graduate students in Hong Kong found
organizational commitment a strong predictor of turnover. Several other scholars (Khatri
(2001), Kim et al. (1996), Ben-Bakr et al. (1994), Tett & Meyer (1993), Arnold &
Feldman (1982), have also found organizational commitment an important predictor of
turnover.
Van Breukelen et al. (2004) indicate that job satisfaction and organizational commitment
are negatively associated with turnover intentions. Therefore,
Hypothesis 2: Organizational commitment is negatively associated with turnover
intention.
Job stress and turnover intentions have gained increasing importance in the recent
literature. NIOSH (2008) defines Job stress as the harmful physical and emotional
responses that occur when the requirements of the job do not match the capabilities,
resources, or needs of the worker. Stress also occurs when the situation has high demands
and the worker has little or no control over it. Job stress can lead to poor health and
injury.
Lucy et al. (2004) investigate the variables that may be the reasons for intentions to leave
and findings of the study suggest that intentions to quit is largely influenced by job
dissatisfaction, lack of commitment to the organization, and feeling of stress, which
influenced by job stressors. Job stressors such as workload, job ambiguity, which are the
factors that activate the chain of psychological states that lead to intentions to quit.
Managers should observe employee workloads, and the relationships between supervisors
and subordinates in order to reduce and manage job stress.
Price (2001) defines Job stress is a situation by which job duties are difficult to fulfill.
There are four types of stress which can be distinguished: workload (amount of effort
required by a job), role ambiguity (unclear job obligations), role conflict (inconsistent job
obligation), and resource inadequacy (lack of means to perform a job).
Janssen Peter et al (1999) suggest that emotional exhaustion is primarily predicted by a
lack of social support from colleagues, and by the demanding aspects of work, like
working under time pressure and strenuous work i.e. work overload.
Stress related problems among workers increase absenteeism and high turnover
(Mikkelsen et al, 2000). Thus
Hypothesis 3: Job stress is positively associated with turnover intentions.
Uncontrollable factors are the environmental factors which include Job-hopping and
Alternative employment opportunities. These factors related to labor market school of
thought (Morrel et al., 2001). Job hopping and Alternative employment opportunities
included in theoretical frame work (Figure 1).
Job-hopping means frequently movement of job from one place to another place without
any specific reason. Ghiselli (1974) defines job-hopping, as ‘hobo syndrome’ which
means and includes ‘the periodic itch to move from a job in one place to some other job
in some other place’. Employees searching alternative jobs even they have secured job
(Chew, 1993).
Job hopping is one of the most important factors of employee turnover. Some employees
leave due to social influence from peer/colleagues and some employees leave the
organization as a fun and no apparent reason. Job hopping is positively associated with
turnover intention (Khatri et al., 2001). Thus:
Hypothesis 4: Job hopping is positively associated with turnover intention.
Alternative employment opportunity is another uncontrollable and labor market variable.
Opportunity means availability of alternative jobs in the environment. The larger
alternative employment opportunities exist in the environment, more chances of
awareness among the employees, and then they evaluate cost and benefit analysis and
have intentions to switch jobs (Price 2001).
Past literature suggests that there is a positive relationship between alternative
employment opportunities and employee turnover intention (Khatri et al., 2001; Hulin et
al, 1985).
Hypothesis 5: Alternative employment opportunity is positively associated with turnover
intention.
Research Methodology
The sample comprised 252 first line managers and supervisors from Textile sector of
Pakistan. The textile sector was divided into five broad categories i.e. Ginning, Spinning,
Weaving, Finishing, and Garments. The data was collected from first line managers &
supervisors of spinning, weaving, and finishing industries on the basis of two stage
sampling. In first stage, constructed strata on the basis of spinning, weaving, and
finishing organizations of Lahore, Pakistan and then selected 50 organizations by the
simple random sampling. In the second stage, first line managers and supervisors selected
from the above 50 organizations.
The data was collected by physically and self administered survey (Questionnaire). The
questions were asked on five point likert scale from the respondents. The questionnaire
consisted of three sections i.e. controllable factors, uncontrollable factors and Turnover
intention. Job satisfaction, organizational commitment, job stress, job hopping, and
alternative employment opportunities were the independent variables. Turnover intention
was the dependent variable.
To increase the response rate, the employees were informed regarding the research
objective and confidentiality. The response rate was 84% (252/300) and most of the
questionnaires filled by visiting the organization physically and some questionnaires
dispatched to the organizations. The respondents were 21% female and 79% male. The
participants’ ages ranged from 20 to 40 years.
Measures
Controllable variables included job satisfaction, organizational commitment, and Job
stress. Job satisfaction was measured on five point likert scale and this variable divided
into three dimensions i.e. satisfaction with pay, working condition, and supervision.
Three items were used for measuring each dimension. These were adapted from the
Minnesota Satisfaction Questionnaire (Weiss et al., 1967) and the Index of
Organizational Reaction Questionnaire (Smith, 1976). The reliabilities of three scales
showed satisfactory with Cronbach alphas of 0.63, 0.84, and 0.65, respectively, for
satisfaction with pay, working condition and supervision.
Organizational Commitment Questionnaire (OCQ) was used to measure employee
commitment level, developed by Khatri and his colleagues (Khatri et al, 1974). Eight
items were used for the measurement of organizational commitment. The scale showed a
good reliability i.e. 0.81. Job stress four items were used to measure, developed by
Vigoda and Kapun (2005).
The job hopping was measured on three item scale which already developed by Khatri
and his colleagues (Khatri et al., 2001). The scale showed reliability i.e. Cronbach alpha
0.71. The perceived alternative employment opportunities scale contained six items and
was adopted by Michaels and Spector (1982), Arnold and Feldman (1982), Billing and
Wemmerus (1983) and Modey et al (1984). The scale showed good reliability i.e. 0.76
and single factor in factor analysis.
The three item turnover intention scale from the Michigan Organizational Assessment
Questionnaire (Cummann et al, 1979) and two items from Bluedorn (1982) were used.
The Cronbach alpha was 0.84 in the study.
Analyses & Results
The statistical tools employed to analyze the data are Pearson’s correlation and regression
analyses by using SPSS. Pearson’s correlation is a reasonable and familiar means of
assessing linear association between variables.
Satisfaction
with Pay Satisfaction
with work
Satisfaction with
supervision Organizational commitment
Job Stress
Job hopping
Alternative Employment
opportunity Turnover intention
Satisfaction with
Pay Pearson Correlation
1
Satisfaction with
work Pearson Correlation
.438(**) 1
Satisfaction with supervision
Pearson Correlation .330(**) .427(**) 1
Organizational commitment
Pearson Correlation
.345(**) .245(**) .340(**) 1
Job Stress
Pearson Correlation -.222(**) -.218(**) -.214(**) -.004 1
Job hopping
Pearson Correlation -.112 .070 -.121 -.079 .070 1
Alternative
Employment opportunity
Pearson Correlation
-.102 -.055 -.078 -.008 .095 .045 1
Turnover intention
Pearson Correlation
-.409(**) -.378(**) -.340(**) -.272(**) .266(**)
.223(**) .223(**) 1
Sig. (2-tailed) .000 .000 .000 .000 .000 .000 .000 .
N 252 252 252 252 252 252 252 252 Table 1: ** Correlation is significant at the 0.01 level (2-tailed)
Employee turnover intention is a dependent variable. Job satisfaction, organizational
commitment, Job stress, Job hopping, and Alternative employment opportunities are the
independent variables in the research of 252 first line managers and supervisors of textile
sector. Satisfaction with pay, working condition, and supervision has a strong negative
correlation with employee turnover intention i.e. -0.409, -0.378, -0.340 at a p<0.01 level
of significance respectively. Organizational commitment also has a negative correlation
with employee turnover intention at a p<0.01 level of significance i.e. -0.272. There is a
positive correlation between job stress and employee turnover intention i.e. 0.266 at a
p<0.01. Job hopping and Alternative employment opportunities also have a positive
relationship with employee turnover intention i.e. 0.223 and 0.223 respectively at a
p<0.01 level of significance.
So, Pearson’s Correlation shows that job satisfaction is negatively associated with
turnover intention. It means satisfaction with pay, working condition, and supervision is
negatively associated with turnover intention. When job satisfaction increases, employee
turnover intention decreases. Organizational commitment is also negatively associated
with turnover intention. Job satisfaction leads to organizational commitment. Whenever,
organizational commitment will increase, employee turnover intention will decrease. Job
stress is positively associated with turnover intention. It means that when job stress
conditions just like workload increases, employee turnover also increases. Job hopping
and alternative employment opportunity are also positively associated with turnover
intention. When bad habits develop just like switching job with no apparent reasons or
due to friends and colleagues then turnover intention also increases.
Controllable factors (job satisfaction, organizational commitment, and job stress) are
highly correlated with turnover intention as compare to uncontrollable factors (job
hopping and alternative employment opportunity). It means that controllable factors are
more dominant and play very important role in employee turnover intention. When
employee dissatisfied, job stress, and has a lack of interest and concern with organization
then employee has more intention to switch job.
Coefficients (a)
Unstandardized
Coefficients Standardized Coefficients
Model B Std. Error Beta t Sig.
(Constant) 3.619 .445 8.139 .000
Satisfaction with Pay
-.183 .064 -.180 -2.880 .004
Satisfaction with work: -.244 .072 -.215 -3.399 .001
Satisfaction with Supervision -.096 .064 -.092 -1.497 .136
Organizational Commitment
-.135 .063 -.122 -2.128 .034
Job Stress .143 .060 .133 2.405 .017
Job Hopping .169 .049 .186 3.454 .001
1
Alternative
Employment Opportunity
.203 .071 .152 2.874 .004
Table 2: Dependent Variable: Employee turnover intention
“B” lists the regression coefficients for the independent variables i.e. satisfaction with
pay, nature of work, supervision, organizational commitment, job stress, job hopping, and
alternative employment opportunities at P<0.01 level of significance. These represent the
slope and Y-intercept for the regression line. There is one constant in table 2 that is 3.619
while other regression coefficients represent the slope and Y-intercept -0.183, -0.244, -
0.096, -0.135, 0.143, 0.169, and 0.203 respectively.
Employee Turnover Intention = 3.619 + (- 0.183*SP) + (- 0.244*SW) + (- 0.096*SS) +
(- 0.135*OC) + (0.143*JS) + (0.169*JH) + (0.203*AEO)
Regression equation explains the variance and factors responsible for employee turnover
intention. Satisfaction with pay is responsible in employee turnover intention is – 18.3%,
-24.4% satisfaction with work, -9.6% satisfaction with supervision, -13.5%
organizational commitment, 14.3% job stress, 16.9% job hopping and 20.3% Alternative
employment opportunities.
The values listed under “Beta” represent an alternative set of coefficients that would be
used instead if all variables were first converted to Z-scores.
Satisfaction with pay is negatively associated with turnover intention and regression co-
efficient is -0.183. Satisfaction with nature of work, and supervision also negatively
associated with turnover intention and regression co-efficient is -0.244, -0.096,
respectively. Organizational commitment is negatively associated with turnover intention
and regression co-efficient is -0.135. Job stress, job hopping and alternative employment
opportunities are positively associated with turnover intention and their regression co-
efficients are 0.143, 0.169, and 0.203 respectively.
Discussion and Conclusion
Employee turnover intention is a major issue for the human resource managers and has a
significant cost of hiring and replacement. Employee has intention to switch when he is
dissatisfied from his pay, supervision and nature of work. A satisfied employee is more
committed to the organizational work and has strong loyalty and affiliation with the
organization. Job stress is the mental tension caused by the workload, working condition,
and lack of means to perform job. So, job stress is another reason for switching job from
one to another organization. Job hopping and alternative employment opportunities are
the environmental factors who responsible for employee turnover intention.
Job satisfaction and organizational commitment are negatively associated with turnover
intention. Job stress, job hopping and alternative employment opportunity is positively
associated with turnover intention.
Controllable or organizational factors (job satisfaction, organizational commitment, job
stress) are more responsible for the intentions of employee turnover as compare to
uncontrollable or environmental factors (job hopping, alternative employment
opportunity).
Human resource personnel can manage employee turnover by providing competitive pay
package, inspirational supervision, and congenial working condition which ultimately
produce committed and loyal employees. Job stress can be managed by proper division of
work and counseling service for the solution of stress related problems.
The researchers can extend this research by adding more variables just like organizational
change and its impact on employee turnover intentions, managers’ leadership style and
employee turnover intention. They can compare this study into two dimensions
manufacturing vs. service sector employees by increasing sample size which will give
broader view and comprehensive frame work of employee turnover intention.
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