The Link Between Job Satisfaction and Job Retention - Paper Example

Introduction

Job satisfaction and retention serve a central role in promoting high employee productivity and organisational success. When an organisation provides better remuneration scheme, excellent working relations, flexible work schedule, and better job security, employees feel recognised in their role and commitment. The feeling of employee recognition leads to high job satisfaction and corporate capacity to retain skilled employees. There exists a link between job satisfaction and job retention. Many research works identify significant factors that influence job satisfaction and job retention in an organisation; however, this research paper will explore factors the determine job satisfaction and job retention to establish a shared link between them.

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Job Satisfaction

Job satisfaction describes high employee commitment to assigned tasks as a result of Positive Organisational Support (POS). More so, employee satisfaction minimises the intentions to seek for best alternative employment opportunities (Azeez, Jayeoba & Adeoye, 2016). Job satisfaction calls for effective organisational leadership and management to promote an enabling environment. Pay promotion, work relations, flexible work schedule and job security, are significant determinants of job satisfaction covered in most research works. According to Dhanpat, Madou, Lugisani, Mabojane, and Phiri (2018), pay promotion is a significant factor in a contract signed by employer and employee. Pay promotion attracts new employees as well as leads to high job commitment and retention. Pay promotion for employees includes bonuses, commission, overtime pay and non-monetary benefits such as gifts. Dhanpat, Modau, Lugisani, Mabojane and Phiri (2018) conducted a cross-sectional quantitative study design on 282 call agents to determine the level of job satisfaction. Data collection was done using a questionnaire and employee satisfaction and retention evaluated using the Retention Management Scale and Cronbach Alpha Coefficient to maintain consistency. The call centre work environment mostly comprise of young employees who are lowly paid (Dhanpat et al., 2018). Young call agents are dissatisfied because they receive low pay promotion. Call centre organisations that allocates budget for employee training programs have high job satisfaction because call agents are able to advance their careers. In context, employee career development through pay promotion equips them with task-specific competent skills (Chordiya, Sabharwal & Goodman, 2017).

In another quantitative study conducted by Hofaidhllaoui and Chhinzer (2014) on the link between satisfaction and retention among the 484 engineers, employee satisfaction is a significant determinant of decisions to hold or leave the current occupation. Hofaidhllaoui and Chhinzer (2014) used questionnaires; turnover models and Likert Scale to determine the perception of employees stay or leave their current occupation. Knowledge worker relies on the corporate pay promotion to meet their needs as well as corporate depend on the services offered by knowledge employees. In this context, pay promotion serves a reciprocity role to meet the interests of employees and the interests of the organisation. Hofaidhllaoui and Chhinzer (2014) conclude that better pay promotion lead to employee intention to remain in the same occupation.

Work relations also determine the level of employee satisfaction in an organisation. The rank differences in the workplace influence employee attitude towards work. According to Lu, Gursoy and Neale (2016) employees who assume a high rank in an organisation exhibit higher work engagement than those with a lower level. For example, supervisors show vigor and dedication than their junior employees in the workplace. Supervisors top work engagement was associated with substantial involvement and identification with the organisation. Lu et al. (2016) used descriptive research design on supervisors from medium and large restaurant to determine hierarchical relations to work engagement. In their findings, strong organisational involvement and identification describe better work relations. Employee perception was influenced by prevailing work relations in the workplace. Better work relations such as the cordial relationship between the management and the employees leads to job satisfaction because of increased work engagement and autonomy in performing tasks. The work environments that encourage better employee relationship with the executive were attributed to high job satisfaction. In an exploratory study conducted by Boyad, Lyndon and Malekar (2012) to ascertain the level of employee satisfaction for employees working in textile industries, individual motivations and interests determine the work relations in the workplace. Boyad, Lyndon and Malekar (2012) used 80 questionnaires to collect data from the employees; they found a positive relationship between supervisors and subordinates enhances job satisfaction.

Furthermore, the ability of the leadership and management to create a consultative and participative work environment, it increases better work relations characterised by high commitment. Boyad, Lyndon and Malekar (2012) concluded that better work relations through cooperation contribute to work satisfaction for both the employees and the management. Similarly, Wilson (2015) conducted a qualitative survey study on job satisfaction among the health professionals working in a municipal health facility and identified positive relationships among the team members lead to job satisfaction. Wilson (2015) uses Hertzberg's theory of motivation to describe the level of health practitioners' job satisfaction. Wilson concluded that constant monitoring of employees intrinsic and extrinsic motivation leads maintains positive work relations.

Job security affects the employee level of job satisfaction, for instance, the employee feels satisfied with occupations deemed secure regarding the working conditions. According to Motlou, Singh and Karodia (2016) empirical study on job satisfaction, employees feel confident in a secure work environment. Similarly to a descriptive study conducted by James and Mathew (2012) on employee retention in information technology industry employee personal employee dissatisfaction arises from lack of job security. Both Motlou et al. (2016), James and Mathew (2012) studies agree that job security affects personal satisfaction due to the lack of a friendly work environment. In another survey design conducted by Onyebu and Omotayo (2017) job satisfaction and corporate performance in selected Lagos restaurants, questionnaire result from 150 respondents' job security is a major motivational factor that leads to job satisfaction. Employee dissatisfaction also arises from unwarranted transfers and layoffs, predominant signs of job insecurity. Onyebu and Omotayo (2017) concluded that job security facilitates good employee behaviors and attitudes towards work. Therefore, job insecurity costs an organisational regarding productivity and quality. In a survey study conducted by Gu and Siu (2009) among the employees working in Macao Casino Hotels, job security is a significant driver of job satisfaction for female employees as well as employees who are elderly in the workplace. In context, as the employee ages and responsibilities increases, he or she values job security to work under a single employer for the remaining working period.

Flexible work schedule determines an individual balance between personal life and occupational demands. Generation difference at the workplace defines employee satisfaction with the flexible work schedule, for instance, elderliness at the workplace implies increased work experience, and family responsibilities, elderly employees, will, therefore, demand flexible work schedule to meet family obligations. According to Ito, Brotheridge, and McFarland (2013) survey study boomers in the workplace value flexible working hours to enable them to attend to family, investment and other responsibilities compared to the young generation. A conflict of balance between job obligations and family responsibilities causes job dissatisfaction (Dhanpat et al., 2018). Both family and job responsibilities are significant to call agents, thus, a need to create a balance between these aspects (Zhang & Feng, 2011). However, call agent responsibilities are demanding and stressing, therefore, call agents are forced to work for long hours. As a result of inflexible working conditions, call agents are dissatisfied with their job due to heavy workloads. In a federal government setting, work schedules are tightly controlled discouraging IT professionals to seek employment in such controlled work environment (Yang & Lee, 2009). However, IT professionals working under tight work schedules are unable to empower themselves professionally. Burnout and exhaustion were also associated with inflexible work schedules; as a result, employees working in Nigerian restaurants were characterised by job stress and displeasure (Onyebu & Omotayo, 2017). According to Wilson (2015) study, inflexible work schedule is a hygiene factor inhibits job satisfaction. Wilson (2015) used Pearson correlation formula and identified that flexible work schedules positively relate with work satisfaction. Therefore, the creation of flexible working hours in an organisation is a perfect strategy to maintain job satisfaction (James & Mathew, 2012). Supervisors working on demanding tasks show a high level of burnout than line managers since they are unable to balance family life effectively, and job demands (Lu et al., 2016).

Employee Retention

Employee retention is determined by the period of employee stay in an organisation. Job retention is a leadership and managerial role to ensure that committed and skilled employees remain to serve for an extended period (Rose & Raja, 2016). The factors that determine employee retention include turnover intentions, POS, The empirical study by Hofaidhllaoui and Chhinzer (2014) findings shows that engineers' turnover rate is high in industrial companies due to lack of Positive Organisational Support (POS). POS is a significant factor determining employee retention because it influences the employee perception to remain in the current organisation or leave to seek lucrative external employment opportunities. Using the turnover models, enhancing POS and managing employee perception regarding external opportunities work as the perfect tool to control job retention capacity (Sengupta & Dev, 2013). In context, knowledge workers prefer to stay in an organisation that has well established POS programs. The concept of POS shows how an organisation recognises the individual well-being of employees as well as their contribution to organisational success. A lack of balance between employee and corporate interests under social exchange concept amounts to high employee turnover rates. According to social exchange theory, the equitable relationship in the workplace cultivates high employee retention capacity (Hsiao, 2017).

The turnover intention significantly determines the rate of employee retention since it illustrates the employee connection to the organisation. Hofaidhllaoui and Chhinzer (2014) used Organisational Theory of Equilibrium to determine corporate incentives and contributions in mitigating employee turnover intentions. Turnover intentions according to Dhanpat et al. (2018) pose a risk on the loss of human capital and disruption on normal organisational operations. Furthermore, loss of human capital due to high turnover intentions increases operations and human capital costs (Cronley & Kim, 2017). An employee intention to leave the current occupation is also driven by...