Employee satisfaction and Worker retention


Human learning resource is an essential component of organisation as people will be the heart of the company and play a crucial role in identifying the performance of the company. Companies that are careful and careful in recruiting the appropriate people with the mandatory skills and knowledge that'll be useful in the organisation will probably fare significantly much better than organisations that are lax in their process of staff recruitment. Human capital is an important source of competitive advantage and the company with a competitive edge over their competition (insert reference abt real human capital being a competitive benefit). Careful selection and recruitment of folks is hence an important procedure for human being resourcing. Once an organisation has efficiently recruited ideal and proficient people in to the organisation, the next step will be keeping this band of competent personnel in the organisation as they, with their knowledge and skills are incredibly much an invaluable asset to the company.

2. 2 Business Reasons

Employee retention is very much a challenge encountered by organisations today (put in references), especially the retention of highly capable employees, who are crucial in the organisation in this vibrant 21st century business environment where organisations that wish to survive and be successful need to be highly versatile with the ability to respond swiftly and effectively and so adapt well to the ever-changing business environment. Therefore, it is crucial for organisations to ensure they are able to retain the best of their people, who are likely to contribute much to the survival and the success of the business.

Organisations have long tried out to tackle the condition of staff retention and limit turnover of skilled employees (place references), however it is almost impossible to eradicate such incidences.

It is a widely known fact that staff satisfaction is directly related to employee retention and numerous studies have been conducted to aid the above affirmation (insert recommendations). However, additionally it is likely that we now have reasons other than employee satisfaction that might play a crucial role in worker retention (place recommendations). Organisations should look into other areas that impacts staff retention to get a better knowledge of it and therefore be better equipped in the management of retaining skilled employees.

Personal reasons

With mention of my prior work experience, where staff turnover was very high in the organisation I did the trick in, even though employers make an effort to bargain with those employees (planning to leave) and maintain them by increasing their salary and offering them more benefits (increasing their job satisfaction), it isn't enough to keep them from giving the organisation. As a result, I am highly interested as to what other factors that may lead to people's intent to leave an company even though there is an upsurge in job satisfaction. It might be certainly be very helpful to gain some insights about people's objective to leave an company and what should be done to prevent them from doing this, should I acquire a managerial job after entering the labor force.

Preliminary Overview of the Literature

Lambert, Hogan & Barton (2001) steps the effect on turnover intent predicated on five factors. They can be demographic characteristics (eg. era, gender, education), work place measures (eg. role conflict, autonomy, co-worker relations), job satisfaction, turnover purpose, and alternative occupations.

Turnover intent is basically affected by option of alternate job opportunities, job satisfaction, work place (financial rewards) and demographic characteristics (era and tenure) with job satisfaction having the greatest effect. Work environment and demographic characteristics generally come with an indirect influence on turnover intent as both factors impacts job satisfaction. Nonetheless, work place was found to truly have a greater effect on job satisfaction than demographic characteristics. In the meantime, job satisfaction possessed the greatest influence on turnover objective.

Lambert, Hogan & Barton (2001) suggested that professionals emphasise on creating a favourable work environment to increase job satisfaction, which lowers turnover intention.

Besides job satisfaction, an individual's "social id with one's organisation" (Moura et. al. 2009) also is important in predicting his/her goal to stay or leave the organisation. When employees identify with their organisations, they are inclined to become more supportive and faithful to the organisation and need to be part of a member of the company (Ashforth and Mael 1989, cited in Moura et. al. 2009).

Results of a report done by Moura and co-workers (Moura et. al. 2009) discovered that social Personality has shown to be an essential requirement people take into consideration when deciding to remain or leave the organisation.

As organizational recognition (ie. social company) largely effects on employees' motives to turnover, organisations should focus on improving employees' recognition with the company.

Nonetheless, job satisfaction shouldn't be ignored as is still undoubtedly one of the very most essential factors that have an effect on turnover purpose.

However, as characteristics of every specific varies, it is thus essential to consider the various factors and degrees of job satisfaction as recognized by a person when analysing job satisfaction (Franek and Vecera 2008 cited from Lee and Way 2010). The impact of individual characteristics on job satisfaction and turnover motive shouldn't be ignored.

Factors of job satisfaction can be categorized into, 'Work Environment factor' and 'Work Itself factor'.

Both factors, though mutually exclusive, were found to own a large impact on job satisfaction. The 'Work Itself factor' not only evaluates job satisfaction but turnover intentions as well.

Although job satisfaction increases motivation and output of employees, it does not mean that level of employee retention reaches its most effective. Job satisfaction factors are not necessarily the same as staff retention factors because not all job satisfaction factors will have an impact on staff retention (Lee and Way 2010).

Udechukwu and Mujtaba (2007) says that the reason why for employees' to remain or leave an organisation can be divided into three main categories, that is, public affiliates, worker and employer, contrary to prior studies that only got employer and cultural affiliation factors under consideration.

Social affiliation (eg. family, cultural club, spiritual group) affects worker voluntary turnover as it is something an employee identifies with or is associated to, that does not have any connections to the organisation. The needs of a person and their sociable affiliations are often in line with each other. Therefore, it is highly likely an individual's interpersonal affiliation will have an effect on his/her decision to stay or leave the organisation.

Employers are actually providing their staff with an increase of benefits, such as flexi-work hours, to ensure that their needs are found, hence increasing job satisfaction and reducing probability of staff turnover (Udechukwu and Mujtaba 2007).

Meanwhile, for employees, it is crucial to them that their needs can be satisfied as the shortcoming to take action will have a poor effect on their performance and production (Senguder 2000 cited in Udechukwu and Mujtaba 2007), that could then lead to raised probability of turnover.

Deery (2008) reviewed the reason why for staff turnover by dividing them under three categories as well. The first category is job behaviour (eg. job satisfaction, organisational commitment). The second category is the employees' personal qualities of job burnout and exhaustion. The third category addresses employees' work-life balance.

Previous research emphasised on the role played out by job satisfaction and organisational determination on staff retention but focused less on job burnout, stress and exhaustion

A recent contribution to the study on staff retention is the result triggered by work-life balance on employees' decision to stay or leave the organisation. A poor balance between work and life (eg. family time) may lead to family issues and lower job satisfaction, hence increasing the likelihood of worker turnover. Thus, to improve employee retention, it is recommended that employees get the chance to find a balance between work and life.

Deery's (2008) emphasis on the importance of an healthy work-life is backed by Griffeth and Hom's (2001) (cited in Udechukwu and Mujtaba 2007) research conclusions that employees who face family-life conflicts have an increased probability of stopping their jobs than those who do not.

Previous researchers have also assumed that determinants of worker turnover and employee retention will be the same, that is, worker turnover and employee retention are "two edges of the same coin" (Johnston 1995 cited in Cho, Johanson and Guchait 2009) and when a factor adversely affects staff turnover, it has a positive influence on worker retention.

Cho, Johanson and Guchait (2009) decide to test the assumptions by researching on staff turnover intentions focusing on whether the determinants of calculating the likelihood of a person leaving the organisation are as useful in calculating the likelihood of a person left over in the organisation.

Three main factors which may have been consistently found to truly have a considerably large effect on staff turnover will be used in this analysis to find if indeed they have the same level of effect on staff retention. The three factors used will be "Perceived Organisational Support (POS), Perceived Supervisor Support (PSS), and Organisational Commitment (OC)".

Findings of the analysis have proven that the assumption is not necessarily right.

POS does have an impact on both employee turnover and employee retention. However, the amount of impact varies, with POS having a more substantial impact on staff retention than staff turnover.

Although PSS was found never to have any influence on employee retention, it does have an effect on staff turnover.

OC reduces employee turnover, but will not necessarily have a good impact on employee retention.

As organisations today seek to retain their skilled staff, Cho, Johanson and Guchait (2009) recommended there must be more centered research on factors that lead to worker retention than on employee turnover.

A research by Harris, Wheeler and Kacmar (2009) based on the LMX (leader-member exchange) theory which studies the quality of the leader-member (ie. supervisor-subordinate) relationship and assesses the result that empowerment has on employees in conditions of the job satisfaction, turnover intentions.

Importance of LMX relationship is relative to the subordinates identified level of empowerment. Whenever a subordinate's perceived level of empowerment is high, the task itself becomes a form of motivator which is not necessary for them to have a high quality LMX romance as a motivator. Hence, need for LMX relationship is relatively low for highly empowered subordinates.

However, when subordinates' recognized degree of empowerment is low, a superior quality LMX relationship (eg. providing support and encouragement) will be essential in making up for the loss of work motivation that could lead to high turnover intent.

Therefore it is recommended that supervisors should give more attention on increasing subordinates' level of empowerment. If the type of the work or work place does not permit high degrees of job empowerment, supervisors should then build a high quality LMX romantic relationship with those subordinates to make up for their low degree of job empowerment.

There is apparently limited business books regarding job satisfaction and its own effects on worker retention, specifically in the general public and private industries in the united kingdom. As work environment and conditions range between UK general public and private organizations, factors and level of job satisfaction likely differs, so will its impact on employee retention. Apart from that, other possible factors that may possibly donate to employee retention specifically in UK community and private organizations will also need to be explored. The results out of this research gives UK general public and private industries a concept on what would make their employees stay in the organisation. Addititionally there is little attention on advice that UK community and private organisations can undertake to maintain their skilled personnel. This is also essential as it gives UK firms, whether it is open public or private, a concept of what they can do to best retain their skilled employees.

Research Questions and Objectives

4. 1 Research Questions

Taking into consideration specific characteristics and dissimilarities in history and culture, what are the various perceptions on job satisfaction?

What will be the factors which could effect job satisfaction?

How do these factors lead to worker retention? Do they have a primary or indirect impact on worker retention?

How does job satisfaction differ between employees in public areas and private industries in the UK?

What is the consequent influence on employee retention between general public and private sectors in the united kingdom?

What are the other possible factors that could lead to employee retention in the UK public and private areas?

What can be carried out to increase rate of staff retention in both public and private sectors in the UK?

4. 2 Research Objectives

To critically appraise the importance of staff satisfaction on staff retention

To compare and contrast the impact of employee satisfaction on employee retention between your consumer and private industries in the UK

To critically evaluate other factors contributing to employee retention in UK's general population and private sectors

To recommend possible plan of action to enhance rate of employee retention in both general public and private sectors in the UK

Research Plan

5. 1 Research Perspective

The research will be done taking into consideration the natural working environment in UK organizations today. A lot of the information necessary for the study will be from extra data (just a bit more qualitative than quantitative data), mainly from theoretical and empirical journal articles. So, both deductive and inductive reasoning will be required for the research.

5. 2 Research Design

This research runs on the comparative design as my region of concentrate is on two wide categories and a comparative designed research will plainly highlight the dissimilarities between your two categories. However, one possible limitation of this is the fact that there could be more similarities than dissimilarities between your two categories, hence defeating the goal of using the comparative research design.

5. 3 Data Collection Methods

Secondary Data:

The sources of extra data for the study will largely be books, journal articles, Databases such as EBSCO, Emerald and Knowledge Direct.

Textbooks on People Resource Management (HRM) which is often sourced from Coventry University's Lanchester Library will be used to get some theoretical understanding of the main subject of research, 'worker satisfaction' and 'staff retention'. Books written in the UK will be especially useful as the topic and areas of research will be written within the framework of the UK, and could even include circumstance studies located in the united kingdom. This can help in responding to Research Objectives 1 and 4.

Some of the textbooks which may be used are 'People Planning and Talent Planning: HRM in Practice' by Stephen Pilbeam & Marjorie Corbridge AND 'Human being Resource Management at the job: People Management and Development' by Mick Marchington and Adrian Wilkinson.

Journal Articles in accordance with the area of research will be the primary source of secondary data because of this research. They could be sourced either from print out journals available from Coventry University's Lanchester Collection or from journals available through Web Databases such as EBSCO, Emerald and Research Direct. Both theoretical and empirical journal articles will be used as they'll be very helpful in providing insights as well as the latest and up-to-date studies regarding my market in my own research. Journal articles written in the united kingdom context will be particularly useful, especially empirical journal articles which include data gathered from surveys conducted in the united kingdom. Moreover, there seem to be a great deal of journal articles available via the directories on the topic of my research. I may probably get the majority of my information necessary for the research from journal articles. Therefore, Journal Articles and Web Directories will be used to answer all my Research Aims, specifically for Research Aims 2 and 3.

I will source the journal articles from journals including the 'European Journal of Sociable Mindset', 'Individuals Reference Development Review', and 'Workers Review'.

Websites may also be used, like the UK Federal Website which consists of some statistics which may be used in the study. One particular website would be the 'Office for Country wide Information' (ONS) at http://www. statistics. gov. uk/default. asp. Federal Websites


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