Employee satisfaction and Employee retention Essay


Human resource is a cardinal constituent of administration as people are the bosom of the administration and play a critical function in finding the public presentation of the administration. Companies that are careful and punctilious in enrolling the appropriate people with the needed accomplishments and cognition that will be utile in the administration are likely to do significantly better than administrations that are lax in their procedure of staff enlisting. Human capital is an of import beginning of competitory advantage and provides the administration with a competitory border over their rivals ( insert mention abt human capital being a competitory advantage ) .

Careful choice and enlisting of people is therefore an of import procedure of human resourcing. Once an administration has successfully recruited suited and competent people into the administration, the following measure will be retaining this group of competent staff in the administration as they, with their cognition and accomplishments are really much an priceless plus to the administration.

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2.2 Business Reasons

Employee keeping is really much a challenge faced by administrations today ( insert mentions ) , particularly the keeping of extremely capable employees, who are indispensable in the administration in this dynamic twenty-first century concern environment where administrations that wish to last and be successful have to be extremely various with the ability to react fleetly and efficaciously and therefore adapt good to the ever-changing concern environment. Therefore, it is important for administrations to guarantee that they are able to retain the best of their people, who are likely to lend much to the endurance and the success of the company.

Administrations have long tried to undertake the job of employee keeping and bound turnover of skilled employees ( insert mentions ) , nevertheless it is about impossible to eliminate such incidences.It is a widely known fact that employee satisfaction is closely related to employee keeping and legion surveies have been conducted to back up the above statement ( insert mentions ) . However, it is besides likely that there are grounds other than employee satisfaction that might play a important function in employee keeping ( insert mentions ) . Administrations will necessitate to look into other countries that impacts employee keeping to hold a better apprehension of it and therefore be better equipped in the direction of retaining skilled employees.

Personal grounds

With mention to my anterior work experience, where employee turnover was really high in the administration I worked in, even though employers try to compromise with those employees ( be aftering to go forth ) and retain them by increasing their wage and offering them more benefits ( increasing their occupation satisfaction ) , it is non plenty to maintain them from go forthing the administration. As such, I am extremely interested as to what other factors that could take to people ‘s purpose to go forth an administration even though there is an addition in occupation satisfaction. It would be surely be really helpful to derive some penetrations about people ‘s purpose to go forth an administration and what should be done to forestall them from making so, should I get a managerial calling after come ining the work force.

Preliminary Review of the Literature

Lambert, Hogan & A ; Barton ( 2001 ) measures the impact on turnover purpose based on five factors. They are demographic features ( eg. age, gender, instruction ) , work environment steps ( eg. function struggle, liberty, co-worker dealingss ) , occupation satisfaction, turnover purpose, and alternate employment chances.Turnover purpose is mostly affected by handiness of alternate occupation chances, occupation satisfaction, work environment ( fiscal wagess ) and demographic features ( age and term of office ) with occupation satisfaction holding the greatest consequence. Work environment and demographic features by and large have an indirect consequence on turnover purpose as both factors affects occupation satisfaction. Nonetheless, work environment was found to hold a greater consequence on occupation satisfaction than demographic features.

Meanwhile, occupation satisfaction had the greatest consequence on turnover purpose.Lambert, Hogan & A ; Barton ( 2001 ) suggested that directors emphasise on making a favorable work environment to increase occupation satisfaction, which in bend lowers turnover purpose.Besides occupation satisfaction, an person ‘s “ societal designation with one ‘s administration ” ( Moura et. Al. 2009 ) besides plays a function in foretelling his/her purpose to remain or go forth the administration. When employees identify with their administrations, they are prone to be more supportive and loyal to the administration and desire to be portion of a member of the administration ( Ashforth and Mael 1989, cited in Moura et. Al.

2009 ) .Consequences of a survey done by Moura and co-workers ( Moura et. Al. 2009 ) found that societal Identity has proven to be an of import facet people take into consideration when make up one’s minding to remain or go forth the administration.As organisational designation ( ie. societal administration ) mostly impacts on employees ‘ purposes to turnover, administrations should concentrate on bettering employees ‘ designation with the administration.However, occupation satisfaction should non be ignored as is still undoubtedly one of the most critical factors that affect turnover purpose.

However, as features of each person varies, it is therefore necessary to take into consideration the different factors and degrees of occupation satisfaction as perceived by an person when analyzing occupation satisfaction ( Franek and Vecera 2008 cited from Lee and Way 2010 ) . The impact of single features on occupation satisfaction and turnover purpose should non be ignored.Factors of occupation satisfaction can be categorized into, ‘Work Environment factor ‘ and ‘Work Itself factor ‘ .Both factors, though reciprocally sole, were found to hold a big impact on occupation satisfaction. The ‘Work Itself factor ‘ non merely evaluates occupation satisfaction but turnover purposes as good.

Although occupation satisfaction increases motive and productiveness of employees, it does non intend that degree of employee keeping is at its most efficient. Job satisfaction factors are non needfully the same as employee keeping factors because non all occupation satisfaction factors will impact employee keeping ( Lee and Way 2010 ) .Udechukwu and Mujtaba ( 2007 ) states that the grounds for employees ‘ to remain or go forth an administration can be divided into three chief classs, that is, societal affiliates, employee and employer, contrary to old surveies that merely took employer and societal association factors into consideration.Social association ( eg. household, societal nine, spiritual group ) affects employee voluntary turnover as it is something that an employee identifies with or is associated to, that has no connexions to the administration. The demands of an person and their societal associations are frequently in line with each other.

Therefore, it is extremely likely that an person ‘s societal association will impact his/her determination to remain or go forth the administration.Employers are now supplying their staff with more benefits, such as flexi-work hours, to guarantee that their demands are met, therefore increasing occupation satisfaction and take downing chance of employee turnover ( Udechukwu and Mujtaba 2007 ) .Meanwhile, for employees, it is important to them that their demands can be satisfied as the inability to make so will hold a negative impact on their public presentation and productiveness ( Senguder 2000 cited in Udechukwu and Mujtaba 2007 ) , which could so take to higher chance of turnover.Deery ( 2008 ) examined the grounds for employee turnover by spliting them under three classs every bit good. The first class is occupation attitudes ( eg. occupation satisfaction, organizational committedness ) .

The 2nd class is the employees ‘ personal properties of occupation burnout and exhaustion. The 3rd class references employees ‘ work-life balance.Previous research emphasised on the function played by occupation satisfaction and organizational committedness on employee keeping but focused less on occupation burnout, emphasis and exhaustionA recent part to the research on employee keeping is the consequence caused by work-life balance on employees ‘ determination to remain or go forth the administration. A hapless balance between work and life ( eg. household clip ) could take to household struggles and lower occupation satisfaction, therefore increasing the possibility of employee turnover. Therefore, to better employee keeping, it is recommended that employees be given the chance to happen a balance between work and life.Deery ‘s ( 2008 ) accent on the importance of a balanced work-life is supported by Griffeth and Hom ‘s ( 2001 ) ( cited in Udechukwu and Mujtaba 2007 ) research findings that employees who face family-life struggles have a higher chance of discontinuing their occupations than those who do non.

Previous research workers have besides assumed that determiners of employee turnover and employee keeping are the same, that is, employee turnover and employee keeping are “ two sides of the same coin ” ( Johnston 1995 cited in Cho, Johanson and Guchait 2009 ) and when a factor negatively affects employee turnover, it will hold a positive consequence on employee keeping.Cho, Johanson and Guchait ( 2009 ) make up one’s mind to prove the premises by researching on employee turnover purposes concentrating on whether the determiners of mensurating the possibility of an single go forthing the administration are merely as utile in mensurating the possibility of an single remaining in the administration.Three chief factors that have been repeatedly found to hold a well big consequence on employee turnover will be used in this survey to happen if they have the same degree of consequence on employee keeping.

The three factors used will be “ Perceived Organisational Support ( POS ) , Perceived Supervisor Support ( PSS ) , and Organisational Commitment ( OC ) ” .Findingss of the survey have proven that the premise is non needfully right.Polonium does hold an consequence on both employee turnover and employee keeping. However, the grade of consequence varies, with POS holding a larger impact on employee keeping than employee turnover.

Although PSS was found non to hold any consequence on employee keeping, it does hold an consequence on employee turnover.OC reduces employee turnover, but does non needfully hold a positive impact on employee keeping.As administrations today seek to retain their skilled staff, Cho, Johanson and Guchait ( 2009 ) suggested there should be more focussed research on factors that lead to employee keeping than on employee turnover.A research by Harris, Wheeler and Kacmar ( 2009 ) based on the LMX ( leader-member exchange ) theory which surveies the quality of the leader-member ( ie.

supervisor-subordinate ) relationship and assesses the consequence that authorization has on employees in footings of their occupation satisfaction, turnover purposes.Importance of LMX relationship is comparative to the subsidiaries perceived degree of authorization. When a subsidiary ‘s sensed degree of authorization is high, the work itself becomes a signifier of incentive and it is non necessary for them to hold a high quality LMX relationship as a incentive. Hence, importance of LMX relationship is comparatively low for extremely empowered subsidiaries.However, when subsidiaries ‘ perceived degree of authorization is low, a high quality LMX relationship ( eg. supplying support and encouragement ) will be important in doing up for the loss of work motive which could take to high turnover purpose.

Therefore it is recommended that supervisors should give more attending on increasing subsidiaries ‘ degree of authorization. If the nature of the occupation or work environment does non allow high degrees of occupation authorization, supervisors should so construct a high quality LMX relationship with those subsidiaries to do up for their low degree of occupation authorization.There appears to be limited concern literature sing occupation satisfaction and its effects on employee keeping, specifically in the public and private sectors in the UK. As work environment and conditions vary between UK public and private organisations, factors and degree of occupation satisfaction likely differs, so does its impact on employee keeping. Apart from that, other possible factors that might perchance lend to employee keeping peculiarly in UK public and private organisations will besides necessitate to be explored. The findings from this research will give UK public and private sectors an thought on what would do their staff stay in the administration. There is besides small attending on recommendations that UK public and private administrations can set about to retain their skilled staff. This is besides indispensable as it gives UK houses, be it public or private, an thought of what they can make to outdo retain their skilled employees.

Research Questions and Aims

4.1 Research Questions

Taking into consideration single features and differences in background and civilization, what are the assorted perceptual experiences on occupation satisfaction?What are the factors that could act upon occupation satisfaction?How make these factors lead to employee keeping? Do they hold a direct or indirect impact on employee keeping?How does occupation satisfaction differ between employees in public and private sectors in the UK?What is the attendant consequence on employee keeping between public and private sectors in the UK?What are the other possible factors that could take to employee keeping in the UK public and private sectors?What can be done to increase rate of employee keeping in both public and private sectors in the UK?

4.2 Research Aims

To critically measure the significance of employee satisfaction on employee keepingTo compare and contrast the impact of employee satisfaction on employee keeping between the public and private sectors in the UKTo critically measure other factors lending to employee keeping in UK ‘s public and private sectorsTo urge possible class of action to heighten rate of employee keeping in both public and private sectors in the UK

Research Plan


1 Research Perspective

The research will be done taking into consideration the realistic working environment in UK organisations today. Most of the information required for the research will be obtained from secondary informations ( somewhat more qualitative than quantitative informations ) , chiefly from theoretical and empirical diary articles. As such, both deductive and inductive logical thinking will be required for the research.

5.2 Research Design

This research uses a comparative design as my country of focal point is on two wide classs and a comparative designed research will clearly foreground the differences between the two classs. However, one possible restriction of this is that there might be more similarities than differences between the two classs, therefore get the better ofing the intent of utilizing the comparative research design.


3 Data Collection Methods

Secondary Datas:The beginnings of secondary informations for the research will largely be text editions, diary articles, Databases such as EBSCO, Emerald and Science Direct.Textbooks on Human Resource Management ( HRM ) which can be sourced from Coventry University ‘s Lanchester Library will be used to derive some theoretical cognition about the chief topic of research, ’employee satisfaction ‘ and ’employee keeping ‘ . Textbooks written in the UK will be peculiarly utile as the topic and countries of research will be written within the context of the UK, and may even include instance surveies based in the UK. This will assist in replying Research Objectives 1 and 4.Some of the text editions that may be used are ‘People Planning and Talent Planning: HRM in Practice ‘ by Stephen Pilbeam & A ; Marjorie Corbridge AND ‘Human Resource Management at Work: People Management and Development ‘ by Mick Marchington and Adrian Wilkinson.

Journal Articles relative to the country of research will be the primary beginning of secondary informations for this research. They can be sourced either from print diaries available from Coventry University ‘s Lanchester Library or from diaries available through Web Databases such as EBSCO, Emerald and Science Direct. Both theoretical and empirical diary articles will be used as they will be really utile in supplying penetrations every bit good as the latest and up-to-date findings sing my country of involvement in my research.

Journal articles written in the UK context will be peculiarly utile, particularly empirical diary articles that include informations collected from studies conducted in the UK. Furthermore, there seem to be a batch of journal articles available via the databases on the subject of my research. I may likely acquire the majority of my information needed for the research from journal articles. Therefore, Journal Articles and Web Databases will be used to reply all my Research Objectives, particularly for Research Objectives 2 and 3.

I will beginning the diary articles from diaries such as the ‘European Journal of Social Psychology ‘ , ‘Human Resource Development Review ‘ , and ‘Personnel Review ‘ .Web sites may besides be used, such as the UK Government Website which contains some statistics which may be used in the research. One such web site would be the ‘Office for National Statistics ‘ ( ONS ) at hypertext transfer protocol: //www.statistics.

gov.uk/default.asp. Government WebsitesPeer-reviewedValid-as I can acquire up-to-date articles sing my country of research.


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