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DEC 5, 2016
Managerial Economics by
Sabiha Abid
Authored by; SUMMAYA
SHARIF
[EMPLOYEE TURNOVER IN ORGANIZATIONS]
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EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
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ACKNOWLEDGEMENT
I am the student of BBA 6E, BAHRIA UNIVERSITY and I’m thankful to the
Almighty Allah who, in His infinite mercy, has guided me to complete this term
report. I also wish to thank my parents for their personal support and attention
that inspired me to go my own way. I’m blessed and honored to have such
parents and I’m grateful for them that they gave me a chance to prove myself.
Second of all, I would like to present my deep and heartily gratitude to my
Managerial Economics Professor; Ma’am Sabiha Abid; who not only asked for
such an informational project which made me highly conversant with new,
enlightening and pragmatic information but also gifted me with preciously
valuable guidance and support for the accomplishment of this report.
Lastly, I would also, gladly, like to present my genuine thanks to Bahria
University, Karachi Campus that it provided me a platform via which I could
get such an intriguing experience that’s a sine qua non for becoming sagacious.
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Abstract
The research paper is intended to answer some of the most FAQs of the organizations about employee
turnover and help them in lessening this threat which results in losing the loyal and hardworking
workforce.
The FAQs include;
A. What is employee turnover?
B. What are the factors causing employee turnover?
C. How to identify/elucidate these factors?
D. How is employee turnover a function of these factors?
E. What is the relationship between employee turnover and each of selected
factors?
F. To what extent each of these factors is related to employee turnover?
G. Which of these factors is the main cause of employee turnover?
In order to get the pragmatic answers to the questions above, and prove the inferences/Hypothesis on the
relationship of these factors with employee turnover; the research has been carried to a pragmatic and
scientific level. The results of the research carried out will help the organizations to answer the questions
above with relevance, reliability, authenticity, relationship metrics, all checked. The scientific study
carried out is elucidated below;
Purpose: This research article investigates the factors that influence the employee turnover in order to
elucidate the role that they play to influence employee turnover and ergo, their relationship with employee
turnover. Hence the purpose is both causal as well as descriptive.
Problem Statement: The research has been conducted to help organizations lessen employee turnover.
The basic problem statement is to study the effect of chosen factors (Age, wage rate, un-skilled labor, and
work life balance) on employee turnover and hence their relationship with it.
Ergo the basic Research Questions include:
1. To what extent unskilled labor leads to employee turnover?
2. Does work-life balance affect the employee turnover?
3. What contributions wage rate has towards employee turnover?
4. How much influence age has on employee turnover?
Research method: Considering the Krejice and Morgan’s (1970) table to ensure a good
decision, a sample of 100 employees, regardless of gender, area and status, is taken so that
the studied sample size is representative of the population. With groups as my unit of analysis
mono method and deductive approach is used in this research and the data collection technique is
disproportionate stratified random sampling; in which the population is divided in to different mutually
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exclusive groups on the basis of the variables of study like we divided all the population of employees
within the organizations in accord with the age groups, employees having high work life balance and low
work life balance, wage/salaries and finally according to ‘how skilled they are?’ i.e. to answer the
following questions(related straight to our research questions) via felicitous questionnaire deigned;
1. Are the elderly employees contributing more in employee turnover than the adults?
2. Are the employees having low work life balance causing more employee turnover than the ones
having high work life balance?
3. Are the employees getting low wages contributing more in turnover than the ones getting high
wages?
4. Are the unskilled labor influencing the company’s employee turnover rate more than the skilled
ones?
By this research individuals will be able to understand the factors that affect their
satisfaction level and hence result in employee turnover.
Findings: The findings apparently showed that the main factor that is influencing employee
turnover is “job that hurdles the fulfillment of fulfillment of family duties; with a coefficient of
0.800.”Ergo if this factor is kept under control then a significant change can be seen in employee
turnover.
Recommendations: The research has been conducted in a particular region of Karachi, Pakistan
but it can be expanded geographically in the future to prove the findings on a bigger scale
representing most of the population of Pakistan.
Moreover, the recommendations for the organizations striving hard to lessen the employee
turnover include;
1. Check whether employee turnover is the function of these ‘selected’ factors or not.
2. Go for the relationship check between these factors and employee turnover and take the
findings of this study in to consideration.
3. The findings of this scientific study must be kept in to strong considerations while searching
for the main cause of employee turnover among the selected factors.
4. Work on lessening or eradicating the main factor or cause of employee turnover to observe
a great decrease in the variable of concern (employee turnover) and the others influencing
employee turnover on the similar level.
5. Managers should & must ensure the employee motivational/satisfaction level.
Keywords; Employee Turnover, Work-Life Balance, Wage Rate, Employee Satisfaction
Level, Un-Skilled Labor, Age.
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Table of contents
ACKNOWLEDGEMENT 2
1. INTRODUCTION TO EMPLOYEE TURNOVER 7
❖ SOURCES OF EMPLOYEE TURNOVER 8
JOB RELATED FACTORS 8
VOLUNTARY vs. INVOLUNTARY TURNOVER: 8
ORGANIZATIONAL FACTORS; 8
❖ EFFECTS OF EMPLOYEE TURNOVER; 9
❖ STRATEGIES TO MINIMIZE EMPLOYEE TURNOVER; 10
❖ HOW A MANAGER SHOULD ACT? 11
2.ZEROING IN ON RESEARCH OBJECTIVE 12
Research Objective: 12
OBJECTIVE ELUCIDATION; 12
CONCEPTUAL FRAMEWORK; 13
THEORETICAL FRAMEWORK; 13
3. WHAT DO OTHER AUTHORS SAY ABOUT THE FACTORS INFLUENCING EMPLOYEE TURNOVER? 14
❖ A REVIEW OF THE PROFESSIONAL AND ACADEMIC LITERATURE; 14
AGE INFLUENCING EMPLOYEE TURNOVER; 14
WAGE RATE; 15
Work-Life Balance; 15
Unskilled Labor; 16
Job satisfaction; 16
PROS OF APPROACHING SCIENTIFIC; 17
Relevance of the study: 17
HOW DID I GO SCIENTIFIC? 18
Role of the Researcher 18
PARTICIPANTS; 18
METHODOLOGY 18
PURPOSE OF STUDY: 18
Hypothesis Testing: 19
EXTENT OF RESEARCHER INTERFERENCE: 19
STUDY SETTING: 19
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RESEARCH STRATEGIES: 20
MEASUREMENT AND MEASURES: 20
UNIT OF ANALYSIS: 22
SAMPLING DESIGN: 23
TIME HORIZON: 23
DATA COLLECTION METHOD: 24
DATA ANALYSIS: 24
• HYPOTHESIS TESTING: 27
DATA ANALYSIS ON SPSS; 28
RELIABILITY TESTING; 28
REGRESSION ANALYSIS; 31
CONCLUSION; 34
RECOMMENDATIONS; 34
FREQUENCY DISTRIBUTION; 36
PEARSON’S CORRELATION; 40
SCATTER DIAGRAM 43
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1. INTRODUCTION TO EMPLOYEE TURNOVER
Organizations invest a lot on their employees in terms of induction and training, developing,
maintaining and retaining them in their organization. Ergo, managers at all costs must minimize
employee’s turnover. Albeit, there is no standard framework for understanding the employees
turnover process as whole, a wide range of factors have been found useful in interpreting
employee turnover Kevin et al. (2004). Ergo, there is need to develop a fuller understanding of
the employee turnover, more especially, the sources- what determines employee turnover, effects
and strategies that managers can put in place minimize turnover. With globalization which is
heightening competition, organizations must continue to develop tangible products and provide
services which are based on strategies created by employees. These employees are extremely
crucial to the organization since their value to the organization is essentially intangible and not
easily replicated Meaghan et al. (2002). Ergo, managers must recognize that employees as major
contributors to the efficient achievement of the organization’s success Abbasi et al., (2000).
Managers should control employee turnover for the benefit of the organization success. The
literature on employee turnover is divided into three groupings: sources of employee turnover,
effects of turnover and the strategies to minimize turnover.
Employees’ turnover is a much studied phenomenon Shaw et al. (1998).But there is no standard
reason why people leave organization. Employee turnover is the rotation of workers around the
labor market; between firms, jobs and occupations; and between the states of employment and
unemployment Abbasi et al. (2000). The term “turnover” is defined by Price (1977) as: the ratio
of the number of organizational members who have left during the period being considered
divided by the average number of people in that organization during the period. Frequently,
managers refer to turnover as the entire process associated with filling a vacancy: Each time a
position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained.
This replacement cycle is known as turnover Woods, (1995). This term is also often utilized in
efforts to measure relationships of employees in an organization as they leave, regardless of
reason. “Unfolding model” of voluntary turnover represents a divergence from traditional
thinking (Hom and Griffith, 1995) by focusing more on the decisional aspect of employee
turnover, in other words, showing instances of voluntary turnover as decisions to quit. Indeed,
the model is based on a theory of decision making, image theory Beach, (1990). The image
theory describes the process of how individuals process information during decision making. The
underlying premise of the model is that people leave organizations after they have analyzed the
reasons for quitting. Beach (1990) argues that individuals seldom have the cognitive resources to
systematically evaluate all incoming information, so individuals instead of simply and quickly
compare incoming information to more heuristic-type decision making alternatives.
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❖ SOURCES OF EMPLOYEE TURNOVER
JOB RELATED FACTORS
Beaucoup researchers including Bluedorn, 1982; Kalliath and Beck, 2001; Kramer et al., 1995;
Peters et al., 1981; Saks, 1996; have endeavored to answer the query of what defines people's
intention to abandon by scrutinizing every possible antecedents and/or factors of employees’
intentions to quit. There are beaucoup reasons as to why employees quit an organization and
move to another one, these reason include ‘job related stress’ (more specifically job stress)
resulting in misbalancing the Work-Life Balance, the stressors or the range factors that result in
job stress, the lack of commitment and most importantly job dissatisfaction (Ongori, 2007).
These reasons show that quit or not to quit is an individual decision. Manu et al. (2004) claims
that employees quit from organization because of economic reasons (Ongori, 2007). The authors
proved it, via economic models, that the employees quit due to economic causes and these
reasons can be improvised to prognosticate the employee turnover in the market. Good local
labor market conditions increases organizational steadiness and hence large organizations can
offer the employees enhanced chances for development and higher wages and ergo, ensure
organizational commitment (Ongori, 2007).
A researcher, named Trevor, argues that local unemployment rates interact with job satisfaction
to prognosticate turnover in the market. Role stressors also lead to employees’ turnover. While
Kahn et al. Muchinsky, 1990 states that the uncertainty about what our role should be can also
lead to employee turnover, it can be a result of misconstruing what is expected, how to meet the
expectations, or the employee thinking that the job should be different. If roles of employees are
not properly elucidated by the management/ supervisors, it would speed up the degree of
employees quitting their jobs due to lack of role clarity (Ongori, 2007).
VOLUNTARY vs. INVOLUNTARY TURNOVER:
Involuntary turnover includes layoffs, retirements, dismissals, and deaths while all the others are
considered as voluntary leavings or turnover (James & Charles, 1981). Today these factors,
however, should not be considered as ‘involuntary turnovers’ because government regulation and
company policies generate the chances for such staff to return to work, or to carry on working on
a more elastic origins (Ongori, 2007).
ORGANIZATIONAL FACTORS;
Organizational instability has been shown to have a high degree of high turnover. Indications are
that employees are more likely to stay when there is a predictable work environment and vice
versa (Zuber, 2001). In organizations where there was a high level of inefficiency there was also
a high level of staff turnover (Alexander et al., 1994). Therefore, in situations where
organizations are not stable employees tend to quit and look for stable organizations because
with stable organizations they would be able to predict their career advancement. The imposition
of a quantitative approach to managing the employees led to disenchantment of staff and hence it
leads to labor turnover. Therefore management should not use quantitative approach in managing
its employees. Adopting a cost oriented approach to employment costs increases labor turnover
Simon et al. (2007). All these approaches should be avoided if managers want to minimize
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employee turnover an increase organizational competitiveness in this environment of
globalization. Employees have a strong need to be informed. Organization with strong
communication systems enjoyed lower turnover of staff (Labov, 1997). Employees feel
comfortable to stay longer, in positions where they are involved in some level of the decision-
making process. That is employees should fully understand about issues that affect their working
atmosphere (Magner et al. (1996). But in the absence openness’ in sharing information,
employee empowerment the chances of continuity of employees are minimal. Costly et al.
(1987) points out that a high labor turnover may mean poor personnel policies, poor recruitment
policies, poor supervisory practices, poor grievance procedures, or lack of motivation. All these
factors contribute to high employee turnover in the sense that there is no proper management
practices and policies on personnel matters hence employees are not recruited scientifically,
promotions of employees are not based on spelled out policies, no grievance procedures in place
and thus employees decides to quit. Griffeth et al. (2000) noted that pay and pay-related variables
have a modest effect on turnover. Their analysis also included studies that examined the
relationship between pay, a person’s performance and turnover. They concluded that when high
performers are insufficiently rewarded, they quit. If jobs provide adequate financial incentives
the more likely employees remain with organization and vice versa. There are also other factors
which make employees to quit from organizations and these are poor hiring practices, managerial
style, lack of recognition, lack of competitive compensation system in the organization and toxic
workplace environment Abassi et al. (2000)
❖ EFFECTS OF EMPLOYEE TURNOVER;
Employee turnover is expensive from the view of the organization. Voluntary quits which
represents an exodus of human capital investment from organizations Fair (1992) and the
subsequent replacement process entails manifold costs to the organizations. These replacement
costs include for example, search of the external labor market for a possible substitute, selection
between competing substitutes, induction of the chosen substitute, and formal and informal
training of the substitute until he or she attains performance levels equivalent to the individual
who quit John (2000). Addition to these replacement costs, output would be affected to some
extend or output would be maintained at the cost of overtime payment. The reason so much
attention has been paid to the issue of turnover is because turnover has some significant effects
on organizations (DeMicco and Giridharan, 1987; Dyke and Strick, 1990; Cantrell and
Saranakhsh, 1991; Denvir and Mcmahon, 1992).Many researchers argue that high turnover rates
might have negative effects on the profitability of organizations if not managed properly (Hogan,
1992; Wasmuth and Davis, 1993; Barrows, 1990). Hogan 1992, nearly twenty years ago the
direct and indirect cost of a single line employee quitting was between $ 1400 and $4000.
Turnover has many hidden or invisible costs Philips (1990) and these invisible costs are result of
incoming employees, co-workers closely associated with incoming employees, co-workers
closely associated with departing employees and position being filled while vacant. And all
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these affect the profitability of the organization. On the other hand. Employee turnover effects
customer service and satisfaction Kemal et al. (2002). Catherine (2002) argue that turnover
include other costs, such as lost productivity, lost sales, and management’s time, estimate the
turnover costs of an hourly employee to be $3,000 to $10,000 each. This clearly demonstrates
that turnover affects the profitability of the organization and if it’s not managed properly it would
have the negative effect on the profit. Research estimates indicate that hiring and training a
replacement worker for a lost employee costs approximately 50 percent of the worker’s annual
salary (Johnson et al., 2000) – but the costs do not stop there. Each time an employee leaves the
firm, we presume that productivity drops due to the learning curve involved in understanding the
job and the organization. Furthermore, the loss of intellectual capital adds to this cost, since not
only do organizations lose the human capital and relational capital of the departing employee, but
also competitors are potentially gaining these assets Meaghan et al. (2002). Therefore, if
employee turnover is not managed properly it would affect the organization adversely in terms of
personnel costs and in the long run it would affect its liquidity position. However, voluntary
turnover incurs significant cost, both in terms of direct costs (replacement, 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 et al. (2001).
❖ STRATEGIES TO MINIMIZE EMPLOYEE TURNOVER;
Strategies on how to minimize employee turnover, con- fronted with problems of employee
turnover, management has several policy options viz. changing (or improving existing) policies
towards recruitment, selection, induction, training, job design and wage payment. Policy choice,
however, must be appropriate to the precise diagnosis of the problem. Employee turnover
attributable to poor selection procedures, for example, is unlikely to improve were the policy
modification to focus exclusively on the induction process. Equally, employee turnover
attributable to wage rates which produce earnings that are not competitive with other firms in the
local labor market is unlikely to decrease were the policy adjustment merely to enhance the
organization’s provision of on-the- job training opportunities. Given that there is increase in
direct and indirect costs of labor turnover, therefore, management are frequently exhorted to
identify the reasons why people leave organization’s so that appropriate action is taken by the
management. Extensive research has shown that the following categories of human capital
management factors provides a core set of measures that senior management can use to increase
the effectiveness of their investment in people and improve overall corporate performance of
business: Employee engagement, the organization’s capacity to engage, retain, and optimize the
value of its employees hinges on how well jobs are designed, how employees' time is used, and
the commitment and support that is shown to employees by the management would motivate
employees to stay in organizations. Knowledge accessibility, the extent of the organization’s
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“cooperativeness” and its capacity for making knowledge and ideas widely available to
employees, would make employees to stay in the organization. Sharing of information should be
made at all levels of management. This accessibility of information would lead to strong
performance from the employees and creating strong corporate culture Meaghan et al. (2002).
Therefore; information accessibility would make employees feel that they are appreciated for
their effort and chances of leaving the organization are minimal. Workforce optimization, the
organization’s success in optimizing the performance of the employees by establishing essential
processes for getting work done, providing good working conditions, establishing accountability
and making good hiring choices would retain employees in their organization. The importance of
gaining better understanding of the factors related to recruitment, motivation and retention of
employees is further underscored by rising personnel costs and high rates of employee turnover
(Badawy, 1988; Basta and Johnson, 1989; Gar- den, 1989; Parden, 1981; Sherman, 1986). With
increased competitiveness on globalizations, managers in many organizations are experiencing
greater pressure from top management to improve recruitment, selection, training, and retention
of good employees and in the long run would encourage employees to stay in organizations.
❖ HOW A MANAGER SHOULD ACT?
If the above strategies are taken into account the business would be able to survive in a dynamic
environment by treating their employees as one of their assets which needs a lot of attention.
Employees are the backbone of any business success and therefore, they need to be motivated
and maintained in organization at all cost to aid the organization to be globally competitive in
terms of providing quality products and services to the society. And in the long-run the returns on
investments on the employees would be achieved. Management should encourage job redesign-
task autonomy, task significance and task identity, open book management, empowerment of
employees, recruitment and selection must be done scientifically with the objective of retaining
employees. Managers should examine the sources of employee turnover and recommend the
best approach to fill the gap of the source, so that they can be in a position to retain employees in
their organization to enhance their competitiveness in the this world of globalization. Managers
must understand that employees in their organizations must be treated as the most liquid assets of
the organization which would make the organization to withstand the waves of globalization.
This asset needs to be monitored with due care, otherwise their organizations would cease to
exist. Employees should be given challenging work and all managers should be hired on the
basis of know-how by following laid down procedures of the organization and this would make
organization to have competent managers at all levels of management and hence good
supervision. Griffeth et al. (2000) noted pay and pay-related variables have a great effect on
employee turnover. Management must compensate employees adequately. They should pay
employees based on their performance and in addition they should be given employees
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incentives like individual bonus, lump sum bonus, sharing of profits and other benefits. Hence, if
these are put in place they would minimize employee turnover.
2.ZEROING IN ON RESEARCH OBJECTIVE
Research Objective:
The purpose of the study is:
‘’To investigate the factors that influence the employee turnover in organizations’’
Research Questions:
1. To what extent unskilled labor leads to employee turnover?
2. Does work-life balance effects the employee turnover?
3. What contributions wage rate has towards employee turnover?
4. How much influence age has on employee turnover?
OBJECTIVE ELUCIDATION;
The objective of investigating the factors influencing employee turnover will help the
organizations in elucidating the factors, their relationship and hence their influence on employee
turnover which will, then, help them in lessening or eradicating the threat of high turnover rates.
The objective, here, is backboned by 4 research questions, considering each of the independent
variables chosen to study (factors)-Unskilled labor, Work-Life Balance, Wage Rate, and Age.
These are the questions that the scientific research intends to answer to elucidate the inferences
on the objective and hence proving the factor influences on and relationship with the employee
turnover.
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CONCEPTUAL FRAMEWORK;
FIG.1. FACTORS THAT INFLUENCE EMPLOYEE TURNOVER
THEORETICAL FRAMEWORK;
In the above conceptual frame work the dependent variable for his study is Employee turnover,
which is the variable of primary interest. The four independent variables are unskilled labor, age
of the employee, wage rate and work-life balance. The mediating variable is the satisfaction level
of employees.
Employee turnover is defined as crossing of the membership boundary of an organization due to
voluntary resignation, termination and retirement. Unskilled labor is the workforce who lacks the
knowledge and experience of doing work efficiently and effectively. Age can be well defined as
the lifespan of a person. Wage is the monetary compensation paid by an employer to an
employee in exchange for work done. Lastly, work-life balance is a concept of balancing work;
careers and ambition; and lifestyle; health, leisure, family etc., and letting the employees
prioritize work and family/private life equally.
The more will be the unskilled labor in the organization, the higher will be the employee
turnover. The more the employees under the age of 30 in an organization the higher would be the
employee turnover rate. High Wage Rates and a positive work-life balance holds a negative
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relationship with the employee turnover example; the more the wage rate of the employee the
lesser would be the employee turnover and the better the work-life balance the lesser would be
the employee turnover in the organization. Satisfaction acts as a mediating variable, it surfaces
exactly at the same time when the independent variables start affecting the dependent variable of
our study.
Whenever the unskilled labor gets promoted to the job beyond their capacity and ability the
labor, then, tends to leave the job, resulting in employee turnover, because of being unable to
find encouragement and motivation level while performing their work. Research shows that the
people with age less than 30 tend to become jaded regardless of the satisfaction they attain from
their jobs and try to get a better work environment in order to move from current job because
they are the buds of the work environment that possess the desires and needs to achieve more
and exclusive from life and working career, ergo this also leads to employee turnover. If wage
structure of a firm is not according to the quantity or quality of the work done by employees,
they will move out of the firm in order to secure their career and future, leading to employee
turnover. A negative Work-Life Balance also results in employee turnover; that is, if the
employees are unable to give proper time to their families and themselves due to the working
situations then they finally choose to leave the job, resulting in employee turnover.
3. WHAT DO OTHER AUTHORS SAY ABOUT THE
FACTORS INFLUENCING EMPLOYEE
TURNOVER?
❖ A REVIEW OF THE PROFESSIONALAND ACADEMIC
LITERATURE;
AGE INFLUENCING EMPLOYEE TURNOVER;
A research on employee turnover publicizes the evidences that the factors like age, tenure, job content,
organizational commitment, and intentions of staying on the job are all incessantly and negatively related
to employee turnover rates (Mobley, Griffeth, Hand, & Meglino, 1979) and another research concludes
that the relation between job performance and age is incessant and positive for the young blossoms of the
organizations (McEvoy & Cascio, 1989). . Demographic characteristics such as age, education, gender,
income, and length of occupation are major factors in employee turnover intentions (Tracy, 2015). Tracy
further states that an employee’s age is an important factor in an employee’s decision to stay employed
with an organization and states that age have varying effects on turnover decisions. There were
expectations that more than 3.6 million people in the U.S would quit the organization, by 2020, because
of age or retirement. It is essential for organizational gurus to bring about knowledge transfer strategies to
prepare for the withdrawal of experienced employees from the workforce. Besides, human resource
practitioners should come up with retention strategies that are incessant with the needs and desires of
younger workers (Tracy, 2015). During the years 1998-2010, individuals of 18-25 age changed jobs 6.3
times, on an average while in many cases, the older employees remained loyal and committed to an
organization thinking that there are fewer opportunities available for their age. Hence, a comparison of
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geriatrics young employees was an indicator of the dissimilarities between the labor force flexibility and
turnover intentions (Tracy, 2015). The employee’s perception of job satisfaction and work environment
indirectly correlated with turnover (Lambert et al., 2012). Factors such as length of tenure, age,
supervisory status, pay/benefits satisfaction, organizational commitment, job satisfaction, and work
environment were potential turnover antecedents (Lambert et al., 2012).
Job satisfaction and employees‟ turnover are inversely proportional. With decrease in the
strength of one, there is increase in the strength of the other. “Job satisfaction and turnover are
negatively related” (Griffeth et al., 2000). Another researcher proclaimed that future good career
and turnover are opposite related (Koh and Goh, 1995). There are many other factors which seem
to be the core factors of turnover and job satisfaction according to Price and Mueller (1986).
They stated that promotion factor will decrease employees‟ turnover.
WAGE RATE;
Wal-mart decided to spend $1 billion in 2015 in raising their hourly/low-wage employees’ (500,000 in
number)pay because they realized the loss they were facing due to employee turnover. This very act of
Wal-mart motivated the workers to do the retail chores with interest. This proves how a wage rate can
conjure employees to leave or quit an organization no matter how loyal they had been, with the
organization, in the past.
Work-Life Balance;
Work-life balance has emerged as a major theme during the last two decades, which witnessed a
substantial intensification of work caused by economic uncertainty, organisational restructuring, and
increase in business competition (Green, 2001; Millward et al., 2000). To respond to the new conditions,
organisations demand higher performance and commitment from their employees, which is translated into
expectations for working longer and for prioritising work over personal life (e.g. see Perrons, 2003, pp.
68-72; Simpson, 2000; White et al., 2003). Indeed, recent survey data suggest that the pressure on
employees to work longer hours under inflexible work suggests that lack of balance between work and
non-work activities is related to reduced psychological and physical well-being (Sparks et al., 1997; Frone
et al., 1997; Thomas and Ganster, 1995; Martens et al., 1999; Felstead et al., 2002). For example, recent
empirical research in the UK (Hyman et al., 2003) indicated that intrusion of work demands into personal
life (e.g. working during the week-end) was related with reports of heightened stress and emotional
exhaustion for employees. Furthermore, employees perceived that intrusion of work obligations into their
personal lives negatively affected their health (Hyman et al., 2003).
However, there are still important issues that ought to be addressed within the subject of work-life
balance. Work-life balance has been rather narrowly conceived and considered; as it has been
predominantly viewed to pertain to individuals, especially women, who are in corporate employment and
have family obligations (e.g. Parasuraman and Simmers, 2001; Hardy and Adnett, 2002; Felstead et al.,
2002, p. 57).
Because of this narrowness in the consideration of work-life balance, pertinent organisational actions are
mostly oriented towards the implementation of “family-friendly” policies (Felstead et al., 2002; Wise and
Bond, 2003).
Nonetheless, work-life balance is an issue of prime concern for both genders. For example, recent survey
data (Cully et al., 1999) showed that a substantially higher proportion of employed men than employed
women in the United Kingdom work “long hours” (i.e. more than 48 hours per week); and empirical
evidence suggests that men may experience lower work-life balance than their female counterparts
(Parasuraman and Simmers, 2001). Furthermore, it is not only family obligations that constitute an issue
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in work-life balance. Any types of activities (e.g. hobbies, time with friends) that the individual
desires to pursue outside one’s work obligations pertain to work-life balance.
Unskilled Labor;
The labor market is assumed to be segmented into workers with high formal education
(skilled or high-skilled labor) and workers with no higher education (unskilled or low-skilled
labor). Whereas skilled labor can be employed in production as well as in non-production
activities, unskilled labor can only be used in production. (Falkinger, 2012)
The empirical research on the relationship between labor turnover and productivity has been
inadequate. Most studies have been aggregate, and have faced difficulties in controlling both for
industry differences in the importance of specific human capital, and for unobservable including
management.
Job satisfaction;
Job satisfaction is an employee’s positive emotional state regarding the employee’s occupational
experiences (Abii, Ogula, & Rose, 2013; Liu, Mitchell, Lee, Holtom, & Hinkin, 2012).
Researchers that categorized job turnover by the specific reason analyzed the effects of job
satisfaction as it related to the turnover reason (Lee, 2013). External factors such as family well-
being and job alternatives are relevant to an employee’s level of job satisfaction. Turnover
reasons include individuals that quit for family reasons, -to look for a job, and-to take another job
(Lee, 2013). Data analysis for a two-year period was sufficient to examine the relationship
between job satisfaction and employee turnover (Lee, 2013; Liu et al., 2012). To determine
whether job satisfaction was a predictor of employee turnover, Lee (2013) analyzed different
types of turnover. Liu et al. (2012) analyzed changes in the job satisfaction trajectory and
compared individual and unit turnover intentions. The combination of increased individual and
unit job satisfaction relate to decreases in turnover intentions (Liu et al., 2012). Job
dissatisfaction is predictive of turnover, but the level of dissatisfaction varies between the types
of turnover (Lee, 2013).
Job alternatives were better predictors of turnover than family well-being was. Individuals that
quit their jobs to look for another, and those that left to take another job were twice as likely to
quit when compared to employees who quit for family reasons (Lee, 2013). The type of shift an
employee worked was another predictor of job satisfaction. In a similar study that included an
analysis of the behaviors of entry-level employees, the researchers found employees that worked
mixed, afternoon, and night schedules had a 136% higher risk of turnover than employees that
worked day shift (Martin, Sinclair, Lelchook, Wittmer, & Charles, 2012).
An employee’s generational cohort and attitudes toward work are factors of consideration for the
employee’s level of job satisfaction. An examination of generational differences occurred
through the analysis of work attitudes, job satisfaction, job security, and turnover intentions
(Mencl & Lester, 2014). The analysis of employee work schedules was beneficial for
determining the level of job satisfaction (Pitts et al., 2011). For job satisfaction, Mencl and Lester
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did not find generational differences; however, Pitts et al. did find differences within the
generational cohorts. There were more generational similarities than differences for job
satisfaction, satisfaction with pay, and turnover intentions (Mencl & Lester, 2014). In the federal
government, employees that transition to jobs within the government are able to transfer benefits
such as vacation time and sick leave. Middle-aged federal employees were more likely to seek
new employment within the federal government, but less likely to leave for employment
opportunities outside of the government (Pitts et al., 2011). As job satisfaction increased,
turnover intentions decreased (Pitts et al., 2011). There were slight differences in the generational
perceptions of job security (Mencl & Lester, 2014). Mencl and Lester (2014) noted the
millennial generation was more satisfied with career development and advancement
opportunities than the other generations. Workplace satisfaction was the strongest predictor of
turnover intention, followed by demographic variables (Tracy, 2015).
Factors such as perceptions of fair pay, stress, and length of tenure are moderators of job
satisfaction and turnover intentions in academic institutions (Nitesh, Nandakumar, & Asok,
2013). Job satisfaction is a mediator in the relationship between employee performance and
voluntary turnover (Bouckenooghe et al., 2013). Rewards such as promotions, pay for
performance, and pay growth are motivating factors for high performers to stay with an
organizations (Bouckenooghe et al., 2013). A good fit exists when an employee’s needs and
desires are compatible with the employee’s occupation.
An association exists between increases in fit and support with decreases in turnover intentions
for academia (Nitesh et al., 2013). When comparing fit, support, and satisfaction with
employment in other institutions, the statistical relationship did not have the same results.
Neither fit nor support, nor satisfaction had a significant relationship with turnover intention for
employment with other institutions (Nitesh et al., 2013).
Perceived pay for performance highly correlated with the employee’s job satisfaction
(Bouckenooghe et al., 2013). Job satisfaction had statistically significant mediating effects on the
relationship between performance and voluntary turnover (Tracy, 2015).
PROS OF APPROACHING SCIENTIFIC;
Relevance of the study:
The relevance of the study is done to ensure the benefits that the research provides through its
finding. Those who would benefit from this study would be the organizations who are striving to
find a better solution to reduce employee turnover. It will actually secure the direct cost that is
due to the employee turnover for example, recruiting cost, interviewing cost and time spend in
orientations of employee. Moreover, the study would help the company to be efficient and create
efficiency in their performance and productivity sector.
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HOW DID I GO SCIENTIFIC?
Role of the Researcher
I used an outsider’s perspective, which was appropriate for quantitative research because
quantitative research is representative of an outsider’s point of view (Tracy, 2015). My
personal interests did not create any bias in the outcome of the study because I was not
employed by a civilian organization, unlike all of the participants. I abided by the
guidelines and principles established in the Belmont Report, containing respect for
people, well-versed consent, and respecting privacy/confidentiality. The participants for
the study were employees of nongovernmental agencies; I had no actual or potential
influence over the study’s participants because I did not have access to their names or any
personally identifying information. I used physical tool (questionnaires) to administer
each of the survey instruments to the participants, then collected, organized, and analyzed
the survey responses to address the research question.
PARTICIPANTS;
I used physical tool (questionnaires) as my survey instrument to observe and measure
behaviors and opinions. I obtained all of the collected survey data from voluntary
participants who used the survey instrument. I closed the survey after 3 days, because I
obtained the desired amount of usable responses. Usable surveys, for the purposes of this
study, consisted of surveys completed by the participants who answered every question.
METHODOLOGY
PURPOSE OF STUDY:
Since the objective of our study is to investigate “the factors influencing employee turnover”.
The purpose of the study we have chosen be both descriptive and causal.
• DESCRIPTIVE:
The first half of our research objective is descriptive which help us in gathering data in a
way that elaborates persons, events or situations. Through descriptive study we intend to
gather the necessary quantitative and qualitative data which will describe the attribute of our
chosen variables of cause that includes age, wage rate, work-life balance and unskilled labor.
To describe how these variables are influencing the employee turnover we will carry out the
correlation study which will provide the theoretical basis for the scientific or more
generalized research.
• CAUSAL:
In the other half of our research objective, we intend to delineate the factors (Age, Wage-
rate, Work life Balance, Unskilled labors) with a scientific approach so that we are able to
state firmly that the described factors are the actual causes of employee turnover.
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Hypothesis Testing:
We are testing hypothesis against the factors that we described (Age, Wage rate-rate, Work Life
Balance, Unskilled labors) to scientifically hit our objective that these factors are related with the
employee turnover and the major causes of it.
• Directional hypothesis
The more the age, the less is the employee turnover
The more wage rate, the less is the employee turnover
The more unskilled labor, the more is the employee turnover
• Non-directional hypothesis
There is a positive relationship between work- life balance and employee turnover
EXTENT OF RESEARCHER INTERFERENCE:
Since the first half of our study is descriptive while the second half is causal study our
interference will be minimal to moderate.
• MINIMAL:
We intend to do a survey for collecting necessary quantitative and qualitative data
through questionnaires and interviews respectively. As the minimal interference is there
as it is a part of correlational study (conducted in natural environment). Plus we also
intend to ‘explicitly’ describe the relationship between variables by correlating them
without manipulating any of our variable of interest.
• MODERATE:
After we have collected the necessary quantitative and qualitative data and described the
theoretical relationships between variables, We intend to study those factors, that need to
be studied on a scientific level as well as by manipulating those necessary/selected
independent variables of our study (Wage-rate and Work Life Balance) and observe the
effects of such manipulation on the dependent variable of our study “Employee turnover”
so that we can firmly establish a firm causal connection between the variables of our
study.
STUDY SETTING:
The study setting that we are going to use is non-contrived setting. As the study is considered to
be correlational; which will be done in natural environment; ergo I, will carry out a field study
for the correlational part of the study and field experiments (Manipulation of some necessary
Independent variables of our study) for the causal part. Here we will be bringing alterations in
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four of the variables that include: age, wage- rate, work-life balance and unskilled labor. We will
manipulate the age of labor and work-life balance has effect on employee turnover. We will also
study how different wage rate and unskilled labor influence the employee turnover.
RESEARCH STRATEGIES:
The strategies that we are going to use during our research are:
• Survey:
We are going to carry out a survey via collecting information with the help of questionnaires and
getting them filled from the employees at Unilever. This survey will help us in collecting all the
necessary quantitative and qualitative data which will, then, help us in explicitly and/or firmly
describing the factors and their respective relationships with the employee turnover so that we
can compare them together and come up with firm and generalized results.
• Survey instruments:
Surveys will be conducted through questionnaires. Surveys are conducted to inquire respondents
about the topic of our study in order to get desired responses pertaining relevant to our study.
Questionnaires are based on set of questions to which respondents or subjects give their answers.
Questionnaires are considered to be less expensive but time-consuming than data collected either
through interviews or observation. They are usually designed in order to gather large amount
quantitative data administered either personally, through mails or by making it available
electronically
• Observation:
The second strategy that we are going to follow to pursue our research is observation by which
we will gather and collect data on “how efficaciously the employees are completing their
assigned tasks” so that we can measure the efficiency of employees in completing tasks (an
element of unskilled labors) to check and state how skilled they are.
MEASUREMENT AND MEASURES:
Measurement is assigning numbers or symbols to certain attributes, properties or characteristics
of an object as per the certain specified rules
• Operational definition:
We intend to study the effects of Age, Wage- rate, Work Life Balance, Unskilled labors on
employee turnover and since the factors are very nebulous to measure (except age, which doesn’t
need to be operationalized) so, we operationalized it in to different dimensions, to reduce the
abstractness to the minimum level, which will ease the study of the effects that they have on
employee turnover. The operationalization is done on the next page:
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• ITEMS (MEASURE)
Items I intend to include in the questionnaire in order to measure their influence on employee
turnover are: Age, work life balance, wage-rate and unskilled labor and since the extent of
abstractness is high in each of them so I have operationalized it (as shown in the figure above).
• SCALING:
The scales that I intend to use to measure my chosen variables of study are primary scales (i.e.
nominal and interval) and the category and Likert scale, since they’re easy to construct and
measure the attitudes nicely and precisely.
Likert scale:
We are using a 5-point Likert scale to easily and precisely measure the attitudes and to
know the degree of agreement of our respondents.
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Interval scale:
Since the Likert scale uses the interval scale so we are actually using the interval scale to
measure the relation between variables of our study to firmly state the causal connection
between them, by the Likert scale in the questionnaire.
Category Scale:
We have used the category scale to elicit a single response from respondent which uses
the Nominal scale.
Nominal Scale:
We have used the nominal scaling in obtaining the personal data of respondents and in the
category scale used in the questionnaires.
• Categorizing:
Since we are using Nominal scale in Category scale ergo, we have categorized our items,
on these scales, on the basis of Age, Work-life balance, Wage rate/Salaries, and Unskilled
labor so that the responses analyzed on the basis of these items help in investigation of
their influence on employee turnover.
• Coding:
We have coded the dimensions of our variables, Age, Wage rate/Salaries, Work life
balance and Unskilled labor, as D1, D2(a), D2(b), D3(a), D3(b), D4(a), D4(b) respectively; and
these represent the hours given to work, hours given to family/private life, salary that
Unilever is offering, Salary that the competitors are offering, Educational level of labors
and efficiency in completing the tasks respectively.
Moreover, we’ve also coded every item in our measure, with the help of the scales that
we have chosen, as 1, 2, 3, 4, 5 for the Likert Scale representing Strongly disagree,
disagree, neutral, agree, Strongly agree respectively, while the different categories of the
Category scale are assigned their own respective subjects; like assigned 1 for the first
category, 2 for the second and so on and so forth.
UNIT OF ANALYSIS:
GROUPS:
I have chosen ‘groups’ as my unit of analysis and hence the population that I will be
studying will be groups of employee of Unilever possessing heterogeneity across it and
homogeneity within it.
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SAMPLING DESIGN:
I intend to choose probability sampling as my sampling design in which I intend to study the
random subjects from strata of elements in my population (employees within Unilever) via
disproportionate stratified random sampling.
• DISPROPORTIONATE STRATIFIED RANDOM SAMPLING:
Since Unilever employees many thousands of employees therefore to increase the
efficacy of the work we intend to draw random subjects, from strata, that are
disproportionate to the number of elements in strata and that is how we will ensure the
representativeness of our sample.
We will divide the population in to different mutually exclusive groups on the basis of the
variables of our study, i.e. to answer the following questions (related straight to our
research questions), We will first divide all the population of employees within Unilever
according to the age groups, employees having high work life balance and low work life
balance, wage/salaries and finally according to ‘how skilled they are?’;
1-Are the elderly employees contributing more in employee turnover than the adults?
2-Are the employees having low work life balance causing more employee turnover than the
ones having high work life balance?
3-Are the employees getting low wages contributing more in turnover than the ones getting high
wages?
4-Are the unskilled labors influencing the company’s employee turnover rate more than the
skilled ones?
• SAMPLE SIZE:
Considering the Krejice and Morgan’s (1970) table to ensure a good decision, I intend to study a
sample of 100 employees so that the studied sample size is representative of the population.
TIME HORIZON:
The study time would be purely longitudinal. Since I intend to carry on with the field
experiments so I will gather the information before manipulating the necessary independent
variables and after manipulating by pair testing technique to study the effects of such
manipulation which will help in firmly stating what variable is contributing how much in
employee turnover.
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DATA COLLECTION METHOD:
The methods that I intend to use would be questionnaires and observation on a broad perspective
in order to gather all the necessary quantitative and qualitative data for MY research.
• Questionnaire:
Attached with this research document is the designed questionnaire which was used as the survey
tool.
DATA ANALYSIS:
I intend to analyze the quantitative and qualitative data collected via questionnaires and
interviews by getting the ‘Feel for data’, testing the ‘Goodness of data’ and lastly via ‘Testing
Hypothesis’.
• FEEL FOR DATA:
Since the scales that we have chosen are Likert, category, nominal and interval therefore the
chosen methods to get the feel for data are ‘descriptive statistics (Frequencies, Measures of
central tendencies, and Measures of dispersion) to check the degree of agreement and responses
over the scales, and relationship between variables.
o Descriptive statistics:
-FREQUENCIES:
Measuring frequency will help us in getting a sense about the data to further process it by
providing us a great deal of basic information, e.g.This will indicate the number of employees
agreeing or disagreeing over the scale, number of employees belonging to the same age group
which will help in segregating them to carry out field experiments, no of employees getting same
wages/salaries, and the number of employees who have a low or high work life balance.
We intend to visually display our results of frequencies in the form of pie charts and bar charts.
-Measures of central tendencies:
We intend to measure the central tendency of data via mean, median and mode.
MEAN:
We intend to take an average or find the mean of our gathered data to get a clear cut picture of
the data and to know where the actual central data is lying. This will enable us in knowing the
average age of employees in an organization and the average degree of agreement of employees
on work life balance and unskilled labor (via questionnaire) or simply what on average is
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actually influencing employee turnover. That is how calculating mean will help us in measuring
the average of the interval scales used.
MEDIAN:
Median is the central item of all the data gathered and we intend to calculate it to know the midst
values of nominal and interval scales.
This along with the mode help us in determining the skewness of the data gathered, so we’ll be
able to know whether or not the data gathered is ‘Normally distributed’ when we’ll compare the
median and mode with the mean.
MODE:
This will help us in calculating the highest frequencies of the variables of our study and hence,
we’ll be able to know what aged employees are contributing the most in employee turnover? Or
which employee is working more hours per day? Etc., and that is how it will help us in getting
feel for the nominally scaled data.
-MEASURES OF DISPERSION:
We intend to measure the dispersion of data via standard deviation, since it’s the most commonly
used and the most reliable way of accurately calculating the dispersion or how far is the data
lying from mean.
STANDARD DEVIATION:
This will give us a more accurate figure of dispersion of data which we will help us in
manipulation of the necessary independent variables since we will know the accurate rate of
dispersion of the of the variables. This also helps in knowing how much observations fall within
one standard deviation, 2 standard deviations and 3 standard deviations so we can compare these
with the normal distribution (68%, 95%, and 99% respectively) to get a more clearer picture of
data dispersion.
-RELATIONSHIP BETWEEN VARIABLES:
Since we are doing a causal study so we need to have some tests done for the relationship b/w
the variables of our study, to firmly state a causal connection. Therefore, we intend to study the
relationship of nominally scaled data of ours via the non-parametric test and the interval data via
Pearson correlation matrix.
• PEARSON CORRELATION MATRIX:
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To examine the relationship between the variable at an interval scale, I intend to choose
Pearson correlation matrix, so that we can know, ‘how the work life balance and employee
turnover are related?’ and ‘how the unskilled labors and employee turnover are related?’
• GOODNESS OF DATA:
After we have acquired the feel for data, we can test the reliability and validity of the measures,
to test the goodness of data or to attest to the scientific rigor.
-RELIABILITY:
We will test the stability and consistency of our data to confirm the generalization, consistency and
stability of our measures.
Since our interference will be moderate (with all the manipulation of necessary independent variables)
after gathering and analyzing data with a minimal interference hence the “test-retest reliability” and
“parallel form reliability” can be the best correlational measures of examining reliability or the stability of
our measures across time and the error variability caused by wordings and ordering.
-INTERNAL CONSISTENCY TESTS:
It is an indicative of the homogeneity of the items in the measure or how the items
can be hung together as a set and are capable of independently measuring the same
concept so that the respondent attach the same meaning to every item. This can be
seen by examining whether the items and the subsets of items in the measuring
instrument are highly correlated and the test that we chose is “The Cronbach’s
Coefficient Alpha”.
• CRONBACH’S COEFFICIENT ALPHA:
Since we have chosen the multipoint-scaled items like Age, Work-life balance,
Wage rata/Salaries, and Unskilled labor; which have multiple points like 1,2,3,4,5
etc respectively; therefore, the Cronbach’s reliability coefficient can be the best
way of indicating how well the items in a set are positively correlated to one
another.
The closer it is to 1, the higher will be the internal consistency reliability.
-VALIDITY:
However, the measures that we have chosen are well-validated (as per the literature reviews) but
we still want to ensure that the dimensions theorized (as above) are efficaciously tapped by the
items in our measure. Therefore, we intend to establish the criterion related validity.
CRITERION RELATED VALIDITY:
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We intend to establish this by testing for the power of the measure to differentiate the individuals
who are known to be different. This will basically ensure the strata that we will form, for
example; if the criterion related validity is high then the strata formed will be valid since
heterogeneity across the groups or the homogeneity within the groups will be ensured.
• HYPOTHESIS TESTING:
1. H0: There is no relationship between Age and employee turnover.
H1= OTHERWISE
i. H0: ᵨ= 0
ii. H1: ᵨ≠ 0
2. H0= There is no relationship between Wage rate and employee turnover
H1= OTHERWISE.
i. H0: ᵨ= 0
ii. H1: ᵨ≠ 0
3. H0= There is no relationship between Work-life balance and employee
turnover
H1=OTHERWISE
I. H0: ᵨ= 0
II. H1: ᵨ≠ 0
4. H0= There is no relationship between unskilled labors and employee turnover.
H1= OTHERWISE.
• H0: ᵨ= 0
• H1: ᵨ≠ 0
5. H0= The means of the strata are not equal.
H1= The means of the strata are equal.
• H0: µage ≠ µwage ≠ µWLB ≠ µunskilled.lab
• H1: µage = µwage = µWLB = µunskilled.lab
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DATA ANALYSIS ON SPSS;
RELIABILITY TESTING;
FOR AGE AND HIGHEST LEVEL OF EDUCATION;
I am checking the reliability of age and unskilled labor in order to check if the questions are
reliable enough to check if the items can TEST the relationship between them efficiently.
INTERPRETATION: The items in the instrument are 80% reliable, which means that the
variable generated from the set of questions will return a stable response.
FOR JOB STATUS AND PRESENT WORK SHIFT
I am checking the reliability of job status and present work-shift in order to check if the
questions are reliable enough to check if the items can TEST the relationship between them
efficiently.
Case Processing Summary
N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.800 2
Case Processing Summary
N %
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Interpretation; The items in the instrument are 70.7% reliable, which means that the
variable generated from the set of questions will return a stable response.
FOR AGE AND UNSKILLED LABOR;
I am checking the reliability of age and unskilled labor in order to check if the questions are
reliable enough to check if the items can TEST the relationship between them efficiently.
Interpretation; The items in the instrument are 79.0% reliable, which means that the
variable generated from the set of questions will return a stable response
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.707 2
Case Processing Summary
N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.790 8
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FOR HIGHEST COMPLETED EDUCATION AND WORK LIFE BALANCE;
INTERPRETATION; The items in the instrument are 70.6% reliable, which means that the
variable generated from the set of questions will return a stable response
FOR AGE AND WORKLIFE BALANCE
Interpretation; The items in the instrument are 68.6% reliable, which means that the
variable generated from the set of questions will return a stable response.
Case Processing Summary
N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.706 6
Case Processing Summary
N %
Cases Valid 100 100.0
Excludeda 0 .0
Total 100 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.686 6
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REGRESSION ANALYSIS;
INTERPRETATION;
R;
With correlation coefficient 0.844, the researchers see the strength and direction of a
linear relationship between independent and dependent variables. The results show a
positive correlation between independent and dependent variables. If value of
independent variables will increase then the value of dependent variable will increase
too.
R2;
With 71.2% of coefficient of determination, it is indicated that the model explains all
of the variability of the response data around its mean. The independent variables
play about 71.2% of role in age i.e. the dependent variable.
So we can say that the work-life balance, wage rate and age all are strongly affecting
employee turnover (the dependent variable of our study) and hence making them
search for a new and felicitous or more suitable job.
ANOVA (SIGNIFICANCE)
Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .844a .712 .665 .798
a. Predictors: (Constant), AGE, WL_work_hurdles_attending_social_gatherings,
WR_current_employment_status, UL_find_difficulties_in_understanding_job,
WL_workingdays_dont_tire, WL_work_demand_interferes_with_home, UL_dream_job,
WR_total_annual_EBIT, UL_job_is_of_interest, UL_understand_job_sequence,
UL_haveto_face_incessant_failures_in_current_job,
WL_work_duties_demand_change_in_fam_plans, UL_able_to_fulfill_job_requirements,
WL_job_hurdles_in_fulfilling_fam_duties
ANOVAa
Model
Sum of
Squares df Mean Square F Sig.
1 Regression 133.742 14 9.553 15.010 .000b
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Interpretation; Significance is 0.000 which is less than 0.05 (p value) hence we can
reject the H0 and conclude that the variances are not same. Secondly, F value (SB2/
SW2) is 15.010 which is greater than 10 which clearly shows that our model is
statistically significant and it has a strong strength.
While the mean square values of 9.553 (SB2-square of VARIANCE BETWEEN) and 0.636
(SW2-square of VARIANCE WITHIN) indicate that the variance between is greater than the
variance within the variables of study.
1
Residual 54.098 85 .636
Total 187.840 99
a. Dependent Variable: UL_will_leave_if_found_felicitous_job
b. Predictors: (Constant), AGE, WL_work_hurdles_attending_social_gatherings,
WR_current_employment_status, UL_find_difficulties_in_understanding_job,
WL_workingdays_dont_tire, WL_work_demand_interferes_with_home, UL_dream_job,
WR_total_annual_EBIT, UL_job_is_of_interest, UL_understand_job_sequence,
UL_haveto_face_incessant_failures_in_current_job,
WL_work_duties_demand_change_in_fam_plans, UL_able_to_fulfill_job_requirements,
WL_job_hurdles_in_fulfilling_fam_duties
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) 2.008 1.564 1.284 .203
WL_work_demand_interfe
res_with_home
-.302 .263 .261 -1.150 .253
WL_workingdays_dont_tir
e
.444 .146 .242 3.037 .003
WL_job_hurdles_in_fulfilli
ng_fam_duties
1.026 .355 .800 2.887 .005
WL_work_duties_demand
_change_in_fam_plans
-1.171 .297 .790 -3.938 .000
WL_work_hurdles_attendi
ng_social_gatherings
-.059 .195 .038 -.303 .763
WR_current_employment
_status
-.213 .232 .077 -.921 .360
WR_total_annual_EBIT .096 .111 .088 .862 .009
UL_job_is_of_interest .437 .195 .341 2.243 .027
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !33 50
INTERPRETATION; The sig values of greater than 0.05 reject our H0 of study and help us in
knowing whether or not the respective independent variables (defined by more than one items in
work life balance and unskilled labor) are effecting our dependent variable. The following
variables are having sig values above 0.05;
1. AGE
2. Work demanding interfere with home duties
3. Work hurdling attending social gathering
4. Current employment status
5. Employee being able to fulfill job requirements
6. Employee being able to understand the job
While the ones having the sig value less than 0.05 are;
1. Working days making employees feel jaded (sig 0.003)
2. Job hurdling the fulfillment of family duties (sig 0.005)
3. Work demanding change in family plans (sig 0.000)
4. Total annual income before tax and other deductions (EBIT) (sig 0.009)
5. Job being of interest (sig 0.027)
6. Job being the one always dreamt of (sig 0.000)
7. Exposure to incessant failures in job (sig 0.048)
UL_dream_job -.732 .172 -.610 4.250 .000
UL_haveto_face_incessan
t_failures_in_current_job
.089 .194 .072 .458 .048
UL_able_to_fulfill_job_req
uirements
.157 .225 .109 .700 .486
UL_understand_job_sequ
ence
-.344 .215 -.217 -1.596 .114
UL_find_difficulties_in_un
derstanding_job
.241 .172 .186 1.399 .045
a. Dependent Variable: UL_will_leave_if_found_felicitous_job
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !34 50
8. Employee facing difficulty in understanding the job. (sig 0.045)
CONCLUSION;
The data helped us in knowing which factors are the significant ones and can help us in
achieving significant positive changes in the dependent variable of our study if worked
on these,
Hence the main factor is jobs that hurdles family duties with a coefficient of 0.800 in the
table above.
Equation;
Y= a + bx3
a = Constant
X1 = Job hurdles the fulfillment of family duties
Y = 1.026+0.800(X3)
And since the significance of the main factor is below 0.05, that is 0.005, ergo with every change
in the factor, a change in the dependent variable of our study (employee turnover) can be seen.
While a complete equation of all the respective variables will be;
Y= 1.026+ 0.261(X1) + 0.242 (X2) + 0.800(X3) + 0.790 (X4) + 0.038(X5) +0.077(X6) +0.088(X7)
+0.341(X8)-0.610(X9) +0.072(X10) +0.109(X11) -0.217(X12) +0.186(X13)
WHERE EACH “X” VALUE DENOTS IT’S RESPECTIVE INDEPENDENT VARIABLE
FROM THE TABLE ABOVE.
Last but not the least, we can also conclude that the many independent variables of our study
hold negative relationship with each other and with the dependent variables, while some hold the
positive one in which a change in them defines an amount of change in the dependent variables
of our study. [REFER TO THE PEARSON’S CORRELATION;]
RECOMMENDATIONS;
After hitting the research scientifically and getting all the necessary results of analysis, I want to
recommend the following to the organizations that are incessantly facing the issue of employee
turnover;
1. The organizations should and must first go on and work on the main factor that is
influencing employee turnover; “job that hurdles the fulfillment of family duties”; to
see a significant change in the dependent variable of our study.
2. Working on the main factor does not mean that other factors are worth the
avoidance, there are factors with higher positive correlations with the dependent
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !35 50
variable plus a high coefficient of growth determination. For example; “work
demanding change in family plans, and interfering with home, and work making the
employees feel jaded.”
3. Thirdly, organizations are recommended to not only go on and start working on the
cessation/eradication of these factors but also go for the integrity in their strategies
to achieve a fit/balance between the managerial strategies and the employee work
capacity.
4. Fourthly, the organizations need to keep working on motivating the employees and
not letting them feel jaded of the job. Motivations can be in the form of training
sessions to raise their esteem level or in the form of compensation to raise their
living standards.
5. Lastly, managers must incessantly keep an eye on the employees so that they may
aware themselves of their employee capabilities, skills, talents, needs, wants and
desires.
APPENDIX A
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !36 50
FREQUENCY DISTRIBUTION;
AGE
Frequency Percent Valid Percent
Cumulative
Percent
Valid UNDER 20 4 4.0 4.0 4.0
20-30 8 8.0 8.0 12.0
30-50 32 32.0 32.0 44.0
50-65 20 20.0 20.0 64.0
over 65 36 36.0 36.0 100.0
Total 100 100.0 100.0
marital_status
Frequency Percent Valid Percent
Cumulative
Percent
Valid Single 4 4.0 4.0 4.0
Married 96 96.0 96.0 100.0
Total 100 100.0 100.0
Highest_completed_level_of_edu
Frequency Percent Valid Percent
Cumulative
Percent
Valid College 8 8.0 8.0 8.0
Graduate 20 20.0 20.0 28.0
Other 72 72.0 72.0 100.0
Total 100 100.0 100.0
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !37 50
Present_work_shift
Frequency Percent Valid Percent
Cumulative
Percent
Valid First 84 84.0 84.0 84.0
Second 8 8.0 8.0 92.0
Third 8 8.0 8.0 100.0
Total 100 100.0 100.0
Job_status
Frequency Percent Valid Percent
Cumulative
Percent
Valid Top management 12 12.0 12.0 12.0
Middle Management 84 84.0 84.0 96.0
Non-managerial 4 4.0 4.0 100.0
Total 100 100.0 100.0
Number_of_the_years_worked
Frequency Percent Valid Percent
Cumulative
Percent
Valid 1-2 4 4.0 4.0 4.0
3-5 28 28.0 28.0 32.0
6-10 16 16.0 16.0 48.0
OVER 10 52 52.0 52.0 100.0
Total 100 100.0 100.0
no_of_org_worked_for_b4_this_org
Frequency Percent Valid Percent
Cumulative
Percent
Valid none 60 60.0 60.0 60.0
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !38 50
Valid
one 12 12.0 12.0 72.0
two 24 24.0 24.0 96.0
4 or more 4 4.0 4.0 100.0
Total 100 100.0 100.0
Paid_jobs_that_i_currently_have
Frequency Percent Valid Percent
Cumulative
Percent
Valid ONE 88 88.0 88.0 88.0
TWO 8 8.0 8.0 96.0
THREE 4 4.0 4.0 100.0
Total 100 100.0 100.0
WL_work_demand_interferes_with_home
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 52 52.0 52.0 52.0
Agree 20 20.0 20.0 72.0
Neutral 8 8.0 8.0 80.0
Disagree 20 20.0 20.0 100.0
Total 100 100.0 100.0
WL_workingdays_dont_tire
Frequency Percent Valid Percent
Cumulative
Percent
Valid Agree 12 12.0 12.0 12.0
Neutral 20 20.0 20.0 32.0
Disagree 64 64.0 64.0 96.0
Strongly Disagree 4 4.0 4.0 100.0
Total 100 100.0 100.0
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !39 50
WL_job_hurdles_in_fulfilling_fam_duties
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 28 28.0 28.0 28.0
Agree 40 40.0 40.0 68.0
Neutral 12 12.0 12.0 80.0
Disagree 20 20.0 20.0 100.0
Total 100 100.0 100.0
WL_work_duties_demand_change_in_fam_plans
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 28 28.0 28.0 28.0
Agree 36 36.0 36.0 64.0
Neutral 28 28.0 28.0 92.0
Disagree 8 8.0 8.0 100.0
Total 100 100.0 100.0
WL_work_hurdles_attending_social_gatherings
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 32 32.0 32.0 32.0
Agree 36 36.0 36.0 68.0
Neutral 28 28.0 28.0 96.0
Disagree 4 4.0 4.0 100.0
Total 100 100.0 100.0
WR_current_employment_status
Frequency Percent Valid Percent
Cumulative
Percent
Valid Full time employed 44 44.0 44.0 44.0
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !40 50
PEARSON’S CORRELATION;
Valid
Part time employed 56 56.0 56.0 100.0
Total 100 100.0 100.0
WR_total_annual_EBIT
Frequency Percent Valid Percent
Cumulative
Percent
Valid Less than 30,000 36 36.0 36.0 36.0
30-50,000 24 24.0 24.0 60.0
50-70,000 16 16.0 16.0 76.0
70-90000 20 20.0 20.0 96.0
More than 90,000 4 4.0 4.0 100.0
Total 100 100.0 100.0
UL_job_is_of_interest
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 56 56.0 56.0 56.0
Agree 28 28.0 28.0 84.0
Disagree 16 16.0 16.0 100.0
Total 100 100.0 100.0
UL_dream_job
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Agree 12 12.0 12.0 12.0
Agree 28 28.0 28.0 40.0
Neutral 28 28.0 28.0 68.0
Disagree 24 24.0 24.0 92.0
Strongly Disagree 8 8.0 8.0 100.0
Total 100 100.0 100.0
Descriptive Statistics
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !41 50
INTERPRETATION OF PEARSON’S CORRELATION’S TABLE; The sig values in bold
are all less than 0.05, indicating that these two variables are not correlated to
each other and hence we have to reject our H0 which said that all of these
variables are correlated to each other. The correlation values of 1 or near to 1
indicate a strong/perfect correlation; positive correlational values however show a
positive relation while the negative ones show an inverse/negative relation
between the variables of study.
Mean Std. Deviation N
AGE 3.76 1.147 100
WL_work_demand_interferes_with_home
1.96 1.188 100
WL_workingdays_dont_tire 3.60 .752 100
WL_job_hurdles_in_fulfilling_fam_duties
2.24 1.074 100
WL_work_duties_demand_change_in_fam_
plans
2.16 .929 100
WL_work_hurdles_attending_social_gatheri
ngs
2.04 .875 100
WR_current_employment_status
1.56 .499 100
WR_total_annual_EBIT 2.32 1.262 100
UL_job_is_of_interest 1.76 1.074 100
UL_dream_job 2.88 1.148 100
UL_haveto_face_incessant_failures_in_curr
ent_job
3.16 1.126 100
UL_able_to_fulfill_job_requirements
1.88 .956 100
UL_understand_job_sequence
1.88 .868 100
UL_find_difficulties_in_understanding_job
3.40 1.064 100
UL_will_leave_if_found_felicitous_job
1.96 1.377 100
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !42 50
APPENDIX (B)
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !43 50
WORK LIFE BALANCE; chart shows how much of the employees agreed or disagreed.
SCATTER DIAGRAM
%
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
AGE & HIGHEST COMPLETED
LEVEL OF EDUCATION
Page ! of !45 50
EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
Page ! of !46 50
BIBLIOGRAPGY
Bouckenooghe, D., Raja, U., & Butt, A. N. (2013). Combined effects of positive and
negative affectivity and job satisfaction on job performance and turnover
intentions. The Journal of Psychology: Interdisciplinary and Applied, 147, 105-
123. doi:10.1080/00223980.2012.678411
Abii, F. E., Ogula, D. N., & Rose, J. M. (2013). Effects of individual and organizational
factors on the turnover intentions of information technology professionals.
International Journal of Management, 31, 740-756. Retrieved from
http://www.internationaljournalofmanagement.co.uk
Nitesh, S. S., Nandakumar, V. M., & Asok, K. S. (2013). Role of pay as perceived
organizational support contributes to employee's organizational commitment.
Advances in Management, 6(8), 52-54. doi:10.1177/1059601112457200
Mencl, J., & Lester, S. W. (2014). More alike than different: What generatiions value and
how the values affect employee workplace perceptions. Journal of Leadership &
Organizational Studies, 21, 257-272. doi:10.1177/1548051814529825
Martin, J. E., Sinclair, R. R., Lelchook, A. M., Wittmer, J. S., & Charles, K. E. (2012).
Non-standard work schedules and retention in the entry-level hourly workforce.
Journal of Occupational & Organizational Psychology, 85, 1-22.
doi:10.1348/096317910X526803
Liu, D., Mitchell, T. R., Lee, T. W., Holtom, B. C., & Hinkin, T. R. (2012). When
employees are out of step with coworkers: How job satisfaction trajectory and
dispersion influence individual and unit level voluntary turnover. Academy of
Management Journal, 55, 1360-1380. doi:10.5465/amj.2010.0920
Liu, Y., & Berry, C. (2013). Identity. moral, and equity perspectives on the relationship
between experienced injustice and time theft. Journal of Business Ethics, 118, 73-
83. doi:10.1007/s10551-012-1554-5
Lee, B. Y., Wang, J., & Weststar, J. (2014). Work hour congruence: The effect on job
satisfaction and absenteeism. The International Journal of Human Resource Management. doi:
10.1080/09585192.2014.922601
Falkinger, J. (2012). A theory of Employment in Firms. Contributions to Economics, 85-115.
James, L. P., & Charles, W. M. (1981). A Causal model of turnover for Nurses. Academy of
management journal, 544.
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McEvoy, G. M., & Cascio, W. F. (1989). Cumulative evidence of the relationship between employee
age and job performance . Journal of Applied Psychology, VOL 74(1), 11-17.
Mobley, W. H., Griffeth, R. W., Hand, H. H., & Meglino, B. M. (1979). Review and conceptual
analysis of the employee turnover process. Psychological Bulletin, Vol 86(3), 493-522.
Ongori, H. (2007). A review of the literature on employee turnover. African Journal of Business
Management, 50.
Tracy, M. H. (2015). Demographic Characteristics Predicting Employee Turnover Intentions.
Retrieved December 4, 2016, from Walden dissertations and doctoral studies: http://
scholarworks.waldenu.edu/dissertations?
utm_source=scholarworks.waldenu.edu%2Fdissertations%2F1538&utm_medium=PDF&utm_c
ampaign=PDFCoverPages
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Research paper on Employee turnover in organizations

  • 1. DEC 5, 2016 Managerial Economics by Sabiha Abid Authored by; SUMMAYA SHARIF [EMPLOYEE TURNOVER IN ORGANIZATIONS]
  • 2. Page ! of !1 50 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid This page has been intentionally left blank.
  • 3. Page ! of !2 50 ACKNOWLEDGEMENT I am the student of BBA 6E, BAHRIA UNIVERSITY and I’m thankful to the Almighty Allah who, in His infinite mercy, has guided me to complete this term report. I also wish to thank my parents for their personal support and attention that inspired me to go my own way. I’m blessed and honored to have such parents and I’m grateful for them that they gave me a chance to prove myself. Second of all, I would like to present my deep and heartily gratitude to my Managerial Economics Professor; Ma’am Sabiha Abid; who not only asked for such an informational project which made me highly conversant with new, enlightening and pragmatic information but also gifted me with preciously valuable guidance and support for the accomplishment of this report. Lastly, I would also, gladly, like to present my genuine thanks to Bahria University, Karachi Campus that it provided me a platform via which I could get such an intriguing experience that’s a sine qua non for becoming sagacious. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 4. Page ! of !3 50 Abstract The research paper is intended to answer some of the most FAQs of the organizations about employee turnover and help them in lessening this threat which results in losing the loyal and hardworking workforce. The FAQs include; A. What is employee turnover? B. What are the factors causing employee turnover? C. How to identify/elucidate these factors? D. How is employee turnover a function of these factors? E. What is the relationship between employee turnover and each of selected factors? F. To what extent each of these factors is related to employee turnover? G. Which of these factors is the main cause of employee turnover? In order to get the pragmatic answers to the questions above, and prove the inferences/Hypothesis on the relationship of these factors with employee turnover; the research has been carried to a pragmatic and scientific level. The results of the research carried out will help the organizations to answer the questions above with relevance, reliability, authenticity, relationship metrics, all checked. The scientific study carried out is elucidated below; Purpose: This research article investigates the factors that influence the employee turnover in order to elucidate the role that they play to influence employee turnover and ergo, their relationship with employee turnover. Hence the purpose is both causal as well as descriptive. Problem Statement: The research has been conducted to help organizations lessen employee turnover. The basic problem statement is to study the effect of chosen factors (Age, wage rate, un-skilled labor, and work life balance) on employee turnover and hence their relationship with it. Ergo the basic Research Questions include: 1. To what extent unskilled labor leads to employee turnover? 2. Does work-life balance affect the employee turnover? 3. What contributions wage rate has towards employee turnover? 4. How much influence age has on employee turnover? Research method: Considering the Krejice and Morgan’s (1970) table to ensure a good decision, a sample of 100 employees, regardless of gender, area and status, is taken so that the studied sample size is representative of the population. With groups as my unit of analysis mono method and deductive approach is used in this research and the data collection technique is disproportionate stratified random sampling; in which the population is divided in to different mutually EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 5. Page ! of !4 50 exclusive groups on the basis of the variables of study like we divided all the population of employees within the organizations in accord with the age groups, employees having high work life balance and low work life balance, wage/salaries and finally according to ‘how skilled they are?’ i.e. to answer the following questions(related straight to our research questions) via felicitous questionnaire deigned; 1. Are the elderly employees contributing more in employee turnover than the adults? 2. Are the employees having low work life balance causing more employee turnover than the ones having high work life balance? 3. Are the employees getting low wages contributing more in turnover than the ones getting high wages? 4. Are the unskilled labor influencing the company’s employee turnover rate more than the skilled ones? By this research individuals will be able to understand the factors that affect their satisfaction level and hence result in employee turnover. Findings: The findings apparently showed that the main factor that is influencing employee turnover is “job that hurdles the fulfillment of fulfillment of family duties; with a coefficient of 0.800.”Ergo if this factor is kept under control then a significant change can be seen in employee turnover. Recommendations: The research has been conducted in a particular region of Karachi, Pakistan but it can be expanded geographically in the future to prove the findings on a bigger scale representing most of the population of Pakistan. Moreover, the recommendations for the organizations striving hard to lessen the employee turnover include; 1. Check whether employee turnover is the function of these ‘selected’ factors or not. 2. Go for the relationship check between these factors and employee turnover and take the findings of this study in to consideration. 3. The findings of this scientific study must be kept in to strong considerations while searching for the main cause of employee turnover among the selected factors. 4. Work on lessening or eradicating the main factor or cause of employee turnover to observe a great decrease in the variable of concern (employee turnover) and the others influencing employee turnover on the similar level. 5. Managers should & must ensure the employee motivational/satisfaction level. Keywords; Employee Turnover, Work-Life Balance, Wage Rate, Employee Satisfaction Level, Un-Skilled Labor, Age. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 6. Page ! of !5 50 Table of contents ACKNOWLEDGEMENT 2 1. INTRODUCTION TO EMPLOYEE TURNOVER 7 ❖ SOURCES OF EMPLOYEE TURNOVER 8 JOB RELATED FACTORS 8 VOLUNTARY vs. INVOLUNTARY TURNOVER: 8 ORGANIZATIONAL FACTORS; 8 ❖ EFFECTS OF EMPLOYEE TURNOVER; 9 ❖ STRATEGIES TO MINIMIZE EMPLOYEE TURNOVER; 10 ❖ HOW A MANAGER SHOULD ACT? 11 2.ZEROING IN ON RESEARCH OBJECTIVE 12 Research Objective: 12 OBJECTIVE ELUCIDATION; 12 CONCEPTUAL FRAMEWORK; 13 THEORETICAL FRAMEWORK; 13 3. WHAT DO OTHER AUTHORS SAY ABOUT THE FACTORS INFLUENCING EMPLOYEE TURNOVER? 14 ❖ A REVIEW OF THE PROFESSIONAL AND ACADEMIC LITERATURE; 14 AGE INFLUENCING EMPLOYEE TURNOVER; 14 WAGE RATE; 15 Work-Life Balance; 15 Unskilled Labor; 16 Job satisfaction; 16 PROS OF APPROACHING SCIENTIFIC; 17 Relevance of the study: 17 HOW DID I GO SCIENTIFIC? 18 Role of the Researcher 18 PARTICIPANTS; 18 METHODOLOGY 18 PURPOSE OF STUDY: 18 Hypothesis Testing: 19 EXTENT OF RESEARCHER INTERFERENCE: 19 STUDY SETTING: 19 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 7. Page ! of !6 50 RESEARCH STRATEGIES: 20 MEASUREMENT AND MEASURES: 20 UNIT OF ANALYSIS: 22 SAMPLING DESIGN: 23 TIME HORIZON: 23 DATA COLLECTION METHOD: 24 DATA ANALYSIS: 24 • HYPOTHESIS TESTING: 27 DATA ANALYSIS ON SPSS; 28 RELIABILITY TESTING; 28 REGRESSION ANALYSIS; 31 CONCLUSION; 34 RECOMMENDATIONS; 34 FREQUENCY DISTRIBUTION; 36 PEARSON’S CORRELATION; 40 SCATTER DIAGRAM 43 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 8. Page ! of !7 50 1. INTRODUCTION TO EMPLOYEE TURNOVER Organizations invest a lot on their employees in terms of induction and training, developing, maintaining and retaining them in their organization. Ergo, managers at all costs must minimize employee’s turnover. Albeit, there is no standard framework for understanding the employees turnover process as whole, a wide range of factors have been found useful in interpreting employee turnover Kevin et al. (2004). Ergo, there is need to develop a fuller understanding of the employee turnover, more especially, the sources- what determines employee turnover, effects and strategies that managers can put in place minimize turnover. With globalization which is heightening competition, organizations must continue to develop tangible products and provide services which are based on strategies created by employees. These employees are extremely crucial to the organization since their value to the organization is essentially intangible and not easily replicated Meaghan et al. (2002). Ergo, managers must recognize that employees as major contributors to the efficient achievement of the organization’s success Abbasi et al., (2000). Managers should control employee turnover for the benefit of the organization success. The literature on employee turnover is divided into three groupings: sources of employee turnover, effects of turnover and the strategies to minimize turnover. Employees’ turnover is a much studied phenomenon Shaw et al. (1998).But there is no standard reason why people leave organization. Employee turnover is the rotation of workers around the labor market; between firms, jobs and occupations; and between the states of employment and unemployment Abbasi et al. (2000). The term “turnover” is defined by Price (1977) as: the ratio of the number of organizational members who have left during the period being considered divided by the average number of people in that organization during the period. Frequently, managers refer to turnover as the entire process associated with filling a vacancy: Each time a position is vacated, either voluntarily or involuntarily, a new employee must be hired and trained. This replacement cycle is known as turnover Woods, (1995). This term is also often utilized in efforts to measure relationships of employees in an organization as they leave, regardless of reason. “Unfolding model” of voluntary turnover represents a divergence from traditional thinking (Hom and Griffith, 1995) by focusing more on the decisional aspect of employee turnover, in other words, showing instances of voluntary turnover as decisions to quit. Indeed, the model is based on a theory of decision making, image theory Beach, (1990). The image theory describes the process of how individuals process information during decision making. The underlying premise of the model is that people leave organizations after they have analyzed the reasons for quitting. Beach (1990) argues that individuals seldom have the cognitive resources to systematically evaluate all incoming information, so individuals instead of simply and quickly compare incoming information to more heuristic-type decision making alternatives. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 9. Page ! of !8 50 ❖ SOURCES OF EMPLOYEE TURNOVER JOB RELATED FACTORS Beaucoup researchers including Bluedorn, 1982; Kalliath and Beck, 2001; Kramer et al., 1995; Peters et al., 1981; Saks, 1996; have endeavored to answer the query of what defines people's intention to abandon by scrutinizing every possible antecedents and/or factors of employees’ intentions to quit. There are beaucoup reasons as to why employees quit an organization and move to another one, these reason include ‘job related stress’ (more specifically job stress) resulting in misbalancing the Work-Life Balance, the stressors or the range factors that result in job stress, the lack of commitment and most importantly job dissatisfaction (Ongori, 2007). These reasons show that quit or not to quit is an individual decision. Manu et al. (2004) claims that employees quit from organization because of economic reasons (Ongori, 2007). The authors proved it, via economic models, that the employees quit due to economic causes and these reasons can be improvised to prognosticate the employee turnover in the market. Good local labor market conditions increases organizational steadiness and hence large organizations can offer the employees enhanced chances for development and higher wages and ergo, ensure organizational commitment (Ongori, 2007). A researcher, named Trevor, argues that local unemployment rates interact with job satisfaction to prognosticate turnover in the market. Role stressors also lead to employees’ turnover. While Kahn et al. Muchinsky, 1990 states that the uncertainty about what our role should be can also lead to employee turnover, it can be a result of misconstruing what is expected, how to meet the expectations, or the employee thinking that the job should be different. If roles of employees are not properly elucidated by the management/ supervisors, it would speed up the degree of employees quitting their jobs due to lack of role clarity (Ongori, 2007). VOLUNTARY vs. INVOLUNTARY TURNOVER: Involuntary turnover includes layoffs, retirements, dismissals, and deaths while all the others are considered as voluntary leavings or turnover (James & Charles, 1981). Today these factors, however, should not be considered as ‘involuntary turnovers’ because government regulation and company policies generate the chances for such staff to return to work, or to carry on working on a more elastic origins (Ongori, 2007). ORGANIZATIONAL FACTORS; Organizational instability has been shown to have a high degree of high turnover. Indications are that employees are more likely to stay when there is a predictable work environment and vice versa (Zuber, 2001). In organizations where there was a high level of inefficiency there was also a high level of staff turnover (Alexander et al., 1994). Therefore, in situations where organizations are not stable employees tend to quit and look for stable organizations because with stable organizations they would be able to predict their career advancement. The imposition of a quantitative approach to managing the employees led to disenchantment of staff and hence it leads to labor turnover. Therefore management should not use quantitative approach in managing its employees. Adopting a cost oriented approach to employment costs increases labor turnover Simon et al. (2007). All these approaches should be avoided if managers want to minimize EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 10. Page ! of !9 50 employee turnover an increase organizational competitiveness in this environment of globalization. Employees have a strong need to be informed. Organization with strong communication systems enjoyed lower turnover of staff (Labov, 1997). Employees feel comfortable to stay longer, in positions where they are involved in some level of the decision- making process. That is employees should fully understand about issues that affect their working atmosphere (Magner et al. (1996). But in the absence openness’ in sharing information, employee empowerment the chances of continuity of employees are minimal. Costly et al. (1987) points out that a high labor turnover may mean poor personnel policies, poor recruitment policies, poor supervisory practices, poor grievance procedures, or lack of motivation. All these factors contribute to high employee turnover in the sense that there is no proper management practices and policies on personnel matters hence employees are not recruited scientifically, promotions of employees are not based on spelled out policies, no grievance procedures in place and thus employees decides to quit. Griffeth et al. (2000) noted that pay and pay-related variables have a modest effect on turnover. Their analysis also included studies that examined the relationship between pay, a person’s performance and turnover. They concluded that when high performers are insufficiently rewarded, they quit. If jobs provide adequate financial incentives the more likely employees remain with organization and vice versa. There are also other factors which make employees to quit from organizations and these are poor hiring practices, managerial style, lack of recognition, lack of competitive compensation system in the organization and toxic workplace environment Abassi et al. (2000) ❖ EFFECTS OF EMPLOYEE TURNOVER; Employee turnover is expensive from the view of the organization. Voluntary quits which represents an exodus of human capital investment from organizations Fair (1992) and the subsequent replacement process entails manifold costs to the organizations. These replacement costs include for example, search of the external labor market for a possible substitute, selection between competing substitutes, induction of the chosen substitute, and formal and informal training of the substitute until he or she attains performance levels equivalent to the individual who quit John (2000). Addition to these replacement costs, output would be affected to some extend or output would be maintained at the cost of overtime payment. The reason so much attention has been paid to the issue of turnover is because turnover has some significant effects on organizations (DeMicco and Giridharan, 1987; Dyke and Strick, 1990; Cantrell and Saranakhsh, 1991; Denvir and Mcmahon, 1992).Many researchers argue that high turnover rates might have negative effects on the profitability of organizations if not managed properly (Hogan, 1992; Wasmuth and Davis, 1993; Barrows, 1990). Hogan 1992, nearly twenty years ago the direct and indirect cost of a single line employee quitting was between $ 1400 and $4000. Turnover has many hidden or invisible costs Philips (1990) and these invisible costs are result of incoming employees, co-workers closely associated with incoming employees, co-workers closely associated with departing employees and position being filled while vacant. And all EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 11. Page ! of !10 50 these affect the profitability of the organization. On the other hand. Employee turnover effects customer service and satisfaction Kemal et al. (2002). Catherine (2002) argue that turnover include other costs, such as lost productivity, lost sales, and management’s time, estimate the turnover costs of an hourly employee to be $3,000 to $10,000 each. This clearly demonstrates that turnover affects the profitability of the organization and if it’s not managed properly it would have the negative effect on the profit. Research estimates indicate that hiring and training a replacement worker for a lost employee costs approximately 50 percent of the worker’s annual salary (Johnson et al., 2000) – but the costs do not stop there. Each time an employee leaves the firm, we presume that productivity drops due to the learning curve involved in understanding the job and the organization. Furthermore, the loss of intellectual capital adds to this cost, since not only do organizations lose the human capital and relational capital of the departing employee, but also competitors are potentially gaining these assets Meaghan et al. (2002). Therefore, if employee turnover is not managed properly it would affect the organization adversely in terms of personnel costs and in the long run it would affect its liquidity position. However, voluntary turnover incurs significant cost, both in terms of direct costs (replacement, 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 et al. (2001). ❖ STRATEGIES TO MINIMIZE EMPLOYEE TURNOVER; Strategies on how to minimize employee turnover, con- fronted with problems of employee turnover, management has several policy options viz. changing (or improving existing) policies towards recruitment, selection, induction, training, job design and wage payment. Policy choice, however, must be appropriate to the precise diagnosis of the problem. Employee turnover attributable to poor selection procedures, for example, is unlikely to improve were the policy modification to focus exclusively on the induction process. Equally, employee turnover attributable to wage rates which produce earnings that are not competitive with other firms in the local labor market is unlikely to decrease were the policy adjustment merely to enhance the organization’s provision of on-the- job training opportunities. Given that there is increase in direct and indirect costs of labor turnover, therefore, management are frequently exhorted to identify the reasons why people leave organization’s so that appropriate action is taken by the management. Extensive research has shown that the following categories of human capital management factors provides a core set of measures that senior management can use to increase the effectiveness of their investment in people and improve overall corporate performance of business: Employee engagement, the organization’s capacity to engage, retain, and optimize the value of its employees hinges on how well jobs are designed, how employees' time is used, and the commitment and support that is shown to employees by the management would motivate employees to stay in organizations. Knowledge accessibility, the extent of the organization’s EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 12. Page ! of !11 50 “cooperativeness” and its capacity for making knowledge and ideas widely available to employees, would make employees to stay in the organization. Sharing of information should be made at all levels of management. This accessibility of information would lead to strong performance from the employees and creating strong corporate culture Meaghan et al. (2002). Therefore; information accessibility would make employees feel that they are appreciated for their effort and chances of leaving the organization are minimal. Workforce optimization, the organization’s success in optimizing the performance of the employees by establishing essential processes for getting work done, providing good working conditions, establishing accountability and making good hiring choices would retain employees in their organization. The importance of gaining better understanding of the factors related to recruitment, motivation and retention of employees is further underscored by rising personnel costs and high rates of employee turnover (Badawy, 1988; Basta and Johnson, 1989; Gar- den, 1989; Parden, 1981; Sherman, 1986). With increased competitiveness on globalizations, managers in many organizations are experiencing greater pressure from top management to improve recruitment, selection, training, and retention of good employees and in the long run would encourage employees to stay in organizations. ❖ HOW A MANAGER SHOULD ACT? If the above strategies are taken into account the business would be able to survive in a dynamic environment by treating their employees as one of their assets which needs a lot of attention. Employees are the backbone of any business success and therefore, they need to be motivated and maintained in organization at all cost to aid the organization to be globally competitive in terms of providing quality products and services to the society. And in the long-run the returns on investments on the employees would be achieved. Management should encourage job redesign- task autonomy, task significance and task identity, open book management, empowerment of employees, recruitment and selection must be done scientifically with the objective of retaining employees. Managers should examine the sources of employee turnover and recommend the best approach to fill the gap of the source, so that they can be in a position to retain employees in their organization to enhance their competitiveness in the this world of globalization. Managers must understand that employees in their organizations must be treated as the most liquid assets of the organization which would make the organization to withstand the waves of globalization. This asset needs to be monitored with due care, otherwise their organizations would cease to exist. Employees should be given challenging work and all managers should be hired on the basis of know-how by following laid down procedures of the organization and this would make organization to have competent managers at all levels of management and hence good supervision. Griffeth et al. (2000) noted pay and pay-related variables have a great effect on employee turnover. Management must compensate employees adequately. They should pay employees based on their performance and in addition they should be given employees EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 13. Page ! of !12 50 incentives like individual bonus, lump sum bonus, sharing of profits and other benefits. Hence, if these are put in place they would minimize employee turnover. 2.ZEROING IN ON RESEARCH OBJECTIVE Research Objective: The purpose of the study is: ‘’To investigate the factors that influence the employee turnover in organizations’’ Research Questions: 1. To what extent unskilled labor leads to employee turnover? 2. Does work-life balance effects the employee turnover? 3. What contributions wage rate has towards employee turnover? 4. How much influence age has on employee turnover? OBJECTIVE ELUCIDATION; The objective of investigating the factors influencing employee turnover will help the organizations in elucidating the factors, their relationship and hence their influence on employee turnover which will, then, help them in lessening or eradicating the threat of high turnover rates. The objective, here, is backboned by 4 research questions, considering each of the independent variables chosen to study (factors)-Unskilled labor, Work-Life Balance, Wage Rate, and Age. These are the questions that the scientific research intends to answer to elucidate the inferences on the objective and hence proving the factor influences on and relationship with the employee turnover. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 14. Page ! of !13 50 CONCEPTUAL FRAMEWORK; FIG.1. FACTORS THAT INFLUENCE EMPLOYEE TURNOVER THEORETICAL FRAMEWORK; In the above conceptual frame work the dependent variable for his study is Employee turnover, which is the variable of primary interest. The four independent variables are unskilled labor, age of the employee, wage rate and work-life balance. The mediating variable is the satisfaction level of employees. Employee turnover is defined as crossing of the membership boundary of an organization due to voluntary resignation, termination and retirement. Unskilled labor is the workforce who lacks the knowledge and experience of doing work efficiently and effectively. Age can be well defined as the lifespan of a person. Wage is the monetary compensation paid by an employer to an employee in exchange for work done. Lastly, work-life balance is a concept of balancing work; careers and ambition; and lifestyle; health, leisure, family etc., and letting the employees prioritize work and family/private life equally. The more will be the unskilled labor in the organization, the higher will be the employee turnover. The more the employees under the age of 30 in an organization the higher would be the employee turnover rate. High Wage Rates and a positive work-life balance holds a negative EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 15. Page ! of !14 50 relationship with the employee turnover example; the more the wage rate of the employee the lesser would be the employee turnover and the better the work-life balance the lesser would be the employee turnover in the organization. Satisfaction acts as a mediating variable, it surfaces exactly at the same time when the independent variables start affecting the dependent variable of our study. Whenever the unskilled labor gets promoted to the job beyond their capacity and ability the labor, then, tends to leave the job, resulting in employee turnover, because of being unable to find encouragement and motivation level while performing their work. Research shows that the people with age less than 30 tend to become jaded regardless of the satisfaction they attain from their jobs and try to get a better work environment in order to move from current job because they are the buds of the work environment that possess the desires and needs to achieve more and exclusive from life and working career, ergo this also leads to employee turnover. If wage structure of a firm is not according to the quantity or quality of the work done by employees, they will move out of the firm in order to secure their career and future, leading to employee turnover. A negative Work-Life Balance also results in employee turnover; that is, if the employees are unable to give proper time to their families and themselves due to the working situations then they finally choose to leave the job, resulting in employee turnover. 3. WHAT DO OTHER AUTHORS SAY ABOUT THE FACTORS INFLUENCING EMPLOYEE TURNOVER? ❖ A REVIEW OF THE PROFESSIONALAND ACADEMIC LITERATURE; AGE INFLUENCING EMPLOYEE TURNOVER; A research on employee turnover publicizes the evidences that the factors like age, tenure, job content, organizational commitment, and intentions of staying on the job are all incessantly and negatively related to employee turnover rates (Mobley, Griffeth, Hand, & Meglino, 1979) and another research concludes that the relation between job performance and age is incessant and positive for the young blossoms of the organizations (McEvoy & Cascio, 1989). . Demographic characteristics such as age, education, gender, income, and length of occupation are major factors in employee turnover intentions (Tracy, 2015). Tracy further states that an employee’s age is an important factor in an employee’s decision to stay employed with an organization and states that age have varying effects on turnover decisions. There were expectations that more than 3.6 million people in the U.S would quit the organization, by 2020, because of age or retirement. It is essential for organizational gurus to bring about knowledge transfer strategies to prepare for the withdrawal of experienced employees from the workforce. Besides, human resource practitioners should come up with retention strategies that are incessant with the needs and desires of younger workers (Tracy, 2015). During the years 1998-2010, individuals of 18-25 age changed jobs 6.3 times, on an average while in many cases, the older employees remained loyal and committed to an organization thinking that there are fewer opportunities available for their age. Hence, a comparison of EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 16. Page ! of !15 50 geriatrics young employees was an indicator of the dissimilarities between the labor force flexibility and turnover intentions (Tracy, 2015). The employee’s perception of job satisfaction and work environment indirectly correlated with turnover (Lambert et al., 2012). Factors such as length of tenure, age, supervisory status, pay/benefits satisfaction, organizational commitment, job satisfaction, and work environment were potential turnover antecedents (Lambert et al., 2012). Job satisfaction and employees‟ turnover are inversely proportional. With decrease in the strength of one, there is increase in the strength of the other. “Job satisfaction and turnover are negatively related” (Griffeth et al., 2000). Another researcher proclaimed that future good career and turnover are opposite related (Koh and Goh, 1995). There are many other factors which seem to be the core factors of turnover and job satisfaction according to Price and Mueller (1986). They stated that promotion factor will decrease employees‟ turnover. WAGE RATE; Wal-mart decided to spend $1 billion in 2015 in raising their hourly/low-wage employees’ (500,000 in number)pay because they realized the loss they were facing due to employee turnover. This very act of Wal-mart motivated the workers to do the retail chores with interest. This proves how a wage rate can conjure employees to leave or quit an organization no matter how loyal they had been, with the organization, in the past. Work-Life Balance; Work-life balance has emerged as a major theme during the last two decades, which witnessed a substantial intensification of work caused by economic uncertainty, organisational restructuring, and increase in business competition (Green, 2001; Millward et al., 2000). To respond to the new conditions, organisations demand higher performance and commitment from their employees, which is translated into expectations for working longer and for prioritising work over personal life (e.g. see Perrons, 2003, pp. 68-72; Simpson, 2000; White et al., 2003). Indeed, recent survey data suggest that the pressure on employees to work longer hours under inflexible work suggests that lack of balance between work and non-work activities is related to reduced psychological and physical well-being (Sparks et al., 1997; Frone et al., 1997; Thomas and Ganster, 1995; Martens et al., 1999; Felstead et al., 2002). For example, recent empirical research in the UK (Hyman et al., 2003) indicated that intrusion of work demands into personal life (e.g. working during the week-end) was related with reports of heightened stress and emotional exhaustion for employees. Furthermore, employees perceived that intrusion of work obligations into their personal lives negatively affected their health (Hyman et al., 2003). However, there are still important issues that ought to be addressed within the subject of work-life balance. Work-life balance has been rather narrowly conceived and considered; as it has been predominantly viewed to pertain to individuals, especially women, who are in corporate employment and have family obligations (e.g. Parasuraman and Simmers, 2001; Hardy and Adnett, 2002; Felstead et al., 2002, p. 57). Because of this narrowness in the consideration of work-life balance, pertinent organisational actions are mostly oriented towards the implementation of “family-friendly” policies (Felstead et al., 2002; Wise and Bond, 2003). Nonetheless, work-life balance is an issue of prime concern for both genders. For example, recent survey data (Cully et al., 1999) showed that a substantially higher proportion of employed men than employed women in the United Kingdom work “long hours” (i.e. more than 48 hours per week); and empirical evidence suggests that men may experience lower work-life balance than their female counterparts (Parasuraman and Simmers, 2001). Furthermore, it is not only family obligations that constitute an issue EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 17. Page ! of !16 50 in work-life balance. Any types of activities (e.g. hobbies, time with friends) that the individual desires to pursue outside one’s work obligations pertain to work-life balance. Unskilled Labor; The labor market is assumed to be segmented into workers with high formal education (skilled or high-skilled labor) and workers with no higher education (unskilled or low-skilled labor). Whereas skilled labor can be employed in production as well as in non-production activities, unskilled labor can only be used in production. (Falkinger, 2012) The empirical research on the relationship between labor turnover and productivity has been inadequate. Most studies have been aggregate, and have faced difficulties in controlling both for industry differences in the importance of specific human capital, and for unobservable including management. Job satisfaction; Job satisfaction is an employee’s positive emotional state regarding the employee’s occupational experiences (Abii, Ogula, & Rose, 2013; Liu, Mitchell, Lee, Holtom, & Hinkin, 2012). Researchers that categorized job turnover by the specific reason analyzed the effects of job satisfaction as it related to the turnover reason (Lee, 2013). External factors such as family well- being and job alternatives are relevant to an employee’s level of job satisfaction. Turnover reasons include individuals that quit for family reasons, -to look for a job, and-to take another job (Lee, 2013). Data analysis for a two-year period was sufficient to examine the relationship between job satisfaction and employee turnover (Lee, 2013; Liu et al., 2012). To determine whether job satisfaction was a predictor of employee turnover, Lee (2013) analyzed different types of turnover. Liu et al. (2012) analyzed changes in the job satisfaction trajectory and compared individual and unit turnover intentions. The combination of increased individual and unit job satisfaction relate to decreases in turnover intentions (Liu et al., 2012). Job dissatisfaction is predictive of turnover, but the level of dissatisfaction varies between the types of turnover (Lee, 2013). Job alternatives were better predictors of turnover than family well-being was. Individuals that quit their jobs to look for another, and those that left to take another job were twice as likely to quit when compared to employees who quit for family reasons (Lee, 2013). The type of shift an employee worked was another predictor of job satisfaction. In a similar study that included an analysis of the behaviors of entry-level employees, the researchers found employees that worked mixed, afternoon, and night schedules had a 136% higher risk of turnover than employees that worked day shift (Martin, Sinclair, Lelchook, Wittmer, & Charles, 2012). An employee’s generational cohort and attitudes toward work are factors of consideration for the employee’s level of job satisfaction. An examination of generational differences occurred through the analysis of work attitudes, job satisfaction, job security, and turnover intentions (Mencl & Lester, 2014). The analysis of employee work schedules was beneficial for determining the level of job satisfaction (Pitts et al., 2011). For job satisfaction, Mencl and Lester EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 18. Page ! of !17 50 did not find generational differences; however, Pitts et al. did find differences within the generational cohorts. There were more generational similarities than differences for job satisfaction, satisfaction with pay, and turnover intentions (Mencl & Lester, 2014). In the federal government, employees that transition to jobs within the government are able to transfer benefits such as vacation time and sick leave. Middle-aged federal employees were more likely to seek new employment within the federal government, but less likely to leave for employment opportunities outside of the government (Pitts et al., 2011). As job satisfaction increased, turnover intentions decreased (Pitts et al., 2011). There were slight differences in the generational perceptions of job security (Mencl & Lester, 2014). Mencl and Lester (2014) noted the millennial generation was more satisfied with career development and advancement opportunities than the other generations. Workplace satisfaction was the strongest predictor of turnover intention, followed by demographic variables (Tracy, 2015). Factors such as perceptions of fair pay, stress, and length of tenure are moderators of job satisfaction and turnover intentions in academic institutions (Nitesh, Nandakumar, & Asok, 2013). Job satisfaction is a mediator in the relationship between employee performance and voluntary turnover (Bouckenooghe et al., 2013). Rewards such as promotions, pay for performance, and pay growth are motivating factors for high performers to stay with an organizations (Bouckenooghe et al., 2013). A good fit exists when an employee’s needs and desires are compatible with the employee’s occupation. An association exists between increases in fit and support with decreases in turnover intentions for academia (Nitesh et al., 2013). When comparing fit, support, and satisfaction with employment in other institutions, the statistical relationship did not have the same results. Neither fit nor support, nor satisfaction had a significant relationship with turnover intention for employment with other institutions (Nitesh et al., 2013). Perceived pay for performance highly correlated with the employee’s job satisfaction (Bouckenooghe et al., 2013). Job satisfaction had statistically significant mediating effects on the relationship between performance and voluntary turnover (Tracy, 2015). PROS OF APPROACHING SCIENTIFIC; Relevance of the study: The relevance of the study is done to ensure the benefits that the research provides through its finding. Those who would benefit from this study would be the organizations who are striving to find a better solution to reduce employee turnover. It will actually secure the direct cost that is due to the employee turnover for example, recruiting cost, interviewing cost and time spend in orientations of employee. Moreover, the study would help the company to be efficient and create efficiency in their performance and productivity sector. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 19. Page ! of !18 50 HOW DID I GO SCIENTIFIC? Role of the Researcher I used an outsider’s perspective, which was appropriate for quantitative research because quantitative research is representative of an outsider’s point of view (Tracy, 2015). My personal interests did not create any bias in the outcome of the study because I was not employed by a civilian organization, unlike all of the participants. I abided by the guidelines and principles established in the Belmont Report, containing respect for people, well-versed consent, and respecting privacy/confidentiality. The participants for the study were employees of nongovernmental agencies; I had no actual or potential influence over the study’s participants because I did not have access to their names or any personally identifying information. I used physical tool (questionnaires) to administer each of the survey instruments to the participants, then collected, organized, and analyzed the survey responses to address the research question. PARTICIPANTS; I used physical tool (questionnaires) as my survey instrument to observe and measure behaviors and opinions. I obtained all of the collected survey data from voluntary participants who used the survey instrument. I closed the survey after 3 days, because I obtained the desired amount of usable responses. Usable surveys, for the purposes of this study, consisted of surveys completed by the participants who answered every question. METHODOLOGY PURPOSE OF STUDY: Since the objective of our study is to investigate “the factors influencing employee turnover”. The purpose of the study we have chosen be both descriptive and causal. • DESCRIPTIVE: The first half of our research objective is descriptive which help us in gathering data in a way that elaborates persons, events or situations. Through descriptive study we intend to gather the necessary quantitative and qualitative data which will describe the attribute of our chosen variables of cause that includes age, wage rate, work-life balance and unskilled labor. To describe how these variables are influencing the employee turnover we will carry out the correlation study which will provide the theoretical basis for the scientific or more generalized research. • CAUSAL: In the other half of our research objective, we intend to delineate the factors (Age, Wage- rate, Work life Balance, Unskilled labors) with a scientific approach so that we are able to state firmly that the described factors are the actual causes of employee turnover. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 20. Page ! of !19 50 Hypothesis Testing: We are testing hypothesis against the factors that we described (Age, Wage rate-rate, Work Life Balance, Unskilled labors) to scientifically hit our objective that these factors are related with the employee turnover and the major causes of it. • Directional hypothesis The more the age, the less is the employee turnover The more wage rate, the less is the employee turnover The more unskilled labor, the more is the employee turnover • Non-directional hypothesis There is a positive relationship between work- life balance and employee turnover EXTENT OF RESEARCHER INTERFERENCE: Since the first half of our study is descriptive while the second half is causal study our interference will be minimal to moderate. • MINIMAL: We intend to do a survey for collecting necessary quantitative and qualitative data through questionnaires and interviews respectively. As the minimal interference is there as it is a part of correlational study (conducted in natural environment). Plus we also intend to ‘explicitly’ describe the relationship between variables by correlating them without manipulating any of our variable of interest. • MODERATE: After we have collected the necessary quantitative and qualitative data and described the theoretical relationships between variables, We intend to study those factors, that need to be studied on a scientific level as well as by manipulating those necessary/selected independent variables of our study (Wage-rate and Work Life Balance) and observe the effects of such manipulation on the dependent variable of our study “Employee turnover” so that we can firmly establish a firm causal connection between the variables of our study. STUDY SETTING: The study setting that we are going to use is non-contrived setting. As the study is considered to be correlational; which will be done in natural environment; ergo I, will carry out a field study for the correlational part of the study and field experiments (Manipulation of some necessary Independent variables of our study) for the causal part. Here we will be bringing alterations in EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 21. Page ! of !20 50 four of the variables that include: age, wage- rate, work-life balance and unskilled labor. We will manipulate the age of labor and work-life balance has effect on employee turnover. We will also study how different wage rate and unskilled labor influence the employee turnover. RESEARCH STRATEGIES: The strategies that we are going to use during our research are: • Survey: We are going to carry out a survey via collecting information with the help of questionnaires and getting them filled from the employees at Unilever. This survey will help us in collecting all the necessary quantitative and qualitative data which will, then, help us in explicitly and/or firmly describing the factors and their respective relationships with the employee turnover so that we can compare them together and come up with firm and generalized results. • Survey instruments: Surveys will be conducted through questionnaires. Surveys are conducted to inquire respondents about the topic of our study in order to get desired responses pertaining relevant to our study. Questionnaires are based on set of questions to which respondents or subjects give their answers. Questionnaires are considered to be less expensive but time-consuming than data collected either through interviews or observation. They are usually designed in order to gather large amount quantitative data administered either personally, through mails or by making it available electronically • Observation: The second strategy that we are going to follow to pursue our research is observation by which we will gather and collect data on “how efficaciously the employees are completing their assigned tasks” so that we can measure the efficiency of employees in completing tasks (an element of unskilled labors) to check and state how skilled they are. MEASUREMENT AND MEASURES: Measurement is assigning numbers or symbols to certain attributes, properties or characteristics of an object as per the certain specified rules • Operational definition: We intend to study the effects of Age, Wage- rate, Work Life Balance, Unskilled labors on employee turnover and since the factors are very nebulous to measure (except age, which doesn’t need to be operationalized) so, we operationalized it in to different dimensions, to reduce the abstractness to the minimum level, which will ease the study of the effects that they have on employee turnover. The operationalization is done on the next page: EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 22. Page ! of !21 50 • ITEMS (MEASURE) Items I intend to include in the questionnaire in order to measure their influence on employee turnover are: Age, work life balance, wage-rate and unskilled labor and since the extent of abstractness is high in each of them so I have operationalized it (as shown in the figure above). • SCALING: The scales that I intend to use to measure my chosen variables of study are primary scales (i.e. nominal and interval) and the category and Likert scale, since they’re easy to construct and measure the attitudes nicely and precisely. Likert scale: We are using a 5-point Likert scale to easily and precisely measure the attitudes and to know the degree of agreement of our respondents. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 23. Page ! of !22 50 Interval scale: Since the Likert scale uses the interval scale so we are actually using the interval scale to measure the relation between variables of our study to firmly state the causal connection between them, by the Likert scale in the questionnaire. Category Scale: We have used the category scale to elicit a single response from respondent which uses the Nominal scale. Nominal Scale: We have used the nominal scaling in obtaining the personal data of respondents and in the category scale used in the questionnaires. • Categorizing: Since we are using Nominal scale in Category scale ergo, we have categorized our items, on these scales, on the basis of Age, Work-life balance, Wage rate/Salaries, and Unskilled labor so that the responses analyzed on the basis of these items help in investigation of their influence on employee turnover. • Coding: We have coded the dimensions of our variables, Age, Wage rate/Salaries, Work life balance and Unskilled labor, as D1, D2(a), D2(b), D3(a), D3(b), D4(a), D4(b) respectively; and these represent the hours given to work, hours given to family/private life, salary that Unilever is offering, Salary that the competitors are offering, Educational level of labors and efficiency in completing the tasks respectively. Moreover, we’ve also coded every item in our measure, with the help of the scales that we have chosen, as 1, 2, 3, 4, 5 for the Likert Scale representing Strongly disagree, disagree, neutral, agree, Strongly agree respectively, while the different categories of the Category scale are assigned their own respective subjects; like assigned 1 for the first category, 2 for the second and so on and so forth. UNIT OF ANALYSIS: GROUPS: I have chosen ‘groups’ as my unit of analysis and hence the population that I will be studying will be groups of employee of Unilever possessing heterogeneity across it and homogeneity within it. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 24. Page ! of !23 50 SAMPLING DESIGN: I intend to choose probability sampling as my sampling design in which I intend to study the random subjects from strata of elements in my population (employees within Unilever) via disproportionate stratified random sampling. • DISPROPORTIONATE STRATIFIED RANDOM SAMPLING: Since Unilever employees many thousands of employees therefore to increase the efficacy of the work we intend to draw random subjects, from strata, that are disproportionate to the number of elements in strata and that is how we will ensure the representativeness of our sample. We will divide the population in to different mutually exclusive groups on the basis of the variables of our study, i.e. to answer the following questions (related straight to our research questions), We will first divide all the population of employees within Unilever according to the age groups, employees having high work life balance and low work life balance, wage/salaries and finally according to ‘how skilled they are?’; 1-Are the elderly employees contributing more in employee turnover than the adults? 2-Are the employees having low work life balance causing more employee turnover than the ones having high work life balance? 3-Are the employees getting low wages contributing more in turnover than the ones getting high wages? 4-Are the unskilled labors influencing the company’s employee turnover rate more than the skilled ones? • SAMPLE SIZE: Considering the Krejice and Morgan’s (1970) table to ensure a good decision, I intend to study a sample of 100 employees so that the studied sample size is representative of the population. TIME HORIZON: The study time would be purely longitudinal. Since I intend to carry on with the field experiments so I will gather the information before manipulating the necessary independent variables and after manipulating by pair testing technique to study the effects of such manipulation which will help in firmly stating what variable is contributing how much in employee turnover. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 25. Page ! of !24 50 DATA COLLECTION METHOD: The methods that I intend to use would be questionnaires and observation on a broad perspective in order to gather all the necessary quantitative and qualitative data for MY research. • Questionnaire: Attached with this research document is the designed questionnaire which was used as the survey tool. DATA ANALYSIS: I intend to analyze the quantitative and qualitative data collected via questionnaires and interviews by getting the ‘Feel for data’, testing the ‘Goodness of data’ and lastly via ‘Testing Hypothesis’. • FEEL FOR DATA: Since the scales that we have chosen are Likert, category, nominal and interval therefore the chosen methods to get the feel for data are ‘descriptive statistics (Frequencies, Measures of central tendencies, and Measures of dispersion) to check the degree of agreement and responses over the scales, and relationship between variables. o Descriptive statistics: -FREQUENCIES: Measuring frequency will help us in getting a sense about the data to further process it by providing us a great deal of basic information, e.g.This will indicate the number of employees agreeing or disagreeing over the scale, number of employees belonging to the same age group which will help in segregating them to carry out field experiments, no of employees getting same wages/salaries, and the number of employees who have a low or high work life balance. We intend to visually display our results of frequencies in the form of pie charts and bar charts. -Measures of central tendencies: We intend to measure the central tendency of data via mean, median and mode. MEAN: We intend to take an average or find the mean of our gathered data to get a clear cut picture of the data and to know where the actual central data is lying. This will enable us in knowing the average age of employees in an organization and the average degree of agreement of employees on work life balance and unskilled labor (via questionnaire) or simply what on average is EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 26. Page ! of !25 50 actually influencing employee turnover. That is how calculating mean will help us in measuring the average of the interval scales used. MEDIAN: Median is the central item of all the data gathered and we intend to calculate it to know the midst values of nominal and interval scales. This along with the mode help us in determining the skewness of the data gathered, so we’ll be able to know whether or not the data gathered is ‘Normally distributed’ when we’ll compare the median and mode with the mean. MODE: This will help us in calculating the highest frequencies of the variables of our study and hence, we’ll be able to know what aged employees are contributing the most in employee turnover? Or which employee is working more hours per day? Etc., and that is how it will help us in getting feel for the nominally scaled data. -MEASURES OF DISPERSION: We intend to measure the dispersion of data via standard deviation, since it’s the most commonly used and the most reliable way of accurately calculating the dispersion or how far is the data lying from mean. STANDARD DEVIATION: This will give us a more accurate figure of dispersion of data which we will help us in manipulation of the necessary independent variables since we will know the accurate rate of dispersion of the of the variables. This also helps in knowing how much observations fall within one standard deviation, 2 standard deviations and 3 standard deviations so we can compare these with the normal distribution (68%, 95%, and 99% respectively) to get a more clearer picture of data dispersion. -RELATIONSHIP BETWEEN VARIABLES: Since we are doing a causal study so we need to have some tests done for the relationship b/w the variables of our study, to firmly state a causal connection. Therefore, we intend to study the relationship of nominally scaled data of ours via the non-parametric test and the interval data via Pearson correlation matrix. • PEARSON CORRELATION MATRIX: EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 27. Page ! of !26 50 To examine the relationship between the variable at an interval scale, I intend to choose Pearson correlation matrix, so that we can know, ‘how the work life balance and employee turnover are related?’ and ‘how the unskilled labors and employee turnover are related?’ • GOODNESS OF DATA: After we have acquired the feel for data, we can test the reliability and validity of the measures, to test the goodness of data or to attest to the scientific rigor. -RELIABILITY: We will test the stability and consistency of our data to confirm the generalization, consistency and stability of our measures. Since our interference will be moderate (with all the manipulation of necessary independent variables) after gathering and analyzing data with a minimal interference hence the “test-retest reliability” and “parallel form reliability” can be the best correlational measures of examining reliability or the stability of our measures across time and the error variability caused by wordings and ordering. -INTERNAL CONSISTENCY TESTS: It is an indicative of the homogeneity of the items in the measure or how the items can be hung together as a set and are capable of independently measuring the same concept so that the respondent attach the same meaning to every item. This can be seen by examining whether the items and the subsets of items in the measuring instrument are highly correlated and the test that we chose is “The Cronbach’s Coefficient Alpha”. • CRONBACH’S COEFFICIENT ALPHA: Since we have chosen the multipoint-scaled items like Age, Work-life balance, Wage rata/Salaries, and Unskilled labor; which have multiple points like 1,2,3,4,5 etc respectively; therefore, the Cronbach’s reliability coefficient can be the best way of indicating how well the items in a set are positively correlated to one another. The closer it is to 1, the higher will be the internal consistency reliability. -VALIDITY: However, the measures that we have chosen are well-validated (as per the literature reviews) but we still want to ensure that the dimensions theorized (as above) are efficaciously tapped by the items in our measure. Therefore, we intend to establish the criterion related validity. CRITERION RELATED VALIDITY: EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 28. Page ! of !27 50 We intend to establish this by testing for the power of the measure to differentiate the individuals who are known to be different. This will basically ensure the strata that we will form, for example; if the criterion related validity is high then the strata formed will be valid since heterogeneity across the groups or the homogeneity within the groups will be ensured. • HYPOTHESIS TESTING: 1. H0: There is no relationship between Age and employee turnover. H1= OTHERWISE i. H0: ᵨ= 0 ii. H1: ᵨ≠ 0 2. H0= There is no relationship between Wage rate and employee turnover H1= OTHERWISE. i. H0: ᵨ= 0 ii. H1: ᵨ≠ 0 3. H0= There is no relationship between Work-life balance and employee turnover H1=OTHERWISE I. H0: ᵨ= 0 II. H1: ᵨ≠ 0 4. H0= There is no relationship between unskilled labors and employee turnover. H1= OTHERWISE. • H0: ᵨ= 0 • H1: ᵨ≠ 0 5. H0= The means of the strata are not equal. H1= The means of the strata are equal. • H0: µage ≠ µwage ≠ µWLB ≠ µunskilled.lab • H1: µage = µwage = µWLB = µunskilled.lab EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 29. Page ! of !28 50 DATA ANALYSIS ON SPSS; RELIABILITY TESTING; FOR AGE AND HIGHEST LEVEL OF EDUCATION; I am checking the reliability of age and unskilled labor in order to check if the questions are reliable enough to check if the items can TEST the relationship between them efficiently. INTERPRETATION: The items in the instrument are 80% reliable, which means that the variable generated from the set of questions will return a stable response. FOR JOB STATUS AND PRESENT WORK SHIFT I am checking the reliability of job status and present work-shift in order to check if the questions are reliable enough to check if the items can TEST the relationship between them efficiently. Case Processing Summary N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .800 2 Case Processing Summary N % EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 30. Page ! of !29 50 Interpretation; The items in the instrument are 70.7% reliable, which means that the variable generated from the set of questions will return a stable response. FOR AGE AND UNSKILLED LABOR; I am checking the reliability of age and unskilled labor in order to check if the questions are reliable enough to check if the items can TEST the relationship between them efficiently. Interpretation; The items in the instrument are 79.0% reliable, which means that the variable generated from the set of questions will return a stable response Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .707 2 Case Processing Summary N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .790 8 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 31. Page ! of !30 50 FOR HIGHEST COMPLETED EDUCATION AND WORK LIFE BALANCE; INTERPRETATION; The items in the instrument are 70.6% reliable, which means that the variable generated from the set of questions will return a stable response FOR AGE AND WORKLIFE BALANCE Interpretation; The items in the instrument are 68.6% reliable, which means that the variable generated from the set of questions will return a stable response. Case Processing Summary N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .706 6 Case Processing Summary N % Cases Valid 100 100.0 Excludeda 0 .0 Total 100 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .686 6 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 32. Page ! of !31 50 REGRESSION ANALYSIS; INTERPRETATION; R; With correlation coefficient 0.844, the researchers see the strength and direction of a linear relationship between independent and dependent variables. The results show a positive correlation between independent and dependent variables. If value of independent variables will increase then the value of dependent variable will increase too. R2; With 71.2% of coefficient of determination, it is indicated that the model explains all of the variability of the response data around its mean. The independent variables play about 71.2% of role in age i.e. the dependent variable. So we can say that the work-life balance, wage rate and age all are strongly affecting employee turnover (the dependent variable of our study) and hence making them search for a new and felicitous or more suitable job. ANOVA (SIGNIFICANCE) Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .844a .712 .665 .798 a. Predictors: (Constant), AGE, WL_work_hurdles_attending_social_gatherings, WR_current_employment_status, UL_find_difficulties_in_understanding_job, WL_workingdays_dont_tire, WL_work_demand_interferes_with_home, UL_dream_job, WR_total_annual_EBIT, UL_job_is_of_interest, UL_understand_job_sequence, UL_haveto_face_incessant_failures_in_current_job, WL_work_duties_demand_change_in_fam_plans, UL_able_to_fulfill_job_requirements, WL_job_hurdles_in_fulfilling_fam_duties ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 133.742 14 9.553 15.010 .000b EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 33. Page ! of !32 50 Interpretation; Significance is 0.000 which is less than 0.05 (p value) hence we can reject the H0 and conclude that the variances are not same. Secondly, F value (SB2/ SW2) is 15.010 which is greater than 10 which clearly shows that our model is statistically significant and it has a strong strength. While the mean square values of 9.553 (SB2-square of VARIANCE BETWEEN) and 0.636 (SW2-square of VARIANCE WITHIN) indicate that the variance between is greater than the variance within the variables of study. 1 Residual 54.098 85 .636 Total 187.840 99 a. Dependent Variable: UL_will_leave_if_found_felicitous_job b. Predictors: (Constant), AGE, WL_work_hurdles_attending_social_gatherings, WR_current_employment_status, UL_find_difficulties_in_understanding_job, WL_workingdays_dont_tire, WL_work_demand_interferes_with_home, UL_dream_job, WR_total_annual_EBIT, UL_job_is_of_interest, UL_understand_job_sequence, UL_haveto_face_incessant_failures_in_current_job, WL_work_duties_demand_change_in_fam_plans, UL_able_to_fulfill_job_requirements, WL_job_hurdles_in_fulfilling_fam_duties Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.008 1.564 1.284 .203 WL_work_demand_interfe res_with_home -.302 .263 .261 -1.150 .253 WL_workingdays_dont_tir e .444 .146 .242 3.037 .003 WL_job_hurdles_in_fulfilli ng_fam_duties 1.026 .355 .800 2.887 .005 WL_work_duties_demand _change_in_fam_plans -1.171 .297 .790 -3.938 .000 WL_work_hurdles_attendi ng_social_gatherings -.059 .195 .038 -.303 .763 WR_current_employment _status -.213 .232 .077 -.921 .360 WR_total_annual_EBIT .096 .111 .088 .862 .009 UL_job_is_of_interest .437 .195 .341 2.243 .027 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 34. Page ! of !33 50 INTERPRETATION; The sig values of greater than 0.05 reject our H0 of study and help us in knowing whether or not the respective independent variables (defined by more than one items in work life balance and unskilled labor) are effecting our dependent variable. The following variables are having sig values above 0.05; 1. AGE 2. Work demanding interfere with home duties 3. Work hurdling attending social gathering 4. Current employment status 5. Employee being able to fulfill job requirements 6. Employee being able to understand the job While the ones having the sig value less than 0.05 are; 1. Working days making employees feel jaded (sig 0.003) 2. Job hurdling the fulfillment of family duties (sig 0.005) 3. Work demanding change in family plans (sig 0.000) 4. Total annual income before tax and other deductions (EBIT) (sig 0.009) 5. Job being of interest (sig 0.027) 6. Job being the one always dreamt of (sig 0.000) 7. Exposure to incessant failures in job (sig 0.048) UL_dream_job -.732 .172 -.610 4.250 .000 UL_haveto_face_incessan t_failures_in_current_job .089 .194 .072 .458 .048 UL_able_to_fulfill_job_req uirements .157 .225 .109 .700 .486 UL_understand_job_sequ ence -.344 .215 -.217 -1.596 .114 UL_find_difficulties_in_un derstanding_job .241 .172 .186 1.399 .045 a. Dependent Variable: UL_will_leave_if_found_felicitous_job EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 35. Page ! of !34 50 8. Employee facing difficulty in understanding the job. (sig 0.045) CONCLUSION; The data helped us in knowing which factors are the significant ones and can help us in achieving significant positive changes in the dependent variable of our study if worked on these, Hence the main factor is jobs that hurdles family duties with a coefficient of 0.800 in the table above. Equation; Y= a + bx3 a = Constant X1 = Job hurdles the fulfillment of family duties Y = 1.026+0.800(X3) And since the significance of the main factor is below 0.05, that is 0.005, ergo with every change in the factor, a change in the dependent variable of our study (employee turnover) can be seen. While a complete equation of all the respective variables will be; Y= 1.026+ 0.261(X1) + 0.242 (X2) + 0.800(X3) + 0.790 (X4) + 0.038(X5) +0.077(X6) +0.088(X7) +0.341(X8)-0.610(X9) +0.072(X10) +0.109(X11) -0.217(X12) +0.186(X13) WHERE EACH “X” VALUE DENOTS IT’S RESPECTIVE INDEPENDENT VARIABLE FROM THE TABLE ABOVE. Last but not the least, we can also conclude that the many independent variables of our study hold negative relationship with each other and with the dependent variables, while some hold the positive one in which a change in them defines an amount of change in the dependent variables of our study. [REFER TO THE PEARSON’S CORRELATION;] RECOMMENDATIONS; After hitting the research scientifically and getting all the necessary results of analysis, I want to recommend the following to the organizations that are incessantly facing the issue of employee turnover; 1. The organizations should and must first go on and work on the main factor that is influencing employee turnover; “job that hurdles the fulfillment of family duties”; to see a significant change in the dependent variable of our study. 2. Working on the main factor does not mean that other factors are worth the avoidance, there are factors with higher positive correlations with the dependent EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 36. Page ! of !35 50 variable plus a high coefficient of growth determination. For example; “work demanding change in family plans, and interfering with home, and work making the employees feel jaded.” 3. Thirdly, organizations are recommended to not only go on and start working on the cessation/eradication of these factors but also go for the integrity in their strategies to achieve a fit/balance between the managerial strategies and the employee work capacity. 4. Fourthly, the organizations need to keep working on motivating the employees and not letting them feel jaded of the job. Motivations can be in the form of training sessions to raise their esteem level or in the form of compensation to raise their living standards. 5. Lastly, managers must incessantly keep an eye on the employees so that they may aware themselves of their employee capabilities, skills, talents, needs, wants and desires. APPENDIX A EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 37. Page ! of !36 50 FREQUENCY DISTRIBUTION; AGE Frequency Percent Valid Percent Cumulative Percent Valid UNDER 20 4 4.0 4.0 4.0 20-30 8 8.0 8.0 12.0 30-50 32 32.0 32.0 44.0 50-65 20 20.0 20.0 64.0 over 65 36 36.0 36.0 100.0 Total 100 100.0 100.0 marital_status Frequency Percent Valid Percent Cumulative Percent Valid Single 4 4.0 4.0 4.0 Married 96 96.0 96.0 100.0 Total 100 100.0 100.0 Highest_completed_level_of_edu Frequency Percent Valid Percent Cumulative Percent Valid College 8 8.0 8.0 8.0 Graduate 20 20.0 20.0 28.0 Other 72 72.0 72.0 100.0 Total 100 100.0 100.0 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 38. Page ! of !37 50 Present_work_shift Frequency Percent Valid Percent Cumulative Percent Valid First 84 84.0 84.0 84.0 Second 8 8.0 8.0 92.0 Third 8 8.0 8.0 100.0 Total 100 100.0 100.0 Job_status Frequency Percent Valid Percent Cumulative Percent Valid Top management 12 12.0 12.0 12.0 Middle Management 84 84.0 84.0 96.0 Non-managerial 4 4.0 4.0 100.0 Total 100 100.0 100.0 Number_of_the_years_worked Frequency Percent Valid Percent Cumulative Percent Valid 1-2 4 4.0 4.0 4.0 3-5 28 28.0 28.0 32.0 6-10 16 16.0 16.0 48.0 OVER 10 52 52.0 52.0 100.0 Total 100 100.0 100.0 no_of_org_worked_for_b4_this_org Frequency Percent Valid Percent Cumulative Percent Valid none 60 60.0 60.0 60.0 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 39. Page ! of !38 50 Valid one 12 12.0 12.0 72.0 two 24 24.0 24.0 96.0 4 or more 4 4.0 4.0 100.0 Total 100 100.0 100.0 Paid_jobs_that_i_currently_have Frequency Percent Valid Percent Cumulative Percent Valid ONE 88 88.0 88.0 88.0 TWO 8 8.0 8.0 96.0 THREE 4 4.0 4.0 100.0 Total 100 100.0 100.0 WL_work_demand_interferes_with_home Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 52 52.0 52.0 52.0 Agree 20 20.0 20.0 72.0 Neutral 8 8.0 8.0 80.0 Disagree 20 20.0 20.0 100.0 Total 100 100.0 100.0 WL_workingdays_dont_tire Frequency Percent Valid Percent Cumulative Percent Valid Agree 12 12.0 12.0 12.0 Neutral 20 20.0 20.0 32.0 Disagree 64 64.0 64.0 96.0 Strongly Disagree 4 4.0 4.0 100.0 Total 100 100.0 100.0 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 40. Page ! of !39 50 WL_job_hurdles_in_fulfilling_fam_duties Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 28 28.0 28.0 28.0 Agree 40 40.0 40.0 68.0 Neutral 12 12.0 12.0 80.0 Disagree 20 20.0 20.0 100.0 Total 100 100.0 100.0 WL_work_duties_demand_change_in_fam_plans Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 28 28.0 28.0 28.0 Agree 36 36.0 36.0 64.0 Neutral 28 28.0 28.0 92.0 Disagree 8 8.0 8.0 100.0 Total 100 100.0 100.0 WL_work_hurdles_attending_social_gatherings Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 32 32.0 32.0 32.0 Agree 36 36.0 36.0 68.0 Neutral 28 28.0 28.0 96.0 Disagree 4 4.0 4.0 100.0 Total 100 100.0 100.0 WR_current_employment_status Frequency Percent Valid Percent Cumulative Percent Valid Full time employed 44 44.0 44.0 44.0 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 41. Page ! of !40 50 PEARSON’S CORRELATION; Valid Part time employed 56 56.0 56.0 100.0 Total 100 100.0 100.0 WR_total_annual_EBIT Frequency Percent Valid Percent Cumulative Percent Valid Less than 30,000 36 36.0 36.0 36.0 30-50,000 24 24.0 24.0 60.0 50-70,000 16 16.0 16.0 76.0 70-90000 20 20.0 20.0 96.0 More than 90,000 4 4.0 4.0 100.0 Total 100 100.0 100.0 UL_job_is_of_interest Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 56 56.0 56.0 56.0 Agree 28 28.0 28.0 84.0 Disagree 16 16.0 16.0 100.0 Total 100 100.0 100.0 UL_dream_job Frequency Percent Valid Percent Cumulative Percent Valid Strongly Agree 12 12.0 12.0 12.0 Agree 28 28.0 28.0 40.0 Neutral 28 28.0 28.0 68.0 Disagree 24 24.0 24.0 92.0 Strongly Disagree 8 8.0 8.0 100.0 Total 100 100.0 100.0 Descriptive Statistics EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 42. Page ! of !41 50 INTERPRETATION OF PEARSON’S CORRELATION’S TABLE; The sig values in bold are all less than 0.05, indicating that these two variables are not correlated to each other and hence we have to reject our H0 which said that all of these variables are correlated to each other. The correlation values of 1 or near to 1 indicate a strong/perfect correlation; positive correlational values however show a positive relation while the negative ones show an inverse/negative relation between the variables of study. Mean Std. Deviation N AGE 3.76 1.147 100 WL_work_demand_interferes_with_home 1.96 1.188 100 WL_workingdays_dont_tire 3.60 .752 100 WL_job_hurdles_in_fulfilling_fam_duties 2.24 1.074 100 WL_work_duties_demand_change_in_fam_ plans 2.16 .929 100 WL_work_hurdles_attending_social_gatheri ngs 2.04 .875 100 WR_current_employment_status 1.56 .499 100 WR_total_annual_EBIT 2.32 1.262 100 UL_job_is_of_interest 1.76 1.074 100 UL_dream_job 2.88 1.148 100 UL_haveto_face_incessant_failures_in_curr ent_job 3.16 1.126 100 UL_able_to_fulfill_job_requirements 1.88 .956 100 UL_understand_job_sequence 1.88 .868 100 UL_find_difficulties_in_understanding_job 3.40 1.064 100 UL_will_leave_if_found_felicitous_job 1.96 1.377 100 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 43. Page ! of !42 50 APPENDIX (B) EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 44. Page ! of !43 50 WORK LIFE BALANCE; chart shows how much of the employees agreed or disagreed. SCATTER DIAGRAM % EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid AGE & HIGHEST COMPLETED LEVEL OF EDUCATION
  • 45. Page ! of !45 50 EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 46. Page ! of !46 50 BIBLIOGRAPGY Bouckenooghe, D., Raja, U., & Butt, A. N. (2013). Combined effects of positive and negative affectivity and job satisfaction on job performance and turnover intentions. The Journal of Psychology: Interdisciplinary and Applied, 147, 105- 123. doi:10.1080/00223980.2012.678411 Abii, F. E., Ogula, D. N., & Rose, J. M. (2013). Effects of individual and organizational factors on the turnover intentions of information technology professionals. International Journal of Management, 31, 740-756. Retrieved from http://www.internationaljournalofmanagement.co.uk Nitesh, S. S., Nandakumar, V. M., & Asok, K. S. (2013). Role of pay as perceived organizational support contributes to employee's organizational commitment. Advances in Management, 6(8), 52-54. doi:10.1177/1059601112457200 Mencl, J., & Lester, S. W. (2014). More alike than different: What generatiions value and how the values affect employee workplace perceptions. Journal of Leadership & Organizational Studies, 21, 257-272. doi:10.1177/1548051814529825 Martin, J. E., Sinclair, R. R., Lelchook, A. M., Wittmer, J. S., & Charles, K. E. (2012). Non-standard work schedules and retention in the entry-level hourly workforce. Journal of Occupational & Organizational Psychology, 85, 1-22. doi:10.1348/096317910X526803 Liu, D., Mitchell, T. R., Lee, T. W., Holtom, B. C., & Hinkin, T. R. (2012). When employees are out of step with coworkers: How job satisfaction trajectory and dispersion influence individual and unit level voluntary turnover. Academy of Management Journal, 55, 1360-1380. doi:10.5465/amj.2010.0920 Liu, Y., & Berry, C. (2013). Identity. moral, and equity perspectives on the relationship between experienced injustice and time theft. Journal of Business Ethics, 118, 73- 83. doi:10.1007/s10551-012-1554-5 Lee, B. Y., Wang, J., & Weststar, J. (2014). Work hour congruence: The effect on job satisfaction and absenteeism. The International Journal of Human Resource Management. doi: 10.1080/09585192.2014.922601 Falkinger, J. (2012). A theory of Employment in Firms. Contributions to Economics, 85-115. James, L. P., & Charles, W. M. (1981). A Causal model of turnover for Nurses. Academy of management journal, 544. EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
  • 47. Page ! of !47 50 McEvoy, G. M., & Cascio, W. F. (1989). Cumulative evidence of the relationship between employee age and job performance . Journal of Applied Psychology, VOL 74(1), 11-17. Mobley, W. H., Griffeth, R. W., Hand, H. H., & Meglino, B. M. (1979). Review and conceptual analysis of the employee turnover process. Psychological Bulletin, Vol 86(3), 493-522. Ongori, H. (2007). A review of the literature on employee turnover. African Journal of Business Management, 50. Tracy, M. H. (2015). Demographic Characteristics Predicting Employee Turnover Intentions. Retrieved December 4, 2016, from Walden dissertations and doctoral studies: http:// scholarworks.waldenu.edu/dissertations? utm_source=scholarworks.waldenu.edu%2Fdissertations%2F1538&utm_medium=PDF&utm_c ampaign=PDFCoverPages EMPLOYEE TURNOVER IN ORGANIZATIONS | Managerial Economics by Sabiha Abid
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