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TURNOVER AND OTHER EMPLOYEE INTENTION TO LEAVE

CHAPTER ONE

INTRODUCTION

1.01     Background to the Study

The In the current economic scenario, more and more company owners and managers recognize that they must not only have a winning business model, but they also need to have loyal employees for controlling business expenses in hiring and training new staff in order to increase profits. Abbasi and Hollman (2010) stated that employees are the major contribution to the efficient achievement of the organization’s success. Boles, Greenhaus, & Beutell (2017) mentioned that in retail business, salesperson play an important role for daily operational success; they have direct contact with customers; deliver a great quantity of customer transactions a day at the same time maintain fast and high quality service. Despite these efforts, if many good staff quit, the impact is significantly negative to the firm. Boshoff and Allen (2012) pointed out that the company that is unable to understand the customer’s needs and wants result in losing dissatisfied customers and also lack of competition.

The most important resource in any organisation is the human. Employees in organisations are responsible for making the difference in the services provided. They can either deliver good or bad service and this is where the competitive edge comes from which will invariably affect all the stakeholders in the organisation. In order to have good services and high productivity employees’ satisfaction within their post and the company they work for is very important (Andrews, 2009). Contrary to the assumptions made in some previous studies about job satisfaction, productivity and high labour turnover, the relationship might be different with low labour turnover and yet low productivity and high job satisfaction. The performance of the employees in relation to organisational objective is a major concern of the management. Management therefore has different strategies that will enhance employees’ performance and different measures to measure employees’ performance. The concept of measuring performance has received a great deal of scientific attention in the last 20 years (Cohen and Bailey, 2007). With so many different approaches to work performance.

Human resource practitioners and researchers are all keen to address issues that are affecting employee retention this is a key and strategic issue to address in every organization. For business to be successful and constantly maintain the success it needs to address those particular issues affecting employee intention to leave conclusively (Ignore, 2008). This move will require every organizations management to come up with a strategic approach to address this in totality. Employee turnover and intention to leave is a global phenomenon so is the case in Nigeria. In the present dynamic labour market, economic growth, hyperactive micro environmental factors and changing social economic factors majority of organizations have high employee turnover challenge. Every business or organisation can only have and sustain its success if it is able to fully address the challenge of employee turnover successfully and efficiently since the environment is very competitive (Mehmood, 2009). There are many reasons for an employee to take a decision regarding staying or not staying with an organization. Some of these factors are hygiene or sometimes referred to as dissatisfiers; they are elements at the work place that makes employees unhappy. Whilst other reasons may be motivators these are sometimes referred to as “satisfiers” these are workplace aspects that give employees job satisfaction. Employees expect to be satisfied and well rewarded by their employers since they spend most of their lives at work. Organizations are systems that welcome change and operate in rapidly changing environment (Johnson & Scholes, 2012). Organisations are thought of as complex networks of intertwined relationships arising from managers and workers who are at different grades in various teams 3 (Wright 2003).Consumers are more aware about quality of services and products and thus their demands are also higher thus businesses have been forced to develop strategies for quality assurance.

For many companies, the work of hiring and training new staff takes a lot of effort on time, money, knowledge etc. and the work of keeping good staff is even more difficult. Turnover intention issue among the employees is one of the prime concerns in the travel industry sector. Keeping this mind, researchers explored some significant factors that prompt employee’s decision retention or to quit their job. Ajzen and Fishbein (2010) and Igbaria and Greenhaus (2012) mentioned that the intention are the most direct determinants of actual behavior while once people have actually performed the behavior to quit a job, the employer just has little chance to acquire information and understand employees’ prior situation. According to Moore (2012) people also intend to quit their job when they feel much pressured or just don’t derive expected satisfaction from their job. In addition, White (2015) stated that for many businesses, employee turnover is one of the most depressed areas especially of the high employee turnover rates. Throughout up until today, numerous researchers studied factors that refer to turnover intention e.g. stress (Firth, 2004), experience (Kalbers and Cenker, 2017), salary (Arocas and Camps, 2015), leadership support (Chiu, 2015). Also, Boles (2014) studied about measuring model of turnover intention among retail industries including a company’s salespersons.

Employees’ turnover is now a cardinal issue in many organizations in Nigeria. This may be due to the fact that the nature of the work environment requires keeping and maintaining competent employees; recruiting and retaining these qualified workforce are major challenges of most organizations and these challenges may be as a result of competition, absence of satisfied level of job security and job satisfaction (Ojedokun, Balogun & Olowodunoye, 2017). In relation to psychological contracts management scholars have identified a number of socio-cognitive dimensions on which countries and individuals may vary in their belief and values (Kickul, Lester & Belgio, 2014).

Turnover intention is expressed inter changeably in many forms in the literature, including the intention to quit, leave and turnover intention (Takase, 2010). Turnover intentions reflect the subjective tendency that an employee will leave his organization at certain future period (Zhao, 2017). It is a multi-stage process consisting of three components, which are psychological, cognitive and behavioral in nature (Takase, 2016). Intention to leave or turnover intention is defined as employees’ willingness or attempt to leave the current workplace voluntarily (Takase, 2016). Turnover intention is an employee’s inclination to leave his or her organization (Emberland & Rundmo, 2016). It is also defined as the conscious and deliberate willfulness to leave an organization (Matz, Woo & Kim, 2017)

1.02   Statement of the Problem                                         

The business world today is very competitive and only firms with the appropriate human resource can keep up with the competition. It is therefore considered to be an important task to manage employee turnover for any organization. Naturally, employees want diversity in their life. They are constantly seeking for new and challenging jobs and good working environment in any job place (Ghiselli, 2011). It is difficult to provide these things to the employees in an economic way. Still it is crucial for organizations to retain its talented employees for higher productivity and profitability (Wagner, 2018).

Employees are extremely crucial to the organization since their value to the organization is essentially intangible and not easily replicated (Meaghan, 2012). Turnover has many invisible costs which are a result of incoming employees, morale of coworkers closely associated with the departing employee, pressure on remaining staff, loss of social capital and filling of the vacant position. Gustafson (2014) argues that turnover includes other costs such as lost productivity, lost sales and management time. Each time an employee leaves the firm, it is presumed that productivity drops due to the learning curve involved in understanding the job and the organization. The loss of intellectual capital adds to these costs. Not only do organizations lose the human and relational capital of the departing employee, competitors are also potentially gaining these assets Meghan (2012). If employee turnover is not managed properly, it would adversely affect the organization in terms of personnel costs and in the long run it would affect its liquidity position (Denvir & McMahon, 2015). Managers must therefore recognize employees as major contributors to the efficient achievement of the organization‟s success (Abbasi, 2010).. This study therefore intends to evaluate turnover and other employee intention to leave.

1.03    Objectives of the Study

The main purpose of the study is to investigate turnover and other employee intention to leave. Other specifics objectives of the study are:

1.     To ascertain the impact of job stress on employee intention to leave

2.     To determine the effect of organizational  support on employee intention to leave

3.     To examine the influence of role ambiguity on employee intention to leave

4.     To establish the relationship between job security and employee intention to leave

 1.04    Research Questions

To achieve the above stated objectives, answers would be provided to the following questions.

1.     What is the impact of job stress on employee intention to leave

2.     How does organizational  support influence  employee intention to leave

3.     To what extent does role ambiguity influence employee intention to leave?

4.     Is there any relationship between job security and employee intention to leave

1.05     Research Hypotheses

The following hypotheses would be tested.

H1:  Job stress does not have impact on employee intention to leave

H2:  Organizational support does not influence employee intention to leave

H3:   role ambiguity influence does not employee intention to leave?

H4: There is no relationship between job security and employee intention to leave

1.06          Significance of the Study

The study of turnover and other employee intention to leave is hoped to be of benefits to students, business men, corporate organization, and Nestle Nigeria. The study also hopes to highlight the problem associated with turnover and to make use of the analysis to improve the working situation thereby minimizing the problems of employee turnover in organization and its environment.

The findings in this study will have both theoretical and practical contributions by adding to the existing knowledge on research that has already been done in relation to turnover and other employee intention to leave.

1.07          Scope and Limitation of the Study

The research work will cover exclusively turnover and other employee intention to leave. The research work will be limited to employees of Nestle Nigeria Plc.

1.08          Definition of Key Terms

Role ambiguity: This occurs when people are unclear or uncertain about their expectations within a certain role, typically their role in the job or workplace. Role ambiguity arises when the definition of the person's job is vague or ill defined. Unclear roles may involve expectations for behavior or performance levels.

Job stress: This is the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker.

Organizational support: This is the degree to which employees believe that their organization values their contributions and cares about their well-being and fulfills socio-emotional needs

Job security: This is the probability that an individual will keep their job; a job with a high level of. Assurance (or lack of it) that an employee has about the continuity of gainful employment for his or her work life.

Employee Commitment: this is the bond employees experience with their organisation. Broadly speaking, employees who are committed to their organisation generally feel a connection with their organisation, feel that they fit in and, feel they understand the goals of the organisation

Turnover Intention: This is a measurement of whether a business' or organization's employees plan to leave their positions or whether that organization plans to remove employees from positions. Turnover intention, like turnover itself, can be either voluntary or involuntary

Job Satisfaction: Job satisfaction or employee satisfaction has been defined in many different ways.

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