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ORGANIZATIONAL PSYCHOLOGY
www.orgpsyjournal.hse.ru
Socio-psychological factors on employee turnover: a demystifying perspective
Jikku Susan KURIAN
VIT University Chennai Campus, Chennai, India
Abstract. Background. The present business hubs are facing an incremental level of employee attrition. A better understanding of the expectations of the employees will leverage the issue of employee turnover. The workforce no longer is inclined towards material benefits the organizations provide, but a sense of better well-being and socio perspective of human life makes them decide to quit the organization. This scenario is experienced by almost all the organizations across sectors and boundaries. Hence, added focus should be given on socio-psychological aspects and needs to be addressed in regular intervals to retain the intellectual assets for the organization. Materials and Methods. This paper aims at reviewing various socio-psychological factors supporting employee intention to quit the organization. The study is based on a critical review on the existing studies on various socio-psychological factors viz., employee morale, social life, psychological health, family, employee loyalty, and emotional intelligence, quality of work life, job satisfaction, and support from family leading to employee turnover. Results. Socio-psychological factors are quite important for the organizations to view on. Employees need a fair support from the organization on distributive fairness and a healthy relationship with the team members. Discussion. The review throws light on the increased influence of family on employee turnover. The management should consider family as one of the major elements for the employees to put in their full commitment towards work. Conclusion. The paper concludes that, with the progressive inclination of organizations towards the enhancement of employees on the social well-being will reduce the intention to quit, thereby reducing employee turnover.
Keywords: emotional intelligence; employee turnover; intention to quit; job satisfaction; socio-psychological factors.
Employees have been the most valuable resource of any organization. Though advancements in technology resulted in most of the organizations transforming to be technology driven organizations, the importance of employees have not reduced. Rather, it elevated the role of employees, as they are required to manage any advanced technology. Owing to the changes in the nature of job, the role of
Introduction
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employees has changed from just resources to knowledge banks, carrying all the vital information of the organization and the customers with them, elevating employees as the lifeline of organizations these days. B. Kossivi with colleagues confirmed that, though globalization opened extensive opportunities for organizations and employees to venture out into new dimensions of business and employment, it also resulted in fierce competition (Kossivi et al., 2016). Availability of employment opportunities in plenty resulted in employees leaving organization for career growth, better pay and benefits and at times even without any relevant reason. It has become highly challenging and exorbitantly expensive for the organizations to meet the changing requirements of the employees from time to time to minimize employee turnover (Chaudhari, Narkhede, 2011). Other than pay and benefits, employees these days expect to be well treated and organizations to understand the social and psychological differences and requirements. The inability of organizations to understand the expectations contribute towards employees leaving the organizations, adding to the turnover scenario (Chen et al., 2014).
Increasing rate of attrition not only affects the financial position of the organization, but also the morale of the fellow employees. Though there is a plethora of studies on employee turnover intention, the changing mindsets of employees result in the addition of multiple factors towards possible reasons. Thus, the study on employee turnover intention remains evergreen and has more prominently become the need of the hour to identify the most prominent factors behind it to reduce its high propensity (Hinkin, 2000).
Various studies around the availability of employment opportunities and employee turnover intention observe the changes in the mindset of employees in developing countries, especially in Asia, where employees were happy to have a job and were willing to work for long hours, including overtime. There was dedication to complete the task assigned and a strong desire to please the superiors (Babu et al., 2013). With the introduction of western work standards, workers were compensated for non-standard work hours and ample job opportunities better suits to their lifestyle. As a result, the privileges of the employees increased, and they started seeking employers who offer them more benefits. In the lookout of more and more benefits employees started leaving the organization at a higher pace (Nouri, Parker, 2013).
Gap identification
Though numerous studies were conducted in the broad area of employee turnover, the role of social and psychological factors in triggering turnover intention among employees is not considered for studies in the past. In a period where employees mindset is changing and the present-day employees including the millennials giving utmost importance to their personal life, social life and psychological well-being, unlike the employees of Baby Boomers and Gen X, whose prime preference in most cases was their job, the area of study stands highly relevant as it aims to understand the exclusive role of socio-psychological factors in influencing employee's intention to quit the organization.
Literature review
In a highly dynamic economic scenario, inadequate salary packages that fail to meet the livelihood expenses are creating tantrums among employees, contributing towards rising attrition. Especially the employees settled in major towns and cities find it difficult to manage their livelihood with low salary packages, which will force them to look for opportunities with better pay packages (Pawar, Chakravarthy, 2014).
Employee turnover
The employment scenario in India is witnessing a phase of twists and turns, where retaining talent appears to be more challenging compared to attracting prospective talent, as the present-day
employees are willing to leave organizations for all types of reasons. Employee turnover can thus be explained as the outflow of intellectual capital from the organization (Stovel, 2002), and it continues to be the worst nightmare of most corporate houses.
Literature reveals that, like Western countries, Asian countries like India, South Korea, Malaysia, Singapore and Taiwan are also reeling under the crippling effect of employee turnover due to the typical social, psychological, organizational and economic factors prevailing in these countries (Khatri, 2001). Research on employee attrition scenario in India reveals alarming results, identifying BPO sector leading the trend with 50% attrition. The Indian Aviation sector, revitalized with the entry of several private players, opened multiple opportunities that are equally appealing, fueling the rate of attrition to 46%. While considering service sector, maximum attrition happens among salespeople, the reason being increase in the requirement of salespeople in FMCG, insurance and telecommunications sector. Though the employees receive an annual revision in salary by 25% to 30%, studies reveal that the aspiration of employees for better recognition, platform for exhibiting newly acquired skills, enhanced quality expectations in personal and social life etc., prompt them to venture into different sectors, adding to the attrition rate among various sectors (Narkhede, Chaudhari, 2011).
Unlike the employees of the past, present day employees are least interested towards dedicating a major part of their life towards the development of the organization, that too being with the same organization (Narkhede, Chaudhari, 2011). Along with engaging themselves in the requirements of the organization, they also observe whether they are doing justice to themselves and the society, also the organization's justice to them. Young employees look for social life, work-life balance, appreciation, recognition, and fair and equal treatment. Psychological and social wellbeing are given equal importance along with remuneration and benefits. Any imbalances in social and psychological wellbeing are also prompting employees to look for options outside the organization (Kossivi et al., 2016).
Socio-psychological factors and the relationship with employee turnover
Employees had always been the most valuable resource of any organization. Though advancements in technology resulted in most of the organizations transforming to be technology driven, the importance of employees have not reduced. Rather it elevated the role of employees, as they are required to manage any advanced technology. Owing to the changes in the nature of jobs, the role of employees has changed from just resources to knowledge banks, carrying all the vital information of the organization and the customers with them, elevating employees as the lifeline of organizations these days.
Employees tend to quit their job due to various other reasons such as social, psychological, organizational, or economic. Moreover, recent studies prove that the factors leading to employee turnover intention are extended to multiple dimensions that were not the case few years back. Pay and pay related variables have a modest effect on employee turnover, where high performers tend to leave the organization when they are inadequately paid (Anwari, 2014). The recurring tendency of the employees to fetch organizations offering better pay and career prospects and the failure of the present organization in fulfilling the expectations of the employees lead to turnover. The abundance of studies in the field, owing to its recurring impact on organizations reveals organizational culture, workload and job satisfaction as other prominent factors that have a direct relationship on employee turnover (Anvari, JianFu, Chermahini, 2013).
Social life and psychological health
Unlike the employees of yester years, present day employees are conscious about their social life and psychological health, and the benefit of both in their personal and professional welfare. Hence they give equal importance to their social and psychological wellbeing, rather than confining themselves
completely to the progress of the organization (Amin, Akbar, 2013). Studies reveal that employees confining to the organization fails to balance between social commitments and organizational commitments. The unfulfilled social expectations and the conscious effort to fulfill it exert mounting pressure on employees, especially the female employees. While combining social expectations and its impact on personal life, female employees are more prone to leave the organization to fulfill the social and family obligations like giving birth and nurturing children, which will eventually turn out as the priority compared to job (Zhang et al., 2016).
The review of existing literature demonstrates the growing importance of social life and psychological health in triggering employees' intention to quit the organization. The changes in the mindset of the Gen Y employees and their realization about job and life also adds to this. The below proposition has been formulated with the support from the literature.
Proposition 1: Social life and psychological health of an employee show a significant influence and reduces employee intention to quit the organization.
Loss of social capital and employee demoralization
An important social and psychological factor which lead to employee attrition is loss of social capital and employee demoralization, which happens mostly because of the loss of a respected colleague. S. Y. Yaqoub and A. R. K. A. M. Omram in their study emphasized the role of negative public relations, personnel costs and decreased social integration in employees quitting the organization (Yaqoub, Omram, 1992). The dynamicity of employees' psychology and organizational psychology also add to the woe of organizations. Research confirms the role of coworkers in shaping employee's turnover intention. Employees being social beings value friendship through work and look forward for instrumental and emotional support from co-workers. Instrumental support, which is task-oriented, helps employees to complete the assigned tasks on time and emotional support, which is person-oriented helps employees to cope-up with the emotional impact the job creates (Beehr et al., 2000). It also acts as a remedy for unfavorable phases of the job and helps employees to settle themselves in the organization. It is evident from various studies that low quality interpersonal relationships lead to negative organizational consequences including high turnover among employees. High-quality interpersonal relationships act as a shield protecting the employees from succumbing to the negativity of the j ob and the organizations. It helps the employees to remain in the organization as they experience the emotional bonding and support from co-workers (Mossholder et al., 2005). Below proposition was formulated with social capital and employee demoralization towards employee intention to quit.
Proposition 2: Loss of Social Capital and Employee Demoralization significantly increases the employee intention to quit the organization
Job satisfaction
Job satisfaction, since long, has been one of the most extensively studied common job attitudes that contributed to the betterment of the organization (Judge, Church, 2000). It is proven without doubts from the previous studies that happier employees contribute to the growth and success of the organization. The ability of the organization to retain the employees vitally contributes towards their success. Retention of an employee greatly depends on the organizational attributes, on which job satisfaction has a prominent role (Sanjeev, 2017). Researchers emphasize the role of Job satisfaction in the overall development and existence of the organization as it is the utmost significant factor that decides the retention or turnover of employees who are the real contributors and pay, organizational culture and workload are few important factors that contribute towards that. It is implicit that organizations that are not successful in ensuring employee job satisfaction have elevated levels of employee turnover, affecting their very existence (Anvari, et al., 2013).
Proposition 3: Job Satisfaction has a negative impact on employee intention to quit the organization
Job characteristics
A factor that grabs attention because of its growing relevance while considering employee turnover intention is boredom at work. Though it was assumed in the initial days as the employees remaining in the same job for a considerably long period of time tend to feel tired and bored of the routine tasks (Cummings et al., 2015). Absence of challenging or stimulating and low-task load work environment also results in boredom (Reddy, Mehta, 2019). Studies reveal that work-related boredom results in employees experiencing adverse effects like dissatisfaction, weakened performance, undesirable behavior at workplace, injuries and accidents resulting from work and in certain cases depression (Seckin, 2018). Studies conducted by (Prinzel, Freeman, 1997) reveals the occurrence of boredom in highly demanding and intellectually stimulating environments, where undivided attention is required. Unaddressed episodes of boredom result in employees losing interest in job, experiencing negativity, and looking for opportunities that best suit their psychological requirements. Availability of numerous opportunities acts as supporting factor for employees' turnover intention (Seckin, 2018).
One of the most significant attributes required for building a successful organization, employee loyalty is becoming a scarce element among the new generation employees. Loyalty ofthe new employees to the organization is negligible, which in turn is resulting in high rates of attrition (Keiningham, Aksoy, 2009). The changing attitude of the employees across generations can be attributed to this.
Proposition 4: Clearly defined job characteristics have a significant negative impact on the employee intention to quit the organization.
Employment opportunities
Dawn of Globalization opened ample opportunities for employees from various sectors, bringing in changes in the attitude of the employees towards work, work environment and organization (Nadiri, Tanova, 2010). This has resulted in employees looking forward for better prospects, giving equal weightage to family, quality of life and standard of living. The concept Work-Life Balance gained widespread popularity in the past decades (Muna, Mansour, 2007). The adaptation and implementation of this tool as a human resource strategy by corporate giants like Microsoft, Hewlett-Packard and Shell shows its importance and popularity (Dune, 2007). These changes are evident from the changed approach of employees. Unlike the employees of the past, the present-day employees give equal or more importance to family along with the job, try to maintain good work-life balance and if family facilitation or satisfaction is affected, that is resulting in employees leaving the job (Hongvichit, 2015).
A major result of the growth in employment opportunities is the psychological changes among employees that prompted them to relocate to the place of work, where in the past employees including the fresh and inexperienced stayed close to their family and relocation was considered as the last resort (Mitchell et al., 2001). In this structure the employee was ensured complete support from the family in case of rearing children as well as emergency. This social structure has dramatically changed in many countries, and as a result of loss of family infrastructure, employees wait eagerly to travel to and forth to their family and hence are highly reluctant to work longer hours and on odd shifts (Ahmad, Omar, 2013). Hence it can be concluded that greater the employment opportunities lessen the chances for an employee to quit the organization.
Proposition 5: Employment opportunities towards growth will negatively impact employee intention to quit the organization.
Emotional intelligence
Though the concept of emotional intelligence is still a bud, studies prove its undisputable impact on employees' turnover intention. Emotional intelligence is comprehended as one's ability
to apprehend one's own as well as other feelings, differentiate between the two and apply the understanding to redesign one's thinking and behavior (Salovey, Mayer, 1990). An emotionally intelligent employee is characterized to be optimistic and happy and possesses the ability to manage change and handle stressful situations at work without falling apart (Carmeli, 2003). On the contrary employees lacking emotional intelligence find it difficult to handle stressful situations at workplace and fall prey to that. They also find it difficult to manage behavioral dimensions of fellow colleagues and fall apart. Employees deficient in emotional intelligence appear pessimistic, worried, lack the ability to adapt to and manage change, lack skillsets to manage stressful situations and in long run will lose interest and quit (Adeyemo, Afolabi, 2007). Hence with strong emotional intelligence an employee can withstand the hurdles and be associated for longer period with organization.
Proposition 6: Steady levels of emotional intelligence will have a significant negative influence towards employee intention to quit
Distributive fairness
Other than the personal factors employees consider distributive fairness from organization as a decisive factor of turnover. L. A. Bettencourt and S. W. Brown outline workplace fairness as the employees' perception of appropriateness of outcomes, processes, and interactions with the firm (Bettencourt, Brown, 1997). As far as an employee is concerned, fairness symbolizes as the basic trait of effective exchange relationship that assures employees the deserved reward for their struggles and contributions and focusing the betterment of the organization (Organ, 1990). A fair relationship raises the confidence of the employees that any additional effort for the betterment of the firm results in additional personal benefits, though not immediately, but soon (Blau, 1964). It also results in the growth of employee-firm relationship beyond mere economic obligations, with the improvement in social-exchanges (Kumar et al., 1995). In contrary unfairness persuades employees to refrain themselves from extra contributions to the organization and to curtail their regular contribution, to satisfy themselves with a sense of self-justice (Organ, 1990). Repeated episodes of unfairness lead to dissatisfaction among employees, leading to turnover.
Proposition 7: Well organized distributive fairness practices reduce employee intention to quit.
Organizational justice
Alongside distributive fairness, uniform weightage is given to organizational justice in the decision to continue with the organization. Organizational Justice is understood as the employees' assessment about the moral base of managerial conduct (Folger, 1995). Organizational justice is a mutually beneficial component, both for the employees and the organization, which includes trust, commitment, better performance from employees, enhanced citizenship behavior, superior customer satisfaction and condensed conflict (Cropanzano et al., 2007). The most expected outcome of organizational justice by employees is equality. Employees anticipate managers to treat them equally, without any discrimination. Realization of any sort of discrimination in treatment leads to disappointment and declining loyalty. These employees wait for opportunities and move out at the onset of better options (Greenberg, 1990).
Organizational Justice branched out into distributive justice and procedural justice deals with equal treatment of employees in terms of salary, benefits, promotion and working hours (Adams, 1965) under distributive justice and unbiased decision-making by organization (Folger, Konovsky, 1989) under procedural justice. If the organization fails to design the pay and promotion policy in line with the qualification, skills, experience, proficiency, and performance of employees, it results in employee dissatisfaction and turnover (Adams, 1965). If the organization undermines the curiosity of employees to know the basis of evaluating performance and rewarding, and if any unfair decisions are made harnessing the interest of the employees, it results in employee frustration, hatred against the colleagues and hampered performance in due course of time leading to turnover (Cropanzano, Folger, 1991).
Distributive justice, procedural justice and organizational justice are considered as extremely influential antecedents of organizational commitment. Organizational commitment reflects the strength of the bond an employee has with the organization, the pride of being a part of the organization and contributing towards the attainment of its objectives (Lambert et al., 2005). Proper practice of distributive justice in proportion with the input from the employee towards the achievement of organization's objectives, results in employee being committed to the organization. Unequal distribution of rewards results in hostile atmosphere in the organization leading to employee demotivation and lack of commitment, leading to turnover (Folger, Konovsky, 1989). As in the case of equal distribution of rewards, employees expect procedural justice to be followed by the organization, resulting in consistency across employees and frequencies in which career advancements and pay advancements are offered (Hegtvedt, Markovsky, 1995). Proper implementation of procedural justice results in content and committed employees (Thibaut, Warker, 1975). Employees by nature have the tendency to evaluate the decisions of the organization and understanding of lapses in procedural justice leads to dissatisfaction (McFarlin, Sweeny, 1992). E. G. Lambert with colleagues established the relationship between organizational justice and organizational commitment, organization justice being an important antecedent of job satisfaction of employees (Lambert et al., 2005).
Proposition 8: Organizational Justice was expected to have a significant main effect on employee intention to quit.
This study identifies the extent to which socio-psychological factors impact the turnover intention among employees. From the study it is evident that socio-psychological factors affect the intention of employees to quit the organization to a great extent. This may be because of the growing awareness among the employees regarding the never-ending expectations of the organizations, which may not satisfy them irrespective of the extent of effort the employees place to bring in laurels to the organization. These realizations often result in the present-day employees giving required priority to their social and personal life, rather than dedicating the entire time and effort for building the organization. Unlike the employees of yesteryears who considered working for the fulfilment of the organization's objective without prioritizing their personal and professional objectives as the most significant purpose of their life, employees these days give extra priority to their family life and social relationships, which may help them satisfy both the family as well as the organization and also help them perform better.
It thus becomes the responsibility of the organizations too to identify the changing mindset of the employees and reframe the policies that accommodates millennials also. As turnover among employees remain a constant issue for the organizations, the study on turnover and turnover intentions too remains evergreen (Table 1). Thus, irrespective of the numerous studies conducted, employee turnover is still studied and will be studied in the future too.
Table 1. Meta Analysis
Discussion
Study
Concept
Variables
J. S. Adams (1965)
D. A. Adeyemo and J. O. Afolabi
(2007)
A. Ahmad, Z. Omar (2013)
Distributive justice Withdrawal cognition of female media practitioners Employee turnover intention
Relative deprivation. Inequality. Sexual harassment. Occupational stress. Emotional intelligence. Job satisfaction. Withdrawal cognition. Informal workplace. Family support. Employee turnover intention. Work-family conflict. Job stress. Psychological well-being (i.e. autonomy, environmental mastery, positive relations with others, purpose in life, self-acceptance and personal growth). Turnover intention.
Z. Amin, K. P. Akbar (2013)
Employee turnover intention
R. Anvari, Z. JianFu,
S. H. Chermahini (2014)
T. A. Beehr, S. M. Jex, B. A. Stacy,
M. A. Murray (2000)
R. Folger, M. A. Konovsky (1989)
J. Greenberg (1990)
A. Carmeli (2003)
Employee turnover
Psychological strain and job
performance
Justice in pay raise
The paradigm shift in organizational justice Emotional intelligence and work attitude and behavior
T. R. Mitchell, B. C. Holtom, T. W Lee, C. J. Sablynski, M. Erez (2001) F. A. Muna, N. Mansour (2009) H. Nadiri, C. Tanova (2010)
M. Stovel, N. Bontis (2002)
Y. S. Y. Al-Refaei, K. A. M. Omran
(1992)
Job embeddedness
Work-life balance
Organizational justice and Employee turnover intentions Voluntary turnover Employee turnover
Salary. Organizational culture. Promotion. Workload. Job satisfaction. Employee turnover. Job stressors. Coworker support. Psychological strain. Job performance.
Distributive justice. Procedural justice. Pay raise decisions.
Organizational justice.
Work outcome (job performance, withdrawal intentions from organizations). Work behavior (altruistic behavior). Work attitudes (career commitment, job involvement, affective organizational commitment, continuance organizational commitment, job satisfaction, work-family conflict, emotional intelligence).
Job embeddedness. Intention to leave. Voluntary turnover.
Know thyself. Future planning. Keeping score of plans.
Justice. Turnover intentions. Job satisfaction. Organizational citizenship behavior. Knowledge management. Voluntary turnover. Employee turnover. Job motivation. Job characteristics. Job-related tension. Leadership style.
Conclusion
From the above discussion it can be concluded that, employees tend to quit their job due to social, psychological factors. Moreover, recent studies prove that the factors leading to employee turnover intention are extended to multiple dimensions that were not the case few years back. Pay and pay related variables had a modest effect on employee turnover, where high performers tend to leave the organization when they are inadequately paid (Anvari et al., 2013). The more the employees are satisfied by the psychological support both from organization and family, the more will be involvement, commitment which decreases the intention to quit the organization (Reddy Anjali, 2017).
Thus, by developing a positive and healthy environment, the employees show utmost responsibility by understanding the requirements and, valuing one another through collaboration and achieve mutual growth for longer tenure. This also creates a work environment where the holding of family thoughts can be lowered indicating a balance between family and work. This tends to be more productive with a well-facilitated work environment.
Hence it is comprehended that the need of the hour the organizations to emphasis on is to balance the employee socio and psychological climate both at the organization and the family front, so that the intended outcome i.e. lowering employee turnover can be achieved.
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Received 11.11.2020
Социально-психологические факторы текучести кадров: демистифицирующая перспектива
КУРИАН Джикку Сьюзан
Институт менеджмента TKM, Коллам, Керала, Индия
РАДЖИНИ Кумар
Колледж Шри Васави (филиал Университета Бхаратиара), Эроде, Тамил Наду, Индия
РЕДДИ А. Васудева
Кампус университета VIT в Ченнаи, Индия
Аннотация. Обоснование. Нынешние бизнес-центры сталкиваются с растущим уровнем ухода сотрудников. Лучшее понимание ожиданий сотрудников усилит проблему текучести кадров. Персонал больше не склонен к материальным благам, которые предоставляют организации, но чувство лучшего благосостояния и социальной перспективы человеческой жизни заставляет их принять решение о выходе из организации. Этот сценарий переживают почти все организации, независимо от секторов экономики и государственных границ. Следовательно, дополнительное внимание следует уделять социально-психологическим аспектам, и их необходимо решать через регулярные промежутки времени, чтобы сохранить для организации её интеллектуальные активы. Материалы и методы. Эта статья направлена на анализ различных социально-психологических факторов, поддерживающих намерение сотрудника покинуть организацию. Исследование основано на критическом обзоре существующих исследований различных социально-психологических факторов, а именно морального духа сотрудников, социальной жизни, психологического здоровья, семьи, приверженности сотрудников и эмоционального интеллекта, качества трудовой жизни, удовлетворённости работой и поддержки со стороны семьи, ведущих к текучести кадров. Результаты. Социально-психологические факторы очень важны для организаций. Сотрудникам нужна справедливая поддержка со стороны организации в вопросах справедливости распределения и здоровых отношений с членами команды. Обсуждение. Статья проливает свет на возросшее влияние семьи на текучесть кадров. Руководству следует рассматривать семью как один из основных элементов, которым сотрудники должны полностью посвятить себя работе. Вывод. В статье делается вывод о том, что с ростом готовности организаций прилагать усилия для повышения уровня социального благополучия персонала снижается намерение сотрудников уволиться, тем самым сокращается текучесть кадров.
Ключевые слова: эмоциональный интеллект; текучесть кадров; намерение уволиться; удовлетворённость работой; социально-психологические факторы.
