Employee satisfaction and Employee retention

Employee blessedness and Employee holdingIntroductionHuman re microbe is a key component of arrangement as peck atomic number 18 the marrow squash of the organisation and play a critical character in ascertain the performance of the organisation. Companies that be c arful and meticulous in recruiting the appropriate people with the indispensable skills and knowledge that depart be useful in the organisation are seeming to fare signifi flowerpottly wear than organisations that are wanton in their process of staff recruitment. Human capital is an important source of competitive advantage and provides the organisation with a competitive edge over their competitors (insert reference abt benignant capital being a competitive advantage). detailed selection and recruitment of people is hence an important process of human resourcing. Once an organisation has no-hitly recruited suitable and competent people into the organisation, the undermentioned step leave behind be ha rbouring this group of competent staff in the organisation as they, with their knowledge and skills are very much an invaluable asset to the organisation.2.2 Business ReasonsEmployee retentiveness is very much a gainsay faced by organisations today (insert references), especiall(a)y the keeping of highly satisfactory employees, who are ingrained in the organisation in this dynamic twenty-first century phone line surround where organisations that wish to survive and be successful do to be highly versatile with the ability to respond fleetly and effectively and thus adapt well to the ever-changing business environment. Therefore, it is authoritative for organisations to ensure that they are able to retain the best of their people, who are possible to contribute much to the survival and the success of the company.Organisations claim long tried and true to tackle the problem of employee memory board and limit employee disorder of skilled employees (insert references), b arely it is almost impossible to eradicate such incidences.It is a widely cognize fact that employee satisfaction is closely related to employee retention and numerous studies deal been conducted to support the above statement (insert references). However, it is also likely that there are reasons early(a) than employee satisfaction that office play a crucial role in employee retention (insert references). Organisations will need to look into other playing fields that conflicts employee retention to feel a better understanding of it and hence be better equipped in the management of retaining skilled employees.Personal reasonsWith reference to my prior(prenominal) overwork experience, where employee derangement was very high in the organisation I worked in, still though employers try to compromise with those employees (planning to gravel off) and retain them by change magnitude their salary and offering them to a greater extent benefits (increasing their patronage sati sfaction), it is not enough to note them from leaving the organisation. As such, I am highly interested as to what other factors that could run for to peoples wrappedion to sacrifice an organisation even though there is an increase in assembly line satisfaction. It would be certainly be very helpful to gain near insights about peoples intention to leave an organisation and what should be done to prevent them from doing so, should I acquire a managerial career after entering the workforce.Preliminary Review of the booksLambert, Hogan Barton (2001) measures the impact on turnover intent based on fin factors. They are demographic characteristics (eg. age, gender, education), work environment measures (eg. role conflict, autonomy, co-worker relations), bank line satisfaction, turnover intent, and alternative employment opportunities.Turnover intent is prodigiously bear on by availability of alternative job opportunities, job satisfaction, work environment (financial rewards) and demographic characteristics (age and tenure) with job satisfaction having the greatest effect. top environment and demographic characteristics generally sport an confirmatory effect on turnover intent as twain factors affects job satisfaction. Nonetheless, work environment was prove to have a greater effect on job satisfaction than demographic characteristics. Meanwhile, job satisfaction had the greatest effect on turnover intent.Lambert, Hogan Barton (2001) suggested that managers accent on creating a favourable work environment to increase job satisfaction, which in turn lowers turnover intent.Besides job satisfaction, an persons social credit with ones organisation (Moura et. al. 2009) also plays a role in predicting his/her intention to mollify or leave the organisation. When employees identify with their organisations, they are prone to be to a greater extent supportive and loyal to the organisation and desire to be part of a member of the organisation (Ashfort h and Mael 1989, cited in Moura et. al. 2009).Results of a study done by Moura and colleagues (Moura et. al. 2009) found that social Identity has proven to be an important formulation people take into love when deciding to gruntle or leave the organisation.As organizational identification (ie. social organisation) largely impacts on employees intentions to turnover, organisations should concentre on improving employees identification with the organisation.Nonetheless, job satisfaction should not be ignored as is still undoubtedly one of the most decisive factors that affect turnover intent.However, as characteristics of each individual varies, it is thus prerequisite to take into consideration the different factors and takes of job satisfaction as sensed by an individual when analysing job satisfaction (Franek and Vecera 2008 cited from Lee and Way 2010). The impact of individual characteristics on job satisfaction and turnover intention should not be ignored.Factors of job s atisfaction can be categorized into, die Environment factor and Work Itself factor.Both factors, though mutually exclusive, were found to have a large impact on job satisfaction. The Work Itself factor not only evaluates job satisfaction but turnover intentions as well.Although job satisfaction increases motivation and productivity of employees, it does not flirt with that level of employee retention is at its most efficient. Job satisfaction factors are not necessarily the similar as employee retention factors because not all job satisfaction factors will affect employee retention (Lee and Way 2010).Udechukwu and Mujtaba (2007) states that the reasons for employees to closure or leave an organisation can be divided into ternary of import categories, that is, social affiliates, employee and employer, contrary to previous studies that only took employer and social linkup factors into consideration.Social connection (eg. family, social club, religious group) affects employee v oluntary turnover as it is something that an employee identifies with or is associated to, that has no connections to the organisation. The ask of an individual and their social affiliations are a lot in line with each other. Therefore, it is highly likely that an individuals social affiliation will affect his/her decision to stay or leave the organisation.Employers are now providing their staff with more benefits, such as flexi-work hours, to ensure that their needs are met, hence increasing job satisfaction and lowering chance of employee turnover (Udechukwu and Mujtaba 2007).Meanwhile, for employees, it is crucial to them that their needs can be satisfied as the inability to do so will have a disallow impact on their performance and productivity (Senguder 2000 cited in Udechukwu and Mujtaba 2007), which could past pass along to higher(prenominal) probability of turnover.Deery (2008) examined the reasons for employee turnover by dividing them under three categories as well. The first category is job attitudes (eg. job satisfaction, organisational commitment). The second category is the employees in-person attributes of job burnout and exhaustion. The third category addresses employees work- emotional state balance.Previous search emphasised on the role played by job satisfaction and organisational commitment on employee retention but foc utilise less on job burnout, filter out and exhaustionA recent contribution to the inquiry on employee retention is the effect ca utilise by work-life balance on employees decision to stay or leave the organisation. A poor balance mingled with work and life (eg. family time) could lead to family conflicts and lower job satisfaction, hence increasing the possibility of employee turnover. Thus, to purify employee retention, it is recommended that employees be given the opportunity to find a balance surrounded by work and life.Deerys (2008) emphasis on the importance of a balanced work-life is support by Griffeth and Homs (2001) (cited in Udechukwu and Mujtaba 2007) research findings that employees who face family-life conflicts have a higher probability of quitting their jobs than those who do not.Previous researchers have also assumed that determinants of employee turnover and employee retention are the same, that is, employee turnover and employee retention are both sides of the same coin (Johnston 1995 cited in Cho, Johanson and Guchait 2009) and when a factor negatively affects employee turnover, it will have a positive effect on employee retention.Cho, Johanson and Guchait (2009) decide to test the assertions by researching on employee turnover intentions focusing on whether the determinants of measuring the possibility of an individual leaving the organisation are just as useful in measuring the possibility of an individual remaining in the organisation.Three main factors that have been repeatedly found to have a considerably large effect on employee turnover will be used in this s tudy to find if they have the same level of effect on employee retention. The three factors used will be perceived Organisational Support (POS), Perceived Supervisor Support (PSS), and Organisational Commitment (OC).Findings of the study have proven that the assumption is not necessarily right.POS does have an effect on both employee turnover and employee retention. However, the degree of effect varies, with POS having a larger impact on employee retention than employee turnover.Although PSS was found not to have any effect on employee retention, it does have an effect on employee turnover.OC reduces employee turnover, but does not necessarily have a positive impact on employee retention.As organisations today seek to retain their skilled staff, Cho, Johanson and Guchait (2009) suggested there should be more focused research on factors that lead to employee retention than on employee turnover.A research by Harris, cyclist and Kacmar (2009) based on the LMX (leader-member exchange) t heory which studies the quality of the leader-member (ie. supervisor-subordinate) consanguinity and assesses the effect that mandate has on employees in terms of their job satisfaction, turnover intentions.Importance of LMX relationship is relative to the subordinates perceived level of mandate. When a subordinates perceived level of empowerment is high, the work itself becomes a form of motivator and it is not necessary for them to have a high quality LMX relationship as a motivator. Hence, importance of LMX relationship is relatively low for highly empowered subordinates.However, when subordinates perceived level of empowerment is low, a high quality LMX relationship (eg. providing support and encouragement) will be crucial in making up for the loss of work motivation which could lead to high turnover intent.Therefore it is recommended that supervisors should give more attention on increasing subordinates level of empowerment. If the nature of the job or work environment does n ot permit high levels of job empowerment, supervisors should then build a high quality LMX relationship with those subordinates to make up for their low level of job empowerment.There appears to be limited business literature regarding job satisfaction and its effects on employee retention, specifically in the normal and snobbish sectors in the UK. As work environment and conditions neuter between UK public and cliquish organizations, factors and level of job satisfaction likely differs, so does its impact on employee retention. Apart from that, other possible factors that might possibly contribute to employee retention oddly in UK public and private organizations will also need to be explored. The findings from this research will give UK public and private sectors an idea on what would make their staff stay in the organisation. There is also little attention on recommendations that UK public and private organisations can undertake to retain their skilled staff. This is also es sential as it gives UK firms, be it public or private, an idea of what they can do to best retain their skilled employees.enquiry Questions and Objectives4.1 Research QuestionsTaking into consideration individual characteristics and differences in background and culture, what are the various perceptions on job satisfaction?What are the factors that could influence job satisfaction?How do these factors lead to employee retention? Do they have a direct or indirect impact on employee retention?How does job satisfaction differ between employees in public and private sectors in the UK?What is the consequent effect on employee retention between public and private sectors in the UK?What are the other possible factors that could lead to employee retention in the UK public and private sectors?What can be done to increase rate of employee retention in both public and private sectors in the UK?4.2 Research ObjectivesTo critically appraise the moment of employee satisfaction on employee retent ionTo compare and contrast the impact of employee satisfaction on employee retention between the public and private sectors in the UKTo critically evaluate other factors contributing to employee retention in UKs public and private sectorsTo recommend possible course of action to enhance rate of employee retention in both public and private sectors in the UKResearch course of study5.1 Research PerspectiveThe research will be done pickings into consideration the realistic working environment in UK organizations today. Most of the study required for the research will be obtained from secondary info (slightly more qualitative than quantitative data), primarily from suppositious and empirical journal articles. As such, both deductive and inductive reasoning will be required for the research.5.2 Research DesignThis research uses a comparative design as my area of focus is on two broad categories and a comparative designed research will clearly highlight the differences between the tw o categories. However, one possible limitation of this is that there might be more similarities than differences between the two categories, hence defeating the purpose of using the comparative research design.5.3 Data Collection MethodsSecondary DataThe sources of secondary data for the research will mostly be textbooks, journal articles, Databases such as EBSCO, Emerald and acquirement Direct.Textbooks on Human Resource Management (HRM) which can be sourced from proscription Universitys Lanchester subroutine library will be used to gain some theoretical knowledge about the main subject of research, employee satisfaction and employee retention. Textbooks written in the UK will be particularly useful as the subject and areas of research will be written within the context of the UK, and may even include case studies based in the UK. This will help in answering Research Objectives 1 and 4.Some of the textbooks that may be used are sight Planning and Talent Planning HRM in send by Stephen Pilbeam Marjorie Corbridge AND Human Resource Management at Work People Management and Development by Mick Marchington and Adrian Wilkinson.Journal Articles relative to the area of research will be the primary source of secondary data for this research. They can be sourced either from print journals easy from Coventry Universitys Lanchester Library or from journals available through Web Databases such as EBSCO, Emerald and acquirement Direct. Both theoretical and empirical journal articles will be used as they will be very useful in providing insights as well as the latest and up-to-date findings regarding my area of interest in my research. Journal articles written in the UK context will be particularly useful, especially empirical journal articles that include data collected from surveys conducted in the UK. Moreover, there seem to be a lot of journal articles available via the databases on the topic of my research. I may probably get the quite a little of my informati on needed for the research from journal articles. Therefore, Journal Articles and Web Databases will be used to answer all my Research Objectives, especially for Research Objectives 2 and 3.I will source the journal articles from journals such as the European Journal of Social Psychology, Human Resource Development Review, and military group Review.Websites may also be used, such as the UK Government Website which contains some statistics which may be used in the research. One such website would be the Office for National Statistics (ONS) at http//www.statistics.gov.uk/default.asp . Government WebsitesPeer-reviewedValid-as I can get up-to-date articles regarding my area of research.