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I am a M.A. in industrial/organizational psychology. Most of my experience has been in human resources and change management. My passion lies in employee assessment, organizational development and employee opinions. Website: www.IanMondrow.com LinkedIn Profile: http://linkd.in/drBYoC

Tuesday, November 30, 2010

Effects of Retail Store Image Attractiveness and Self-Evaluated Job Performance on Employee Retention

Summary by: Ian B. Mondrow, M.A.

The costs of a single hourly employee turning over will cost an organization approximately $3,000 to $10,000 (Turnover costs sack retailers, 2000; Gustafson, 2002 as cited in Yurchisin & Park, 2010). Within the retail industry, a sales associate average length of employment is only 80 days (Masters, 2004 as cited in Yurchisin & Park, 2010). This turnover results in customer complaints pertaining to poor customer service and employees with little knowledge or expertise of product knowledge. Previous studies have discovered that organizational commitment is a key factor in employee turnover and turnover has been found to positively correlate with job satisfaction. It was hypothesized that the attractiveness of an organization may be linked to an employee's commitment to the organization.

Yurchisin & Park (2010) were successful in obtaining surveys from 211 sales associates.  Only 21.1% were identified as full-time employees. Unfriendly/Friendly , unorganized/organized, and unreliable/reliable from the semantic differential scales were used to obtain the perceived store image. Each of the items provided anchors to assist participants in selecting the correct adjective. Surveys also measured store image attractiveness, self-assessed job performance, internal job satisfaction, organizational commitment, and intention to leave.

Results from the survey revealed that positive store image had a relationship with job satisfaction (t =6.25, p<.001) and organizational commitment (t =8.29, p < .001). An individual that had high self-assessed performance was more likely to have high internal job satisfaction (t = 5.01, p < .001) and a negative relationship with intention to leave. Both organizational commitment and intention to leave were positively related with internal job satisfaction. Finally, organizational commitment was found to have a negative effect on one's intention to leave.

This study reveals that while store attractiveness does increase job satisfaction and organizational commitment, one's self-assessment is crucial to determine if an employee is likely to leave. Therefore, it is important that managers are encouraging of their employees and are dedicated to the development of their staff. Once an employee's self-perceived performance increases, so will his/her job satisfaction and commitment to an organization. In turn, this will have a positive effect on the store image. From this, we can see that all these factors are connected. Employee satisfaction is not cut and dry but driven by a collection of factors. As HR Managers, we need to ensure that employees feel appreciated and that they feel they are successful in their job. By doing so, it is likely to lower turnover.

Source: Yurchisin, J. & Park, J. (2010). Effects of Retail Store Image Attractiveness and Self-Evaluated Job Performance on Employee Retention. Journal of Business Psychology, 25, 441-450.

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