Examining the Job Search - Turnover Relationship: The Role of Embeddedness, Job Satisfaction & Available Alternatives

Summary & Commentary by Ian Mondrow, M.A.

A Job search is defined as "the actions of an individual to generate job opportunities in other organization" (Swider, Boswell & Zimmerman, 2011).  The relationship between job searching and turnover is based on the notion that a job search reveals alternative employment opportunities. This search identifies favorable alternatives, thus resulting in turn over. Previous research by Griffeth, Hom & Gaertner (2000) demonstrated a positive relationship between job search behaviors and turnover, which accounted for 7% of the variance. Swider, Boswell, & Zimmerman (2011) sought out to examine the search efforts of currently employed individuals. Their study focuses only on voluntary turnover and examines embeddedness, job satisfaction and employment alternatives.

Job embeddedness includes stable forces that refrain employees from seeking alternatives and are broken into three subdimensions: Links (i.e. formal or informal connections), fit (i.e. alignment with organizational culture), and sacrifice (i.e. the cost of tangible or intangible benefits that would be forfeited by resignation). Job embeddedness is defined as the ease at which an employee can be without these subdimensions. In other words, the more difficult it is to be without these ties, the less likely an employee will separate from the organization.

Job satisfaction is the affective and/or attitudinal reaction to the job and its responsibilities. Previous research promotes two models regarding job satisfaction: (1) dissatisfied workers will have a increased desire to seek opportunities with increased likelihood of accepting an alternative and (2) job seekers with low satisfaction are more likely to seek other opportunities with the intent to leave.

Job alternatives is defined as the available opportunities to employees that they are both qualified for and willing to accept. Alternative opportunities may entice employees away from organization and may be a contributing factor in their turnover decision. These opportunities are heavily based on the job market and can fluctuate with the economy.

Griffeth, Hom & Gaertner collected a study sample of staff employees are a large university located in the southwest of the United States. 3,600 individuals were invited to participate in a survey via e-mail. The survey measured job embeddedness using the 31 items from Lee et. al.'s (2004) six job embeddedness dimensions. It measured job satisfaction using 24 items from Spector's (1985) job satisfaction survey. Available alternatives were collected utilizing a weighted average of the nation and local employment level from BLS.gov. Voluntary turnover was collected from the organization's record over an 18 month period.

The study ended up with a total of 895 completed responses. 68% of the participants were female. The race/ethnicity distribution of participants can be seen in Figure 1. Since the dependent variable was dichotomous, a hierarchal moderated logistic regression was conducted. Results showed that all three two-way interactions produced a significant model improvement, X(3) = 13.54, p < .01. Search-job satisfaction and search-available alternatives were also statistically significant at p < .05.

Based on the results, it was determined to examine each two-way interaction independently:

Job search - turnover & job embeddedness: The test was conducted by entering the control variables at step 1, main effects and job embeddedness at step 2 and the interaction in step 3. Step 2 produced a significant chi-squared model improvement, x(2) = 76.62, p < .01, with a significant main effect for job search (p < .01). Adding the search embeddedness interaction produced a marginally significant model improvement, x(1) = 2.94,  p  = .08.  Based on these results, the relationship between job search and turnover was stronger with those who experienced low job embeddedness.

Job search - turnover & job satisfaction: Control variables were entered in step 1, the main effects of job search and job satisfaction in step 2. This produced a significant chi-square model improvement, X(2) = 77.09, p < .01. The interaction was added at step 3 and produced a significant model improvement, X(1) = 9.56, p < .01. These results suggest that turnover was significantly higher for individuals who conducted high levels of job search activity and had low job satisfaction when compared to individuals with similar job search activity and high job satisfaction.

Job search - turnover and available alternatives: Control variables were entered into step 1, main effects for job search and available alternatives were entered into step 2, and the interaction in step 3. Step 2 produced a significant chi-square model improvement, X(2) = 76.60, p < .01. After adding the interaction, a significant chi-square model improvement was present, X(1) = 4.19, p < .05. The results reveal that when more jobs available, turnover is increased.

Overall, the results revealed that job search activity was increased when employees were less embedded, had lower job satisfaction and more employment opportunities were present. Based on the findings of the research, one can conclude that retention strategies that are not targeted are ineffective. Instead, it is beneficial for organizations to regular assess and oversee employee work attitudes. Organizations need to examine market trends to determine where the greatest risk and implement organization initiatives to reduce the likelihood of turnover.

A variety of limitations exist in this study. First and foremost, the study was conducted on one organization and therefore can't be applied to the population. Furthermore, the sample was from a public organization and therefore results may differ in the private sector. The surveys were also self-reported which increase the risk of bias.

IMPLICATIONS FOR HR PROFESSIONALS

The authors of this article suggest that if an employee is exhibiting high levels of search activity, it may be beneficial for a manager or HR profession to approach them & discuss their concerns. This can be a valuable approach if it is implemented properly. When approaching employees, one should always be supportive and emphasize how valuable they are the organization. Ask for their feedback and listen to them more instead of talking. It is also important to understand that turnover happens and you can't stop every employee from leaving. The best approach is collect information to prevent other employees from leaving and do what you can to improve the work situation for the employee who is considering resignation. 

The best approach for any organization is a proactive retention strategy. If employees have already started to actively explore new opportunities, it can be considered too late. One of the most affective strategies is to regularly survey employees on the organizational culture, job satisfaction, and how they perceive their position/organization compared to other companies. The data from these surveys can help HR professionals assess the organizational strengths and the areas that need improvement. However, just surveying employees is not sufficient. HR professionals need to share the results of the survey to employees and take action on the results. Failure to do result will produce counterproductive results of the survey and a decreased amount of participation in the next survey.

Exit interviews are also a valuable source of information when a company is experiencing turnover. Unlike other surveys, these results should not be communicated to the organization but when action is taken, employees should be able to notice the difference. 

When the job market is competitive, it is especially important for organizations to show value to their employees. However, failure to recognize employees in a job market with low alternatives can still result in turnover. Talented employees are generally unaffected by the economy and are likely to be the first ones to leave. Futhermore, when the economy improves, employees will be more likely to jump ship based on how they were treated in the past. Therefore, it is important for organizations to continually evaluate the perspectives of their employees and strive to provide the best workplace for all employees.





Source: Swider, B.W., Boswell, W.R., Zimmerman, R.D. (2011). Examining the job search-turnover relationship: the role of embeddedness, job satisfaction and available alternatives. Journal of Applied Psychology, 96 (2), 432-441.

Managing the Inner Contractions of Job Descriptions: A Technique for Recruitment

Summary and commentary by: Ian Mondrow, M.A. in Industrial/Organizational Psychology

A job description is a document composes of several sections, including: job title, supervisor title, job responsibilities, and qualifications for hiring. This single document is sole resource for many organizational operations such as recruitment, performance review, training/development, organizational structure, and more. However, Stybel (2010) claims that job descriptions are merely intended for audiences within the organization. However, issues occur because job descriptions are also used for external and internal job postings. Such that, job descriptions are written to be "public" friendly and do not always obtain the most accurate information needed for the internal operations.

Stybel and Peabody (2007, as cited by Stybel, 2010) introduced a new section into the job description called the "Leadership Mandate". This new section communicates how an individual advances within the company's strategic plans. They now use 2 documents when conducting a candidate search: (1) a job description for the general public to attract candidates in applying and (2) a leadership mandate which is given to final candidates. Stybel (2010) claims that creating these two documents protects the company against fraud charges.

The leadership mandate is merely another section of the job description that is limited to specific audiences. This new section defines what changes the company expects within the 90-120 days, what responsibilities are considered critical/time-sensitive, which responsibilities are to be placed on the back-burner (not address immediately) for the next 4 months, what is to be avoided at all costs in the upcoming 90-120 days.

IMPLICATIONS FOR HR PROFESSIONALS
This article does emphasize the importance of job descriptions for both internal and external purposes. It provides the foundation on what tasks a specific job is responsible and what is considered successful in finishing this work. Every job within an organization should have a description. Using the same job for multiple positions produces a variety of risks for a company including: employee turnover [since the job was not what they thought], adverse impact [success factors are not consistent], inadequate opportunities for growth [because there is no defined career path], and more. Therefore, this articles emphasis on the value of job descriptions is extremely beneficial.

To be blunt, this idea of creating two documents is crap. While the notion of the leadership mandate and its content are good, the fact is that the information is not static. In January, the leadership mandate could be entirely different from the leadership mandate in May. Change occurs every day in an organization and therefore, creating such a document can be time-consuming and counter productive. Finally, creating such a document does not prevent fraud as a job description should include all responsibilities expected in a position.

On the contrary, it is the responsibility of the recruiter and the hiring manager to clearly communicate this content to candidates (which is emphasized more in the article title than article text). Creating a leadership mandate would be more beneficial to remind managers of what candidates need to be informed about. A leadership mandate is more suitable as a tool to help managers and not as a formal HR document.

It is crucial to emphasize the value of communicating the leadership mandate information to all job finalists. It will give them an accurate portrayal of what to expect in the months to come. This will reduce turnover and increase job satisfaction as the hired employee(s) will not be caught off guard. As HR professionals, we strive to ensure that applicants are satisfied in their jobs. This is one way to prevent any unexpected disappointments or dissatisfaction.




REFERENCES
Stylbel, L.J. (2010). Managing the inner contradictions of job descriptions:a technique for use in recruitment. The Psychologist-Manager Journal, 13, 105-110.


** I am not a lawyer or legal professional and therefore it is important to be aware of all state and Federal laws before considering implementation of any content read in this posting. I hold no liability for your actions. 

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.

IMPLICATIONS FOR HR PROFESSIONALS
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.