The Impact Of Work Environment On Employee Turnover

The Impact Of Work Environment On Employee Turnover

According to Allen & Vardaman (2021), employee turnover is an organization’s rate of losing employees. The main types of turnover include voluntary, involuntary, dysfunctional, and functional turnover. Voluntary turnover arises when employees willingly leave the organization, while involuntary turnover occurs when employees are fired from the organization by their employer. To follow this, functional turnover arises when underperforming employees leave an organization’s workforce, while dysfunctional turnover arises when employees with leadership potential leave an organization. Employee turnover may be caused by environmental, individual, and structural factors. Environmental factors include an employee’s responsibilities in the organization and employment opportunities. On the other hand, individual factors include a commitment to the organization, job satisfaction, attitude towards work and the organization, and willingness to work hard. Structural factors include fairness, autonomy, compensation, social support, work routine, and work pressure. Employee turnover rate may be influenced by the prevailing conditions in an industry, such as the use of technology and new job demands.

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According to Cobb (2022), the work environment is the sum of the interrelationships between employers and employees and the environment in which employees complete assigned tasks. The work environment shapes employees’ attitudes toward their work. The main types of work environments include traditional, collaborative, modern, remote, and flexible work environments. A traditional work environment includes a rigid hierarchy and strict control of employees’ activities within the workplace. A collaborative work environment emphasizes teamwork among employees to share ideas and learn from each other, while a modern work environment includes using modern concepts and technologies to complete assigned tasks within the organization efficiently. Subsequently, a remote work environment includes completing the tasks the employer assigns outside the organization’s premises, while a flexible work environment includes giving employees the autonomy to complete assigned tasks and implement creative ideas. The suitability of a work environment can be measured based on the safety of employees, comfort, availability of resources needed to complete assigned tasks, and the relationship between employees and their superiors, subordinates, and coworkers.

Various researchers have studied the link between the work environment and employee turnover. A study conducted by Suifan et al. (2016) on the impact of work-life balance on employee turnover in private hospitals indicated that support from managers and autonomy cause employee turnover. Another study by Saeed et al. (2013) on the relationship between work-life balance and turnover indicated that a lack of work-life balance causes stress resulting in high turnover. Meirina et al. (2018) reviewed the impact of work environment on turnover in the hospitality industry and established that work environment impacted employee turnover intention by 30.9%. The work environment may also cause turnover based on the workload assigned to employees. According to Meirina et al. (2018), a lot of workload causes burnout and stress, which are the leading causes of employee turnover. Workload may also reduce employee morale leading to reduced productivity and absenteeism, which could cause involuntary turnover. Employees may also leave an organization if it does not offer career growth opportunities and employee recognition. Organizations focus on reducing turnover to reduce the costs of hiring and training new employees.

Problem Focus

Employee retention is a major concern in the modern business environment because of stiff competition for skilled and experienced workers. Organizations must also retain skilled and experienced employees to increase competitive advantage and sustain themselves. Skilled and experienced employees also play a vital role in an organization’s performance hence the need to retain them. Employee turnover has also been a major issue in many organizations since the Covid-19 pandemic. Many organizations have not fully recovered from the negative impacts of the pandemic and are struggling to pay their employees on time, leading to a voluntary and functional turnover. The modern work environment is also being impacted by many factors within the business environment that are beyond the organization’s control, making it hard for organizations to remain consistent in providing a conducive work environment. For example, the COVID-19 pandemic disrupted many organizations’ work environments, especially in the hospitality and healthcare sectors, leading to high employee turnover. For example, the pandemic increased turnover intentions among healthcare providers because of too much workload, payment delays, and lack of work-life balance (McCartney et al., 2022). Subsequently, the work environment in the hospitality industry during the pandemic was characterized by payment delays and job uncertainty leading to high turnover.

Currently, the hospitality industry is among the industries experiencing high turnover because the industry is mainly seasonal. Ariza-Montes et al. (2019) state that the hospitality sector has the highest employee turnover rate because of high job demands arising from high seasonality in the industry. Employees in the hospitality industry are also at risk of developing stress and burnout because of pressure from management to deliver high-quality customer service and job insecurity. Many employees in the hospitality industry also lack support from management and job control, thus decreasing their sense of belonging. The hospitality industry is also among the industries with the highest job insecurity, which leads to high turnover. Job insecurity is an employee’s fear of unemployment (De Cuyper & De Witte, 2021). According to Arjona-Fuentes et al. (2019), working conditions in the hospitality industry should be scrutinized extensively because of their risky nature characterized by seasonality, low stability, reduced wages, part-time work, discrimination, and exhausting work schedules. Understanding the relationship between working conditions and employee turnover in the hospitality industry is also important because the human resource management department faces challenges in determining operating hours, dealing with intensive job demands, and adjusting to seasonal fluctuations. The high competition for skilled and qualified employees in the hospitality industry also requires an understanding of what an organization can do to prevent turnover. According to Bahadur (2022), the hospitality industry faces a demand-supply gap in staffing because of the expansion of hotels at an annual rate of 20 to 25 per cent. Bahadur (2022) adds that there is also a widening skills gap and high customer expectations in the hospitality industry. Therefore, organizations in the hospitality industry must invest in increasing employee retention to save costs that would be incurred in hiring and training new employees. Hiring new employees could also impact customer service and an organization’s performance hence the need to understand the relationship between work environment and employee turnover to create a conducive work environment and prevent turnover.

Addressing employee turnover is important because the problem affects not only the organization but also employees and customers. For example, when employees leave an organization, the organization incurs the cost of hiring and training new employees, thus increasing operating costs. An increase in operating costs may force the organization to increase the cost of goods and services, thus affecting customers. Employee turnover also causes delays in goods and services, reducing customer satisfaction. Most literature on the impact of work environment on employee turnover focuses on the organization’s role in creating a conducive or non-conducive work environment. There is limited research on how employees create a conducive and non-conducive work environment. Therefore, it is important to understand the role of employees in creating a work environment that increases or reduces turnover. Organizations can use this information to prevent employee turnover, thus protecting the organization from the negative consequences of turnover, such as high operating costs, loss of skilled employees, poor organizational performance, and bad organizational reputation.

Theoretical/Conceptual Framework

This research will apply Herzberg’s Theory. Fredrick Herzberg developed this theory in the late 1950s. Notably, this theory of motivation was informed by interviews that Herzberg made with a group of employees to evaluate what made them satisfied or dissatisfied with their jobs (Thant & Chang, 2021). From the interviews, two important dimensions were identified and framed to be hygiene issues and motivation. Hygiene issues include supervision and salary, which can influence an employee’s satisfaction with the work environment. On the other hand, motivators include achievement and recognition, which satisfy employees with their work environment.

Herzberg’s theory has been applied in contemporary practice since its formulation, with organizations identifying their hygiene and motivation issues and giving them necessary attention (Siruri & Cheche, 2021). Regarding hygiene issues, organizations ensure that their administrative policies, supervision, and work conditions do not cause workers dissatisfaction. On the other hand, the same organization ensures employees are motivated through better salaries, the work itself, recognition, advancement, and responsibility for workers (Mohammed et al., 2021). The application of Herzberg’s theory in modern practice makes it suitable for the theoretical framework of the current study.

Overall, the theory offers useful insights that can be used in contemporary life and for research purposes. For my topic of study, the theory will help shape the research questions to be included in questionnaires. For instance, to evaluate how an organization’s administrative policy influences worker’s decision to stay, I will inquire whether the organization has a policy manual, whether employees have ease of access to policies, fairness of the policies, the policies’ ease of understanding, employees’ input in the policies, and how the policies compare with those of other organizations in the same industry. Notably, this is an example of how the hygiene factor, as identified in Hertzberg’s theory, will be borrowed and applied. A similar application will be made to all other factors relevant to the subject research topic.

Working Themes

The Link Between Organizational Culture and Employee Turnover

Organizational culture dictates how employees behave within an organization. It consists of the shared values and beliefs established by the leaders in an organization, which are communicated and reinforced through various approaches. Organizational culture influences employee perception towards their work and the organization, thus impacting their behaviour. A good organizational culture effectively creates a positive perception of an organization. The main factors that shape an organization’s culture include hierarchy, values, urgency, task or people orientation, functional orientation and organizational subcultures (Collins, 2021). According to Bosomtwe & Obeng (2018), the relationship between employee turnover intention and organizational culture has gained significance because of the intense competition created by globalization in the business environment. A study conducted by Yeun & Han (2015) in South Korea indicated that relational and innovative cultures negatively impact employee turnover because of work burnout and bullying. Another study by Haggalla (2017) indicated that clan culture reduces employee turnover because employees feel more satisfied. Bosomtwe & Obeng (2018) argues that determining the relationship between organizational culture and employee turnover requires considering an organization’s cultural traits and acknowledging that the traits impact employees differently. For example, some employees may be more satisfied when they are given huge responsibilities in the organization and the ability to complete the responsibilities under limited supervision, while others may consider huge responsibilities under minimum supervision as too demanding, leading to a turnover. Other organizational culture traits that could impact employee turnover include involvement, consistency and adaptability (Bosomtwe & Obeng, 2018). For example, organizations that are not consistent in their operations and are constantly making changes that impact employee workload and job demands may experience high employee turnover. Organizations that are unable to effectively adapt to changes in the business environment may also experience high employee turnover because of reduced job security. Organizations involving employees in operations and decision-making may experience reduced turnover because of high job satisfaction and employee commitment.

The Link Between Job Satisfaction and Employee Turnover

Job satisfaction also includes an individual’s feelings about a job’s specific aspects. For example, employees may be more satisfied with their jobs if they are well compensated, recognized, and given autonomy to make and implement decisions. Researchers have established a relationship between job satisfaction as part of the work environment and employee turnover. Job satisfaction is a person’s attitude toward their work (Spector, 2022). According to Kholiq & Miftahuddin (2019), job satisfaction is among the leading causes of employee turnover in many organizations. The main attributes linked to job satisfaction and employee turnover include perceived job stress, communication, and compensation. Although employees prefer being recognized for their contribution to an organization’s success, many organizations are more focused on revenue and production, leading to job dissatisfaction and high turnover. Lack of communication creates a disconnection between employees and an organization leading to job dissatisfaction. Lack of communication also creates confusion in the workplace, limiting an employee’s ability to utilize their full potential, which could create job dissatisfaction and turnover. Job stress creates job dissatisfaction and a high intention to leave, leading to high turnover because employees are unable to be productive and meet the organization’s goals and expectations.

According to Frederiksen (2015), job satisfaction can be measured based on work-life conflict, compensation, opportunity for career growth, job security and the work environment. Work-life conflict refers to the internal level of satisfaction that a person gets when they compare a job’s benefit with their personal life. Employees develop job satisfaction if they perceive that their work positively impacts their lives. Compensation plays a vital role in increasing job satisfaction(Frederiksen, 2015). Employees are more satisfied if they are well compensated through adequate pay and financial and non-financial benefits. Although most research indicates that most employees are motivated by high pay, recent research by Siyal & Garavan (2022) indicates that modern-day employees are more motivated by benefits that enable them to meet security, physical, self-actualization, and social demands. Job security has gained significance in employee retention because of the high competition for skilled employees in the modern job market. Organizations are focusing on preventing downsizing and restructuring to prevent tension among employees because it would result in voluntary turnover (Wright, 2021). The opportunity for career development increases job satisfaction by creating a sense of belonging among employees because they feel that the organization cares about them and their future.

References

Allen, D. G., & Vardaman, J. M. (2021). Global talent retention: Understanding employee turnover around the world. Global Talent Retention: Understanding Employee Turnover Around the World, 1–15. https://doi.org/10.1108/978-1-83909-293-020211001

Ariza-Montes, A., Hernández-Perlines, F., Han, H., & Law, R. (2019). The human dimension of the hospitality industry: Working Conditions and psychological well-being among European servers. Journal of Hospitality and Tourism Management, 41, 138–147. https://doi.org/10.1016/j.jhtm.2019.10.013

Bahadur, R. (2022, August 4). How skill shortages can be a threat to growth in the hospitality sector – ET hospitality world. ETHospitalityWorld.com. https://hospitality.economictimes.indiatimes.com/news/speaking-heads/how-skill-shortages-can-be-a-threat-to-growth-in-the-hospitality-sector/93339100

Cobb, E. P. (2022). Envisioning the modern work environment. Managing Psychosocial Hazards and Work-Related Stress in Today’s Work Environment, 172–179. https://doi.org/10.4324/9781003187349-25

De Cuyper, N., & De Witte, H. (2021). Job insecurity. Oxford Research Encyclopedia of Psychology. https://doi.org/10.1093/acrefore/9780190236557.013.17

Kholiq, D. A., & Miftahuddin, M. (2019). Effect of job embeddedness, job satisfaction, and organizational commitment on employee turnover intention. TAZKIYA: Journal of Psychology, 5(1). https://doi.org/10.15408/tazkiya.v22i1.8154

McCartney, G., Chi In, C. L., & Pinto, J. S. (2022). Covid-19 impact on hospitality retail employees’ turnover intentions. International Journal of Contemporary Hospitality Management, 34(6), 2092–2112. https://doi.org/10.1108/ijchm-08-2021-1053

Meirina, I., Ferdian, F., Pasaribu, P., & Suyuthie, H. (2018). The influence of work environment towards turnover intention of employee of 4 star hotels in Padang City. Journal of Business on Hospitality and Tourism, 4(2), 97. https://doi.org/10.22334/jbhost.v4i2.120

Mohammed, A., Abdulaziz, I. A., & Hananu, B. (2021). Determining Job Satisfaction of Faculty Members in The University for Development Studies: An Analysis of Herzberg’s Two-Factor Theory. ADRRI Journal of Arts and Social Sciences, 18(3 (6) October-December), 17-39.

Saeed, R., Lodhi, R., Ahmed, K., Afzal, N., Mahmood, Z., & Ahmed, M. (2013). Work-Life Balance and Stress with the Turnover Rate of the Employees. World Applied Sciences Journal, 26(6).

Siruri, M. M., & Cheche, S. (2021). Revisiting the Hackman and Oldham job characteristics Model and Herzberg’s two-factor theory: Propositions on how to make job enrichment effective in today’s organizations. European Journal of Business and Management Research, 6(2), 162-167.

Spector, P. E. (2022). The nature of job satisfaction. Job Satisfaction, 1–12. https://doi.org/10.4324/9781003250616-1

Suifan, T., Abdallah, A., & Diab, H. (2016). The Influence of Work-Life Balance on Turnover Intention in Private Hospitals: The Mediating Role of Work-Life Conflict. European Journal of Business and Management, 8(20).

Thant, Z. M., & Chang, Y. (2021). Determinants of public employee job satisfaction in Myanmar: Focus on Herzberg’s two-factor theory. Public Organization Review, 21, 157-175.

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Background
This lesson’s assignment will provide you with an opportunity to practice different synthesizing techniques. You will continue to develop your dissertation literature review base by thematizing your existing information and adding four additional credible, relevant resources. In previous assignments, you were asked to discover evidence of the research problem and provide information on what we currently know about your research topic, as well as information on a theoretical or conceptual framework to situate your research study. It is now time to begin synthesizing this information into a holistic view of emerging themes around your research problem and topic themes.

The Impact of Work Environment on Employee Turnover

For this assignment, you will also add a minimum of four credible, relevant sources. Strive to include at least one article with findings and/or interpretations different from prominent thoughts in the literature. Use what you learned during Lesson 3 to ensure your articles are credible.

You will practice synthesizing by adding a new section, “Working Themes”, to your document that already includes an introduction to your research topic, problem of interest, theoretical or conceptual framework, and references.

As you synthesize, you will begin to notice that details from the Background section and perhaps from the Statement of the Problem section will be better placed in the Working Themes section.

Your Background section will decrease in size as it transitions into an overarching introduction to the research area. Revisit your synthesis matrix and current articles to identify additional details that may be appropriate to include in one or more themes in the new Working Themes section for this assignment.
Your Problem of Interest area will also decrease in size as it transitions into a concise problem statement with evidence. Revisit your synthesis matrix and current articles to identify additional details that may be appropriate to include in one or more themes in the new Working Themes section for this assignment.
One of your theoretical or conceptual frameworks will also be moved to this section.
Instructions
Consider your instructor’s feedback and additional work you have received during Lesson 3 and Lesson 4 assignments. Update areas in need of refinement. These refined sections will be included in this lesson’s assignment document.
Consider information from your new sources and what you have written so far to identify emerging themes. Use what you have gleaned from working through the Academic Success Center organizers.
For this assignment, you will create a new section, Working Themes, to your document. If you have identified themes not yet explored/searched, add these as potential theme headings for future consideration. Be sure to provide a note for your Instructor that the section is a future consideration.
Your assignment document should include these sections: