Satisfaction and Employee Turnover

An examination of the impact that job satisfaction has on employee turnover.

When employees identify with organizational goals, they are less likely to leave the organization to work for another. This paper explains that, in order for firms to survive in a global economy, they need to design effective human resource management (HRM) practices that encourage the retention of high-performing employees, particularly among skilled employees. It shows how past research has linked various human resource management practices to employee turnover. This paper assesses which HRM practices have the greatest impact on employee satisfaction and have the potential to reduce employee turnover.
“It is predicted that under different economic cycles, different HRM practices have differential impact on employee turnover. Typically, in an economic recession, employees are less willing to quit their jobs because there are fewer employment options available. Therefore, everything else being equal, those who do quit during an economic recession may have to be more dissatisfied with certain HRM practices compared to those who quit during an economic boom.”