It is important that we keep track of employees who help in building and maintaining a strong organization. Employees are an important asset of any organization be it profit or non- profit. Many experts have stressed on the role played by employees in creating competitive advantage for the organization (Leepak & Gowan 2008; Pfeffer , 1994). Employees must be given the support that they need in order to retain them in an organization, otherwise it might lead to a high turnover that could undermine the success of the organization.
The role, position and also the importance that is given to human resource within any organization is considered to be a reflection of its overall approach and understanding of how human resource drive organizational process. In most cases organizations do understand the value and significance that is usually attached with the human resource that they possess and also succeed in getting the human resource which are efficient and effective in the task that they are performing within the organization. However the challenge occurs when the organization must ensure that these human resource need to be retained within the organization. This is where the concept of employee turnover comes into picture because it is a concept that is revolving around how exactly an organization will try to capture and keep its workforce with itself rather than letting them leave the organization.
1.2 Problem Statement
The Department of Revenue and Customs (DRC) which has been vested with the responsibility of generating revenue for the Government of Bhutan has been lately observing a lot of turnover of employees from both professional and support back ground. The resignation of employees has created understaffing, diminution in the quality of service provided and overburdening of workload for the remaining staffs in the Department. The reasons are still unknown as to why these employees have taken such decision; hence it has become imperative for the Department to find out the reasons as to why there is a lot of turnover of employees and what measures could be taken so as to reduce the employee turnover.
1.3 Research Objective
Although various studies and researches have proven that job satisfaction is one of the key players in determining the intent of employees to resign, no such studies or research has been carried out in the Bhutanese context. Hence the main objective of this study is to investigate the impacts of job satisfaction on employee turnover with the chosen organization, Department of Revenue and Customs (DRC) of Bhutan and determine the relationship between job satisfaction and employee turnover. The study would specifically deal in job satisfaction factors such as general working conditions, pay and promotion, work relationship, use of skills & abilities and work activities in relation to job satisfaction and employee turnover.
1.4 Research Questions
The following research questions are to be answered:
• What are the factors that contribute to employee job satisfaction and employee turnover?
• What is the relationship between the factors (general working conditions, pay and promotion, work relationship, use of skills and abilities and work activities) and employee job satisfaction?
• What is the relationship between employee turnover and job satisfaction?
1.5 Significance of the Study
This research is intended to find out whether employee job satisfaction has an effect on the turnover intention of employees in DRC. Moreover by carrying out this study, DRC would be in a position to understand the factors that have contributed towards attrition of its employees and what changes can be brought into the Department so that there are reduced numbers of employee attrition. It is the intent of this research to provide an evaluation and guideline on how employee satisfaction could be used by managers to reduce the rate of turnover within their organization.
2. Literature Review
2.1 Job satisfaction
Despite its vast usage in scientific research, as well as in our day to day lives, there is still no general agreement as to what job satisfaction is and it is one of the most complex areas faced by managers in managing their employees. Various studies have been already conducted to investigate the level of job satisfaction in various settings and have identified job satisfaction as dependent to various factors. Studies have revealed that satisfied employees tend to have less absenteeism and less turnover Porter, L. W., & Steers, R. M. (1973). Organizational, work, and personal factors in employee turnover and absenteeism. Psychological Bulletin, 80(2), 151-176.
http://dx.doi.org/10.1037/h0034829 On the other side dissatisfied employees commit more absenteeism and their tendency to resign is much higher than those employees who are satisfied with their job. This causes increased overhead cost and decrease in the performance of the employees thereby resulting in the overall decrease in the performance of the organization.
2.2 Impact of job satisfaction on employees
Many studies and researches have been carried out to determine the relationship between job satisfaction on employee performance and employee turnover and it has been proven that the three variables are significantly correlated even in the existing organizations (Schuler & Jackson, 2007; Redman & Wilkinson, 2011; Thomson & Phua, 2012). Moreover job satisfaction does not only benefit individual employee performance but also the performance of the organization as a whole regardless of the size of the company. When employees are satisfied, their intention to resign or leave an organization is also reduced in comparison to those employees who are not happy with their jobs.
According to Bhatti & Qureshi ( 2007), job satisfaction has become a crucial component for employee participation, commitment and employee productivity . As previously identified, job satisfaction has been considered as a strong determinant for increase in employee’s performance regardless of the size of the Company (Coomber ; Barriball, 2007; Tansel, 2014)
2.3 Importance of staff satisfaction
For a company to achieve its objective of employee loyalty and better work performance it is necessary that the company focuses on the satisfaction of its employees. It is only when the employees are satisfied with the organization; they become loyal to the company and put extra effort in improving their performance. Acquiring and retaining highly satisfied employees would not only improve the employee loyalty but also promote better working conditions where employees are motivated to work independently.
2.4 Measuring Job Satisfaction
Measuring job satisfaction can be very challenging as there are a lot of intrinsic as well as extrinsic factors that determine job satisfaction. From the various job satisfaction measures, one of the comprehensive study done by Saane et.al (2003) focus on the identification of suitable research instruments to measure job satisfaction. As per the study, measurement should be undertaken on a specific job performed by an employee that relates to work element, work demands as well as occupational and vocational factors. He also developed job satisfaction measures by using the job satisfaction scales and applied organizational –wide surveys as his main methods. On the other hand another tool was introduced by Thomas, et. Al. (2004) which gave importance on use of “Job diagnostic Surveys” so as to determine the extent and level of job satisfaction in the work place. Likewise, Best and Thurston (2004) introduced the “Index of work satisfaction” as his main tool to develop context specific job satisfaction research. The tool specified evaluation and assessment of workers opinion and attitudes towards their job in relation to the level of job satisfaction.
On the basis of the above tools, this research endeavors to consider in application to the case investigation and are found to be suitable measures in attaining research problems and objectives like the identified organization, DRC.
2.5 Employee turnover
Employee turnovers is a common but yet critical problem faced by any organization not only in DRC but on a national as well as international level. As per Taylor (2008), employee turnover exist as a result of employee job dissatisfaction that usually occurs in a work place. Consequently, he further stresses on the causes of employee turnover which are related to factors such as job designations, salaries, work benefits and others. It has also been confirmed by Pilbeam ; Corbridge (2002) that there are various unstoppable job satisfaction factors which leads to employee turnover such as the salary level, working conditions, working relationship, job attitudes, time factors, etc. However, Taylor (2008) strongly expresses his optimistic views about the strategies which if properly implemented in an organization could do away with the ill effects of employee turnover. Likewise different studies and researches have proved various strategies which could be implemented so as to reduce the employee turnover.
2.6 Relationship between Job satisfaction and Employee turnover
A variety of studies and researches have been carried out in the past so as to understand the impact of job satisfaction on the employee turnover. As per the investigation conducted by Chen et.al (2010) on the impact of improving job satisfaction among the employees, the study revealed that job satisfaction variables such as employee support, pay and employee welfare had a positive correlation to a decrease in the cumulative employee turnover rates. Furthermore, Mbah ; Ikemufuna (2012) in a study conducted in Nigeria identified the level of monetary compensation, the nature and type of pass for found by employee as well as supervisory support to be the key factors influencing the impact of job satisfaction on employee turnover. Similarly as per the study conducted on factors affecting employee’s turnover intention in banking sectors of Bangladesh, it was found that job satisfaction variables such as economic factors, working environment factors, performance appraisal factors and career development factors have a significant impact on the employee’s turnover intentions.
Kazi et.al (2012), confirmed the existence of inverse relationship between well satisfied employees with their jobs or different elements of their organizational employment corresponding to their turnover intentions. The study identified essential requirement for corporate organizations to study the cause and source of employee dissatisfaction as a measure to reduce the employee turnover rates. In another study conducted by Al- Battat ; Som (2013) on the employee-satisfaction and employee-turnover within the hospitality industries in Malaysia, it was found that employee dissatisfaction was the main cause for employees looking for better prospects within the hospitality industry as it had a negative influence on employee commitment.
3. Research Methods
This chapter will focus on the description of the research methods, designs and approaches applied in doing the research.
3.1 Research Design
Based on the research objectives, the quantitative research design will be applied and a descriptive survey questionnaire will be designed as the main instrument so as to engage in the collection of research data’s and to get an appropriate explanation and understanding on the numerical or quantitative response among respondents. The research philosophy that is applicable to this kind of study on DRC would be the positivism research philosophy that emphasizes deductive reasoning’s which tends to move from the general to the specific (Cresswell, 2013; Cheng, et. al., 2013; Bergman, 2008).
3.2 Data Collection
3.2.1 Primary data collection methods
The data would be obtained from the research questionnaire which would be distributed among the respondents as given in Annexure I.
The primary data collection method for this study would be based on Arokiasamy et. al (2013) and Cherotich’s (2012) research where it makes the use of questionnaire as the main data collection technique so as to capture the response that are quantitative in nature. Further the questionnaire would serve as the basis for developing contextual information that helps in meeting the research objectives and the research questions of this study which is being carried out on DRC employees. In addition, a simple likert scale would be implemented so as to measure the degree of responses and degree of variables of motivation and employee perception so that the degree of difference between employees of DRC and their response could be easily brought out using this technique.
Before conducting the actual research, a pre test would be conducted on 10 employees of DRC so as to evaluate the questionnaire clarity and ability to collect the information from the respondents. Based on the pre-test, changes would be made to the questionnaire wherever necessary.
3.2.2 Secondary data collection methods
The variables in this study are widely identified and described based on the related literatures which have been collected from secondary sources such as journals, books, websites, empirical studies and other related materials. The secondary sources have also helped in establishing the link between the different identified variables for achieving the research objective and in presenting the questionnaire.
3.3 Population and Sampling
As per the Revenue report 2017-2018, there are a total of 640 employees working under DRC, out of which there are 251 professional, 300 inspectors and 89 Administration, Accounts, ICT & operational staffs which have been categorized as others for the purpose of this research.
3.3.2 Sampling for Questionnaire
According to Cohen et al., (2013), apart from choosing an appropriate research methodology, the sampling strategy chosen for the research is a critical determinant of the quality itself. From this perspective the following considerations have been made in relation to population and sampling as follows:
Based on the proposed research being done on the employees of DRC, the population of the study would include all of the employees of the organization on the understanding that every individual will have their own satisfaction level and that the reward strategy applies to all the employees working under the department. In order to carry out this research, a minimum of 2 years work experience would be applied as criteria for the population mainly due to the reason that employees who have worked less than the given duration would not have got the opportunity to know about job satisfaction in detail.
For the purpose of this study a convenience sampling method would be used due to the employees being located at different geographical locations. Convenience sampling would allow the researcher to gather data from DRC employees who are residing in Thimphu as long as they are within the sample as given below. For the purpose of this research, 10% of the population from various job categories has been chosen as respondents and the anticipated response rate is at 100%.
3.4 Data Analysis
Respondents would be asked their degree of agreement or disagreement with the 23 events on a Five-point Likert scale ranging from 5 to 1 (5= Strongly agree to 1 = Strongly disagree). The analysis would display the frequency and percentage distribution of incidents. Mean of each incident would be obtained to rank importance of incidents.
The research would carry out quantitative analysis using descriptive statistics to analyze the factors that increases the employee’s intent to resign from their jobs and Chi Square test to find the relationship between job satisfaction and employee turnover.
3.5 Research Limitations
The intended sample frame may not be large enough for generalization since the study is done only on the Department of Revenue and Customs of Bhutan and only on those employees who are working in Thimphu, so employees who are working at the other regional offices under the same department have not been considered for the purpose of this research. Apart from the variables identified above, there may be other job satisfaction factors that may have an impact on the decision of employee turnover; however those factors have not been considered for the purpose of this study.
In order to carry out this research a prior approval from the Director of the Department of Revenue and Customs (DRC) would be sought for as given in ANNEXURE II.
Subject to the approval to carry out the research, a consent form as given in Annexure III will be circulated amongst the respondents so as to obtain their consent before conducting the research along with the information sheet as given in Annexure IV. The information sheet would contain details of the researcher, the purpose and benefit of the study and what is expected from the respondents and the researcher while conducting the research. A copy of the approval to carry out the research would also be attached. Based on the consent from the respondents, the survey questionnaire as given in Annexure I will be administered.
The participants of the research would be assured of their rights to privacy, confidentiality, and the right not to participate if they don’t desire to. Information obtained from the participants shall be reported with anonymity by using general terms and not individual names.