International Journal of Economics, Commerce and Management
United Kingdom ISSN 2348 0386 Vol. VIII, Issue 3, March 2020
http://ijecm.co.uk/
THE EFFECT OF JOB SATISFACTION ON
EMPLOYEE RETENTION
Ricardo S. Biason
Salalah College of Technology
Business Studies Department, Oman
Abstract
Job satisfaction and employee retention, as an academic concept, has aroused wide attentions
from the fields of management, social psychology, and practical operations in recent years. This
research paper reviews more than a decade of researches on the antecedents and outcomes of
job satisfaction and employee retention. Therefore, the current study attempts to explore the
relationship between job satisfaction and employee retention. For this, the study uses a
descriptive research design. In conclusion, the findings of the study suggest that there was a
positive correlation between job satisfaction and employee retention.
Keywords: Job satisfaction, Employee retention, Human resource, Correlation
INTRODUCTION
The relationship between employee retention and job satisfaction at work has been one of the
most researched areas in the field of management in relation to different professions. Moreover
employee retention is a major concern in an organization’s competitive advantage since it would
have an impact on the organization’s efficiency, productivity, and sustainability of the
organization. Particularly, employee retention is a process in which the employees are
encouraged to remain with the organization for the maximum period of time or until the
completion of the project. Even though Employee Retention has now become a tough task, it is
beneficial for the organization as well as for the employee.
Licensed under Creative Common Page 405
, © Biason
In addition, employee job satisfaction also is significant to an organization’s performance.
Hoppock defined job satisfaction as any combination of psychological, physiological and
environmental circumstances that cause a person truthfully to say I am satisfied with my job
(Hoppock, 1935). According to this approach although job satisfaction is under the influence of
many external factors, it remains something internal that has to do with the way how the
employee feels. That is job satisfaction presents a set of factors that cause a feeling of
satisfaction.
One of the most often cited definitions on job satisfaction is the one given by Spector
according to him job satisfaction has to do with the way how people feel about their job and its
various aspects. It has to do with the extent to which people like or dislike their job. That’s why
job satisfaction and job dissatisfaction can appear in any given work situation. Job satisfaction
represents a combination of positive or negative feelings that workers have towards their work.
Meanwhile, when a worker employed in a business organization, brings with it the needs,
desires and experiences which determinates expectations that he has dismissed. Job
satisfaction represents the extent to which expectations are and match the real awards. Job
satisfaction is closely linked to that individual's behaviour in the work place (Davis et al.,1985)
At the same time, the task of the human resource management in an organization is
done flawlessly if it places a right person for a right job at a right place in a right time. However,
retention is more important than hiring. A skilled and talented employee will never fall shortage
of the opportunities, since he or she has numerous options to choose from different
organizations to be with. If a person is not satisfied with his or her present job, he or she may
shift over to another, of his choice. The top organizations are on the top because they care for
their employees and they know how to keep them glued to the organization.
Employees stay or leave organizations for many reasons the reasons may be personal
or professional. Employees who are satisfied and happy with their jobs are more dedicated and
work for organization’s growth. If employees are satisfied at their job then they will stick and
work for the organization. This may be translated to employees that are satisfied with their job
will stay with the organization. The purpose of this study is to investigate the relationship
between job satisfaction and employee retention.
LITERATURE REVIEW
Job satisfaction is the most important factor for organization success. George & Jones (2002)
study explains that level of job satisfaction in the work place is the factor that influences
absenteeism which in turn it may cost employee turnover and the impact of it is at times
employees might resign or leave their jobs. Bigley et al.(1996) supported the opinion that
Licensed under Creative Common Page 406
United Kingdom ISSN 2348 0386 Vol. VIII, Issue 3, March 2020
http://ijecm.co.uk/
THE EFFECT OF JOB SATISFACTION ON
EMPLOYEE RETENTION
Ricardo S. Biason
Salalah College of Technology
Business Studies Department, Oman
Abstract
Job satisfaction and employee retention, as an academic concept, has aroused wide attentions
from the fields of management, social psychology, and practical operations in recent years. This
research paper reviews more than a decade of researches on the antecedents and outcomes of
job satisfaction and employee retention. Therefore, the current study attempts to explore the
relationship between job satisfaction and employee retention. For this, the study uses a
descriptive research design. In conclusion, the findings of the study suggest that there was a
positive correlation between job satisfaction and employee retention.
Keywords: Job satisfaction, Employee retention, Human resource, Correlation
INTRODUCTION
The relationship between employee retention and job satisfaction at work has been one of the
most researched areas in the field of management in relation to different professions. Moreover
employee retention is a major concern in an organization’s competitive advantage since it would
have an impact on the organization’s efficiency, productivity, and sustainability of the
organization. Particularly, employee retention is a process in which the employees are
encouraged to remain with the organization for the maximum period of time or until the
completion of the project. Even though Employee Retention has now become a tough task, it is
beneficial for the organization as well as for the employee.
Licensed under Creative Common Page 405
, © Biason
In addition, employee job satisfaction also is significant to an organization’s performance.
Hoppock defined job satisfaction as any combination of psychological, physiological and
environmental circumstances that cause a person truthfully to say I am satisfied with my job
(Hoppock, 1935). According to this approach although job satisfaction is under the influence of
many external factors, it remains something internal that has to do with the way how the
employee feels. That is job satisfaction presents a set of factors that cause a feeling of
satisfaction.
One of the most often cited definitions on job satisfaction is the one given by Spector
according to him job satisfaction has to do with the way how people feel about their job and its
various aspects. It has to do with the extent to which people like or dislike their job. That’s why
job satisfaction and job dissatisfaction can appear in any given work situation. Job satisfaction
represents a combination of positive or negative feelings that workers have towards their work.
Meanwhile, when a worker employed in a business organization, brings with it the needs,
desires and experiences which determinates expectations that he has dismissed. Job
satisfaction represents the extent to which expectations are and match the real awards. Job
satisfaction is closely linked to that individual's behaviour in the work place (Davis et al.,1985)
At the same time, the task of the human resource management in an organization is
done flawlessly if it places a right person for a right job at a right place in a right time. However,
retention is more important than hiring. A skilled and talented employee will never fall shortage
of the opportunities, since he or she has numerous options to choose from different
organizations to be with. If a person is not satisfied with his or her present job, he or she may
shift over to another, of his choice. The top organizations are on the top because they care for
their employees and they know how to keep them glued to the organization.
Employees stay or leave organizations for many reasons the reasons may be personal
or professional. Employees who are satisfied and happy with their jobs are more dedicated and
work for organization’s growth. If employees are satisfied at their job then they will stick and
work for the organization. This may be translated to employees that are satisfied with their job
will stay with the organization. The purpose of this study is to investigate the relationship
between job satisfaction and employee retention.
LITERATURE REVIEW
Job satisfaction is the most important factor for organization success. George & Jones (2002)
study explains that level of job satisfaction in the work place is the factor that influences
absenteeism which in turn it may cost employee turnover and the impact of it is at times
employees might resign or leave their jobs. Bigley et al.(1996) supported the opinion that
Licensed under Creative Common Page 406
