Correlation linking Work Dissatisfaction and an Employee’s Income

Correlation linking Work Dissatisfaction and an Employee’s Income

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Correlation linking Work Dissatisfaction and an Employee’s Income

Job dissatisfaction according to Locke is best defined as the behavior or attitude an individual develops towards their job. When an individual becomes satisfied in their workplace, they develop a state of pleasure, which tends to affect their cognitive abilities because of their work appraisal (Brief, 2002). When it comes to an organization and obtaining profits, employee satisfaction will make sure that maximization of work profits is the key issue. When an employee is satisfied the employee turnover becomes minimal and the profit maximization becomes higher. According to research carried out, there is a mutual relationship between the employees’ performance in a company and the satisfaction obtained in the work place (MBA, 2010). An employee turnover can have negative or positive results. This may result from either the employer or in other cases the employee. Human resource management plays a vital role in an organization because employers use this strategy to reduce the voluntary turnover or the employer firing the workers (Vangel, 2011). The work of human resource management is to train the employees, manage their overall performance, compensation strategies, and the methods best suitable for employee selection. This means the human resource team usually works very hard to make sure the company’s employment rate is on an increase while the job turnover is on the decrease (Kazi, 2011). Even though there have been studies conducted in the past, few have tried to explain the reasons as to why employee turnover is relatively proportional to the level of satisfaction in the workplace. This paper explains why employee income is affected by job turnover with regards to maximizing the profits to the company and therefore resulting in high turnover levels of job dissatisfaction.

One of the reasons as to why job satisfaction results in a higher level of turnover is the employee’s work life conflict (Kazi, 2011). Work and life conflict in itself depends wholly on an individual’s satisfaction. In an organization, individuals aspire to earn a higher living as compared to their work mates in order to boost their lives and satisfy their levels of needs (Luthans, 1992). In quite a number of organizations, it is possible to find the work colleagues talking together about how much they earn in terms of salaries. When a worker finds out their fellow workmates earn more, they tend to feel dissatisfied and in the long run, the company is the one to go down. According to research carried out, the level of income an individual earns is directly proportional to the level of satisfaction that is required for a company to succeed even when the managerial levels of the company are held constant over time (Aydogdu, 2011). In the end, low level personal satisfaction in the work place may have a negative impact on the organization’s effectiveness in carrying out its activities as well as deteriorating the lives of the employees.

Compensation is the other determining factor for job satisfaction and employee turnover. Compensation is used to define the parameters a company considers when it comes to paying back the employee’s rendered services (Milkovich & Newman, 2005). This employment strategy employs the use of two forms of payment benefits; the direct and indirect mode of payment (Dessler, 2000). The direct payment includes salaries, incentives, allowances and remunerations while the indirect mode of payment includes holidays, insurance benefits, which include life insurance, medical insurance, sick leave, and child care support. The other forms of indirect payment include education assistance in case an individual wants to advance their studies, a retirement package plan. Most employees tend to have a misconception regarding their indirect payment especially the contribution plan and the benefit plan. The contribution plans in an organization’s compensation package refer to the amount of money in the retirement package an employer throws in using the extra bonus and provident subsidy so as to work out the future profits of their employee (Kazi, 2011). The benefit plan is defined as the predetermined retirement plan, which is calculated to determine the future profits of the employee at the time of retirement (Kazi, 2011). Due to the misconception, most employees tend to think the company is stealing their hard earned money therefore resulting in high levels of turnover. High turnover rates in a company are achieved when the human resource management defines clearly the importance of such benefits to an employee and try to create a positive notion in accordance to achieving the goals and objectives of the company (Kazi, 2011). If one considers an employee’s perspective and the amount of compensation, the rate of job satisfaction will improve if the chances of getting a good compensation are high and the benefits acquired are pretty appealing. The goals and objectives of an organization will be achieved in such a situation because the employment turnover will become minimal.

Job turnover is another threat that affects an organization’s performance. This takes place as a result of the downsizing strategies organizations in the recent past are trying to do. A single organization has more than one employee with whom they rely on in order to become successful. Economizing in an organization may tend to bring about voluntary turnover by a high number of employees. These employees were devoted, motivated, and faithful and who contributed greatly towards the company’s growth (Mishra & Spreitzer, 1998). Competition and globalization in the industrial scene have created a situation whereby an organization has to reduce the expenses with an aim of achieving maximum profits. One way of achieving this is by reducing the number of employees and utilizing the human resources to its maximum potential. This being the case, quite a number of employees have a low dissatisfaction level regarding the company and their employment uncertainty. A number of the employees feel like quitting the job and declining certain organizational commitments (Brockner, Grover, Reed, DeWitt & O’Malley 1987).

The working environment acts in improving or destroying the employment turnover. There are certain basic conditions in the work place that tend to determine how the employment turnover will be for example a proper lighting system, good furniture in the office, good relationships with their colleagues, and a clean work place. The attributes and attitudes towards the working conditions of the employees are directly proportional to an organization’s success and the willingness of a person to work faithfully in the company without second doubts (Laser, 1980). Adapting to a new working environment tends to be a bit problematic for certain people and therefore their levels of satisfactions may be affected (Kazi, 2011). In case an employee’s new working conditions are not as favorable as the previous, it will affect their intent to leave their new workplace. According to research, many people will tend to jump from one company to the other as a result of their working environment because their personal satisfactions have not been achieved at all (Kazi, 2011).

In an organization, job turnover rates are directly comparable to the number of opportunities available in the organization. Lack of opportunities by an employee in the industry tends to result to low growth rates and the number (Aydogdu, 2011). Promotion is one major possibility that employees tend to perceive while working. Promotion in the work place involves the likelihood of progression from one level to the other. During the recruitment process, many employers have a tendency to give a certain impression to their employees as to suggest their advancement while working in the company and in the process; they hide the basic job requirements (Kazi, 2011). When this does not happen, the employee tends to have dissatisfaction towards their work because of the negative perception about the management towards their economic advancements and other subsidiary benefits (Kazi, 2011). Research has it that the human psychological nature has a tendency to relate to the company in terms of appreciating and appraising the quality of work they do (Feldmann and Arnold, 1985).

Due to high levels of dissatisfaction with an organization and the quality of work rendered by the employee, there are certain consequences that result in the process with regards to the organization and the employee. One such consequence is the level of work performance (Aydogdu, 2011). This can be determined by how an individual performs their duties at work, their consistencies in terms of work attendance, and how they behave towards their organization’s management. According to research carried out, there is a great diversity emanating from the situation concerning an employer and employee in terms of performance. A number of employers interviewed claim that the production of an organization depends on the level of satisfaction extended towards the employees (Aydogdu, 2011). The other end result arising from an employee’s dissatisfaction is the fact that the rate of turnover increases. The employees tend to look for better working conditions and other organizations that pay quite a handful of money for the quality of services they render (Aydogdu, 2011). This in turn leads to a high percentage of employee non-attendance. Studies show that there is a negative relation between commitment towards an organization and the rate of absenteeism (Aydogdu, 2011). The number of employees who become absent in an organization comes as a result of their commitment to their organizational duties.

In conclusion, while creating a self-motivated working environment that favors good treatment of employees and achieving the highest levels of satisfaction by the employees, implementing policies and strategies that look after their well being is essential. Employees are a contributing factor towards an organization’s success. They play the important role of providing the resources and ensuring the goals and objectives of a company are achieved. The human resource management is an essential key factor in ensuring the employee’s requirements are met the best way possible. It helps bring up decent and hardworking employees and strive to make sure issues related to an employee are addressed. This means that for a company to become successful and extremely productive, it ought to address its employee’s demands and try to uplift their economic and social status.

Reference

Aydogdu, S. (2011). An Empirical Study of the Relationship Among Job Satisfaction, Organizational Commitment and Turnover Intention. Retrieved December 11, 2012, from www.econjournals.com/index.php/irmm/article/download/30/24Brief, A. P. (2002). Organizational behavior: affect in the workplace. Retrieved December 11, 2012, from www.annualreviews.org/doi/pdf/…/annurev.psych.53.100901.13515…

Brockner, J., Grover, S. L., Reed, T. F., DeWitt, R. L., & O’Malley, M. N. 1987. Survivors’ reactions to layoffs: We get by with a little help for our friends. Administrative Science Quarterly, 32: 526-541.

Dessler, G. (2000). Human Resource Management. New Jersey: Prentice Hall.

Feldman, D. C. and Arnold, H. J. (1985). Managing Individual and Group Behavior in Organizations. New York: Mc Graw Hill Publishers.

Kazi, G. M. (2011). The Contribution of Individual Variables: Job Satisfaction and Job Turnover. Retrieved December 11, 2012, from www.journal-zarchieves8.webs.com/984-991.pdf

Laser, S. A. (1980). Dealing With The Problem Of Employee Turnover. Retrieved December 11, 2012, from www.onlinelibrary.wiley.com/doi/10.1002/hrm.3930190404/pdfLuthans, F. (1992). Organizational Behavior. New York: Mc Graw Hill Publishers.

MBA. (2010). What are benefits of Job Satisfaction? Retrieved December 11, 2012, from http://www.mbaofficial.com/mba-courses/human-resource-management/what-are-benefits-of-job-satisfaction/Milkovich, G. T., & Newman, J. M. (2005). Compensation. Boston: McGraw Hill Publishers

Mishra, A. K. & Spreitzer, G. M. 1998. Explaining how survivors respond to downsizing: The role of trust, empowerment, justice, and work redesign. Academy of management Review, 23 (3): 568-588.

Vangel, K. (2011). Employee Responses to Job Dissatisfaction. Retrieved December 11, 2012, from http://www.google.co.ke/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CDYQFjAB&url=http%3A%2F%2Fwww.uri.edu%2Fresearch%2Flrc%2Fresearch%2Fpapers%2FVangel-Commitment.pdf&ei=-tvHUKR_gsLRBdOEgEg&usg=AFQjCNFQ-FrN8rR-qXzuGipRjKggi-jFvg