Job Satisfaction and Employee Turnover Intention: What does Organizational Culture Have To Do With It?

Abstract

This study explores the relationship between job satisfaction and employee turnover intention in the context of organizational culture, using data from the Quality of Work Life (QWL) module, a sub-section of the General Social Survey (GSS). Job satisfaction, the independent variable, assesses overall job satisfaction, while the dependent variable, turnover intention, measures intent to find a new job, with another employer, within the next year. While organizational culture varies by industry, employer and even by department, it is important in all working environments. Organizational culture influences employee’s job satisfaction, and in prior studies, high job satisfaction has been associated with better job performance. High performing cultures have also been shown to produce excellent results, attract, motivate, and retain talented employees, and adapt readily to change. Job satisfaction is inversely related to turnover intention and low turnover has been shown to increase organizational productivity and performance. This study finds that job satisfaction is inversely associated with turnover intention and that organizational culture moderates the magnitude of this relationship. Sub-group analyses reveal that job satisfaction is more predictive of turnover intention for younger workers. These findings have significant implications for the changing composition of workforce due to the aging population.