The Correlation Between Job Satisfaction and Turnover Intention in Small Business

The Correlation Between Job Satisfaction and Turnover Intention in Small Business by Jane Ann Reukauf MBA, Northcentral University, 2000 MS Ed, Canisius College 1979 BA, State University of New York at Buffalo, 1976 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University October, 2017 Abstract Employee turnover has been responsible for the failure of many small businesses in the United States. Business leaders do not always understand the reasons employees choose to leave an organization. This correlational study, grounded in Herzberg’s 2-factor theory, examined the relationship between intrinsic employee job satisfaction, extrinsic employee job satisfaction, and employee turnover intention among employees in small businesses. Participants included 129 employees of a small business in Western New York. The Minnesota Satisfaction Questionnaire and Turnover Intention Survey were used to collect the data. The multiple regression analysis significantly predicted extrinsic employee turnover intentions, F(3, 103) = 25.687, p = . 001, R = . 428, and while extrinsic motivation was a predictor, intrinsic motivation was not. Recommendations for future research include focus on specific extrinsic and intrinsic categories in additional contexts. Implications for social change include small business owners understanding the motivation behind employee turnover, which may result in reduced costs to the company, keeping experienced employees, reduced errors made by inexperienced new hires, and increased productivity because there is not a learning curve for tenured employees.Employee turnover has been responsible for the failure of many small businesses in the United States. Business leaders do not always understand the reasons employees choose to leave an organization. This correlational study, grounded in Herzberg’s 2-factor theory, examined the relationship between intrinsic employee job satisfaction, extrinsic employee job satisfaction, and employee turnover intention among employees in small businesses. Participants included 129 employees of a small business in Western New York. The Minnesota Satisfaction Questionnaire and Turnover Intention Survey were used to collect the data. The multiple regression analysis significantly predicted extrinsic employee turnover intentions, F(3, 103) = 25.687, p = . 001, R = . 428, and while extrinsic motivation was a predictor, intrinsic motivation was not. Recommendations for future research include focus on specific extrinsic and intrinsic categories in additional contexts. Implications for social change include small business owners understanding the motivation behind employee turnover, which may result in reduced costs to the company, keeping experienced employees, reduced errors made by inexperienced new hires, and increased productivity because there is not a learning curve for tenured employees. The Correlation Between Job Satisfaction and Turnover Intention in Small Business by Jane Ann Reukauf MBA, Northcentral University, 2000 MS Ed, Canisius College 1979 BA, State University of New York at Buffalo, 1976 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University October, 2017 Dedication This dissertation is dedicated to my parents, Betty and Roy Reukauf. My father, while serving in the United States Navy during WWII, wrote to his brother advising him to stay in school. He explained that school is so important in a person’s life and the learning can never be taken away. This philosophy was ingrained in our family. It has guided me throughout life and has inspired me to complete the road to my doctorate. Although neither of my parents is here to join me in this accomplishment, I know that they are cheering me on from above. They are truly my guardian angels and the reason I continued to pursue my doctorate. Acknowledgments I would like to thank my parents for demonstrating strong faith and a strong work ethic, which I embraced. This helped me through the tough times during the process of completing this degree. It carried me through the long nights, the time I had to forego spending time with them so that I could work on my dissertation, and the frustration of rewriting time and time again. I love you so very much, and miss you every day! I would like to thank my family for always being there for me. My brothers Craig and Dan, sister Mary Beth, and their spouses have always encouraged my pursuit of further education. My nieces and nephews couldn’t wait to call me “Doctor”. Thank you to my friends who stood by me during this educational process and understood when I couldn’t spend time with them because I had to work on my “paper”. They cheered me on and pushed me to “get it done”. I look forward to spending more time together because life is too short and we need to enjoy it while we can. Finally, I want to thank Dr. Arnold Witchel who was always encouraging. He is the one who really motivated me to pursue this degree. Even when times were very difficult, he was always supportive and motivating. Ken Chamberland, a classmate, was my cheering squad. I really appreciated the phone calls to check in and the willingness to help me make it happen. Dr. Scott Burrus helped me to be accountable and to bring everything to completion so I can proudly say that I have successfully accomplished my goal! Without all these incredible people in my life, I would not be where I am today. I owe them all a debt of gratitude.