Abstract
Purpose This paper aims to examine employee perceptions of the labor market in the employee turnover intention model and explores how different situations outside work (labor market conditions) play a role in employee-organizational membership. In addition, it also examines the mediating role of commitment in the relationship between stress and the turnover model. Design/methodology/approach Data were collected from 628 private school teachers working in the economically depressed state of J&K (India), which were randomly selected. Confirmatory factor analysis was used for validation of a scale. Structural equation modeling and PROCESS by Hayes was used to test the hypothesized relationships between the study variables. Findings The antecedents of occupational stressors contribute negatively toward employees’ psychological state resulting in undesirable employee-organizational relationships such as high turnover intentions and low organizational commitment. Nevertheless, lack of external job opportunities compels employees to maintain organizational membership, even though against the stressful working environment. Research limitations/implications This study while acknowledging the inherent limitations, questionnaires are susceptible to and single sectional nature of the study poses limitations. Practical implications The practical implication explains that the employee and organization relationship is governed more by external economic conditions than by the psychological feelings of the employees toward the organization (organizational commitment). As also, the moral system of employees, as well as their feelings toward the noble profession makes them feel morally exalted and this binds them to the membership of the organization. Originality/value This study mainly focuses on, to understand if and how the conditions of the labor market relate to the employees’ attitudes. This would enable us to gain more insights to the systematic relations of employees’ attitudinal variables such as occupational stress, organizational commitment and employee turnover intentions.
Highlights
To survive in the cut-throat business competition, employers emphasize cost reduction to increase the input-output ratio as a major strategic tool (Hobfoll et al, 2018)
Seven most relevant antecedents were identified and subjected to content validity where experts’ opinions were sought. These statements were retained in the questionnaire and were measured with 29 items comprising of 5 items each for poor administrative support (PAS), employees’ exploitation, work overload and 4 items for professional distress and inadequate financial security each and 3 items for job insecurity and strenuous working environment each
The results reveal that occupational stress significantly predicts an employee turnover intention that is in line with (Ji-Young and Wang, 2019), who found employees experiencing a high level of stress results in absenteeism and turnover
Summary
To survive in the cut-throat business competition, employers emphasize cost reduction to increase the input-output ratio as a major strategic tool (Hobfoll et al, 2018). It could be asserted that economic slowdown meshed with competition are forcing organizations to improve productivity and crystallize on employees’ increased job pressure may result in job stress (Geetha Nema et al, 2010). Two major effects that have stemmed from these economic changes are known as “work intensification” and “job insecurity.” The former refers to the extent to which employees are being forced to work faster and harder, while the latter refers to the subjective feelings about the risk of job loss, as expressed by employees themselves (Burchell et al, 2002). Employees receive offers from other employers and make a comparison of cost and benefit between current and alternate jobs (Price, 2001). Manu et al (2004) maintain that employees quit organizations due to economic reasons
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