Impact of Core-self Evaluation and Job Satisfaction on Turnover Intentions: a Study of Indian Retail Sector

Bindu Chhabra

doi:10.15388/omee.2018.10.00015

Abstract

Attrition is the major problem in the Indian Retail Industry which experienced the attrition rate of 19.4% in FY 2016 according to KPMG Annual Compensation Trends Survey 2017-18. The focus of these organizations is to reduce turnover by focusing on the underlying factors leading to turnover intentions and actual turnover. The present study was conducted to explore the effect of job satisfaction and core self-evaluation on turnover intentions. The purpose of the study was also to see if core self-evaluation (CSE) moderates the relationship between job satisfaction and turnover intentions. The study was conducted using structured questionnaires for measuring the above-mentioned variables. The sample of the study was 347 salespersons from various retail organizations working in Delhi and NCR. Hierarchical multiple regression showed that both job satisfaction and CSE were negatively related to turnover intentions. Also, CSE was found to moderate the relationship between job satisfaction and turnover intentions such that the relationship was stronger for the employees with low core self-evaluation. The present study has important implications for policy makers in the retail sector. Managers should use strategies to increase job satisfaction in order to curb high attrition in this sector. They must be aware of the moderating role played by personality attributes in the relationship between job satisfaction and turnover intentions.

Highlights

The Indian Retail Industry has emerged as one of the most dynamic and fast paced industries accounting for over 10% of the country’s GDP and about 8% of the employment
In order to fill in this gap, the present study aims to investigate the interactive effect of a personal characteristic called core self-evaluation (CSE) and an organizational factor, job satisfaction ( JS), on the salespersons’ turnover intentions (TI)
Control variables were entered on Step 1, job satisfaction on Step 2, core self-evaluation on Step 3, and interaction term on Step 4

Summary

Introduction

The Indian Retail Industry has emerged as one of the most dynamic and fast paced industries accounting for over 10% of the country’s GDP and about 8% of the employment. This industry has immense potential as India has the second largest population with an affluent middle class, rapid urbanization and solid growth of the Internet. It is a tough job to be on your feet the entire day while smiling at the customers These stressors, along with the need to balance the conflicting demands of the customers and the company contribute to the high turnover rate among the salespersons (Nonis & Sager, 2003)

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Conclusion