Impact of “U.S. Veterans' Access, Choice and Accountability Act of 2014” on employee morale and work behavior: Does “creating an at‐will workplace” lead to better outcomes?

Abstract

This study estimates the impact of job security rule changes on federal civilian employees' work attitudes and behavior (i.e., job satisfaction and turnover intention) by looking at recent U.S. Department of Veterans Affairs (VA)'s Veterans' Access, Choice and Accountability Act (VACAA) of 2014. The data for the analysis are derived from the 2010, 2011, 2013, 2014, and 2015 U.S. Federal Employee Viewpoint Surveys. A difference‐in‐differences quasiexperimental methodology was used to examine the effect of a job security rule change on VA employee job satisfaction and turnover intention. This study's results indicate that the overall effect of the introduction of a new job security rule at VA is a decrease of approximately 7 percentage points in employee job satisfaction and 8 percentage points in employee turnover intention, which are a substantial effect. This study contributes to both the theoretical and the empirical understanding of at‐will employment systems and public employee work morale and attitudes.