Job Insecurity and Turnover Intentions among Banking Sector Employees: The Moderating Role of Organizational Support and Ethical Leadership

Prince Addai,Augustine Osei Boakye,Michelle Afrifah,Rejoice Mottey

doi:10.33215/sjom.v5i1.736

Prince Addai, Augustine Osei Boakye + Show 2 more

Open Access

https://doi.org/10.33215/sjom.v5i1.736

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Abstract

Purpose - Job insecurity exerts a significant impact on turnover intentions among employees. The association may be partly due to the influence of organizational support and the ethicality of leaders. However, there is a shortage of studies on the ameliorating role of organizational support and ethical leadership in the nexus between job insecurity and turnover intentions. Thus, the purpose of this study is to examine the nexus between job insecurity and turnover intentions among banking sector employees. The moderating role of organizational support and ethical leadership on the underlying relationship was assessed to achieve this. Design/methodology/approach – One hundred and sixty (160) banking sector employees were conveniently selected to participate in the study. The sample consisted of female (n = 92) and male (n = 68) employees, ranging from 23 to 49 years. Standardized measures were used in soliciting respondents' demographic characteristics, perceived job insecurity, ethical leadership, organizational support, and turnover intentions. Data were analyzed using regression analysis. Findings – Results revealed a significant positive correlation between perceived job insecurity and turnover intentions. Organizational support and ethical leadership also moderated the association between job insecurity and turnover intentions. The influence of job insecurity on turnover intentions minimizes when management provides the needed support and favorable climatic conditions. Originality/value – In general, the study highlights the importance of organizational support and ethical leadership in lessening the impact of job insecurity on turnover intentions.

Highlights

The interest among researchers and employers in the problems of job insecurity has increased tremendously, owing to the rate of collapse of jobs and mergers and acquisitions in the Ghanaian banking sector (Okyere-Kwakye et al, 2018)
The findings further extend the existing literature by indicating that ethical leadership and organizational support can mitigate the association between job insecurity and turnover intentions
The study concludes that a negative correlation exists between job insecurity and turnover intentions

Summary

Introduction

The interest among researchers and employers in the problems of job insecurity has increased tremendously, owing to the rate of collapse of jobs and mergers and acquisitions in the Ghanaian banking sector (Okyere-Kwakye et al, 2018). This has created numerous challenges for organizations that affect the organization's effectiveness. Turnover is one of the most excellent human resource challenges an organization faces and is very destructive for organizational effectiveness (Gyensare et al, 2015). The violent nature of turnover poses a challenge for researchers in assessing the factors that ensure high retention among employees. Studies have shown that certain organizational practices and leadership determine the extent to which employees may react to insecurity surrounding the banking sector (Acha, 2012; Addai et al, 2018)

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