Abstract
ObjectivesEarlier studies suggest that imbalance between effort and reward at work associates with exhaustion. Others have found that exhaustion increases turnover intentions; an important precursor of actual turnover that also associates with counterproductive work behaviors. Few, however, have studied the associations between effort‐reward imbalance (ERI) and employees’ intentions to leave their current employment, and whether exhaustion is underpinning that relationship. Here, we investigate the mediating role of exhaustion in the effort‐reward imbalance – turnover intentions relationship.MethodsData from three waves covering a time span of four years from the Swedish Longitudinal Occupational Survey of Health (SLOSH) were analysed using structural equation modeling. Cross‐lagged mediation analyses were conducted to estimate if associations from ERI to subsequent turnover intentions were mediated by exhaustion. Other causal directions (direct and reversed direct effects, reversed mediation) were also examined.ResultsA direct path from ERI T1 to turnover intentions T2 was found, but not from ERI T2 to turnover intentions T3. Additionally, results showed that ERI at time points T1/T2 associated significantly with exhaustion two years later (T2/T3). Also, exhaustion at T1 showed a small but statistically significant direct association with turnover intentions at T2 (no association was found between exhaustion T2 and turnover intentions T3). A small, but statistically significant indirect effect from ERI to turnover intentions was found (estimate 0.005; 95% CI 0.002‐0.010).ConclusionsProviding a good balance between effort and reward for workers is essential to protect employee health and help retain employees in the organization.
Highlights
One of the most prominent theoretical models to explain how work environment factors induce strain is the effort-reward imbalance (ERI) model
As such associations allow no conclusions to be drawn about the direction of the association, our main interest was to investigate if ERI precedes turnover intentions
We found only inconsistent support for ERI being a precursor of later turnover intentions; ERI at Time 1 (T1) predicted turnover intentions at Time 2 (T2), but ERI at T2 did not predict turnover intentions at Time 3 (T3)
Summary
One of the most prominent theoretical models to explain how work environment factors induce strain is the effort-reward imbalance (ERI) model. This model has its roots in social exchange theories and in the notion of distributive justice.[1] In short, it assumes that stressful experiences occur if efforts at work are not reciprocated adequately by socially defined rewards (ie, money, esteem and status in terms of promotion prospects and job security). Turnover intentions are a reliable precursor of actual turnover,[9] which means considerable expenses for organizations in terms of monetary costs as well as knowledge drainage,[10] but relate to other unfavorable outcomes, such as increased counterproductive work behaviors and decreased organizational citizenship behaviors.[11]
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