ROLE OF JOB SATISFACTION IN RETENTION
Author : Neha Kinvatkar
Key Factors Affecting Job Satisfaction
IRABOR, et al (2019) stated that Job satisfaction is not based on just one thing; many factors influence how employees feel about their work. It depends on their expectations, or what they hope to get from the job, and their self-evaluation, which is how they judge their own performance. Another important factor is the input/output relationship, meaning whether they feel their effort is rewarded fairly. Social norms and comparison also play a role, as employees often compare their job with others. Lastly, priming, or outside influences, can shape their thoughts about work. All these factors together determine how satisfied an employee feels in their job.
Strategic HRM for Job Satisfaction and Retention
Muhammad, et al (2024) emphasized strategic HRM focuses on aligning HR practices with company goals to improve job satisfaction and retain talented employees. When employees feel valued through fair pay, career growth, rewards, and work-life balance, their commitment to the organization increases. Satisfied employees are less likely to leave, leading to reduced turnover and higher productivity. Competitive salaries, talent development, and a positive work environment further strengthen retention, making HR strategies essential for long-term employee engagement and success.
Salary Raises and Employee Retention
Gevrek, et al (2017) concluded salary raises play a key role in employee retention, as those who receive raises are less likely to look for new jobs or leave the organization. While higher raise percentages reduce job-search intentions, they do not significantly impact early retirement decisions. Employees’ perception of fairness in salary adjustments also influences retention—those who feel unfairly treated compared to their colleagues are more likely to leave. To reduce turnover, organizations should not only offer competitive salary increases but also ensure that the process is transparent and perceived as fair by employees.
Rewards and Job Satisfaction
Hareth, et al (2021) presented rewards help keep employees motivated, improve performance, and enhance job satisfaction, which is key to employee retention. When employees feel valued and rewarded, they are more likely to stay with the company and adapt to changes. Job satisfaction connects rewards to retention, as satisfied employees are more engaged and committed. On the other hand, dissatisfaction often leads to higher turnover. A strong reward system, combined with job satisfaction, helps organizations retain a stable and dedicated workforce.
Employee Training and Retention
Ni, et al (2023) stated employee training plays a key role in keeping employees in a company. When companies invest in training, employees feel valued and gain skills to grow in their careers, leading to higher retention and lower quitting rates. Proper training helps retain experienced employees, reducing hiring and training costs. High turnover can harm businesses as skilled employees may leave for competitors. Understanding the right training methods can improve retention, boost productivity, and strengthen the workforce.
Leadership and Retention
Chato & Arbel, (2024) concluded effective leadership plays a key role in job satisfaction and employee retention. Leaders who communicate openly, listen to feedback, and show genuine concern for their employees create a supportive work environment. When employees feel valued through career growth opportunities and recognition, their job satisfaction increases, making them more likely to stay. A positive workplace culture, built on trust and appreciation, strengthens commitment and reduces turnover. By addressing concerns and fostering a sense of belonging, leaders contribute to long-term employee retention and organizational stability.
Engagement and Employee Retention
Ashraf & Danish, (2020) stated employee engagement plays an important role in keeping employees in a company for a longer time. Factors like confidence, job control, well-being, and job satisfaction influence retention. Most of these factors have a positive impact, except for general well-being and confidence, which do not directly affect retention. Engaged employees are more satisfied and less likely to leave their jobs. The study also finds that confidence improves both well-being and job control. Companies should focus on building a supportive work environment to keep employees engaged and reduce turnover.
Job Satisfaction and Intention to Leave
Altanchimeg, et al (2024) emphasized employees are more likely to stay in a company when they are satisfied with their jobs. Factors like low salary, long hours, and heavy workload increase dissatisfaction, leading to a higher chance of leaving. Satisfied employees feel connected to their organization and show strong commitment, while dissatisfaction raises turnover. Research confirms that job satisfaction lowers the intention to leave, making it crucial for employee retention.
Talent Acquisition and Employee Retention
A.S. Afna & Janardhanan, (2024) stated effective talent acquisition strategies improve job satisfaction and employee retention in the hospitality industry. Strong recruitment, selection, onboarding, and development practices help employees integrate smoothly, leading to higher satisfaction and lower turnover. Research shows that satisfied employees are more engaged and committed for the long term. Talent acquisition not only directly impacts retention but also enhances job satisfaction, acting as a key mediator. Hotels should focus on strategic hiring and employee development to build a loyal workforce and gain a competitive edge.
Effective Employee Retention Strategies
Chandra, (2022) concluded organizations use various strategies to retain employees and reduce turnover. Key factors influencing job satisfaction and retention include fair salaries, career growth opportunities, welfare benefits, and a strong grievance redressal system. Workplace conditions and job stress also play a major role, while support from managers and governance practices have less impact. Clear communication and transparent decision-making help improve job satisfaction and overall workplace morale. To retain skilled employees, companies should focus on building a positive work environment, offering growth opportunities, and implementing effective HR strategies.
Conclusion
Job satisfaction and employee retention are shaped by various factors, including fair compensation, career growth, rewards, training, and leadership. Employees who feel valued through competitive salaries, transparent salary raises, and strong reward systems are more likely to stay committed to their organizations. Strategic HRM practices, such as aligning HR policies with company goals and fostering a supportive work environment, enhance job satisfaction and reduce turnover. Additionally, effective leadership that prioritizes communication, recognition, and trust creates a positive workplace culture that strengthens employee commitment.
Employee engagement, training, and talent acquisition also play crucial roles in retention. Well-structured recruitment, onboarding, and development programs ensure smooth integration and long-term job satisfaction. Engaged employees with job control and career advancement opportunities are more likely to remain with their organizations. Furthermore, organizations that address workplace stress, ensure fair grievance handling, and maintain transparent decision-making processes contribute to a stable workforce. By focusing on these factors, companies can improve job satisfaction, reduce turnover, and build a committed, productive team.
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