Job Security and Employee Turnover

Job Security and Employee Turnover

The study attempted to establish how job security influences employee turnover at NMG. Table

4.7 shows findings on whether employees at NMG are satisfied with the current level of job

security provided by NMG. Most (45%) indicated that they were satisfied, 29% were very

satisfied while only 7% were dissatisfied. The findings show that most of the employees are

satisfied with the job security at NMG. Job security may play a role in reducing employee

turnover intention especially permanently employed workers. Bula (2012) found that it is

easy to imagine that full time workers have better job security than part time workers and

are therefore less likely to intend to leave their employer.

Total 68 100%

The respondents were requested to indicate the extent to which they worried about their job

security at NMG. As shown in Table 4.8, most (46%) are worried to a moderate extent, 28%

are worried to a least extent while 7% are not worried at all. Only 18% are worried to a great

extent.

Table Level of Worry about Job Security

Level of Worry about Job Security Frequency Percentage

Not At All

5

7%

Least Extent 19 28%

Moderate Extent 32 46%

worried about their job security. According to Magnus at al. (2001), job security also arises

from the terms of the contract of employment, collective bargaining agreement or labor

legislation that prevents arbitrary termination, layoffs, and lockouts.

Further, the study attempted to determine the respondents’ prospect with NMG upon contract

expiry. Table 4.9 shows a summary of the findings. Majority (41%) of the employees expect

to become permanently employed by NMG while 33% expect to sign a new fixed

contract with NMG. Only 5% anticipate non-renewal of their contracts.

Table Prospect with NMG upon Contract Expiry

Prospect with NMG upon Contract Expiry Frequency Percentage

a) Become permanently employed 28 41%

b) Sign a new fixed contract with NMG 23 33%

Organizational justice refers to the extent to which employees perceive workplace

procedures, interactions and outcomes to be fair. Another objective of the study was to

establish whether organizational justice influences employee turnover at NMG. Table 4.10

show a summary of the findings on a statement that best summarizes their opinion on the

organizational justice at NMG. Most (54%) of the respondents indicated that they sometimes

look for a new job while 33% reiterated that the are likely to actively look for a new job in

the coming years. Only 13% unanimously stated that they would leave NMG.

Table Summary of Organizational Justice at NMG

Summary of Organizational Justice at NMG Frequency Percentage

a) I am likely to actively look for a new job in the coming year 23 33%

job satisfaction which results in employee turnover. Fields et al. (2000) found that employees

tend to discontinue their relationship with their organization if they perceive that there is low

distributive justice; that distributive justice has a significant effect on the employees quitting

intentions. Rastgar et al. (2012) added that procedural justice is negatively related to actual

turnover.

On a 5-point Likert scale where 1-1.499 not at all, 1.500 - 2.499 was little extent; 2.500 -

3.499 was moderate extent; 3.500 - 4.499 was large extent and 4.500 - 5.000 was very large

extent, the respondents were required to rate the extent to which various aspects of

organizational justice influence employee turnover at NMG. Table 4.11 shows a summary of

the findings which show that organizatiozational justice influences employee turnover at

NMG to a moderate extent. However, formal procedures exist in NMG to ensure that officials

do not allow personal biases to affect their decisions and there are formal means by which

employees in NMG can challenge decisions that they feel are erroneous. In addition, NMG