Job Satisfaction and Employee Turnover: A Firm-Level Perspective

Anders Frederiksen

No 9296, IZA Discussion Papers from IZA Network @ LISER

Abstract: In this paper, I study an employment situation where the employer and the employees cooperate about the implementation of a job satisfaction survey. Cooperation is valuable because it improves the firm's ability to predict employee quits, but it is only an equilibrium outcome because the employer-employee relation is repeated and long-term. Using a unique combination of firm-level data and information from job satisfaction surveys, the empirical analysis reveals that the cooperation reduces the firm's employee turnover costs significantly by improving its ability to predict quits. This cost reduction may easily exceed the cost of conducting the survey. The analysis also reveals that the firm is willing to sacrifice profits in a given year to be able to sustain the cooperative relationship with the employees.

Keywords: cooperation; job satisfaction; quits; retention (search for similar items in EconPapers)
JEL-codes: M5 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2015-08
New Economics Papers: this item is included in nep-hap and nep-hrm
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Published - published in: German Journal of Human Resource Management, 2017, 31 (2), 132-161

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Related works:
Working Paper: Job Satisfaction and Employee Turnover: A Firm-level Perspective (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp9296

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