Abstract
This research aims to study the influence of the chosen variable employee turnover intention in the public sector of Saudi Arabia by the impact of the effect of, green practices, training programs and psychological contracts. The research will ultimately aim to shift attention towards broader issues that are causing low levels of commitment and job satisfaction. An understanding of the various ways to reduce employee turnover rate will serve as a huge advantage not only to organizations but to the country’s economy as well. This research has analyzed several ways to minimize employee turnover and how it can positively impact those organizations they work for, as well as the country in general. The proposed data methods entail the application of the quantitative approach to collect, analyze, and present the information. It collects primary data from respondents and runs a regression analysis on the data obtained. So, 48 questionnaires were circulated to 290 employees working in Saudi Arabia and we canceled the feedback from non-engineers, and we came up with 260 engineers working within Saudi sectors. The quantitative analysis employed finds that training programs and rewards programs have a statistically significant and inverse relationship with employee turnover intentions but finds a statistically insignificant relationship for the psychological contracts and green practices at work. The results from the multiple regression analysis contradict the findings in the literature review concerning the effect of psychological contracts and green management on employee turnover intentions.
Contents
Abstract 4
Introduction 6
Research Questions 6
Aims and Objectives 8
Literature Review 8
Employee Turnover Intention 8
Psychological Contracts 8
Green Practices at work 9
Training Programs 9
Research Hypothesis 10
Data Collection 10
Results 11
Conclusion 12
References 13
Introduction
Today we live in a fast-paced world with economies growing rapidly. The government of Saudi Arabia has adopted several policies in pursuit of inviting cheap laborers from other countries to strengthen its domestic labor force. This increase in the total labor force increased the rates of staff turnovers in the region. An increase in turnover rates has various negative impacts on the economy. In Saudi Arabia, approximately 14% of employees leave their job annually. This high employee turnover rate is a weakness for Saudi Arabia.
This study aims to explore the concepts of three independent variables that has been used in the assignment namely, green practices, psychological contracts and training programs to evaluate the influence of on Saudi Arabia’s public sector employee turnover intention. Using the works of peers, scholars, and other academics we build a literature framework to identify and bridge the gaps to fulfill our study. Hypotheses were built to evaluate the relation between the dependent and independent variables. The present study was focused on exploring the relationship that existed between the independent variable and the turnover intention of the employees.
Research Questions
This study aims to assess the role of psychological contracts, green practices, and training programs in influencing Saudi Arabia’s employee turnover intentions. The research questions that would address these aspects are as follows:
Does the psychological contract fulfillment reduce the employee turnover intention?
One of the most challenging tasks of an organization is to retain talent. Attracting and retention of talent becomes defining aspects of a company’s growth. Since we live in an era of continuous growth, transformation, and burnout, the need to drive business performance using human capital is evident. Fulfillment of psychological contract for the employees might be turn out to be a differentiating factor. Studies and research show an ever-increasing employee turnover intention which results in decreased employee engagement. Thus, it becomes important to discern if psychological contracts reduce turnover intention.
What is the effect of training programs on turnover intention?
Training is the systemic development of the human capital which is proactively needed to maintain and retain the employee. Employees are the key resource of an organization. Organizations invest in training and development programs for their growth and development opportunities. Since there is a rising turnover in Saudi Arabia’s public sector it is imperative to establish the effect of training programs on employee turnover intention. This will help employers to use the result of this assessment to develop strategies to retain their employees.
Are green practices effective in increasing employee’s loyalty towards their organization?
Businesses have evolved with time and have the social responsibility of protecting the environment they operate in to make a difference. Sustainability initiative has become a popular choice today and it plays a pivotal role in transforming the work environment. Thus, the question arises what is the effect of green practices on employee’s loyalty and engagement towards the organization?
Aims and Objectives
To study the relation between the dependent and independent variable used in the research.
To analyze the implications of the commitments of the organization using psychological contracts
The impact of training programs, green workplace practices, psychological contracts will be assessed concerning employee turnover intention.
Literature Review
Employee Turnover Intention
It is the dependent variable of this study which is a measure of the desire and plans of workers to end their employment contract due to a host of factors that they consider to be unfavorable in the work environment. They have to bear additional costs for hiring and training new staff to make up for the low workforce productivity (Hossin, 2020).
Psychological Contracts
According to Aldossari and Robertson (2016), psychological contracts are a set of formal and informal agreements between employers and employees in an organization whose goal is to establish a good working relationship among these stakeholders and a good work culture in the organization. (Dwiyanti, 2020). Common psychological contract breaches include unfair treatment of the employee, not allowing any opinion about the workplace, lack of reward for good performance. According to research published in the Journal of Health and Social Behavior, high employee turnover is negatively correlated to psychological contracts. This can push Saudi Arabia public sector employees to consider ending their employment contracts (Faisal et al., 2020).
Green Practices at work
Likhitkar and Verma (2017) argue that Green Practices at work in organizations contribute to employee morale. These practices give a sense of belonging to the employees and lack of it creates dissatisfaction among them that causes them to seek excuses to leave their organizations. Investors today tend to shy away from organizations whose processes are unethical or harmful to the environment. “This attracts negative press attention that could affect the businesses’ bottom line and their investments “(Noviantoro and Peranginangin, 2020). Moreover, Green Practices at work efforts need not be too prohibitive to the point of running a business into a loss.
Training Programs
Training is the systemic development that ensures performance improvement. There is a general nationalization of jobs in Saudi Arabia labor market. the government takes special care to incentivize employers to provide adequate training for its employees (Meteb, 2017).
Better staff training at the micro-level increases employee engagement and the organization’s goals (Sandhya and Sulphey, 2019). Saudi government’s decision to fund this program directly responds to the vast number of highly skilled foreign workers currently living in the country, which exceeded 1.6 million in 2011. The government is making it more economically efficient for employers to hire Saudis with training instead of foreigners. While hiring a foreigner requires an annual fee of approximately $2,400, employing a Saudi only cost around $600 annually. Training of employees is an instrumental part of psychological contracts as it increases employee’s loyalty towards their organization. This is because training is like a concern for the welfare and professional development of employees which increases the sense of belonging in their organizations. This profits the organization and plays a key role in retaining personnel in the long run.
Research Hypothesis
H0: The independent variable has no predictive power on employee turnover intentions. There is no association between the two variables due to the insignificance of the independent variable.
H1: There is an inverse relationship between psychological contracts and employee turnover intentions.
H2: An increase in training programs decreases employees’ turnover intentions in organizations.
Data Collection
This research collected primary data from respondents using survey questionnaires. The survey questions were designed to answer the broad and specific research questions highlighted above using a five-point Likert scale. 48 questionnaires were addressed to 290 employees working in Saudi Arabia and we removed the feedback from non-engineers since they were not able to complete the survey to have survey standard which will allow us to achieve the highest level of accuracy in the results and we came up with 260 engineers working within Saudi sectors. So, there were 48 questions in total; 6 of them were set to gather personal data of respondents and these questionaries were collected from previous research developed by (Fanaye Sharew, 2017). 18 questionaries were addressed to collect information on psychological contracts, 5 questionaries have been addressed to collect data related to green practices at their place of work, 12 questions on training programs, 4 questions on rewards programs, and 3 questions were addressed to find out about employees’ intentions to leave their organizations (Fanaye Sharew, 2017).
Results
To summarize the results, hypotheses H3 and H4 have been accepted which endorses the training program and rewarding program. Whereas the hypothesis H1 and H2 have been rejected with the null hypothesis been accepted, the results highlight the absence of predictive power of both the remaining variables on the employee turnover intentions
In summary, based on our result findings, we decide on the hypotheses as follows:
We reject H1 and accept the null hypothesis H0 instead, that for our sample, fulfillment of psychological contracts has no predictive power on employee turnover intentions.
We reject H2 and accept the null hypothesis H0 instead, that for our sample, an increase in organizations’ commitment to green management does not affect the desire and likelihood of employees to leave their organizations.
Conclusion
Due to the effect of globalization, the business environment has become dynamic and has brought many challenges within the public and private sectors of the economy. To improve the position of the organization in the global competition, every organization must act to shorten the employee’s turnover ratio, psychological contracts and the green management practices do not reflect any subsequent changes in the organization however, the organization must look to improve its practices related to both of these variables. It was found in the study that the fulfillment of psychological contracts by employers has no predictive power on employee turnover intentions. Moreover, an increase in training programs decreases employees’ turnover intentions in organizations. It is necessary for organizations to adequately appreciate and reward their employees as it decreases their turnover intentions.
References
Aldossari, M & Robertson, M 2016, ‘Repatriation and the Psychological Contract: A Saudi Arabian Comparative Study,’ Academy of Management Proceedings, vol. 2016, no. 1, p. 10782.Alghamdi
Bonilla, J.C. 2018. ‘Fulfillment of the employee psychological contract in a healthcare system: Does it drive employee engagement and reduce turnover intention,’ Graduate Theses and Dissertations 16320. Retrieved from https://lib.dr.iastate.edu/etd/16320.
Cohen, E., Taylor, S., & Muller-Camen, M. (2010). HR’s role in corporate social responsibility and sustainability. SHRM Foundation. Alexandria.
Dwiyanti, R. (2020). Psychological contracts, job stress, and turnover intention for salesperson employees retail company in Purwokerto, Indonesia. IJHCM (International Journal of Human Capital Management), 4(2), 27-32.
Faisal, S., Naushad, M., &Faridi, M. (2020). A study on the level and relationship of job embeddedness and turnover intentions among Saudi Arabian working-class. Management Science Letters, 10(13), 3167-3172.
Sharew, F. (2017). The effect of REWARD practices on Employees’ TURNOVER intention with reference to metals industry Development INSTITUTE (MIDI). AAU. http://etd.aau.edu.et/handle/123456789/9706.
Likhitkar, P., & Verma, P. (2017). Impact of green HRM practices on organization sustainability and employee retention. International journal for innovative research in multidisciplinary field, 3(5), 152-157.
Al Kerdawy, M. M. A. (2019). The role of corporate support for employee volunteering in strengthening the impact of green human resource management practices on corporate social responsibility in the Egyptian firms. European Management Review, 16(4), 1079-1095.
Noviantoro, D., & Peranginangin, J. (2020). Measuring the Impact of Green Behavior on Employee Performance. Calitatea, 21(178), 139-142.
Sandhya, S. & Sulphey, M.M. 2019. ‘An assessment of the contribution of employee engagement, psychological contract, and psychological empowerment towards turnover intentions of IT employees,’ International Journal of Environment, Workplace and Employment, vol. 5, no. 1, 22-31.
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