As the global economy tends to become more progressive, organizations thatsuccessfully retain their workforce have more advantage over organizations thatcannot. Shaw and Delery (2005) states that employee turnover intentions negativelyeffects organizational performance. Hatch and Dyer (2004) summarized suchfindings with the observation that “firms with high turnover significantly under-performtheir rivals”.
Voluntary employee turnover is an issue that leads to majordirect and indirect costs (Sagie et al., 2002). Ulrich and Smallwood (2006)state that organizations currently are very keen in exploring reasons behind employeeintention to leave their jobs and also findings approaches that might help withemployee retention. Although job satisfaction has classically been thepredominant construct used to explain turnover, recently a new construct, jobembeddedness, has been relatively successful at explaining additional variancein turnover beyond the traditional constructs, such as job satisfaction (Mitchellet al., 2001). In contrast to job satisfaction which is an attitudinalconstruct focusing on an individual’s orientation toward his or her job, job embeddednessis a construct looking at the connections that bind individuals to their job,organization of employment, and community. Therefore, job embeddedness focus islarger than job satisfaction’s and job embeddedness is more than just anattitudinal construct.
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Mitchell et.al.,(2001b) introduced new construct Job embeddedness that assessesfactors from on and off the job, it includes an employee (a) links to otherpeople, teams and groups, (b) perception of employee fit with his/her job,organization and community and (c) what would they have to sacrifice if theyleft their job. Job embeddedness predicts employee intent to quit, voluntaryturnover and reasons beyond job satisfaction and organizational commitment. At present retainingemployees has become the top most priority for top-level managers. Given options,employees stay if they are satisfied with their job and will stay committed totheir organization and will leave if they aren’t.
However, the research inscientific journals report that job attitudes play only small role in employeeretention (Hom and Gaertner, 2000). Job embeddedness is a, “broad cluster ofideas” (Holtom & Inderrieden, 2006). It is a cumulative of ideas about howa web of connections secures individuals to their communities and their workorganizations. The term job embeddedness is indeed more specific than itsactual use (Ng and Feldman, 2007).
It may be more apt to say that the term strokesaspects of job, organization, occupation, and community embeddedness. Otherfactors besides job satisfaction, organizational commitment, and jobalternatives are important for understanding turnover (Maertz & Campion,1998).