WORK SALIENCE AND JOB SATISFACTION

Work Salience and Job Satisfaction of employees in Banking Industry

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Table of Contents

Chapter I3

Introduction3

Statement of Problem4

Endogenous Latent Variables4

Endogenous Latent Variable #1 (Pay Satisfaction)4

Endogenous Latent Variable #2 (Job Satisfaction)4

Definitions of The concepts5

Aims and Objectives5

Scope, Delimitations and Limitations of The Study6

Tools7

Sampling7

Data Collection8

Methods of Data Analysis10

Chapter II13

Descriptive Analysis13

Descriptive Analysis of Three-Component Model (TCM) Employee Commitment Survey17

Descriptive Analysis of Turnover Questionnaire18

Chapter III20

Inferential Analysis20

Summary of Findings20

Chapter IV22

Conclusion22

Practical Implications22

Conclusions22

Limitations23

References24

Work Salience and Job Satisfaction of employees in Banking Industry

Chapter I

Introduction

Employee turnover is a significant issue in any organization. For example, a number of assembly plants in Northern Mexico reported turnover ranging from 120% to 150% annually. Managers face major challenges, including building an appropriate managerial relationship and developing and maintaining organizational commitment among workers (Chinen & Enomoto, 2004). Hillmer, Hillmer, and McRoberts (2004) conducted a study on the costs of employee turnover based on data from an existing call center with a 60% annual turnover level. The findings were alarming: the cost of turnover is approximately a year's salary for each vacant position. For the small call center in the study, the total cost was over $400,000 annually. Employee turnover results in the loss of not only financial and human capital, but also accumulated knowledge. When employees leave, they take knowledge with them (Droege & Hoobler, 2003).

In Taiwan, the banking industry faces the same problem of high turnover costs as do industries in Western countries. The Directorate-General of Budget, Accounting and Statistics, Executive Yuan, R. O. C. (2003a, 2003b) reported that the average monthly salary in the Taiwanese banking and insurance industries is $1,960 (including regular and irregular salaries), 53% higher than salaries in the manufacturing, commerce and service industries ($1,280). Furthermore, the cost of the average annual non-salary reward in the banking industry is 115% higher than those in the manufacturing, commerce and service industries. If, as stated in a study by Hillmer et al. (2004), the cost of turnover is

approximately a year's salary for each vacant position, then turnover cost is a serious problem in the banking industry in Taiwan compared with other industries. Indeed, Jewsbury (2004) stated that turnover rates among front-line workers in the banking industry are 25% to 60%. Hence, building a turnover model and reducing entry-level workers' turnover intention is an important issue to the Taiwanese banking industry. In addition, there are some conflicts between different pay satisfaction, job satisfaction, organizational commitment, and turnover theories as well as the results of empirical studies. Further examination of existing theories and results of empirical studies is needed.

Statement of Problem

The cost of turnover is approximately a year's salary for each vacant position. For the small call center in the study, the total cost was over $400,000 annually. Employee turnover results in the loss of not only financial and human capital, but also accumulated knowledge.

Endogenous Latent Variables

Endogenous Latent Variable #1 (Pay Satisfaction)

Theoretical definition. Pay satisfaction is determined by two perceptions. The first perception is based on how much pay the employee believes he ...