Investigation of Factors Affecting Employees’ Turnover in Small/Medium Enterprises

Abstract
Investigation of Factors Affecting Employees’ Turnover in Small/Medium Industrial
Enterprises (SMEs) Jordanian Context
Abdulmajeed Saad Albalawi
Mu’tah University, 2011

This study is concerned with examine the main factors relating to employees’ turnover intention this is done by: First, examining the extent to which perceived organizational support, job satisfaction, job stress, perceived alternative opportunities and affective commitment are directly related to the turnover intention. Second, examining the extent to which the preceding factors are related directly to organizational commitment and this later to turnover intention. Third, examining the extent to which the used independent variables are related indirectly to turnover intention in other words by taking the mediating effect of organizational commitment.

To achieve the study objectives a questionnaire was designed and distributed to 267 employee in the Jordanian SMEs. The obtained data was analyzed using SmartPLS

The results of this study revealed that job satisfaction and perceived organizational support have a direct positive effect on organizational commitment. While, perceived alternative opportunities have a direct and negative effect on organizational commitment, job stress has no effect on organizational commitment.

However, all the used independent variables didn’t show any significant direct or indirect (through the mediating effect of organizational commitment) effect on turnover intention. But it is important to refer that both job satisfaction and perceived organizational support have a negative significant total (direct and indirect) effect on turnover intention. Finally, perceived alternative opportunities have a positive job stress has no total effect on turnover intention.

Based on the research findings and conclusions, a number of recommendations, limitations and future researches are proposed