Factors contributing to job satisfaction and turnover intentions: Analysis of data from 10 Japanese industries

doi:10.21203/rs.3.rs-3320699/v1

Background

While the extant literature has presented various factors underlying employee attitude, researchers may have overestimated the effects by analyzing these factors individually. This study clarified the differences in the factors contributing to job satisfaction and turnover intentions, focusing on 10 factors—eight from the literature (rewarding work, skill acquisition, fair wages, work–life balance, flexible work, office equipment, relationships with superiors, and corporate social responsibility) and two new factors: company philosophy and advanced technology.

Methods

Following a literature review and hypotheses development, we applied structural equation modeling to online survey data of 1,000 workers employed in 10 industries (automobiles, banking, clothing, cosmetics, electronics, food, government, IT, medical and health care, and retail) in Japan.

Results

The results showed that these factors (in the given order) have significant positive effects on job satisfaction: rewarding work, work–life balance, company philosophy, and fair wages. Flexible work has a negative effect on job satisfaction, contrary to expectations. Skill acquisition and relationships with superiors have a negative effect on turnover intentions, while advanced technology has a positive effect. Moreover, men emphasize objective factors such as wages and skills, whereas women emphasize psychological factors such as human relationships and an empathetic company philosophy.

Conclusions

By treating the 10 factors equally, this study showed that the factors contributing to job satisfaction and turnover intentions are different. Furthermore, two new factors—company philosophy and advanced technology—were evaluated in the context of job satisfaction and turnover intentions.

job satisfaction

turnover intentions

rewarding work

skill acquisition

fair wages

work–life balance

flexible work

corporate social responsibility

company philosophy

Companies should consider their employees more important than their customers. Internal marketing refers to focusing on and supporting employees as internal customers in a marketing context [1]. Employee satisfaction gained through this activity increases sales [2], improves organizational reputation [3], and affects the speed of the response to changes in the market environment [4]. The effects of internal marketing hold universally regardless of the organization’s size or the difference in occupations [5]. Although its importance is widely recognized, internal marketing is difficult to implement effectively. This is because employee motivation management is one of the oldest and most difficult challenges faced by managers [6]. Employees have multiple needs that are driven by diverse motivations [7]. Some employees value a work environment with busy schedules that allow them to acquire specialized skills, while others prioritize work–life balance above all else. Hence, organizations must comprehensively understand the factors that contribute to employee job satisfaction and turnover intentions for employees to maximize their performance.

Studies have extensively explained the factors underlying job satisfaction and turnover intentions. However, the following viewpoints have not been sufficiently examined in the literature:

1) Company philosophy: As this is an abstract concept, it has been downplayed owing to the difficulty in motivating employees to work toward a common goal [8–10]. Recently, an increasing number of companies have focused on creating “purpose statements” to examine the reason for their existence and clearly demonstrate their impact on society [11]. However, this factor’s effects on job satisfaction and turnover intentions are poorly understood.

2) Advanced technology: Businesses have increased their competitiveness by taking advantage of technologies that are evolving at a rapid speed. Surprisingly, few studies have assessed the impact of introducing technology from an employee’s perspective.

3) Comprehensive evaluation of the job satisfaction and turnover intention factors: The factors demonstrated in the literature include rewarding work, skill acquisition, fair wages, work–life balance, flexible work, office equipment, relationships with superiors, and corporate social responsibility (CSR). However, these studies’ findings are fragmented. Moreover, there is a concern that the effects of the factors are overestimated as the factors are considered individually in these studies.

4) Difference in the factors underlying job satisfaction and turnover intentions: Although the two are closely related [12], their factors differ [13–15]. Surprisingly, few studies have addressed these main factors and clarified their differences.

To address these gaps, the aim of this study was to clarify the differences between the factors underlying job satisfaction and turnover intentions, focusing on 10 factors—the aforementioned eight factors from the literature and two new factors, namely company philosophy and advanced technology. The purpose of this study was to add company philosophy and advanced technology perspectives to the previously fragmented knowledge of internal marketing and expand the knowledge in an integrated manner. Clarifying how these factors are prioritized can help practitioners design effective personnel systems.

Company Philosophy

Profits and shareholder value drive for-profit companies; moreover, profits help them achieve bigger goals [16]. This phenomenon is explained using many terms: philosophy, mission, vision, purpose, credo, or the company way [9]. That said, these terms are used with similar connotations by companies, such as “the most important part of the philosophy is the corporate mission” [17] and “corporate mission and philosophy” [18]. However, clear definitions for these terms have not yet been established. Balmer [18] unified the definitions of philosophy and stated that philosophy refers to the “espoused values of the organization’s owner or its chief executive and management board.”

Philosophy is a more important tool for strategic policy and employee motivation within an organization than for building an external image [18, 19]. Consider the following example of a statement by a prominent company: “Establish an ideal factory that stresses a spirit of freedom and open-mindedness” [20]. To motivate employees, companies should design a personnel system that makes everyone feel they are pursuing an important purpose [21]. Company philosophy is related to improvements in organizational performance [22], and its effect may also be exhibited from an employee’s perspective. Accordingly, we propose the following hypotheses:

H1-1: A clear and empathetic company philosophy positively affects job satisfaction.

H1-2: A clear and empathetic company philosophy negatively affects turnover intentions.

Rewarding Work

Perceptions of the social impact and meaning of one’s work significantly impact job satisfaction [23]. Hence, in occupations such as nursing, which have a high turnover rate, careful explanations about careers must be provided to students as they consider their areas of study and future occupations [24]. Job satisfaction also depends on the match between the job desired by a person and the acquired job [13]. Therefore, we propose the following hypotheses:

H2-1: Rewarding work positively affects job satisfaction.

H2-2: Rewarding work negatively affects turnover intentions.

Skill Acquisition

The workplace environment in which professional skills are developed is a strong factor supporting career success [15]. Awareness of workplace training both increases job satisfaction and reduces workplace stress [25]. In some cases, the environment wherein one can acquire specialized knowledge that can be used at work is emphasized rather than career status, such as annual income and position [26]. Accordingly, we propose the following hypotheses:

H3-1: Jobs that lead to skill acquisition positively affect job satisfaction.

H3-2: Jobs that lead to skill acquisition negatively affect turnover intentions.

Fair Wages

Fair wages are a major attraction for employees and reduce their willingness to leave [27]. Rewards, such as promotions and incentives, are also effective factors in this regard [28]. Effort–reward imbalances are detrimental to health [29]. Hence, we propose the following hypotheses:

H4-1: Fair wages positively affect job satisfaction.

H4-2: Fair wages negatively affect turnover intentions.

Work–Life Balance

Workload is the most common stressor [30], and employees may experience frustration when work eats into their personal time. Therefore, organizations can benefit from implementing practices relevant to their employees’ quality of life [31]. Employee work–life balance is positively correlated with organizational pride and job satisfaction [32]. Therefore, we propose the following hypotheses:

H5-1: Work–life balance positively affects job satisfaction.

H5-2: Work–life balance negatively affects turnover intentions.

Flexible Work

While the benefits of flexible working styles are apparent, they also entail numerous risks. Social isolation in remote work is a major risk factor and can lead to employee dissatisfaction [33]. Additionally, various factors hinder remote work, such as caring for young children. Therefore, it is difficult to identify the impact of remote work [34]. However, the existing knowledge of remote work will need to be verified in the post-COVID-19 phase [35]. During the COVID-19 pandemic, as most employees could choose their working style, most demanded flexible working styles. Remote work started gaining popularity even before the pandemic [36]; however, its popularity has increased rapidly since 2020. Accordingly, we propose the following hypotheses:

H6-1: Flexible work positively affects job satisfaction.

H6-2: Flexible work negatively affects turnover intentions.

Office Equipment

The purpose of office design is to increase employee satisfaction and improve labor productivity [37]. It has long been recognized that the variety of equipment in an office has important implications for employees [38]. Further, the office environment affects not only job satisfaction but also employees’ health status [39]. Hence, we propose the following hypotheses:

H7-1: Office equipment positively affects job satisfaction.

H7-2: Office equipment negatively affects turnover intentions.

Relationships with Superiors

Support from a superior reduces job dissatisfaction [40] and resolves work–family conflicts [41]. Conversely, harassment by a superior, such as when a superior uses their phone in front of the employees, reduces employee motivation and worsens job performance [42]. Therefore, we propose the following hypotheses:

H8-1: A good relationship with a superior positively affects job satisfaction.

H8-2: A good relationship with a superior negatively affects turnover intentions.

CSR

Perceived CSR is significantly associated with job satisfaction and organizational commitment [43, 44]. Corporate leaders should implement appropriate CSR strategies [45]; hence, we propose the following hypotheses:

H9-1: CSR positively affects job satisfaction.

H9-2: CSR negatively affects turnover intentions.

Advanced Technology

The effect of advanced technology on corporate competitiveness is undeniably obvious. A recent notable technological innovation is artificial intelligence (AI). Combining AI with data and insights within an organization helps identify redundancies in business processes and allows optimal utilization of resources to improve performance [46]. China’s progress in this regard has been particularly remarkable, with Alibaba and Tencent continuing to grow rapidly owing to AI’s benefits [47]. However, there is a concern that advanced technology has the opposite effect from the employee satisfaction perspective. Many workers have anxiety about losing their jobs when AI and robots are adopted [48, 49]. Therefore, we propose the following hypotheses:

H10-1: Introducing advanced technology negatively affects job satisfaction.

H10-2: Introducing advanced technology positively affects turnover intentions.

Figure 1 presents the hypothetical model for this study.

[Figure 1 near here]

From December 16 to December 20, 2022, we conducted an online survey of 1,000 people in their 20s to 60s in Japan. To be eligible for the survey, the participants had to be (a) regular workers and (b) employed in one of the 10 target industries. As shown in Table 1, participants were recruited such that the gender and age categories were equally represented.

As shown in Table 2, the survey required respondents to rate three statements each for 12 factors, including job satisfaction and turnover intentions, using a five-point Likert scale (definitely disagree = 1; definitely agree = 5). The surveys were sent to a panel from Cross Marketing, a Japanese research company. All study participants provided informed consent.

In this study, the hypotheses were verified using structural equation modeling. This model was applied after extracting factors via factor analysis. We used the comparative fit index (CFI), goodness of fit index (GFI), standardized root mean square residual (SRMR), and root mean square error of approximation (RMSEA) as fit indices. A level of 5% was considered statistically significant. The analysis was conducted using R version 3.6.2.

As shown in Fig. 2, as per the structural equation modeling results, completely different factors contribute to job satisfaction and turnover intentions. These factors (in the following order) have significant positive effects on job satisfaction: rewarding work, work–life balance, company philosophy, and fair wages. However, flexible work exhibits a negative effect on (reduces) job satisfaction, contrary to expectations. Meanwhile, skill acquisition and good relationships with superiors negatively affect (reduce) turnover intentions, while advanced technology has a positive effect. No effect is detected for either office equipment or CSR. The fitness indices indicate good fit (CFI = 0.955, GFI = 0.924, SRMR = 0.043, RMSEA = 0.046). Therefore, H1-1, H2-1, H3-2, H4-1, H5-1, H8-2, and H10-2 are supported, while the other hypotheses are not supported.

Additionally, as shown in Fig. 3, multiple-sample structural equation modeling was applied to examine gender differences. The results show that job satisfaction is attributed to fair wages for men and to work–life balance and company philosophy for women. As women value empathy more [50], company philosophy tends to be more effective for women than for men. Skill acquisition and relationships with superiors contribute to turnover intentions for men and women, respectively. This may be because women tend to face sexual harassment at work [51]. In other words, men place more emphasis on objective factors, while women place more emphasis on psychological factors, such as human relationships and an empathetic company philosophy. Turnover intention caused by advanced technology is common, regardless of gender.

[Figure 2 and Fig. 3 near here]

This study provides two main theoretical contributions. First, two new factors—company philosophy and advanced technology—were evaluated in the context of job satisfaction and turnover intentions. An empathic company philosophy increases job satisfaction, and this effect is more pronounced among women. The study concretely demonstrated that company philosophy is an important tool for motivating employees within an organization. This result concurs with previous studies’ findings [18, 19, 21]. This study contributes by showing that the effect of company philosophy is significant even when evaluated in conjunction with other strong factors. Additionally, the introduction of advanced technology increases turnover intentions. It was confirmed that employees’ concerns about losing their jobs owing to the introduction of innovative technologies such as AI hold regardless of gender.

Second, scholars have raised concerns that the factors related to job satisfaction and turnover intentions have not been comprehensively evaluated in the literature, as prior studies have focused on individual or partial factors. We comprehensively evaluated the factors related to job satisfaction and turnover intentions, which were subdivided and integrated into this study’s findings. By treating the 10 factors equally, this study showed, for the first time, that the factors contributing to job satisfaction and turnover intentions are different.

This study provides five practical implications. First, factors contributing to job satisfaction and turnover intentions differ. Specifically, if practitioners want to increase women’s job satisfaction, they need a system that improves their work–life balance; moreover, to lower their turnover intention, they need a system that improves their relationships with superiors. It is important to know the objective behind implementing a measure because sufficient results cannot be obtained if the measures are developed with vague objectives.

Second, the study’s results showed that managers should reaffirm the importance of company philosophy. This concept may exert effects on job satisfaction that go beyond those of wages. Considering that philosophy is especially important for women, redefining the company philosophy to improve workplaces that are overly biased toward men will be effective. Further, the effect of wages on job satisfaction could be limited owing to the influence of Japan’s seniority wage system. In Japan, salaries are fixed according to age [52]. Consequently, in Japan, employees’ salaries do not change significantly based on their performance. Therefore, salaries contribute little to job satisfaction.

Third, when introducing a cutting-edge technology, employers should consider employees’ concerns regarding job safety. Particularly, with the rapid development of AI, the fear of losing jobs has emerged and has received widespread attention [48, 49]. Recently, ChatGPT, which was announced by Open AI, has shown potential for handling creative tasks [53, 54]. Therefore, the anxiety regarding job losses owing to technology will increase further in the future. This study demonstrated that the introduction of advanced technology has a negative effect on turnover intentions. Accordingly, employees should be carefully informed about the purpose and scope of the impact before introducing a technology. However, if an employee’s expertise and the introduced advanced technology are compatible, the risk is low [55].

Fourth, introducing flexible working styles requires careful consideration. Problems such as social isolation [33] and the difficulty of separating work from private life [34] exist; thus, companies have not satisfactorily implemented the remote work concept. Flexibility in workplaces, which was essential during the pandemic, should be reevaluated to examine the extent to which it is implemented in the post-pandemic phase.

Fifth, the management should recognize that current CSR is ineffective in motivating employees to work. This is because the general approach to CSR is too far removed from business strategies [56]. Therefore, sustainability should be integrated into business strategies [57, 58].

This study has several limitations. First, although this study covers 10 industries, the results are limited to Japan, which limits the generalization of the conclusions. Japan has a unique personnel system characterized by seniority wages and lifetime employment. Therefore, the results may differ from those in other regions. Second, the effects of age or family status were not examined. Even for those who were willing to sacrifice their work–life balance to gain competence when they were young, work–life balance may become paramount after having children. Third, we were unable to examine differences due to company size. Employee motivation factors vary between large companies and small- and medium-sized enterprises [26]. Fourth, occupational differences were not considered. It is possible that the required working conditions will change between occupations where employees work in offices and those where they work in factories and between occupations that involve routine work and those with new daily tasks. Finally, the effects of the capabilities and performance of each employee were not considered. Depending on the ability level, the required work environment conditions change. Therefore, by using detailed data for each employee as adjustment variables, we can obtain more accurate results. These are topics for future research.

[Table 1 and Table 2 near here]

corporate social responsibility (CSR)

artificial intelligence (AI)

comparative fit index (CFI)

goodness of fit index (GFI)

standardized root mean square residual (SRMR)

root mean square error of approximation (RMSEA)

Ethics approval and consent to participate: All study participants provided informed consent. The study design was approved by the Meiji University ethics review board.

Consent for publication: Not applicable.

Availability of data and materials: The data that support the findings of this study are available from the corresponding author upon reasonable request.

Competing interests: The authors declare that they have no competing interests.

Funding: This study received no financial support for the research, authorship, and/or publication of this article.

Authors’ contributions: TK: Conceptualization, Methodology, Analysis, Writing; MK: Investigation, Supervision. All authors read and approved the final manuscript.

Acknowledgements: Not applicable

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Table 1

Respondent attributes.
Item	Content	Number of Respondents	Ratio
Gender	Male	500	50.0%
	Female	500	50.0%
Age	20s	200	20.0%
	30s	200	20.0%
	40s	200	20.0%
	50s	200	20.0%
	60s	200	20.0%
Job	Management	46	4.6%
	Sales & Marketing	204	20.4%
	Engineering	187	18.7%
	Production	114	11.4%
	Back Office	201	20.1%
	Others	248	24.8%
Annual Income	< 1.9 million yen	66	6.6%
	2 − 3.9 million yen	308	30.8%
	4 − 5.9 million yen	293	29.3%
	6 − 7.9 million yen	179	17.9%
	8 − 9.9 million yen	76	7.6%
	10 − 14.9 million yen	46	4.6%
	15 − 19.9 million yen	7	0.7%
	> 20 million yen	25	2.5%
Job Title	Staff	669	66.9%
	Assistant Section Chief	119	11.9%
	Section Chief	102	10.2%
	Department Manager	110	11.0%
Company Size	< 99	266	26.6%
	100 − 499	181	18.1%
	500 − 999	124	12.4%
	1,000 − 4,999	189	18.9%
	> 5,000	240	24.0%

Table 2

Survey design.
No.	Factor	Variable	Question	Mean	SE	Reference
1	Job Satisfaction	SAT_1	Generally speaking, I am very satisfied with this job.	3.089	1.025	Schermuly et al. [59]
		SAT_2	I am proud to tell people that I work at this company.	3.125	1.004	Griffin et al. [60]
		SAT_3	I hope to keep this job until retirement.	3.363	1.030	Crow et al. [61]
2	Turnover Intentions	TUR_1	I am willing to try another job when an opportunity is offered.	2.519	1.098	Chao et al. [62]
		TUR_2	I would feel very happy about working for another employer.	2.902	0.948	Mayfield and Mayfield [63]
		TUR_3	I would change jobs if I could find another position that pays as well as my current one.	2.974	1.085	Mayfield and Mayfield [63]
3	Company Philosophy	PHI_1	The founding philosophy of the company I work for is clear.	3.147	0.972	Original
		PHI_2	I empathize with the philosophy of the company I work for.	3.102	0.955	Original
		PHI_3	The business purpose of the company I work for is clearly defined.	3.144	0.962	Original
4	Rewarding Work	REW_1	I am rewarded for my work.	3.243	0.982	Crow et al. [61]
		REW_2	I find the work that I do full of meaning and purpose.	3.302	0.964	Yeh [64]
		REW_3	My work is appreciated by others.	3.218	0.935	Greve et al. [65]
5	Skill Acquisition	SKI_1	I view my work as contributing to my personal growth.	3.074	0.983	Peng et al. [23]
		SKI_2	I have the confidence to enrich my knowledge and the skills to deal with changes in the future.	3.084	1.002	Ko [66]
		SKI_3	I have attended training programs that may help develop my career.	2.921	0.989	Kong et al. [67]
6	Fair Wages	WAG_1	I am satisfied with the pay I receive for my job.	2.968	1.025	Auer Antoncic and Antoncic [68]
		WAG_2	I am satisfied with my position.	3.015	1.020	Ko [66]
		WAG_3	My salary matches my responsibilities.	2.930	1.049	Al-Refaie [69]
7	Work–Life Balance	BAL_1	Nowadays, I seem to enjoy every aspect of my life equally well.	2.944	1.046	Haar [70]
		BAL_2	I am satisfied with my work–life balance.	3.121	1.013	Haar [70]
		BAL_3	I manage to balance the demands of my work and personal and family life well.	2.924	1.050	Haar [70]
8	Flexible Work	FLE_1	I can decide when to take a break.	3.246	1.075	Demircioglu [71]
		FLE_2	I have significant autonomy in determining how I do my job.	2.765	1.122	Schermuly et al. [59]
		FLE_3	The company I work for allows its employees to have side jobs.	2.476	1.245	Original
9	Office Equipment	OFF_1	My workplace is easily accessible from my house.	3.057	1.091	Rothe et al. [72]
		OFF_2	My office is kept clean.	2.513	1.117	Rothe et al. [72]
		OFF_3	My workplace has excellent office facilities.	2.849	1.080	Rothe et al. [72]
10	Relationships with	SUP_1	My superior respects my opinion.	3.074	1.000	Crow et al. [61]
	Superiors	SUP_2	My superior attaches great importance to internal communication.	3.104	1.006	Körner et al. [73]
		SUP_3	My superior helps me overcome negative feelings.	2.898	0.998	Zhang et al. [74]
11	CSR	CSR_1	My current employer treats everyone fairly.	2.983	1.001	Jauhari and Singh [75]
		CSR_2	My company helps solve social problems.	3.010	0.972	Murshed et al. [44]
		CSR_3	My company makes adequate contributions to local communities.	2.964	1.033	Murshed et al. [44]
12	Advanced Technology	TEC_1	My company is actively introducing AI.	2.353	1.070	Original
		TEC_2	My company is promoting innovation through digital transformation.	2.777	1.114	Original
		TEC_3	My company emphasizes automation by robots.	2.475	1.126	Original

No competing interests reported.

Factors contributing to job satisfaction and turnover intentions: Analysis of data from 10 Japanese industries

Status:

Version 1

Abstract

Figures

Background

Literature Review and Hypotheses

Company Philosophy

Rewarding Work

Skill Acquisition

Fair Wages

Work–Life Balance

Flexible Work

Office Equipment

Relationships with Superiors

CSR

Advanced Technology

Methodology

Results

Discussion

List Of Abbreviations

Declarations

References

Tables

Additional Declarations

Status:

Version 1