Job Insecurity and Turnover Intentions among Banking Sector Employees: The Moderating Role of Organizational Support and Ethical Leadership
Article Sidebar
Main Article Content
Abstract
Purpose - Job insecurity exerts a significant impact on turnover intentions among employees. The association may be partly due to the influence of organizational support and the ethicality of leaders. However, there is a shortage of studies on the ameliorating role of organizational support and ethical leadership in the nexus between job insecurity and turnover intentions. Thus, the purpose of this study is to examine the nexus between job insecurity and turnover intentions among banking sector employees. The moderating role of organizational support and ethical leadership on the underlying relationship was assessed to achieve this.
Design/methodology/approach – One hundred and sixty (160) banking sector employees were conveniently selected to participate in the study. The sample consisted of female (n = 92) and male (n = 68) employees, ranging from 23 to 49 years. Standardized measures were used in soliciting respondents' demographic characteristics, perceived job insecurity, ethical leadership, organizational support, and turnover intentions. Data were analyzed using regression analysis.
Findings – Results revealed a significant positive correlation between perceived job insecurity and turnover intentions. Organizational support and ethical leadership also moderated the association between job insecurity and turnover intentions. The influence of job insecurity on turnover intentions minimizes when management provides the needed support and favorable climatic conditions.
Originality/value – In general, the study highlights the importance of organizational support and ethical leadership in lessening the impact of job insecurity on turnover intentions.
Downloads
Article Details
Copyright (c) 2022 Prince Addai, Rejoice Mottey, Michelle Afrifah, Augustine Osei Boakye
This work is licensed under a Creative Commons Attribution 4.0 International License.
Acha, I. A. (2012). Microfinance Banking in Nigeria: Problems and Prospects. International Journal of Finance and Accounting, 1(5), 106-111.
Addai, P., Kyeremeh, E., Abdulai, W. & Sarfo, J. O. (2008). Organizational Justice and Job Satisfaction as Predictors of Turnover Intentions among Teachers in the Offinso South District of Ghana. European Journal of Contemporary Education, 7(2), 235-243.
Addai, P., Ofori, I. N., Wiafe-Akenten, B. & Tweneboah, D. N. (2018). Food Insecurity and Suicidal Tendencies: Comparative Study between Employed and Unemployed Graduates in the Greater Accra Region, Ghana. Journal of Education, Society and Behavioural Science, 24(1), 1-10. DOI: https://doi.org/10.9734/JESBS/2018/38943
Akosah, N. K., Lolohb, F. W., Lawson, N. & Kumah, C. (2018). Measuring Financial Stability in Ghana: A New Index-Based Approach. Munich Personal RePEc Archive, 1 – 17.
Alghamdi, F. (2018). Job Insecurity, Organizational Commitment, Financial Responsibility, and Turnover Intention, a Test of Three-Way Interaction. International Business Research, 11(6), 213 – 225. DOI: https://doi.org/10.5539/ibr.v11n6p213
Allen, D., & Shanock, L. (2013). Perceived organizational support and embeddedness as key mechanisms connecting socialization tactics to commitment and turnover among new employees. Journal of Organizational Behavior, 34(3), 11 – 23. DOI: https://doi.org/10.1002/job.1805
Amponsah, N. Y. K. (2015). The Impact of Perceived Organizational Politics and Job Security on Turnover Intentions among Workers of the Electricity Company of Ghana. Unpublished thesis submitted to University of Ghana, Legon, in partial fulfillment of the requirement for the award of MPhil psychology degree.
Amponsah-Tawiah, K., Annor, F. & Arthur, B. G. (2015). Linking commuting stress to job satisfaction and turnover intention: The mediating role of burnout. Journal of Workplace Behavioral Health, 31(2), 104-123 DOI: https://doi.org/10.1080/15555240.2016.1159518
Ashford, P., Lee, D. & Bobko, P.R. (2001). Cross-cultural Psychology: Research and Applications. Cambridge: Cambridge University Press.
Attiah, N. G. & AbouDahab, A. (2017). Investigating the factors affecting employee turnover intentions in the Educational Sector. The Business and Management Review, 8(5), 316 – 324
Balz, A., & Schuller, K. (2018). Always looking for something better? The impact of job insecurity on turnover intentions: Do employables and irreplaceables react differently?. Economic and Industrial Democracy, 12, 24 – 36 DOI: https://doi.org/10.1177/0143831X18757058
Bam, L. (2010). Job insecurity, job satisfaction, Organisational support and intention to leave of process controllers in a South African petrochemical company. Mini-dissertation submitted as partial fulfilment of the requirements for the degree Magister Artium in Industrial Psychology at the North-West University (Vaal Triangle Campus).
Baron, R. M. & Kenny, D. A. (1986). The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. DOI: https://doi.org/10.1037/0022-3514.51.6.1173
Brown, M. E. & Mitchell, M. S. (2010). Ethical and Unethical Leadership: Exploring New Avenues for Euture Research. Business Ethics Quarterly, 20(4), 583-616. DOI: https://doi.org/10.5840/beq201020439
Ekmekci, O. T. & Karapinar, P. B. (2015). Job Insecurity and Turnover Intentions: Gender Differences and the Mediating Role of Work Engagement. Sex Roles, 75, 11 – 12. DOI: https://doi.org/10.1007/s11199-016-0595-0
Cammann, C., Fichman, M., Jenkins, D. & Klesh, J. (1979). The Michigan Organizational Assessment Questionnaire. Unpublished Manuscript, University of Michigan, Ann Arbor, MI.
Cascio, W.F. (1999). Learning from outcomes: Financial experiences of 311 firms that have downsized’, In M.K. Gowing, J.D. Kraft, & J.C. Quick (Eds.), The new organizational reality: Downsizing, restructuring, and revitalization, American Psychological Association, Washington.
De Cuyper, M. & De Witte, R. (2006). The Internal Control Index: A Newly Developed Measure of Locus of Control. Educational and Psychological Measurement, 44, 209 – 21. DOI: https://doi.org/10.1177/0013164484442004
Den Hartog, D., & De Hoogh, A. H. (2008). Ethical and Despotic Leadership, Relationships with Leader’s Social Responsibility: A Multi-Method Study. The Leadership Quarterly, 19, 297–31 DOI: https://doi.org/10.1016/j.leaqua.2008.03.002
Dinc, M. S. & Nurovic, E. (2016). The Impact of Ethical Leadership on Employee Attitudes in Manufacturing Companies. Nile Journal of Business and Economics, 3, 3-14 DOI: https://doi.org/10.20321/nilejbe.v2i3.62
Dwomoh, G. & Frempong, E. (2017). Factors Influencing Employees’ Retention in the Banking Industry of Ghana. Review of Public Administration and Management, 5(3), 1 – 7 DOI: https://doi.org/10.4172/2315-7844.1000223
Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D. & Rhoades, L. (2001). Reciprocation of perceived organizational support. Journal of Applied Psychology, 86(1), 42. DOI: https://doi.org/10.1037/0021-9010.86.1.42
Eisenberger, R., Huntington, R., Hutchison, S., & Sowa, D. 1986. Perceived organizational support. Journal of Applied Psychology, 71: 500 –507 DOI: https://doi.org/10.1037/0021-9010.71.3.500
Gellis, M. & Kim, P. (2004). Intention of Leaving the Organization. Academy of Management Journal, 35(3), 626-637
Gunalan, M. & Ceylan, A. (2015). The Mediating Effect of Organizational Support between Job Insecurity and Turnover Intention in Private Hospitals. International Journal of Business and Management, 10(10), 74. DOI: https://doi.org/10.5539/ijbm.v10n10p74
Gyensare, M. A., Otoo, E. A., Asareb, J. & Twumasi, E. (2015). Antecedents and consequence of employee turnover intention: Empirical evidence from Ghana. Management Science Letters, 5, 781–796 DOI: https://doi.org/10.5267/j.msl.2015.5.010
Jimenez, P., Milfelner, B., Sarotar, S., & Dunkl, A. (2017). Moderating Effects between Job Insecurity and Intention to Quit in Samples of Slovene and Austrian Workers. Naše gospodarstvo/Our Economy, 63(1), 27–37. DOI: https://doi.org/10.1515/ngoe-2017-0003
Lee, S. H. & Jeong, D. Y. (2017). Job insecurity and turnover intention: Organizational commitment as mediator. Social Behavior and Personality: an international journal, 45(4), 529-536 DOI: https://doi.org/10.2224/sbp.5865
Lim, V. K. G. (1996). Job Insecurity and Its Outcomes: Moderating Effects of Work-Based and Nonwork-Based Organisational support. Human Relations 49(2), 171-194 DOI: https://doi.org/10.1177/001872679604900203
Northouse, P. (2013). Leadership Theory and Practice (6th Ed.). Thousand Oaks: CA, SAGE Publications, Inc.
Ofori, E. (2020). The effects of Ponzi schemes and revocation of licences of some financial institutions on financial threat in Ghana. Journal of Financial Crime. 12, 14 – 24. DOI: https://doi.org/10.1108/JFC-01-2020-0003
Okyere-Kwakye, E., Nor, K. M., Assampong, I. E.-, & Awang, S. R. (2018). Employees’ Turnover: Examining its Causes in the Ghanaian Banking Industry. International Journal of Academic Research in Business and Social Sciences, 8(2), 349–362. DOI: https://doi.org/10.6007/IJARBSS/v8-i2/3879
Osei Boakye, A., Dei Mensah, R., Bartrop-Sackey, M., & Muah, P. (2021). Juggling between
work, studies and motherhood: The role of social support systems for the attainment of work–life balance. SA Journal of Human Resource Management, 19, 10 pages.
Puni, A., Mohammed, I., & Asamoah, E. (2018). Transformational leadership and job satisfaction: the moderating effect of contingent reward. Leadership and Organization Development Journal, 39(4), 522–537 DOI: https://doi.org/10.1108/LODJ-11-2017-0358
Rousseau, D. M. (2009). Psychological Contract Inventory Technical Report. Pittsburgh, PA:
Heinz School of Public Policy, Carnegie Mellon University.
Rousseau, D. M. (2011). The individual-organisation relationship: The employee trust. In S. Zedeck (ed.), Handbook of industrial and organisational psychology (Vol. 3, pp. 191–220). Washington, DC: American Psychological Association. DOI: https://doi.org/10.1037/12171-005
Rubin, R., Dierdoff, E., & Brown, M. (2010). Do Ethical Leaders Get Ahead? Exploring Ethical Leadership and promotability. Business Ethics Quarterly, 20 (2), 215-236. DOI: https://doi.org/10.5840/beq201020216
Shore, L. M., & Wayne, S. J. (1993). Commitment and employee behavior: Comparison of affective commitment and continuance commitment with perceived organizational support. Journal of Applied Psychology, 78, 774–780. DOI: https://doi.org/10.1037/0021-9010.78.5.774
Silla, I., Gracia, J. F., Rodriguez, M. A. & Peiro, J. M. (2010). Job insecurity and employees' attitudes: The moderating role of fairness. International Journal of Manpower, 4, 449-465 DOI: https://doi.org/10.1108/01437721011057029
Sverke, M., & Hellgren, J. (2002). The nature of job insecurity: Understanding employment uncertainty on the brink of a new millennium. Applied Psychology: An International Review, 51, 23–42. DOI: https://doi.org/10.1111/1464-0597.0077z
Tabachnick, B. G. & Fidell, L. S (1996). Multivariate analysis (3rd edition). HarperCollins College Publishers (New York, NY)
Tatar, B. & Erdil, O. (2017). Delineating the impact of organizational dissent on job insecurity and turnover intention Conference: 7th International Conference on Leadership, Technology, Innovation, and Business Management
Trimble, D. E. (2006). Organizational commitment, job satisfaction, and turnover intention of missionaries. Journal of Psychology and Theology, 34, 349-360. DOI: https://doi.org/10.1177/009164710603400405
Wayne, S. J., Shore, L. M., & Liden, R. C. (1997). Perceived organizational support and leader-member exchange: A social exchange perspective. Academy of Management Journal, 40(1), 82–111. DOI: https://doi.org/10.5465/257021
Zhao, H., Wayne, S., Glibkowski, B. C., & Bravo, J. (2007). The Impact of Psychological Contract Breach on Work-Related Outcomes: A Meta-Analysis. Personnel Psychology, 60(3), 647-680 DOI: https://doi.org/10.1111/j.1744-6570.2007.00087.x