A Study on the Factors that Influence Employee Resignation in an Organization

Abstract

This research aims to identify the factors that influence employee resignation in an organization. Identifying these factors will help the organizations, the employees and other concerned institutions. Factors that influence resignation, specifically the quality of organizational benefits and subordinate-superior relationship, were the focus of this research. Also, benefits that employees’ value and traits of superiors that employees’ dislike were identified. A purposive survey design was used and a researcher developed questionnaire was given to a total of 100 respondents coming from private and public organizations. Data such as socio-demographic background, work history, attitudes and perception towards work and preference between organizational benefits and subordinate-superior relationship were obtained. A non-parametric test, specifically Chi-square, was used to determine if employees’ choice over organizational benefits and superior-subordinate relationship is dependent on socio-demographic profile and employees’ work history. In addition, Pearson Product-Moment Correlation or Pearson’s zr was used to determine how strongly or weakly they are correlated. The top ten organizational benefits needed by employees were as follows: (1) sick leave, (2) vacation leave, (3) thirteenth month pay, (4) salary increase, (5) free health services, (6) emergency leave, (7) performance bonus, (8) free hospitalization, (9) medical and dental care, and (10) overtime pay. These benefits mainly pertain to monetary and health benefits. Meanwhile, qualities of supervisors that employees dislike were as follows; (1) uncaring or walang malasakit, (2) having favorites or may kinikilingan, (3) proud or ctyaw tumanggap ng pagkakamali, (4) boastful or mayabang, and (5) are annoying or makulit, demanding or palautos, rude or mataray, and unapproachable or mahirap lapitan. Results of the Chi-square test showed that socio-demographic and work history variables - such as age and tenure in past and present organization respectively - are dependent with resigning if an employee is not satisfied with the organizational benefits. The chi-square value for age is .001, tenure in present organization is .013 and tenure with past organization is .015. In addition, Chi-square test also shows that social status is dependent with resigning if the employee is not satisfied with the quality of his/her relationship with his/her supervisor. However, even though these variables are associated, Pearson Product-Moment Correlation shows that these variables are weakly correlated. The Pearson value (7t) for age is .318, tenure in present organization is .228, tenure in past organization is .247 and social status is .129. Also for most respondents, satisfactory organizational benefits have more weigh than a satisfactory relationship with their supervisors but both are strong determinants of employees’ resignation.