This study examines the impact of
union membership on employees' intent to leave their jobs across a number of
facets of satisfaction, as a further test of unions' "voice face." Among the
findings are that there are significant relationships between intent to leave
one's job and five facets of satisfaction for non-union employees. In contrast,
only the relationship between one facet of satisfaction and intent to leave is
significant for union employees. Further, over the facets of satisfaction where
one would expect unions to have the most influence, the relationship between
intent to leave one's job and satisfaction is greater for non-union employees
than for union employees. These results provide support for the effect of
unions' voice face.
Introduction
One stream of research pertaining to
employee turnover has demonstrated that unions and unionization are associated
with reduced turnover among employees. This finding is often used to support
the contention that unions have a "voice face." Another stream of research has
demonstrated that job satisfaction and turnover are related. While this
relationship is complex, it is generally true that more satisfied employees
tend to have lower turnover and less intent to leave than less satisfied
employees. Recently, several papers have combined these two streams of research
and examined the influence of both unions and job satisfaction on turnover.
This research shows an interaction among unions, job satisfaction, and
turnover. Specifically, there is a much stronger relationship between job
dissatisfaction and turnover among non-union employees than among union
employees. In addition, dissatisfied non-union members are much more likely to
intend to leave their jobs than are dissatisfied union members.
In
this paper we examine further the relationship among unions, satisfaction, and
intent to leave. Specifically, we look at specific facets of satisfaction,
rather than a global measure of employee satisfaction, and assess the influence
of union membership on employees' intent to leave across different facets of
overall employee satisfaction. (In this paper "overall employee satisfaction"
is used to mean employees' overall satisfaction with their work, jobs, and
workplaces. "Job satisfaction" is used to describe employees' satisfaction with
the work itself.) The rest of the paper is organized as follows: section one
contains a literature review, section two discusses the hypotheses to be
tested, section three describes the method, and the final section reports and
discusses the results.
Literature
Review
A great deal of research has
examined the impact of unionization on turnover, and the reported papers show
consistently that, holding wages constant, turnover is reduced and tenure is
increased among unionized workers. A number of early studies are summarized by
Freeman and Medoff in chapter 6 of What Do Unions Do? (Freeman and Medoff 1984). Freeman
and Medoff discuss the reduction of turnover under unionization in support of
their contention that unions have a voice face. The exit-voice theory posits
that employees can address dissatisfaction with their workplace in one of two
ways: by expressing their dissatisfaction (that is, voice) or by leaving the
organization (that is, exit) (Hirshman 1970; Freeman and Medoff 1984).
According to exit-voice theory, turnover will be less for union employees since
unions provide a "voice" that allows employees to express their dissatisfaction
and obviates their having to exit the firm. Since Freeman and Medoff originally
advanced their theory, a number of studies in different contexts have shown
that turnover is reduced in union settings and among union workers (Batt,
Colvin, and Keefe 2002; Rees 1991; Groothuis 1994).
Another
stream of research has looked at the relationship between overall employee
satisfaction and turnover; this research shows that overall employee
satisfaction is an important determinant of employee turnover (Mobley et al.
1979, Price 1977). This holds true over a wide variety of occupations (Dole and
Schroeder 2001; Ghiselli, LaLopa, and Bai 2001; Karsh, Booske, and Sainfort
2005).
Recently, research has examined the relationship
among unions, overall employee satisfaction, and turnover in an attempt to
explore in greater depth the contention that unions have a voice face. The
connection among those three elements is straightforward. Since the contention
is that the voice provided by unions is a mechanism that allows employees to
address job dissatisfaction without leaving the firm, one would expect the
satisfaction-turnover relationship to be stronger for non-union workers than
for unionized employees. Two reported papers have confirmed these expectations.
Iverson and Currivan (2003) found that job satisfaction, union participation
(activity of each teacher in the union), and the interaction of those two had
significant, negative effects on turnover. Specifically, union participation
had a significant, negative effect on turnover for employees who were both very
satisfied and very unsatisfied. A study by Abraham, Friedman, and Thomas (2005)
found a significant negative correlation between union membership and
employees' intent to leave their organizations. Further, the data they tested
showed that, at low levels of job satisfaction, non-union members are much more
likely to intend to leave their jobs than are union members. As job
satisfaction increases, however, the difference in intent to leave between
union members and non-union members is much less pronounced.
This
research expands on the two papers just discussed. Iverson and Currivan (2003)
looked only at overall employee satisfaction. Abraham et al. (2005) looked only
at one facet of satisfaction—job satisfaction—in their research. Research
suggests, however, that satisfaction is multifaceted, encompassing many aspects
of employees' experience with their work and the workplace (Smith, Kendall, and
Hulin 1969). The Job Descriptive Index (JDI) measures five facets of work
experience: pay, promotion, supervision, the work itself, and co-workers
(Hanisch 1992). Schleicher, Greguras, and Watt (2004) found that the following
five dimensions were associated with satisfaction: perceived pay equity,
interesting job content, promotional opportunities, the nature of supervision
received, and co-workers' supportiveness and competence. Further, research has
shown that several of the facets of satisfaction are associated with employee
turnover. Cottons and Tuttle's (1986) review of turnover research shows that
both global and facet measures of job satisfaction are consistent correlates of
turnover intent and actual turnover behavior. Thus, this research expands on
both of these papers by looking at the impact of unions on employees' intent to
leave across a number of different facets of satisfaction. In general, we
expect to find that overall, unionized employees will have less intent to leave
their organizations than non-union employees across most, if not all, facets of
overall employee satisfaction. The reduction in intent to leave under unionism
will be greater for some facets of satisfaction that others, however. Specific
hypotheses are offered below.
Hypotheses
This paper
provides a comprehensive examination of the relationship among unions, facets
of satisfaction, and employees' intent to leave their organizations. Similar to
Abraham et al. (2005), this paper looks at "intent to leave" as the measure of
turnover. Intent to leave is an employee's decision to leave the organization
voluntarily (Tett and Meyer 1993). As pointed out by Lee and Mitchell (1994)
and Lee et al. (1999), the turnover process is a complex one that may proceed
through a number of different psychological paths. Since employees who intend
to leave may be prevented from doing so by factors beyond their control (for
example, a weak labor market) testing whether union membership moderates the
relationship between job satisfaction and employees' intention to leave will
give a more accurate test of whether the collective voice provided by unions
has an effect on the workplace.
Specifically,
the following hypotheses are tested:
Hypothesis 1: Union employees will be less likely to
intend to leave their organizations than will non-union employees. This is a
basic test of unions' voice face (Freeman and Medoff 1984, Abraham et al.
2005).
Hypothesis 2: In
general, the relationship between facets of satisfaction and intent to leave
will be negative, and the relationship will be stronger for non-union employees
than for union employees. This hypothesis is another test of the results
reported by Iverson and Currivan (2003) and Abraham et al. (2005), albeit using
slightly different variables. As discussed above, the relationship between
satisfaction and intent to leave is negative. The exit-voice theory suggests
that, without the collective voice provided by unions, non-union employees who
experience dissatisfaction across all facets of employment will gave a greater
intent to leave their organizations than unionized employees.
Hypothesis 3a:
With respect to job, compensation, benefits, working conditions, and immediate
supervisors, the negative satisfactionÐintent to leave relationship will be greater for
non-union employees than for unionized employees. Dissatisfied non-union
employees will have a greater intent to leave their organizations than will
dissatisfied union employees.
Hypothesis 3b: With respect to communication and senior
leadership, the satisfactionÐintent to leave relationship will be similar between union
members and non-union employees.
In
other words, unions will have a greater effect on dissatisfied employees'
intent to leave for some facets of satisfaction than others. The National Labor
Relations Act (NLRA) requires employers to bargain with unions over only
"wages, hours and other terms and conditions of employment." Thus, collective
bargaining agreements traditionally focus on wages and benefits (for example,
economic concerns), working conditions, and the reduction of discretionary
behavior of immediate supervisors toward employees. In these areas, where
unions have impact, we expect larger differences between non-union and union
employees with respect to the strength of the satisfactionÐintent to leave relationship.
Looking at the facets of satisfaction being studied in this research, we would
expect unions to provide voice to employees who are dissatisfied in the areas
of their job (their work duties), compensation, benefits, working conditions,
and immediate supervisor. Therefore, unionization should reduce the intent to
leave of employees who are dissatisfied with these facets of their employment.
We would expect unions' voice to be less effective in reducing employees'
dissatisfaction with communication and senior leadership, and, as a result,
unionization would not greatly reduce the intent to leave of employees who are
dissatisfied with these facets of their employment.
Method
Sample
The data were
collected in June 2001 as part of a national Harris Poll¨ job
satisfaction survey. Survey respondents were members of the Harris Poll Online
multimillion member panel who were eighteen years of age or older and from the
United States. Data obtained from Harris Poll Online respondents have been
found to provide results equivalent to those obtained in random digit dial
telephone surveys (Krosnick, Nie, and Rivers 2005; Thomas, Krane, and Taylor
2004). Potential respondents were randomly selected by strata ( age, gender,
and region of country) and invited by email to participate in a survey on
attitudes toward work. Of the 10,436 individuals who responded to the survey,
10,191 were employed in either a full-time or a part-time job; 7,280 held
secretarial/clerical, production/hourly, or professional/technical positions.
We excluded supervisory and management positions since employees in these positions
cannot join unions. Of these respondents, 5,610 indicated that they were not
planning to retire in the next few years. We excluded employees close to
retirement from the study, since their responses would not be meaningful.
Eighty-nine percent were employed full-time. Table 1 reports descriptive statistics
for the sample. Males made up 51 percent of the sample; 16 percent were
minorities, and the average age was 39.39 (s.d. = 10.19). Respondents from
organizations with fewer than 500 employees constituted 44.6 percent of the
sample, and 17.7 percent were from organizations with greater than 10,000
employees. Respondents who reported having annual incomes of between $25,000
and $75,000 were 57.6 percent of the sample; 58.6 percent reported 1 to 10
years with their company, and 22.9 percent indicated 10 or more years. The
sample consisted of secretarial/clerical (19.7 percent), production/hourly
(36.9 percent), and professional/technical (43.4 percent) employees. The respondents
were from the service (53.3 percent), manufacturing (9.2 percent),
transportation/communication (8.6 percent), finance (6.6 percent), publication
administration/military (6.3 percent), and retail (4.8 percent) industries.
Similar
to prior research regarding differences between union and non-union employees,
union members tended to be older (t = 5.09, p < 0.001), employed by larger organizations (t = 8.64, p < 0.001), and have longer tenure (t = 16.65, p < 0.001). There were no significant
differences between union and non-union members with respect to industry.
Measures
Control variables. We measured and controlled for
employees' gender, age, education, minority status, household income, years
employed by current employer, company size (number of employees at company),
and industry. Previous research on unionism has found these variables and
turnover to be related. For example, turnover rates, firm size, unionization,
and their interaction are related (Groothuis 1994). It appears that
unionization lowers the likelihood of an individual quitting or being dismissed
at large firms but that layoffs tend to be more likely in larger and smaller
firms. Faber and Saks (1980) found that higher wage earners were less likely to
perceive union advantages than lower wage earners were, a finding replicated
often. Faber and Saks (1980) also found that black employees were more likely
to vote for unionization and that older employees were less likely to vote for
unionization. Business sectors may also differ with respect to labor supply,
outsourcing, and availability of alternative employment opportunities, thus
influencing employees' intention to leave. As a result, industry was included
as a control variable.
Dummy
codes were used for gender (male = 0, female = 1) and minority status (nonminority
= 0, minority = 1). Job category (secretarial/clerical, production or hourly,
professional/technical) was also dummy coded, with clerical/clerical as the
omitted category. The authors also dummy coded industry using Standard Industry
Codes (SIC) as follows: services, agricultural, finance,
transportation/communication, construction, manufacturing, public
administration/military, mining, retail, and wholesale trade. Household income,
age, and education were continuous variables.
Independent
variables. We
measured each facet of satisfaction by asking respondents "Using a scale of 1
to 10 where Ô1' means ÔPoor' and Ô10' means ÔExcellent,' overall, how would you
rate your satisfaction with [facet]?" Seven facets of satisfaction were
included in this study: job (interesting work and the opportunity to use valued
skills), compensation, benefits, working conditions (safety, comfort),
immediate supervisor (values employee opinions, fairness), communications
(information is provided to do one's work), and senior leadership (makes sound
decisions, clear goals). This study used a single-item approach to measuring
facets of satisfaction based on previous research (Nagy 2002).
Dependent variable. The dependent
variable in the regression analysis was employees' intention to leave their
organizations. We asked respondents "Using a scale of 1 to 10 where Ô1' means
very unlikely and Ô10' means very likely, how likely are you to voluntarily
leave your company within the next year?"
Results
Table 2 presents descriptive
statistics for the dependent and independent variables of interest. The mean
intent to leave was 4.14 for non-union members and 2.87 for union members. This
difference (t =
10.67) was highly significant (p < 0.001). Compared to union members, non-union employees
reported significantly higher levels of satisfaction with communication, working
conditions, immediate supervisor, and senior leadership. Union members were
more satisfied with their benefits than were non-union employees. While not
directly relevant to the issues being tested here, these results confirm
previous findings on the unionÐemployee satisfaction relationship (see, for example,
Bryson, Cappellari, and Lucifora 2004; Bender and Sloane 1998).
We conducted separate
regression analyses for non-union and union employees. Intent to leave, the
dependent variable, was regressed on the control variables and the seven facet
satisfaction independent variables in two stages. The control variables were
entered into the regression equation in the first stage, and the seven facet
satisfaction variables were entered in the next stage. To test the hypotheses
stated above, we examined the coefficients on the facet satisfaction regression
variables and the increases in the R2 after the
facet satisfaction variables were added. Table 3 summarizes the results for the
regression analyses. For non-union employees, several of the control variables
were associated with intent to leave. The demographic control variables
associated with higher intent to leave were gender (males), minorities, age
(younger employees), employees with more education, employees with fewer years
on the job, and those employed at companies with fewer employees. With regard
to the industry categories, employees involved in public administration and
mining were less likely to intend to leave their organizations. The incremental R2 was 0.22
(F (7, 4925) = 203.80, p < 0.001) and the adjusted R2 was 0.30 (p > 0.001) with
all control and facet satisfaction variables entered into the equations. Turning
to the variables of interest and looking at non-union employees, the
relationship between satisfaction and intent to leave was negative and
significant for five of the facets of satisfaction that were included in the
regression model (job, compensation, benefits, working conditions, and
immediate supervisor). No relationship between intent to leave and satisfaction
with communication or senior leadership was found.
For
union employees fewer controls were associated with intent to leave (age,
education, years with the organization, and public administrative industry
sector all had significant coefficients). The incremental R2 was only 0.08
(F (7, 859) = 13.09, p <
0.001) and the adjusted R2 was 0.16 (p > 0.001) with all control and facet satisfaction variables
entered into the equations.
In contrast to non-union employees,
only union employees' job satisfaction was significantly related to intent to
leave. There was no relationship between intent to leave and satisfaction with
any of the other facets of satisfaction that were tested.
Discussion
The results reported provide strong
support for all three hypotheses. In support of unions' voice face (Hypothesis
1), union members reported being less likely to intend to leave their
organizations than non-union employees reported. Union employees experienced
greater dissatisfaction with several facets of their work situation yet
reported less intention to leave their organizations relative to non-union
employees. Regarding Hypothesis 2, the adjusted R2 was larger for non-union employees
(0.30) than for union employees (0.16), indicating that the relationship
between the control and independent variables with intent to leave was stronger
for non-union employees than for union employees. The incremental variance accounted
for by the addition of the facets of satisfaction variables was higher for
non-union employees, indicating a stronger relationship between facets of
satisfaction and intent to leave for non-union employees than for union
employees. As additional support for Hypothesis 2, the coefficients were
negative and significant on five of the seven facets of satisfaction variables
for non-union employees' intent to leave but on only one facet of satisfaction
for union employees. In other words, the extent of dissatisfaction is much more
likely to induce non-union employees to intend to leave their organizations.
Hypothesis
3a was strongly supported, as job, compensation, benefits, working conditions,
and immediate supervisor satisfaction were related to intent to leave for
non-union employees, while only job satisfaction was related to intent to leave
for union employees. In support for Hypothesis 3b, communication and senior
leadership facets of satisfaction were not related to intent to leave for
non-union or union employees. This is virtually identical to what was predicted
in Hypotheses 3a and 3b.
Unions
provide voice to employees who are dissatisfied with "wages, hours and other
terms and conditions of employment" (the areas over which unions are authorized
to bargain under the NLRA). This voice will obviate dissatisfied unionized
employees' need to leave the organization. By contrast, non-union employees who
are dissatisfied with these facets of their work do not have the collective
voice provided by unions to express their dissatisfaction. Therefore, their
dissatisfaction is more likely to induce an intent to leave for these
employees. The coefficients on the satisfaction variables shown in table 3
confirm this expectation.
The results just reported
are important from both a theoretical and practical perspective. The findings
provide additional evidence for the exit-voice theory that adds to our
knowledge of how employees make decisions regarding leaving their organizations
and how the voice provided by unions may enable dissatisfied employees to stay
with their organizations despite their dissatisfaction. On a more practical
level, the study provides implications for unions and management regarding
employee retention. Given the decline in union membership experienced in the
United States, unions must provide compelling reasons to motivate employees to
organize. Similarly, unions need to retain the employees who are organized
currently. The results reported here show that the voice unions provide for
employees gives them an alternative to leaving the organization if they are
dissatisfied. In today's economy, it may be difficult for employees to find new
jobs. Similarly, it is costly for management to replace employees who leave.
Therefore, any reduction in turnover that is associated with unionism benefits
employees and management at the same time.
References
Abraham, Steven
E., Barry A. Friedman, and Randall K. Thomas. 2005. "The Impact of Union
Membership on Intent to Leave: Additional Evidence for the Voice Face of
Unions." Employee Rights and Responsibilities Journal, Vol. 17, no. 4 (December), pp.
201Ð213.
Batt, Rosemary, Alexander J. S. Colvin, and Jeffrey Keefe. 2002.
"Employee Voice, Human Resource Practices and Quit Rates: Evidence from the
Telecommunications Industry." Industrial and Labor Relations Review, Vol. 55, no.
4 (July), pp. 573Ð594.
Bender, Keith
A., and Peter J. Sloane. 1998. "Job Satisfaction, Trade Unions and Exit-Voice
Revisited." Industrial and Labor Relations Review, Vol. 51, no. 2 (January), pp.
222Ð241.
Bryson, Alex,
Lorenzo Cappellari, and Claudio Lucifora. 2004. "Does Union Membership Really
Reduce Job Satisfaction?" British Journal of Industrial Relations, Vol. 42, no. 3 (September), pp. 439Ð457.
Cotton, John L.,
and Jeffrey M. Tuttle. 1986. "Employee Turnover: A Meta-Analysis and Review
with Implications for Research." Academy of Management Review, Vol. 11, no. 1 (January), pp.
55Ð70.
Dole, Carol, and Richard G. Schroeder. 2001. "The Impact of Various
Factors on the Personality, Job Satisfaction and Turnover Intentions of
Professional Accountants." Managerial Auditing Journal, Vol. 16, no.
4, pp. 234Ð246.
Faber, Henry S.,
and Daniel H. Saks. 1980. "Why Workers Want Unions: The Role of Relative Wages
and Job Characteristics." Journal of Political Economy, Vol. 88, no. 2 (April), pp. 349Ð369.
Freeman, Richard
B., and James L. Medoff. 1984. What Do Unions Do? New York: Basic Books.
Ghiselli,
Richard F., Joseph M. LaLopa, and Billy Bai. 2001. "Job Satisfaction, Life Satisfaction
and Turnover Intent among Food Service Managers." Cornell Hotel and
Restaurant Administration Quarterly, Vol. 42, no 2 (April), pp. 28Ð37.
Groothuis, Peter
A. 1994. "Turnover: The Implication of Establishment Size and Unionization." Quarterly
Journal of Business and Economics, Vol. 33 (Spring), pp. 41Ð53.
Hanisch, Kathy
A. 1992. "The Job Descriptive Index Revisited: Questions about the Question
Mark." Journal of Applied Psychology, Vol. 77, no 3 (June), pp. 377Ð382.
Hirshman, A. O. 1970. Exit, Voice and Loyalty. Cambridge, MA:
Harvard University Press.
Iverson,
Roderick D., and Douglass B. Currivan. 2003. "Union Participation, Job Satisfaction
and Employee Turnover: An Event History Analysis of the Exit-Voice Hypothesis." Industrial Relations, Vol. 42, no. 1 (January), pp. 101Ð105.
Karsh,
Ben-Tzion, Bridget Booske, and Francois Sainfort. 2005. "Job and Organizational
Determinants of Nursing Home Employee Commitment, Job Satisfaction and Intent
to Turnover." Ergonomics, Vol. 48, no. 10 (August), pp. 1260Ð1282.
Krosnick, Jon,
Norman Nie, and Douglas Rivers. 2005. "Web Survey Methodologies: A Comparison
of Survey Accuracy." Paper presented at the 60th Annual Conference of the
American Association for Public Opinion Research, Miami Beach, FL.
Lee, Thomas W.,
and Terence R. Mitchell. 1994. "An Alternative Approach: The Unfolding Model of
Voluntary Turnover." Academy of Management Review, Vol. 19, no. 1 (January), pp.
51Ð89.
Lee, Thomas W.,
Terence R. Mitchell, Brooks C. Holtom, Linda S. McDaniel, and John W. Hill.
1999. "The Unfolding Model of Voluntary Turnover: A Replication and Extension." Academy of Management Journal, Vol. 42, no. 4 (August), pp. 450Ð463.
Mobley, William
H., Robert W. Griffeth, Herbert H. Hand, and Bruce M. Meglino. 1979. "Review of
Conceptual Analysis of the Employee Turnover Process." Psychological
Bulletin, Vol. 86,
no. 3 (May), pp. 493Ð522.
Nagy, Mark S.
2002. "Using Single-Item Approach to Measure Facet Job Satisfaction." Journal
of Occupational Psychology, Vol. 75, no. 1 (October), pp. 77Ð86.
Price, James L.
1977. The Study of Turnover. Ames: Iowa State University Press.
Rees, Daniel I.
1991. "Grievance Procedure Strength and Teacher Quits." Industrial and Labor
Relations Review, Vol. 45, pp. 31Ð43.
Schleicher,
Deidra J., Gary J. Greguras, and John D. Watt. 2004. "Reexamining the Job
Satisfaction-Performance Relationship: The Complexity of Attitudes." Journal
of Applied Psychology, Vol. 89, no. 1, pp. 165Ð177.
Smith, Patrica
C., L. M. Kendall, and Charles L. Hulin. 1969. The Measurement of Satisfaction
in Work and Retirement. Chicago: Rand McNally.
Tett, R.P. and
J.P. Meyer. 1993. "Job Satisfaction, Organizational Commitment, Turnover
Intention, and Turnover: Path Analyses Based on Meta-analytic Findings." Personnel
Psychology, Vol.
46, no. 2, pp. 259Ð293.
Thomas, Randall K., David Krane, and Humphrey Taylor. 2004.
"On the Convergent Validity of Attitude Measurement in Phone and Online
Surveys." Paper presented at the 59th Annual Conference of the American
Association for Public Opinion Research, Phoenix, AZ.