Exploring job satisfaction’s impact on turnover tendency among employees in Kosova’s microfinance institutions

Abstract

Purpose The purpose of this paper is to delve into the intricate link between job satisfaction and employees’ turnover intentions. To accomplish this, a detailed structural model was constructed, incorporating five essential constructs: job satisfaction, turnover intention, satisfaction with financial factors, satisfaction with non-financial factors and external factors. Design/methodology/approach The research used a questionnaire with 28 items based on established tools, focusing on five different constructs. The model’s validation involved applying structural equation modelling to 147 non-managerial employees in microfinance institutions. Findings The findings reveal a significant negative correlation between job satisfaction and turnover intention. Satisfaction with financial factors significantly outweighs satisfaction with non-financial factors in shaping job satisfaction. In addition, the impact of external factors on turnover intention was observed to be minimal and inconsequential. Research limitations/implications This review highlights the importance of investigating the moderating factors in the job satisfaction–turnover relationship, distinguishing between types of satisfaction and conducting longitudinal studies across diverse contexts. It notably presents a diverse range of recent findings in this field, emphasising the breadth of the results that have emerged in this area of research. Practical implications Understanding job satisfaction and turnover intention is crucial for microfinance institutions. By prioritising efforts to enhance job satisfaction through improved financial offerings and non-financial factors like a supportive work environment and opportunities for growth, organisations can effectively mitigate turnover rates and foster success. Social implications The study underscores the societal value of supportive work environments beyond just benefits and career opportunities. By understanding the external influences on employee satisfaction, organisations can contribute to building more decent workplaces and promote social well-being, while advocating for social considerations in organisational practices. Originality/value This paper uses a novel integrated model comprising five distinct constructs not previously used together. It stands among the pioneering works that not only elucidate the correlation between job satisfaction and turnover intention but also delineate the constituents of job satisfaction itself.