Employee turnover intention in the u s fast food industry

Walden University ScholarWorks Walden Dissertations and Doctoral Studies Walden Dissertations and Doctoral Studies Collection 2016 Employee Turnover Intention in the U. Fast Food Industry Imelda A. Bebe Walden University Follow this and additional works at: https://scholarworks.edu/dissertations Part of the Business Administration, Management, and Operations Commons, Entrepreneurial and Small Business Operations Commons, and the Management Sciences and Quantitative Methods Commons This Dissertation is brought to you for free and open access by the Walden Dissertations and Doctoral Studies Collection at ScholarWorks. It has been accepted for inclusion in Walden Dissertations and Doctoral Studies by an authorized administrator of ScholarWorks.

For more information, please contact ScholarWorks@waldenu. Walden University College of Management and Technology This is to certify that the doctoral study by Imelda Bebe has been found to be complete and satisfactory in all respects, and that any and all revisions required by the review committee have been made. Review Committee Dr. Charles Needham, Committee Chairperson, Doctor of Business Administration Faculty Dr.

Kenneth Gossett, Committee Member, Doctor of Business Administration Faculty Dr. Matthew Gonzalez, University Reviewer, Doctor of Business Administration Faculty Chief Academic Officer Eric Riedel, Ph. Walden University 2016 Abstract Employee Turnover Intention in the U. Fast Food Industry by Imelda A.

Bebe MS, Kaplan University, 2011 BSBA, Philippine School of Business Administration, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University January 2016 Abstract Employee turnover in the U. fast food industry has been high, averaging rate 150% per annum. The purpose of the correlational design study was to examine the relationships between job satisfaction factors, job dissatisfaction factors, and employee turnover intentions among fast food employees to determine whether a statistically significant relationship exists between these variables. The population for the study consisted of 144 fast food restaurant employees working in the East Coast in the United States.

The theoretical framework was Herzberg’s 2-factor motivation-hygiene needs theory, which describes job satisfaction factors and job dissatisfaction factors. Internet survey data of 144 participants were analyzed using Pearson-product correlation coefficients and multiple linear regressions analysis. The study findings revealed statistically significant relationships between job satisfaction factors and employee turnover intentions (p < .01), and job dissatisfaction factors and employee turnover intentions (p <. Among the job satisfaction factors, responsibility had a stronger relationship with employee turnover intentions (-.52) compared with other factors.

Under job dissatisfaction factors, company policy had a stronger relationship with employee turnover intentions (-.52) compared with other factors. In addition, criterion variance of employee turnover intentions associated with combined job satisfaction factors was stronger (35%) than were the combined job dissatisfaction factors (31%). The study findings are designed to inform fast food restaurant managers in taking actions to reduce employee turnover, resulting in improved business financial sustainability and long-term growth. Employee Turnover Intention in the U.

Fast Food Industry by Imelda A. Bebe MS, Kaplan University, 2011 BSBA, Philippine School of Business Administration, 1995 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University January 2016 Dedication Praise to the Lord for this great opportunity entrusted me. I thank God for his guidance and help throughout this journey. Once again, God showed me that nothing is impossible in the world that I can do all things through Christ who strengthens me.

This achievement is greatly dedicated to my beloved father and mother who instilled in me the importance of education. I always remembered what my father said, “Education is the greatest treasure that you can have in this world that no one can take away from you;” he was definitely right!!! I dedicate this achievement also my husband, Fred Jr., our kids (Christina, Danika, Fred III, and Nenita), brothers, sisters, relatives, and friends who gave me the reasons to aim high and kept me going despite of many challenges. Completing this journey was challenging yet rewarding in the end. This achievement is so remarkable that I cannot compare.

I hope this great achievement will inspire Christina, Danika, Fred III, and Nenita to obtain their doctoral degrees in the future! Acknowledgments Thank God for this wonderful achievement I have accomplished in life and for all the blessings given to me and to my family. I extend my immense gratitude to my faculty members, Dr. Charles Needham and Dr. Kenneth Gossett for their endless support, help, guidance, and understanding throughout this journey.

I cannot thank you enough for helping me in many ways. Without your guidance and assistance, I would have not able to accomplish this task. To my URR, Dr. Matthew Gonzalez, thank you for your great support.

Reginald Taylor, thank you for sharing your knowledge that helped me understand the whole research study process. Thanks to Dr. Jet Mboga and Dr. Trenessa Williams for your moral and spiritual support; you both inspired me to keep going, be strong, and persevere throughout this journey.

To all my Kaplan and Walden University former professors, Dr. Carmen Castro, Dr. Wanda Curlee, Dr. Sherry Giddings, Dr.

John Yelvington, Dr. Ray Kalinski, Dr. Steve Roussas, and Dr. George Spark, thank you for all your advices and prayers.

Your successful achievements in life have also inspired me to finish this challenging journey. Thanks to all the participants who willingly helped me complete the collection of data. I thank Walden University staff for their endless support and abundant resources to support this challenging journey. Thank you, also, to the IRB members for your great feedback to meet the IRB requirements.

Table of Contents List of Tables .v List of Figures. vii Section 1: Foundation of the Study.1 Background of the Problem .3 Nature of the Study .9 Assumptions, Limitations, and Delimitations. 11 Significance of the Study .12 Contribution to Business Practice. 12 Implications for Social Change.

13 A Review of the Professional and Academic Literature .14 Herzberg’ Motivation-Hygiene Needs (Two-Factor Theory). 16 Rival Theories of the Theoretical Framework. 33 Job Satisfaction Factors. 37 Job Dissatisfaction Factors.

51 Employee Turnover Intention .86 Role of the Researcher .89 Research Method and Design. 93 Population and Sampling .96 Data Collection Instruments .98 Job Satisfaction Survey (JSS). 98 Turnover Intention Survey. 102 ii Data Collection Technique .109 Transition and Summary .112 Section 3: Application to Professional Practice and Implications for Change .114 Presentation of the Findings.128 Pearson Product-Moment Correlation Coefficient.

146 Applications to Professional Practice .151 Implications for Social Change .152 Recommendations for Action .152 iii Recommendations for Further Research .161 Summary and Study Conclusions .166 Appendix A: Job Satisfaction Survey .208 Appendix B: Turnover Intention to Leave the Job Scale .213 Appendix E: Permission to use the Turnover Intention Survey .217 Appendix F: Copyright Clearance to Reuse Herzberg’s Motivation-Hygiene Theory .219 Appendix G: Certification of Completion .223 Appendix H: Consent Form .224 Appendix I: Confidentiality Agreement .226 Appendix J: Letter of Cooperation from a Research Partner .227 Appendix K: Participant Invitation to Participate .229 Appendix L: Participants’ Reminder .230 iv List of Tables Table 1. Frequency and Percentage of the Study Sources……………………………. JSS Instrument Reliability Statistics–Cronbach’s Alpha. ILJ Instrument Reliability Statistics–Cronbach’s Alpha.

Frequency Distribution of Fast Food Participants’ Gender. Frequency Distribution of Fast Food Participants’ Age. Frequency Distribution of Fast Food Participants’ Educational Attainment. Frequency Distribution of Fast Food Participants’ Job Position.

Frequency Distribution of Fast Food Participants’ Job Classification. Frequency Distribution of Fast Food Participants’ Years of Service. Descriptive Statistics for Age and Years of Working Variables. Pearson Product-Moment Correlation Coefficient Between Job Satisfaction Factors and Employee Turnover Intentions.

Pearson Product-Moment Correlation Coefficient Between Job Dissatisfaction Factors and Employee Turnover Intentions. Multiple Regressions With Linear Combination of Job Satisfaction Factors and Employee Turnover Intentions. Multiple Regressions With Individual Factor of Job Satisfaction Factor and Employee Turnover Intentions. Multiple Regressions With Linear Combination of Job Dissatisfaction Factors and Employee Turnover Intentions.

Multiple Regressions With Individual Factor of Job Dissatisfaction and Employee Turnover Intentions.150 vi List of Figures Figure 1. Depiction of Herzberg’ motivation-hygiene needs (two-factor theory) as a theoretical framework. Depiction of Herzberg’ motivation-hygiene needs (two-factor theory) as a theoretical framework. Fast Food Participants’ Gender Distribution.

Fast Food Participants’ Age Distribution. Fast Food Participants’ Educational Attainment Distribution. Fast Food Participants’ Job Position Distribution. Fast Food Participants’ Job Classification Distribution.

Fast Food Participants’ Years of Service Distribution. 130 vii 1 Section 1: Foundation of the Study Fast food restaurants make up a major segment of the U. fast food industry comprised 25% of the total restaurant sales (DiPietro, Gregory, & Jackson, 2013). The four segments of the fast food industry are (a) quick-service restaurants (QSR), (b) takeaways, (c) mobile and street vendors, and (d) leisure locations (Kamal & Wilcox, 2014).

Quick-service restaurants are a top segment in the fast food industry in terms of sales performance (Kamal & Wilcox, 2014). fast food industry is a vital business sector in the economies because of its more than 53% market value, contributing to economic growth (Kamal & Wilcox, 2014). In 2011, the fast food market value in U.2 billion, having grown by 20% since 2006 (Kamal & Wilcox, 2014). The fast food restaurants throughout the United States numbered more than 200,000 (Sena, 2014).

The growth sales in the fast food industry increased dramatically, from $6 billion in 1970 to $16 billion in 1975 (Sena, 2014). In 2013, growth sales reached $160 billion, equivalent to about 8. With effective strategic approaches, the fast food industry expanded internationally successfully (Sena, 2014). Background of the Problem The fast food industry has contributed nationally to U.

economic growth; however, increasing employee turnover rates have become the main concern of many fast food managers (Batt et al. The turnover in the fast food industry is high compared to other industries (Dike, 2012; Perez & Mirabella, 2013; Sterrett, 2011; 2 Wyld, 2014). Employees’ voluntary withdrawal from a workplace occurs because of (a) low wages and benefits, (b) lack of training, (c) autonomy, (d) job opportunities, (e) lack of support from management, (f) and from unfavorable working conditions (Batt et al., 2014; Royle, 2005; Ryan, Ghazali, & Mohsin, 2011). Employee turnover is both disruptive and costly to employers, involving increased direct and indirect costs (Batt et al., 2014; French, 2014; Kacmar et al., 2006; Ryan et al.

The increasing number of voluntary withdrawals has caused many fast food managers to experience the hardship of replacing the quitters (Dipietro & Strate, 2008). The fast food industry is popular for having low skilled-labor that discourages highly skilled workers from applying for vacant positions (Batt et al. Fast food restaurants primarily hire students with less experience or no experience that implies highly skilled workers are over qualified. Employee turnover has an effect on employee efficiency that influences business financial performance in a negative fashion (Kacmar, Andrews, Van Rooy, Steilberg, & Cerrone, 2006).

The lack of organizational support, work socialization, and employee involvement creates isolation among employees, which results in lower productivity and effectiveness (DiPietro & Pizam, 2008; Mathe & Slevitch, 2013). Employee turnover is caused by lack of employee training, which affects employee competence (Perez & Mirabella, 2013). Employee incompetence affects the quality service of the fast food restaurants and thus diminishes the frequency of positive customer experiences (Harrington, Ottenbacher, Staggs, & Powell, 2012). 3 Problem Statement The employee turnover rate in the U.

fast food industry is high at approximately 150% per annum (Dike, 2012; Perez & Mirabella, 2013). Turnover is as high as 300% per annum for the lowest-level hourly paid employees in some fast food stores (Royle, 2010; Ryan et al. The general business problem is business operations become costly and disruptive for many organizational managers because of high turnover (Dipietro & Strate, 2008; Kacmar et al. The specific business problem is that some managers in the fast food industry did not understand the relationship between employee job satisfaction, employee job dissatisfaction, and employee turnover intentions.