The Impact of Training on Employee Job Satisfaction and ... ??The Impact of Training on Employee Job Satisfaction and Retention among Administrative Staff ... INTRODUCTION In order to survive ... employee job ...

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  • Kamla-Raj 2014 J Soc Sci, 39(1): 43-50 (2014)

    The Impact of Training on Employee Job Satisfaction andRetention among Administrative Staff Members:

    A Case of a Selected Tertiary InstitutionSharon Ruvimbo Terera1 and Hlanganipai Ngirande2

    1Department of Industrial Psychology, University of Fort Hare. Private Bag x1314,Alice, 5700 South Africa

    2Department of Business Management, University of Limpopo (Turfloop Campus.Private Bag 1106. Sovenga, 2707, South Africa

    Cell: 1,2E-mail: 1, 2

    KEYWORDS Turnover. Training. Retention. Impact. Tertiary

    ABSTRACT The paper presents the findings of the study that was conducted to explore the impact of training onjob satisfaction and retention of employees at a selected tertiary institution. A quantitative resea rch methodologywas used and 120 randomly selected respondents participated in this study. Self-administered questionnaires wereadministered to respondents drawn from academic administrators. The data collected was analysed using SPSSversion 22.0. The results revealed that there is no significant relationship between training and employee retention.However, there is a significant positive relationship between employee job satisfaction and retention.

    Address for correspondenceHlanganipai NgirandeDepartment of Business Management, University ofLimpopo (Turfloop Campus).Private Bag 1106.Sovenga, 2707, South Africa

    INTRODUCTION

    In order to survive and prosper in todayseconomy, the concept of employee retention isnow very important for many South African in-stitutions. Many organizations have found itvery important to invest in employees throughtraining to improve employee proficiencies sothat they can acquire a greater return in humancapital investment through increased job com-mitment and high employee retention. The worldis constantly shifting such that institutions ofall types have to adapt to external and internalchanges for their own survival (Cummings andWorley 2005). According to Samuel and Chipun-za (2009), retaining skilled employees is criticalin order to sustain competition and effective andefficient service delivery among organizations.

    In South Africas job market, retaining keyemployees has become a critical issue for orga-nizations. Employers are seizing on training asone of the most effective retention tools avail-able. Kauffman (2010) argues that when it comesto improving employee retention. it is impera-tive to use grass-root employee involvement

    program like training in the firms business. To-days employees are now very different becausethey now have so many opportunities at theirdisposal (Kauffman 2010). If they are not happywith their present company they move over tothe next organization. The responsibility there-fore lies with the employer to ensure that theypreserve and maintain their best employees. Agood employer is one who knows how to bothattract and retain its employees. This can beachieved through providing adequate employ-ee training. Therefore if training is not devised,it may also pose a threat to employee organiza-tional commitment which in turn leads to a neg-ative impact to the organizational success.

    Forgacs (2009) defines training is as aplanned activity aimed at improving employeesperformance by helping them realize an obliga-tory level of understanding or skill through theimpartation of information. Armstrong (2000) alsodefines training as an organized process toamend employee proficiencies so that they canachieve its objectives. In the traditional ap-proach to training, most organizations neverused to believe in training. Organizations hadthe view that training was very costly and un-worthy. The scenario is however changing. Themodern approach to training is that globally, or-ganizations have realized the importance of train-ing. Training is now viewed as a commitment

  • 44 SHARON RUVIMBO TERERA AND HLANGANIPAI NGIRANDE

    and retention tool than a cost (Torrington et al.2004).

    Statement of the Problem

    High labour turnover damages the organiza-tion through increased costs of recruitment andselection, delayed service delivery and low mo-rale amongst employees. Kabungaidze et al.(2013) argues that such activities greatly affectorganizational success to prosper in todayscompetitive economy due to their inability toretain the right quality of employees. There alsoseems to be a grey area between training andemployee retention because most researches onthe impact of training on employee retention haveshown inconclusive results (Coetzee andSchreuder 2013; Terera and Ngirande 2014). An-other factor is that although various researcheswere conducted on the impact of training in or-ganizations, not enough research has been con-ducted in higher learning institutions to provideempirical support for the impact of training onattitudinal factors such as organizational com-mitment and employee retention especially amongadministrative staff in higher learning institutions.Therefore the research seeks to investigate theimpact of training on employee retention.

    Research Objectives

    The research objectives are: To determine the impact of training on em-

    ployee retention; To make recommendations to the policy

    makers in the organization on possibleways to improve employee retention basedon the research findings.

    Research Hypothesis

    H0: There is no relationship between train-ing and employee retention.

    H1: There is a significant positive relation-ship between training and employeeretention.

    H0: There is no relationship between train-ing and employee retention

    H2: There is a significant positive relation-ship between training and employeeretention.

    Research Questions

    1. Does training lead to employee retention?2. Does lead to employee job satisfaction?

    Review of Related Literature

    One of the core concepts in Human Resourc-es literature for employers is the retention anddevelopment of the human capital to facilitate acompetitive advantage (DeYoung 2000). Themanagement of labour turnover has become agrowing challenge particularly in professionalorganizations like in health and academic insti-tutions (Cappelli 2000). Increased employee turn-over results in instability, additional workloadand stress on remaining staff thus escalatingjob dissatisfaction which potentiates the turn-over cycle (Moseley et al. 2008). Schuler andJackson (2006) also state that recruiting employ-ees to meet the organizations human resourcedemands is only half of what is needed in talentmanagement. The need to keep these people isanother battle. Organizations that have lowerlabour turnover rates gain a competitive advan-tage through a reduction in overall labour costsand an increase in productivity.

    According to Horwitz (2008) skills shortag-es are a threat to economic growth. He arguesthat retention strategies are critical in a globalmarket that is faced with the shortage of skilledworkers. The skills shortage challenge is not aSouth African phenomenon alone. It is there-fore important for business, government publicand private sector leaders to address this criti-cal component of employee retention for com-petitiveness and service delivery. Moseley et al.(2008) state that employee retention is impor-tant to organizations as increased turnover cre-ates instability and puts additional workload andstress on remaining staff, increasing job dissat-isfaction and therefore potentiating the turnovercycle.

    Recent trends also show that employees nowhave a desire to obtain fresh skills. Particularlyin technical skills because acquisition of skillsprovides job security as compared to seniority(Chaminade 2007). As a result employees lookfor organisations that are prepared to afford themsome training and development opportunities.This can be in the form of bursaries on the jobtraining and ongoing development opportuni-ties .This results in affective commitment be-

  • TRAINING AND RETENTION 45

    cause the employees will strongly identify withthe organization if their personal goals are beingmet by the organisation (Coetzee and Schreuder2013). This affective commitment often promptsemployees to stay with the organisation. There-fore it is very important for any organization toprovide its employees with adequate trainingand keep track on their level of job satisfaction.

    Theoretical Framework

    Herzberg 1968s two factor theory was uti-lised for this study to better comprehend em-ployees attitudes and motivations to remain inor leave an organization. Frederick Herzberg per-formed studies in the workplace to establish fac-tors that led to satisfaction or dissatisfaction.Interviews were conducted whereby employeeswere asked about factors that pleased them inan organisation and those that they were un-happy about (Herzberg 1966). Herzberg furtherformulated the motivation-hygiene theory togive details of the results. He called the satisfi-ers motivators and the dissatisfiers hygiene fac-tors. Hygiene factors were considered mainte-nance factor that are required to avoid dissatis-faction but they themselves do not cause satis-faction (Sungmin 2009).

    Herzberg (1966) differentiated factors lead-ing to satisfaction from those leading to dissat-isfaction as follows.

    Hygiene factorsMotivation factors

    Supervisionrecognition

    Company policygrowth

    Work conditionsresponsibility

    Relationship with managementadvancement

    Salarywork itself

    Relationship with colleaguesachievement

    According to the two-factor theory the pres-ence of hygiene factors does not result in satis-faction but however their absence certainly leadsto dissatisfaction in employees. In contrast thepresence of motivation factors in an organiza-tion leads to higher satisfaction and their ab-sence results in no satisfaction in employees(Sungmin 2009).

    Basing on this theory, Coetzee and Schreud-er (2013) argue it is therefore important that or-ganisations have both hygiene factors and mo-tivation factors to keep their employees satis-fied so that they will not leave the organisation.Motivation factors are often said to lead to highretention but the absence of hygiene factors mayresult in increased turnover (Coetzee andSchreuder 2013).

    RESEARCH DESIGN ANDMETHODOLOGY

    The quantitative design method was used inthis research. A quantitative methodology makesuse of statistical representations rather than tex-tual pictures of the phenomenon (Kabungaidzeet al. 2013).

    Population

    The population of the study consisted ofboth male and females from administration staffat a selected tertiary institution in the EasternCape Province. The total size of the populationwas 120 (N=120). Using the RaoSoft sample sizecalculator, a minimum recommended sample sizeof 190 was obtained. The respondents were se-lected using a simple random sampling method.

    Measuring Instrument

    A self-administered questionnaire was usedto collect data for this research. According toBabbie (2013) a questionnaire contains ques-tions and other types of items designed to seekappropriate information for data analysis. Threeinstruments were used to compute the variablesin this study. These are the biographical ques-tionnaire training questionnaire and the inten-tion to leave questionnaire. A self-designed bio-graphical and occupational questionnaire wasused for sample description.

    Training was measured using a 5-item mea-sure developed by Teseena and Soeters (2006)and it has an alpha coefficient of 0.82. Employeeretention was measured by the intention to leavequestionnaire developed by Cowin (2002). Re-sponses to each of the six items were rated us-ing a 5-point Likert scale with anchors labelled:1 = strongly disagree. 2 = disagree. 3 = neitheragree nor disagree. 4 = agree. 5= strongly agree.The alpha coefficient for this six-item scale hasbeen 0.96 in previous studies.

  • 46 SHARON RUVIMBO TERERA AND HLANGANIPAI NGIRANDE

    Administering of the Questionnaire

    Permission was requested from the HR Di-rector of the institution to give out the ques-tionnaires. The questionnaires were left with theHR officials for distribution. The anonymity andconfidentiality of the information to be obtainedfrom questionnaires was stressed to the HR de-partment and to the respondents through a cov-er letter.

    To facilitate a good response rate, an agree-ment was made that the collection of data shouldtake a period of one month.

    Data Analysis

    The research utilised quantitative techniquesof data analysis. The Statistical Package for theSocial Sciences (SPSS) version 20 program wasused to analyze data. Demographic data was re-ported by using frequencies and percentages.The level of statistical significance was measuredusing Chi-Square test and set at p < 0.05. Pear-son Product Moment Correlation analysis wascarried out to determine the direction andstrength of the relationship between training andemployee retention. One way ANOVA was usedto test the significance level of relationship be-tween variables.

    RESULTS

    This section seeks to present and discussthe results obtained from this study through datacollection.

    Descriptive Statistics

    The results illustrate the gender distributionof respondents. Out of the 120 respondents,(36%) were males and (64%) were females. Ac-cording to the responses, it can be concludedthat the gender representativity was achieved.The reason most respondents were females canbe attributed to the fact that in most organiza-tions, females are the dominant sex due to thenature of the work (administration). However itis not always the case these days in most SouthAfrican organizations due to different policiessuch as the affirmative action. The majority ofthe respondents were Blacks ranging from 25-34years of age.

    The results are shown on the Table 1.

    In responding to whether the participantswere prepared to remain in the organization be-cause of education and training opportunities,results show that most respondents were notwilling to remain in the organization because re-gardless of the education and training opportu-nities afforded to them. Out of 120 participants102 participants were not prepared to remain inthe organisation as indicated in Table 2. Giventhis, it shows that training opportunities do nothave a positive impact on employee retention.Pare et al. (2001) also found training to be nega-tively related to continuance commitment (em-ployee retention).

    The controversy that lies on whether train-ing triggers high turnover or retention is the onethat led to the buildup of Figure 1. The resultsshow that 75% of the respondents were likely toquit the organization because they are nowequipped with the necessary skills which makethem marketable to other organizations. These

    Table 1: Frequency distribution for demographicvariables (n=120)

    Demographic variables Percentage

    Gender (n=120)Male 3 6Female 6 4Total 100

    Ethnic Group (n=120)Black 6 6Whi te 2 0Colored 1 0Other 4Total 100

    Age (n=120)16-24 525-34 4 035-44 2 045-54 2 255+ 1 3Total 100

    Table 2: I am prepared to remain in the organi-zation because of education and training oppor-tunit i es

    Frequency Percentage

    Strongly Agree 6 5Agree 6 5Neutral 6 5Disagr...

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