Employee Turnover intention in the Construction Industry: A Quantitative Correlational

Study

Abstract
Construction companies are able to show an increased bottom line by developing strategies to
retain employees. The purpose of this single quantitative exploratory case study was to
identify the retention factors that provided the greatest impact to retain construction employees.
There was a sample of 68 individuals selected for this study, consisting of laborers within the
construction industries. An online survey was used to collect the data, and the findings arew
intended to add to the current body of knowledge by identifying the impact that job satisfaction
factors in the construction industry. A correlational analysis as well as a multiple linear
regression analysis was conducted to reveal the relationships between job satisfaction and
employee turnover intention. The findings of this study results revealed a moderate negative
relationship between job satisfaction and employee turnover intention. Additionally, the study
found that by implementing developed retention strategies using factors of job satisfaction,
organizational leadership can understand the drivers for employee retention, and increase overall
job satisfaction, profitability, and productivity. The study limitations, implication,
recommendations for practice and future research are also discussed in detail. Lastly, the study
shows that the nature of the association between job satisfaction and employee turnover intention
is significant to industrial psychological practices.
Statement of the Problem
Voluntary employee turnover is consistently increasing in the construction industry (Xing
& Yan, 2018). Turnover rates industry-wide doubled from 2.4% in February 2017 to 4.8% in
February 2018, inclusive of seasonal adjustments (U.S. Bureau of Labor Statistics, 2018a). To
date, there was not a comprehensive understanding of which intrinsic factors (motivators) and
extrinsic factors (hygiene) were most likely to decrease employee turnover. The increase in the
turnover rates of employees in the construction industry leads to an increase in replacement
costs, inconsistencies in labor productivity, and slows productivity growth rates (Fulford &
Standing, 2014). The literature dictated that there was a myriad of factors believed to increase in
the turnover rates among employees in the construction industry, but they are not fully
understood (Agarwal, Agrawal, & Pandey, 2016). These factors range from satisfaction levels,
compensation rates, employee safety, and motivation, which needed to be clearly identified and
Correlated to show the greatest impacts on retention (El-Gohary, Aziz, & Abdel-Khalek, 2017).
Considering the many changes in the industry over the past few decades, such as technology and
Increased levels of production, retention levels should have shown an increase (Ganah & John,
2017). While increased retention should be seen, the opposite is what is actually taking place.
Since retention continues to decrease, the problem then becomes clear that construction
managers are bypassing the factor identification step that could result in the development of good
retention strategy.
Other important factors to note suggested that employee turnover is associated with the
increasing rate of fatal or non-fatal accidents, totaling 199.6K and 924 employees consecutively
in 2016 (U.S. Bureau of Labor Statistics, 2017e). The construction industry was ranked fifth of
19 industries for non-fatal accidents (U.S. Bureau of Labor Statistics, 2017e), and fourth of
155 industries for fatal accidents (U.S. Bureau of Labor Statistics, 2017d), constituting an
increase of 2% in one year (U.S. Bureau of Labor Statistics, 2018c). Several decades ago, the
wage rate determined the length of employment, but a wide variety of factors now dictate
retention (Hom,Lee, Shaw, & Hausknecht, 2017). Before the age of the Internet, it was difficult
for an employee to transfer jobs; however, this is no longer the case as employment research is
readily accessible (Vien, 2017). What this means is that employers need to understand how to
increase job satisfaction to decrease turnover, which subsequently aids in the reduction of costs
and accident rates (SHRM, 2016). Lastly, the literature indicated that retention strategies used in
one industry were ineffective in another; however, with a cost of $4 thousand to hire one new
employee (U.S.Bureau of Labor Statistics, 2017a), the need to conduct this study was apparent.
Overall, the findings of this research should help employers understand how the identified
factors contributed to job satisfaction and extrinsic job satisfaction as each related to turnover
(Herzberg et al.,1959).
Purpose of the Study
This quantitative, correlational study was used to explore the influence that intrinsic and
extrinsic job satisfaction factors had on employee turnover intention and provided an
understanding of the underlying factors contributing to the high levels of turnover. This study
was used to shape the labor workforce within the construction industry by identifying the factors
that could significantly reduce the turnover rate.
Conceptual Framework
The Herzberg two-factor theory served as the conceptual framework for this study. It
shaped the direction and design, provided structure, and demonstrated the reason why this study
needed to be conducted (Ravitch & Riggan, 2017, as cited in Rogers, 2016). Herzberg’s theory
provided the framework for developing retention strategies across the construction industry and
investigated motivator and hygiene factors (Tuch & Hornbæk, 2015). Herzberg, a psychologist
and his team, published a two-factor theory in 1959 that focused on motivator and hygiene
factors that were shown to sway levels of job satisfaction (Herzberg et al., 1959). By developing
an understanding of the motivator and hygiene factors that employees desire, it was
demonstrated that employee turnover could be decreased with the use of Herzberg’s theory
(Tuch & Hornbæk, 2015).
Additionally, Herzberg designed his theory in response to an existing popular theory,
Maslow’s hierarchy of needs theory. Maslow’s theory suggested that job satisfaction is
represented by a binary continuum of “satisfied” and “dissatisfied (Herzberg et al.,1959).
Herzberg’s theory instead suggested that job satisfaction should be split into two continuums that
highlight motivational and hygiene factors (Herzberg et al.,1959). By expanding job satisfaction
into two continuums, researchers were able to understand the difference between these
continuums better, as well as the effects of motivator and hygiene factors as they pertain to job
satisfaction (Sanjeev & Surya, 2016). Overall, Herzberg’s theory was well-suited to the purpose
of this study, which was to explore the associations between motivator and hygiene factors as
they contribute to intrinsic job satisfaction and extrinsic job satisfaction, when compared to
employee turnover intention (Herzberg et al.,1959).

Literature Review
The search strategy for this review was to locate peer-reviewed articles and e-books concerning
employee retention and turnover The primary search engines used were Google and Google
Scholar, and the databases used to locate the articles and e-books within this study were: a)
ProQuest Central, b) Academic Search Complete, c) EBSCOhost Database, d) IEEE Xplore
Digital Library, f) SAGE Journals, 14 and h) the Web of Knowledge. Additionally, the keywords
used to locate the appropriate literature were: employee retention, employee turnover, job
satisfaction, case study, motivational and hygiene factors, construction labor shortage,
construction industry cost of turnover, construction industry retention strategy, Herzberg’s two-
factor theory, motivator factors (intrinsic) and hygiene factors (extrinsic). Sanjeev and Surya
(2016) also emphasized that employees’ and managers’ perceptions about motivation and
hygiene factors are extremely important in employee retention, and further recommended that
the outcome can be directly affected if management is able to identify key motivational and
hygiene factors Other notable areas that affect employee productivity and retention were: a) lack
of competent supervisors, b) unrealistic schedules, c) payment delays, and d) a lack of an
incentive plan (Barg et al., 2014). The purpose of Barg et al.’s (2014) study was to provide an
understanding on how to increase motivation levels to improve job satisfaction and productivity.
This study also reflected that employees were only productive about half of the time while at
work and recognized the need for better motivation and retention strategies (Barg et al., 2014).
Issues Related to Employee Retention, Turnover, Engagement, and HR Management
Employee retention. According to SHRM (2016), industries such as customer service,
hospitality, and retail reported turnover rates of 30-40% per year. In addition, IT averages
around 33% turnover, and financial services at 38%. From 2011 to 2012, the cost per new hire
was between $3000 and $4000 (Sage, 2013), thus HR departments are tasked with finding ways
to retain existing employees to decrease the noted percentages of turnover (Bandura & Lyons,
2014).
Validity and Reliability of the Data
Prior to conducting the surveys, a determination of the validity and reliably of the
instruments needed to be conducted. The internal validity and reliability of the MSQ and the
MOAQ surveys were analyzed using Cronbach’s alpha coefficient, a function of the inter-item
correlation (Greco, O’Boyle, Cockburn, & Yuan, 2017). The instruments were determined to be
reliable and valid, as they met the requirement of having a rating of .6 or higher alpha rating
(Alzalabani & Modi, 2014; Cronbach, 1951). Additionally, Littman-Ovadia, Balducci, and Ben-
Moshe (2014) reported a total developers’ alpha coefficient of 0.90 and an alpha coefficient of
0.89 for both intrinsic and extrinsic factors of MSQ survey. Table 1 provides the results of the
internal consistent reliability of the MSQ and MOAQ survey when using a sample size of 68.
Table 1
Internal Consistency of the MSQ and MOAQ Survey

Variables Number of Items Cronbach Alpha

Turnover Intention (MOAQ) 3 0.883
Intrinsic Job Satisfaction (MSQ) 12 0.919
Extrinsic Job Satisfaction (MSQ) 8 0.930

The next part of the process is to provide the validity and reliability of the data collected.
By identifying the means on both, five (5) and seven (7) point scales, where the means close to
five (5) or seven (7) (depending on scale) represents strong agreement, whereas the means close
to one (1) represents a weak agreement. A Cronbach’s Alpha of .939 implies high
intercorrelation within the adopted construct (Cronbach, 1951). Cronbach (1951) stated that the
larger the reliability of a construct, the smaller the error. In this study, the lower limit for
Cronbach’s Alpha that was adopted is .70, which is similar to Hair et al.’s (1998) suggestion.
Question 1 from the turnover intention survey within the MOAQ (Appendix D) was rated
on a scale from 1 to 7. On this scale, 1 represented ‘not at all likely,’ and 7 represented being
68 ‘extremely likely’. Questions 2 and 3 were rated on a scale of 1 ‘strongly disagree’ to 7
‘strongly disagree’. The MSQ (Appendix E) survey broke out each factor by asking several
questions on a scale of 1, representing very dissatisfied to 5, representing very satisfied. Intrinsic
job satisfaction was measured with questions 1, 2, 3, 4, 7, 8, 9, 10, 11, 15, 16, and 20 of the
MSQ. Extrinsic job satisfaction was measured with questions 5, 6, 12, 13, 14, 17, 18, and 19.
The higher the combined value, the more an individual valued a particular type of factor, either
intrinsic or extrinsic.
Results
The primary research topic for this study was: Employee turnover intention in the
construction industry. This study required the use of three separate surveys to identify the most
influential factors contributing to employee turnover with Herzberg’s theory to identify the
factors that most greatly influenced satisfaction and dissatisfaction. After the IRB provided
approval to conduct the study, the survey was released through SurveyMonkey which
incorporated the informed consent. The informed consent fully described the project, and only
individuals that provided consent could take the survey. Upon completion of the analysis of data
collected, two themes emerged. These themes were: a) intrinsic job satisfaction (motivator
factors) reduces turnover intention, and b) extrinsic job satisfaction (hygiene factors) reduces
employee turnover.
Demographic characteristics. The presentation of the findings starts with an overview
of the demographic data collected and detailed in Table 2. Surveys were sent out through
SurveyMonkey to acquire a response rate of 68 construction laborers throughout the U.S. with a
70-75% incidence rate. A total of 91 surveys submitted, of which only 68 provided valid or
complete responses, attributing to a 74.7% response rate. Understanding basic demographics of
69 the individual participants allowed for a clearer understanding of the backgrounds of the
participants, and a reference point of which type of employee to focus on when making changes
to retention programs.
Table 2
Demographic Data for Construction Laborers who Participated in the Study
Variable Items Frequency (N) Percentage (%)
Gender Male 56 82.4
Female 12 17.6
Level of education
High School 30 44.1
College 32 47
Graduate &
Professional School 6 8.9
Occupation and Line of work Construction laborer 68 (all) 100
Years in present job 0 to 41 years
Months in present job 0 to 9 months
Years in current line of work 0 to 41 years
Age Mean SD Min. Max.
38.18 10.71 19 62

Evaluation of the Findings

There are many different assumptions provided regarding employee turnover and an
employee’s turnover intention. This study examined the various relationships between intrinsic
job satisfaction and extrinsic job satisfaction in relation to a construction laborer’s turnover
intention to leave. Generally, increased job satisfaction reduces turnover intention (Shah &
Jumani, 2015). The evaluation of the findings provides comparisons with prior research and are
organized in relation to each of the research questions.
Research question 1. Is there a statistically significant relationship between construction
laborers intrinsic job satisfaction and employee turnover intention?
The research conducted in this study accepted the hypothesis and revealed a relationship
between an employee’s intrinsic job satisfaction and an employee’s intent to leave directly
correlated with the values affiliated with the associated factors. The data showed that as intrinsic
job satisfaction factors increased, the employee intention to leave was less likely. In addition,
the findings were shown to be consistent with previous research. Huang, Chen, Liu, and Zhou
(2015) suggested that one could predict an employee’s intent to leave, and as revealed within this
study, job satisfaction does correlate with an employee’s intent to leave.
The following section includes histograms affiliated with each intrinsic job satisfaction
factor (motivators). In this study, the six intrinsic job satisfaction factors identified were: a)
advancement, b) achievement, c) opportunity for growth, d) recognition, e) responsibility, and f)
the work itself (Herzberg et al., 1959). Each factor was graded using the scale provided by the
MSQ survey (Appendix E). After a thorough examination of the figures below, the means and
SDs for the satisfaction scores for each of the motivators do show a contribution to job
satisfaction. However, while all factors bring satisfaction, the motivators ‘work itself’ and
83 ‘responsibility’ seem to contribute more than the others. Each of the sections below will be
broken down by each factor.An examination of the histograms on intrinsic motivators, the
greatest factor to influence job satisfaction was responsibility with a mean of 4.10±0.917 for
being busy all the time (figure 13) and 3.90±0.933 for having the chance to work alone on a job
(figure 14). The responsibility variable of ‘telling people what to do’ was not very influential
with 3.21±0.971 (figure 15). Work itself was the second greatest influencer of job satisfaction
with 4.01±1.099 for a job that makes use of my abilities (figure 17) and 3.87±0.976 for doing
things that don’t go against an employee’s conscience (figure 16). Achievement was, also,
influential with 3.90±1.024 (figure 8) followed by an opportunity to grow with 3.76±1.024 for
trying own methods at work (figure 10) and 3.54±0.70 for doing different things from time to
time (figure 9). Advancement had a mean of 3.49±1.203 (figure 7), and recognition was the least
influential motivators with a mean of 3.44±0.937 which included being ‘somebody’ in the
community (figure 11) and 3.41±1.175 for receiving praise for good work (figure 12).

Advancement.
Figure 7. Frequency of scores on level of satisfaction of a chance for advancement on the job.
Achievement.

Figure 8. Frequency of scores on level of satisfaction because of the feeling of accomplishment

at work.

Opportunity for growth

Figure 9. Frequency of scores on level of job satisfaction because of doing different things from
time to time.

Figure 10. Frequency of scores on level of job satisfaction because of trying own methods at
work.
Recognition.
Figure 11. Frequency of scores on level of job satisfaction as a resulting of being ‘somebody’ in
the community.

Figure 12. Frequency of scores on level of job satisfaction as a result of receiving praise for good
work.
Responsibility.
Figure 13. Frequency of scores on level of satisfaction in relation to being busy all the times.

Figure 14. Frequency of scores on level of job satisfaction because of having the chance to work
alone on a job.
Figure 15. Frequency of scores on level of satisfaction for having the chance to tell people what
to do.
The work itself.

Figure 16. Frequency of scores on level of satisfaction as a result of being able to do things that
don’t go against my conscience.
Summary
This quantitative, correlational study explored the influences that intrinsic and
extrinsic job satisfaction have on employee turnover intention. Reducing voluntary turnover in
the construction industry is vital to maintain or gain in profitability, productivity, and
sustainability. Prior research identified in the literature review demonstrated that many retention
strategies are either not used or insufficient to retain employees. This study reviewed 68 U.S.
based construction laborers returned their surveys, for a response rate of just over 74.7%. The
two themes emerged from this study are intrinsic (motivators) job satisfaction factors
reduce employee turnover intention, and extrinsic (hygiene) job satisfaction factors
reduce employee turnover intentions. Additionally, if organizational leadership could
engage in ways to impact the intrinsic factors, the ‘work itself’ and ‘responsibility,’ and the
extrinsic factor ‘job security,’ the potential for a decrease in turnover is more likely
Implications
Conducting a quantitative study on employee turnover was important since construction
managers can use the findings provided to reduce employee turnover through the implementation
of effective retention strategies. The primary objective was to examine which pre-identified job
satisfaction factors had the greatest influence on employee retention to aid in reducing turnover
in the construction industry. Retention of employees, specifically of laborers in the construction
industry, is an increasing concern as the turnover rates continue to rise which negatively affects
profitability and productivity (Anwar et al., 2017; Ikechukwu & Mbane, 2017). To fully
appreciate the significance of an effective retention strategy, managers can utilize the results
provided to adjust their company’s current retention strategy. By altering the most significant
factors, employers can directly impact the employee’s decision to remain with a company.
Altering the factors could not only have an impact on the individual but could potentially
influence the surrounding community by promoting prosperity (Steiner & Atterton, 2015)
Recommendations for Practice
The results of this study reinforced and confirmed the application of Herzberg’s twofactor
theory in identifying employee job satisfaction factors. The findings also confirmed the
relationship between job satisfaction and employee turnover intention, and that both intrinsic and
extrinsic job satisfaction factors significantly reduce employee’s turnover intentions. Such
relationships between the variables suggests that this study can act as a source of understanding
for companies intending to increase their employee retention capabilities. Moreover, the
findings can be used as a guide for developing retention strategies and inform future researchers
on how the examined variables impact employee’s decisions to quit or look for new jobs.
Additionally, construction managers can use the information in this study to implement
effective strategies to reduce employee turnover at their organizations. By employing some of
the strategies provided in this study, managers can decrease employee turnover, and potentially
help improve the company’s profitability, productivity, and sustainability. Researchers can use
this study to develop employee retention strategies by identifying turnover predictor values based
on motivational and hygiene factors.
Also, the findings are also intended to be transferable for use in other industries and
organizations and used as a foundation for further analysis (McCusker &Gunaydin, 2015).
At the organizational level, it is vital that managers identify the key factors that are linked
to employee turnover intention within their organization. With this knowledge, leadership can
identify the causes and determinants of turnover, and thus employ effective mechanisms to
reduce future turnover incidences. Organizational management needs to use both motivators and
hygiene factors to influence employees to become more satisfied with their work. In this regard,
employers should invest time and resources into understanding employee motivations.
In the context of improving employee satisfaction with their job, leadership can instill
initiatives such as managers and organizational leadership. Factors such as good interpersonal
relations, effective supervision, a delegation of duties and responsibilities are all exercised by
managers and leaders with adequate training on how to handle employees. Thus, it is crucial for
organizations to improve the competencies of their top management employees to promote a
conducive working environment. Some of the options available include organizes workshops,
seminars as well as int
Conclusions
The problem in this study was that voluntary employee turnover is consistently increasing
in the construction industry. This study's purpose was to explore the effects of intrinsic
(motivators), and extrinsic (hygiene) job satisfaction factors have on employee turnover
intention. The study was completed using Herzberg’s two-factor theory to identify those factors,
three surveys to collect the data, and a correlational method to analyze those results. A sample
size of 68 participants in the study found moderately negative statistically significant relationship
between construction laborers intrinsic and extrinsic job satisfaction and employee turnover
intention.
Employee turnover is a complex problem that researchers need to continue to explore.
Many potential factors could affect employee turnover, and managers experiencing high turnover
rates must understand the needs of their employees when implementing turnover retention
strategies. To decrease turnover, managers should focus on giving responsibilities, improving
the work itself, helping an employee achieve more, providing job security, improving work
conditions, and promoting interpersonal relations. When organizations have high employee
turnover rates, the future of the organization is at risk because employee turnover can lead to
reduced profits as the result of the loss of productivity and loss of knowledge. Since reducing
employee turnover improves productivity and profitability, the implementation of an effective
employee turnover strategy is critical to the survival of an organization in today’s competitive
marketplace.
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