Professional Documents
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Turnover in Blue-Collar Workers
Turnover in Blue-Collar Workers
www.emeraldinsight.com/1463-5771.htm
Employee
Modeling the impact of employee engagement
engagement and happiness on and happiness
on burnout
burnout and turnover intention
among blue-collar workers at a 499
Abstract
Purpose – The purpose of this paper is to examine the impact of engagement on job burnout and turnover
intention (plan to leave the organization) among blue-collar workers in manufacturing facilities. In addition,
this study also explores the role of happiness as a moderator in explaining the effect of engagement on
burnout and turnover intention.
Design/methodology/approach – The data required to examine the hypothesis were collected using
well-established research instruments from 1,197 blue-collar employees working at three manufacturing
facilities that are owned and operated by the same company in India. The hypotheses were examined and the
conceptual model was validated using structural equation modeling. The statistical analyses were conducted
using two statistical packages, namely, SPSS and SPSS–AMOS.
Findings – The results indicate that a disengaged employee is at higher risk of burnout and is likely to leave
the organization in the near future. Furthermore, employee burnout was positively associated with turnover
intentions. Happiness was established as a significant moderating factor in the relationship between
employee engagement and burnout and turnover intention. Besides, the prevalence of happiness and turnover
intention was higher in males.
Practical implications – The results showed the importance of engagement and happiness on reducing
burnout and turnover intention. Organizations could capitalize on these findings by implementing new and
improving their existing quality management initiatives, which, in turn, could improve the employee’s
organizational commitment.
Originality/value – This study contributes to the industry and academia by exploring the perceptions of
working-class, blue-collar employees, which has received limited attention till date, despite specific negative
job characteristics.
Keywords Quality management, Human resource management, Burnout, Turnover intention,
Employee engagement, Happiness
Paper type Research paper
1. Introduction
In today’s fast-changing work environment, skilled professionals have a plethora of
opportunities to change jobs. To retain its workforce, most organizations engage and empower
their employees by implementing new and improving their existing quality management
Benchmarking: An International
initiatives. Total quality management (TQM), an operating approach for continuous Journal
improvement in businesses processes, is often adopted to involve the employees, ensure a Vol. 27 No. 2, 2020
pp. 499-516
process-oriented approach and stay competitive in the global market. A major step toward TQM © Emerald Publishing Limited
1463-5771
and continuous improvement is the implementation of ISO 9001, an international standard for DOI 10.1108/BIJ-01-2019-0007
BIJ quality management system. One of the critical factors for success with ISO 9001 and TQM is
27,2 human resource development, which ensures that the employees are loyal, competent, engaged
and motivated in their role. Thus, quality management plays a cardinal role in achieving
positive human resource outcomes such as low employee turnover –a major issue plaguing both
manufacturing and service industries across the globe.
The median tenure of an average worker with an employer is 4.2 years (Bureau of Labor
500 Statistics, US Department of Labor, 2018). Currently, employee turnover is the highest it has been
in the last 10 years. More than 50 percent of all organizations globally struggle to retain their
best performers (Watson, 2014). A report by Deloitte (2018) has highlighted that with millennials
becoming the largest group in the global workforce, this trend is expected to continue as two-
thirds of them are planning to leave their current position by 2020. Moreover, working-class,
blue-collar jobs, which are labor intensive, appear to be more prone to turnover compared to
white-collar jobs. A high turnover rate creates a vacuum in the labor force thereby hurting
workplace productivity and ultimately the company’s bottom line. Besides, to appoint a suitable
replacement, it is estimated to take 42 days and cost six to nine months of the employee’s salary
in recruiting and training expenses (Society for Human Resource Management, 2017).
Employee turnover is more rampant in developing countries such as India, where 80
percent of the employees stay in their tenure for just two to five years and only 12 percent
stay longer than 10 years (Nair, 2016). India is one of the fastest growing countries in the
world with a large group of a young workforce with over 78 percent being involved in blue-
collar jobs (Ministry of Labor and Employment, 2016). Competitive monetary compensation
is no longer the only sufficient trade to retain employees as other attributes, such as
employee engagement, positive well-being, job satisfaction, organizational identification and
motivation, also play a critical role and a company may risk losing its skilled employee if it
is unable to transfer these values (Van Dick et al., 2004; Saks, 2006). Moreover, in most cases,
the top performers contemplate on leaving while the low/mediocre performers remain with
the organization. Examining the predictors of turnover intention is critical for the managers,
as consequences of turnover lead to reduced profits, due to increased employment cost and
poor performance (Upadhayay and Vrat, 2016). Skelton et al. (2019) have stated that
identifying the determinants of employee turnover in manufacturing companies is crucial
from both business and social perspectives. Therefore, it is necessary to understand the
profound system behind the intention of an employee to leave the company.
In recent times, the focus on employee engagement has increased tremendously from the
academics and industry perspective. Singh and Gupta (2015) have highlighted engagement of
talented workforce as one of the most significant challenges for the organizations. A report by
Harter (2018) highlighted engagement as a significant predictor of employee well-being,
productivity and profitability. Besides, engaged employees can either make or break the bottom
line of the organization (Lockwood, 2006). Many research studies have identified the significant
association between employee engagement and positive organizational outcomes such as
increased job satisfaction, customer satisfaction, organizational commitment, employee retention,
productivity, financial performance, organizational citizenship behavior, reduced burnout and
decreased employee intention to leave (Saks, 2006, 2019; Bailey et al., 2017; Harter et al., 2002).
In 2003, the Royal Bank of Scotland referred three vital components for an engaged
employee – say (speaking certainly about the organization), stay (intense desire to be with
the organization) and strive (exerting discretionary effort for the success of the organization)
and also highlighted the strong association between high engagement and better
performance (Hewitt Associates, 2003). In developed countries such as the USA, employee
engagement has been on the rise for the last 10 years with a record new-high of 34 percent
engaged employees in 2018 (Harter, 2018). However, employees in the manufacturing and
production jobs in the USA marked the lowest level of engagement with 23 percent. The
pattern of low engagement among manufacturing workers appears to be common in many
other countries as well (Albrecht et al., 2015). While the blue-collar manufacturing jobs have Employee
been declining drastically over the years in the USA, it has increased substantially in engagement
developing countries like India and China which have abundant young, low-cost workers. and happiness
Moreover, China and India, countries which have a dominant share of blue-collar employees,
experience meager employee engagement rate of 6 and 9 percent, respectively (Crabtree, on burnout
2013). Though the positive outcomes of engaged employees are highlighted in much of the
existing literature, there exists dearth of studies examining the outcome of employee 501
engagement in the context of blue-collar employees in the manufacturing sector.
In the manufacturing industry, the employees at the shop floor level are expected to
perform highly monotonous and repetitive job tasks for a prolonged period of their career. In
addition, shop-floor employees are constantly pressurized and expected to achieve the
targeted productivity level with best-in-class quality. Performing the same job task with an
intense focus on a constant and continuous basis could increase their level of exhaustion
and stress leading to job burnout. Traditionally, employee burnout is extensively studied in
service industries – jobs that require high human interaction. However, the level of burnout
and its impact is rarely focused in the manufacturing industry, especially at the shop floor
level where employees are performing repetitive tasks.
This paper is motivated by a real-life case study of a manufacturing company that owns
three production facilities in India. The company has committed to improve its
organizational climate and continue its path toward TQM. However, the HR departments
of the ISO-certified facilities are facing the problem of high employee turnover despite
providing above-industry average pay and benefits. In 2017, the employee turnover at the
organizations averaged 20 percent, out of which 58 percent were young millennials.
Consequently, the organizations suffered an average decline of 24 percent in their
productivity. Moreover, the concerns regarding high turnover were also raised during the
quality audit of these organizations. In the age of globalization, it is necessary to study the
determinants of turnover intention as manufacturing firms in India are forced to produce
world-class capabilities to outlive and outpace the competition. Turnover intention, a plan to
resign, is the antecedent for turnover and can be caused by multiple factors such as job
dissatisfaction, job insecurity, non-competitive pay, job disengagement and higher job
burnout. Therefore, the objective of this research remains two-fold: to examine the
relationship between some of the most prevalent issues in the manufacturing industry,
namely, burnout and turnover intention, among the blue-collar workers from the context of
employee engagement; and to explore the role of happiness as a moderator between
employee engagement, burnout and turnover intention.
The remainder of the paper is organized as follows. Section 2 provides a detailed review of
the literature and hypothesized relationship among the study constructs. Section 3 presents
the measures adapted data collection procedure and sample characteristics. Section 4
discusses the validity of the measures and results obtained based on the structural equation
modeling (SEM). Section 5 summarizes the results, provides managerial implications and
derives directions for future research.
2. Literature review
This section reviews some of the notable works related to the key variables (measures)
considered in this study, namely, turnover intention, burnout, employee engagement and
happiness. These measures are also critical for quality management systems such as ISO
9001:2015.
3. Methodology
3.1 Data collection and sample characteristics
To obtain the data and examine the proposed hypotheses, a survey was conducted among the
1,800 shop-floor workers employed at the manufacturing facilities under study. Since the
employees could not read, write or understand the English language, the survey instrument
was translated to the regional language with the help of two certified language translators. To
ensure a quality translation, we took extreme caution by discussing the study objectives and
reviewing the English language survey items with the translators. In addition, we also
provided specific instructions to the translators about the participant characteristics, mode
and location of survey administration. After translation, the instrument was reviewed by two
other bilingual translators for correctness and accuracy, and was back-translated to English,
to ensure that it purports the intended meaning. Upon obtaining the written informed consent
from each participant, we administered the paper-based survey questionnaire to the employees
in batches depending on their work shift.
3.2 Measures
Standardized scales from the existing literature were adapted to measure the study
constructs. All the items in the questionnaire were recorded on a five-point Likert scale
which ranges from 1 ¼ strongly disagree to 5 ¼ strongly agree with a neutral point. To
understand the sample profile, in addition to the constructs, details on three demographic
variables – age, gender and educational qualification, were also collected. A schematic Employee
representation of the research hypothesis is illustrated in Figure 1. engagement
3.2.1 Employee engagement. Saks’ (2006) 12 items were used to measure employee and happiness
engagement, which is considered to be a multidimensional scale measuring the psychological
presence of employees in their job and organizational roles. It consists of two six-item scales to on burnout
record the employee’s perception of job engagement and organizational engagement. The
sample items include: “I really ‘throw’ myself into my job” and “Being a member of this 505
organization is very captivating” to measure job engagement and organization, respectively.
3.2.2 Moderator. Employee happiness level was measured using the twenty-nine items
from Oxford Happiness questionnaire (Argyle et al., 1989). Oxford instrument is considered
as a lengthy and broad measure to measure employee’s personal happiness and well-being.
According to the instructions, there are no right or wrong answers, and the respondents
were requested to mark the answers that first come to their mind. This scale provides a
snapshot of the respondent’s present level of happiness. A sample item to measure
happiness: “I often experience joy and elation.”
3.2.3 Outcome measures. The outcome variable, burnout, was measured using the ten-
item Burnout Measure-Short Version (BM-SV ) scale developed by Malach-Pines (2005)
based on theoretical analysis. BM-SV is found to be the second most extensively and
frequently used scale. The prime objective of BM-SV scale is to make it an easy-to-use scale
with valid psychometric properties. Scales include items on physical, emotional and mental
exhaustion. A sample item includes “Feeling hopeless.”
Turnover intention, another important outcome measure in this research, was
measured using the three-item scale by Landau and Hammer (1986). The scale captures
the job search behavior of the employees and their responses to the available opportunities
from outside the organization. The sample items include “I am actively looking for a job
outside this organization.”
Happiness
Burnout
Employee
Figure 1.
Engagement
Schematic
representation of the
Turnover
Moderation Effect model based on the
Intention
Direct Effect research hypothesis
BIJ to test the measurement model, and second, distinct path modeling was executed to test the
27,2 direct effects and moderation effects. Using SPSS 25 internal consistency analysis,
descriptive statistics, construct validity and correlation analysis was performed and SEM
analysis was conducted using AMOS 22 software.
4. Results
506 Out of the 1,800 participants, 1,197 valid filled responses were obtained resulting in a
non-response bias of only 33.5 percent (or response rate of 66.5 percent). Since the
response rate is more than 30 percent, the collected data would be sufficiently large to
attain generalizability of the results (Sekaran, 2003). Table I provides the summary of
demographic characteristics across high and low levels of burnout and turnover intention.
The five-point Likert scale items on burnout and turnover intention were averaged
independently, and a value that is less than or equal to the mid-point (⩽3) is considered to be
low level and a value higher than the neutral point (W3) is treated as high level. The
average age of the 1,197 valid survey respondents was 31 years (SD ¼ 12.03) and more than
half of them (~55 percent) were males. Moreover, their educational attainment was very low,
where only 2.42 percent of the respondent had completed high school degree.
Cronbach’s α reliability scores were above 0.70 for all the constructs indicating good
internal consistency of the measures (Hair et al., 2014), except for the happiness factor. In order
to obtain the internal consistency for happiness scale, items with corrected item-total
correlation lesser than 0.20 were removed. Finally, 16 items were retained to measure
happiness. Subsequently, the composite reliability scores obtained from the CFA results
were also above 0.70 indicating good reliability for the study measures (Hair et al., 2014). From
the correlation analysis it is revealed that employee engagement is negatively correlated with
burnout (r ¼ −0.78, po0.01) and turnover intention (r ¼ −0.14, po0.01). Similarly, happiness
exhibits significant negative correlation with burnout (r ¼ −0.82, po0.01) and employee
turnover intention (r ¼ −0.53, po0.10). Correlation between employee engagement and
happiness shows positive association (r ¼ 0.60, po0.01). Table II depicts the results of the
mean, standard deviation, correlation coefficient and the internal consistency score using
Cronbach’s α and composite reliability for each construct under study.
Total observations 563 (47.03%) 634 (52.97%) 581 (48.54%) 616 (51.46%)
Gender
Male 329 (58.43%) 325 (51.26%) 311 (53.52%) 343 (55.68%)
Female 234 (41.56%) 309 (48.73%) 270 (46.47%) 273 (44.31%)
Age (in years)
Adolescence (o 20) 106 (18.82%) 157 (24.76%) 132 (22.71%) 131 (21.26%)
Young adults (20–35) 256 (45.47%) 303 (47.79%) 243 (41.82%) 316 (51.29%)
Table I. Middle-aged adults ( W35–55) 176 (31.26%) 144 (22.71%) 177 (30.46%) 143 (23.21%)
Descriptive summary Older adults ( W55) 25 (4.44%) 30 (4.73%) 29 (4.99%) 26 (4.22%)
of key variables
categorized by Educational qualification
burnout and Up to school education 547 (97.15%) 621 (97.94%) 566 (97.41%) 602 (97.72%)
turnover intention Graduation 16 (2.84%) 13 (2.05%) 15 (2.58%) 14 (2.27%)
female shop-floor employees. Table III exhibits the results of the ANOVA analysis. Based Employee
on the results, significant mean differences between groups are evident for employee engagement
turnover intention (F ¼ 7.82, p o 0.01) and happiness (F ¼ 9.90, p o 0.01). Furthermore, and happiness
male employees perceive higher turnover intention and stay relatively happier than their
female counterparts. On the other hand, the mean differences between the two groups for on burnout
employee engagement and burnout remains statistically insignificant.
507
4.2 Analysis of the results by measurement model
CFA results confirmed the presence of a three-factor structure (engagement, burnout and
turnover intention) for the direct effects model and four-factor structure (engagement,
happiness, burnout and turnover intention) for the moderation model. The model fit indices
for the three-factor structure are Chi-square/degrees of freedom ( χ2/df ) ¼ 3.30; goodness-of-
fit index (GFI) ¼ 0.93; adjusted GFI ¼ 0.92; comparative fit index (CFI) ¼ 0.91; root mean
square error of approximation (RMSEA) ¼ 0.04, PClose ¼ 0.99. In addition, CFA was
computed for a four-factor model and the fit indices are χ2/df ¼ 3.01; GFI ¼ 0.90;
AGFI ¼ 0.88; CFI ¼ 0.85; RMSEA ¼ 0.04, PClose ¼ 1.000. As prescribed by Hu and Bentler
(1999) the values of the existing model indicates good fit to the data. Table IV exhibits the
goodness-of-fit indicators for the measurement model.
As the responses for the independent and dependent factors were collected using a self-
administered survey, the probability of common method bias was probed. To determine the
Constructs Mean SD CR 1 2 3 4
Engagement
Between groups 0.05 1 0.05 0.12 0.72
Within groups 536.28 1,195 0.44
Total 536.33 1,196
Turnover intention
Between groups 8.40 1 8.40 7.82 0.05*
Within groups 1,283.41 1,195 1.07
Total 1,291.81 1,196
Burnout
Between groups 1.07 1 1.07 1.87 0.17
Within groups 688.04 1,195 0.57
Total 689.12 1,196
Happiness
Between groups 3.22 1 3.22 9.90 0.00**
Within groups 389.53 1,195 0.32 Table III.
Total 392.76 1,196 Results of analysis
Notes: *p ⩽ 0.05; **p ⩽ 0.001 of variance
BIJ common method variance (CMV ), the actual four-factor model was compared with a single-
27,2 factor model, where all the items of the study constructs are loaded together as one factor.
The single-factor model fit results indicate unacceptable fit to the data corroborating the
absence of CMV ( χ2/df ¼ 7.07; GFI ¼ 0.68; AGFI ¼ 0.65; CFI ¼ 0.51; RMSEA ¼ 0.07,
PClose ¼ 0.00).
Construct validity of the measures was established through convergent validity and
508 discriminant validity. To examine the convergent validity, corrected item-total correlation
was calculated and the value of 0.20 and greater is considered as an acceptable value for
scales measuring broad characteristics (Clark and Watson, 1995). Results of the corrected
item-total correlation for all the study measures exceed 0.20, supporting the convergent
validity. Discriminant validity of the constructs is exhibited through the results of
correlation analysis, all the correlation coefficient values were marked below 0.90,
demonstrating that the all factors are distant from each other (Satapathy, 2014).
5. Discussion
The purpose of this research is two-fold: explore the relationship between employee
engagement and its consequences – burnout and turnover intention, and determine the
BIJ explanatory role of happiness in the relationship between these constructs. Emphasizing on
27,2 Lockwood’s (2006) findings that engagement could either make or break the bottom line of
an organization, the current study has examined the role of engagement as a significant
predictor of work-related outcomes among the blue-collar employees. Findings from this
study provide significant support for H1, indicating that highly engaged employees exhibit
lower burnout. Results are consistent with the notion that engaged employees fulfill their
510 psychological needs (Bakker and Oerlemans, 2016) and better manage the existence of
prolonged stress in their work activity and consequently, they exhibit decreased burnout.
Our results also support the second hypothesis that engagement has a significant direct
and adverse effect on turnover intention among shop-floor workers. This finding suggests
that engaged employees are more involved in their work and organization. Consequently,
they exhibit decreased intention to leave the job. Shop-floor employees work activities play a
significant role in determining the level of organizational productivity and product quality.
Therefore, they are expected to be highly engaged with their job and organizational role.
In line with Saks (2006) study, the findings of this study emphasize that engaged employees
are more likely to have strong employment relationship by demonstrating positive
workplace attitudes and intentions. Findings are also consistent with Shuck et al. (2014) and
Rana et al. (2014) that engaged employees have lesser thoughts on quitting the organization
than disengaged employees.
Based on the results of H1 and H2, it is evident that engaged employees will exhibit a
negative association with job burnout and turnover intention. Therefore, to capitalize on
these benefits, organizations must offer engagement initiatives such as health and wellness
programs, recreation facilities, proper working conditions, enhancing a sense of ownership
and involving employees in societal development and decision making. Similarly,
Al-Abdullat and Dababneh (2018) recommended organizations to create employee
engagement culture by emphasizing on employee decision making and performance
recognition activities. Therefore, organizational leaders must focus on formulating and
executing HR practices which foster employee engagement, involvement and retention at
the workplace (Singh, 2018).
Furthermore, the hypothesis to examine the impact of burnout on turnover intentions
(H3) indicated that burnout had a significant positive effect on employee’s intention to quit.
As shop-floor employees are chronically exposed to high work demands and poor working
conditions, they are often prone to physical, psychological and emotional exhaustion.
Subsequently, this will affect their attachment toward the job and results in turnover
intention. Therefore, to reduce the turnover intentions, it is essential to manage the burnout
levels in shop-floor employees. Rastogi et al. (2018) suggested organizations to make
sufficient investment in suitable training programs in order to facilitate the workforce to
cope with the increasing challenges in the job and workplace.
Despite the presence of extensive literature on engagement and its consequences, the role
of happiness in engagement literature remains unexplored among shop-floor employees in
the manufacturing industry. The present study confirms the significant role of personal
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Corresponding author
Sharan Srinivas can be contacted at: SrinivasSh@missouri.edu
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