An investigation of job satisfaction organizational commitment and turnover intention in Iranian insurance industry

Abstract

Job satisfaction and turnover intention are significant concerns many employers, especially large insurance organizations. Problems regarding job satisfaction, organizational commitment and turnover intention are a cause for concern among the insurance industry players. Research has been extensively conducted on these concepts in numerous contexts but research on these constructs in Iran is scarce. The purpose of this study was to identify the relationship between job satisfaction, organizational commitment and insurance employee‘s intention to quit. Using a quantitative methodology, 418 of 600 (69.7% response rate) operational employees in the insurance industry in Iran participated and completed the survey. Confirmatory factor analysis (CFA) was used to verify the construct validity of the instrument, while Cronbach‘s alphas confirmed its reliability. Besides that, the Co-relational analysis and Structural Equation Modeling (SEM) were used to examine the research hypotheses and hypothesized model. The results of the study indicated that operational employees‘ perceptions of high-level job satisfaction have a positive relationship with organizational commitment whereas job satisfaction facets and organizational commitment subscales have a negative relationship with turnover intention. However, the results showed that there was a significant relationship between job satisfaction and turnover intention, and between organizational commitment and turnover intention. The outcomes of this research would enable human resource HR managers to set up policies and rules to better influence the facets deemed most important to establishing satisfaction and commitment as well as reduce the turnover intention among employees.