I-O Psychology and Employee Development and Retention

Background and Problem Statement

Apart from profitability, a wide range of other factors determine how successful an enterprise is likely to be in the long term. These include, but are not limited to, the motivation levels of employees, employee commitment to organizational goals, and employee training and skills. It should also be noted that how an organization identifies and resolves the various workplace concerns and conflicts that emerge from time to time is key to its long-term success. Towards this end, the relevance of evaluating and assessing human behavior in the organizational setting — that is, industrial and organizational (I-O) psychology — cannot be overstated. An assessment of this nature is critical in developing an understanding of the relevant dynamics at the organizational, group, and individual levels, not only to properly diagnose problems and implement solutions, but also to put in place measures that further enhance the performance of the organization in both the short and long term.

Studies conducted in the past, in relation to work behaviors as well as job attitudes, indicate that workers who harbor dissatisfaction are likely to actively seek other job opportunities outside the organization (Brooks, 2018). It is not known how HR professionals develop and retain employees through training and management programming based in I-O psychology — a gap this study seeks to address.

The impact of attrition on the long-term success of an organization is undeniable. Employee replacement costs include costs associated with the reassignment of employees to duties and roles vacated by exiting staff (such as overtime), exit interview costs, and employee move-processing costs (Johnson and Beehr, 2013). There are also costs associated with replacement — such as orientation expenses — and training costs for specific roles (Johnson and Beehr, 2013). According to Brooks (2018), employees who are well motivated are unlikely to actively seek opportunities elsewhere.

Theoretical Foundations

Various motivation theories have been proposed in the past to assess and evaluate employee commitment to organizational goals, with commitment being rooted in how well the individual needs of employees are satisfied. These include, but are not limited to, the expectancy theory, the job-characteristics model, and the equity theory. The present study is largely founded on Richard Hackman's and Greg Oldham's job-characteristics model. This model, according to Daft and Marcic (2010), "comprises core job dimensions, critical psychological states, and employee growth-need strength" (p. 421).

A wide range of factors work together to ensure that employees do not leave the organization in search of better opportunities. According to Brooks (2018), the attitudes employees hold toward not only their job but also the entire organization — including management, team members, and the work environment — have a significant impact on morale. It is therefore prudent to assess the various factors that affect employee work experience and productivity. These factors have been aligned with Hackman and Oldham's job-characteristics dimensions.

Literature Review

According to Daft and Marcic (2010), the personal and professional development of employees is critically important in promoting workplace satisfaction. Organizational wellbeing can be promoted in the long term through the development and implementation of talent management initiatives. Pinder (2014) adds that studies have consistently indicated that employee learning and development is a critical ingredient for innovation and enhanced performance. In the words of Brooks (2018), "employees who are satisfied in the performance of their roles are more likely to stay than those who are not" (p. 112).

According to Zareen, Razzaq, and Mujtaba (2013), there is sufficient evidence to suggest that job design plays a prominent role in the optimization of employee performance, satisfaction, and retention. In the authors' own words, "psyche of employees, attitude or behavior should be well analyzed and considered while designing tasks and assignments to satisfy, motivate and involve them in their work and retain them with the organization in the long run" (Zareen, Razzaq, and Mujtaba, 2013, p. 87).

In addition to monetary rewards, organizations can make use of a range of other tools to motivate employees, enhance satisfaction, and boost retention (Pinder, 2014). Such tools include, but are not limited to, offering career development and advancement opportunities. As Pinder (2014) points out, "compensation might not be the most important factor in determining whether an employee will stay with you, but it can tip the balance" (p. 107).