Exploring the Role of the Employee-Organization Relationship on Voluntary Employee Turnover Intentions : Potential Exchange Agents

An organization’s agents' actions largely influence the way employee experiences the relationship with the organization. This relationship can either have a positive or a negative influence on employee turnover intentions. If an employee decides to leave the organization voluntarily, this can cause the loss of valuable skills and knowledge and increased costs to the organization. To avoid these and gain competitive advantage organizations must avoid voluntary turnover and thus improve the relationships between employees and organizations. As an organization is an impersonal entity it has not been clear whom the employee mirrors their relationship to, when discussing the relationship with the organization. This thesis is exploring the relationship between employees and supervisors or senior management and their different effects on employee turnover intentions. The theoretical framework of this study forms from previous research on the employee-organization relationship, utilizing the social exchange theory and leader-member exchange theory, and previous research on employee turnover. The data for the empirical part was collected through 10 semi-structured in- interviews with employees from five different organizations between the ages of 35 to 60. The findings reveal that EOR affects employee turnover intentions differently, whether regarding the supervisor or senior management. Regarding communication in an EOR, supervisors are hoped to be closer and more individualistic whereas senior management is hoped to be open and communicate with groups collectivistic. Trust is the biggest aspect behind employee turnover intention in EOR. With the relationship with senior management, trust is more apparent through respect. Senior management should respect employees as experts in their field of work. Supervisors need to show trust in matters, give employees autonomy and support them in the decision-making process. For more satisfaction and commitment to the relationship with the supervisor, it is vital for employees to feel that the supervisor is actively promoting their benefits. Senior management is more connected to the organization's values and strategy. To minimize voluntary turnover, it is crucial to openly communicate values and strategy if changes occur. The findings show that the relationship with the supervisor as an agent of the organization is more important regarding employee turnover intentions. The supervisor is also more personalized than senior management. Senior management is seen as a more organization-kind entity through its values and strategy. The relationship still holds value when considering turnover in- tensions. Regarding the findings of this study, it contributes to both EOR and turnover literature.