WHAT MAKES THE GRASS GREEN ON THE OTHER SIDE? THE ROLE OF EXPECTANCY BELIEFS IN VOLUNTARY JOB SWITCHING Bishakha Majumdar Ranjeet Nambudiri Doctoral Scholar Associate Professor Organizational Behaviour & Human Resource Management Indian Institute of Management Indore

Voluntary Turnover Millions projected job turnover in 2014, 12.9% increase from 2012 (Hays Group and CBR) 26.9% Expected turnover rate in India in –17 % New recruits from top business schools of India change their jobs within18 months (InsideIIM, 2011) 12–14 Months Indian employees express high turnover intentions (Mercer India, 2011) 1 in 2 Popular employers like Google and Amazon also lead list of companies with shortest employee tenure (Payscale, 2014) % Of an employee’s annual compensation is the estimated cost of turnover (Zimmerman, 2008), and voluntary turnover has been found to play a critical role in organizational performance (Ulrich & Smallwood, 2005)

Employee Turnover has both positive and negative effects Increase in income Promotions Job satisfaction Possible exit of poorly adjusted employees, vacancies leading to flexibility in restructuring Loss of human resources and investments, decreased customer satisfaction, Loss of productivity, revenue & profitability Possible loss of career positions Employer Employee

Research has identified several factors influencing job switches Spatial employment density (Andersson, 2012) Dissatisfaction with jobs (Griffeth et al., 2000; Tett & Meyer, 1993) Opportunities to switch (Akerlof, Rose, Yellen, 1988) Task repetitiveness (Muchinsky & Morrow,1980) Low emotional stability, conscientiousness & agreeableness, high openness to experience (Zimmerman, 2008)  External correlates  Work-related correlates  Personality correlates (Cotton & Tuttle, 1986) Age (Zimmerman, 2008) Tenure (Galizzi & Lang, 1998) Firm Size (Topel & Ward, 1992) Over education (Robst, 1995) Job load (Mont & Riss, 1996 Impulsivity (Clark & Watson, 1999; Eysenck, 1997) Vocational interests (Wille, De Fruyt, & Feys, 2010) Risk propensity (Nicholson, 2005) Individualism (Sullivan, 2006 )

Perspectives in Job Switching Withdrawal Perspective People experience intentions to switch when they are dissatisfied with their experiences in their present jobs (Meyer et al, 2002; Podsakoff et al, 2006) Switching Cost Perspective Whether satisfied with their present job or not, people engage in a constant evaluation of alternatives (Levy-Garboua et al., 2005). People experience intentions to switch when the sunk costs, setup costs and continuity costs associated with switching are lower than the benefits expected.

Need for the Study We recognized.. Job switching is highly relevant to both the employees and employers – the two main stakeholders of academic research initiatives in management Job satisfaction does not alone ensure tenure stability. Perceived costs of switching play a major role here Voluntary Job Switching is not only about withdrawal from the current organization. It also involves finding a job to switch to, obtaining it and adjusting oneself to it It has a big component of working towards goals – identifying alternatives, working for them and achieving them Voluntary Job Switching being a goal directed behaviour, should be influenced by expectancy beliefs Gaps we Identified.. Despite the large body of research on it, job switching remains far from being predictable or controllable Concepts related to perceived costs of switching, such as continuance commitment, suffer from inadequate research attention Exploration of role of personality traits in job switching has not considered factors that influence expectancy beliefs

Research Objectives To study how expectancy beliefs influence voluntary job switching and intention to switch, and identify potential mediators and moderators. To develop a model for predicting intention to switch and actual voluntary switching behaviour among employees

Expectancy beliefs: Do they influence our switching behaviour?

“The hardest task is to keep the best employees from leaving..” Optimism leads to job satisfaction, low stress & performance (Tuten et al., 2004) Psychological Capital (optimism, self-efficacy, resilience & hope) – positive organizational outcomes such as commitment, performance and organizational citizenship behaviour (Luthans et al, 2013; Luthans et al, 2006) Eight Forces Model (Maertz, 2008) – self efficacy about switching predicts turnover LMX models – training & recognition increases self- efficacy & consequent switching (e.g., Morrow et al, 2005) Optimistic people are more persistent in job search and more successful in making switches (Borgen & Amundsen, 1987) Optimism Self-Efficacy

SOCIAL COGNITIVE THEORY – Bandura, 1986 According to the social-cognitive theory (Bandura, 1986), expectations play a very important role in shaping behavior, goals and general human functioning General Self Efficacy Optimism Self-Efficacy Expectations Outcome Expectations Goal Directed Behaviour Intention

It appears Job switching and intention to switch would be related to factors that trigger action rather than passive alienation or acceptance. Voluntary job switching may be seen as an instance of goal directed behaviour – which consists of forming intention to switch, active efforts to look for alternatives, evaluate them, make the move and make efforts to readjust to the new situation. Following Bandura’s (1986) model, positive outcome expectancies – or optimism - would thus influence it positively. Optimists would be more likely than pessimists to view a future situation, especially challenging ones, as more favorably disposed towards them and therefore would be more likely to be engaged in them (Klassen, 2004; Scheier, Carver, & Bridges, 2001). Once engaged in the behaviour, optimists are less likely to be cynical about the outcome, and less likely to quit when difficulties arise (Bandura, 1995; Smith, Pope, Rhodewalt & Poulton, 1989). The employee’s level of Optimism positively influences the intention to switch of the employee. Optimism, intention to switch and actual voluntary switching Proposition 1: Proposition 2: The employee’s level of Optimism positively influences the actual voluntary job switches an employee undertakes in his/her career over a period of time.

Voluntary Job switching may be seen as an instance of goal directed behaviour – which consists of forming intention to switch, active efforts to look for alternatives, evaluate them, make the move and make efforts to readjust to the new situation. Following Bandura’s (1986) model, positive self-efficacy expectancies would thus influence it positively Self-Efficacy has a positive impact on goal intentions and as well as subsequent conversion of the intention to goal-directed behavior (Luszczynska, Scholz, & Schwarzer, 2005). Maertz et al(2012) in the Eight Forces Model identified self-efficacy beliefs of finding a new job as a major driver of job switching The employee’s level of general self-efficacy positively influences the intention to switch of the employee General self-efficacy, intention to switch and actual voluntary switching Proposition 3: Proposition 4: The employee’s level of general self efficacy positively influences the actual voluntary job switches an employee undertakes in his/her career over a period of time

Mediator: Switching Costs/ Continuance Commitment

Switching Costs / Continuance Commitment Costs of switching jobs have been widely identified as determinants of turnover intentions and actual switching (Powell & Meyer, 2004). These may primarily be said to involve investments already made in an organization, costs of search and transfer, and other potential losses due to the switching ( Chen, 2006; Meyer et al, 2002) It has been captured through concepts like calculative commitment (Stevens, Beyer & Trice, 1978; Etzioni, 1975), behavioural commitment (Salancik, 1977; Brickman et al, 1987) alienative commitment (Penley & Gould, 1988) and, most popularly, continuance commitment (Meyer & Allen, 1991) Continuance commitment consists of the economic, social and psychological costs involved in quitting the organization (Wasti, 2005; Powell & Meyer, 2004) It is comprised of Sacrifices associated with leaving the organization (CC:HiSac) and perceived Alternative employment opportunities (CC:LoAlt)

Continuance Commitment as a Mediator Turnover intentions and actual turnovers are a function of weighing the 'profit associated with continued participation’ and a "cost" associated with leaving (Connelly et al., 2007; Meyer & Allen, 2002). Thus often continuance is an action to avoid costs (Meyer & Herscovitch, 2001) PROPOSITION 5 The positive influence of optimism and general self-efficacy on intention to switch of an employee is mediated by reduced continuance commitment Since perception of costs being subject to bounded rationality, optimism is more likely to make one hopeful about future outcomes and lower perception of risk related costs General self-efficacy is likely to lower continuance commitment by making cost drivers that involve personal agency appear more manageable than otherwise

Moderator: Job Satisfaction

A meta-analysis of studies on occupational mobility showed job satisfaction to be the best predictor of employee turnover (Griffeth et al, 2000; Hom & Griffeth, 1995). High satisfaction with the present relationship can lead to affective commitment (Meyer, Stanley, Herscovitch, & Topolnytsky, 2002), making the employee less responsive to alternatives available in the job market (Sommers, 2009; Lee, Mitchell, Holtom, McDaniel, & Hill, 1999) People who are protecting prior gains are risk averse (Kahneman and Traversky (1979). Consequently, high satisfaction with the present job is likely to make one less open to risky actions like voluntary switching Job satisfaction of the employee moderates the influence of reduced continuance commitment on the employee’s intention to switch Job satisfaction as a moderator Proposition 6:

Moderator: Individual Cultural Values

Cultural Values as Moderators Power DistanceIndividualism-CollectivismMasculinity-Femininity High PDI would indicate acceptance of inequality in wealth and power by less powerful members ( Yoo et al, 2011; Hofstede, 2010 ). Hence such individuals would be less likely to undertake active efforts to remedy conditions that have lowered job satisfaction Meyer et al(2012) proposed that cultural values would influence Normative commitment. Vann Dyne & Vandenwalle (2000) argued that collectivists are more likely to subordinate personal interests to organizational interests. Hofstede & Hofstede (2005) reports that occupational mobility tends to be lower in collectivistic cultures than in individualistic cultures. One outcome of a high MAS cultural orientation is an independent self- construal for men and an interdependent self-construal for women ( Hofstede & Hofstede, 2005; Taras et al, 2010 ). Further, high MAS is characterized by high competitiveness, ambition and achievement drive for men all of which may be associated with greater mobility in career ( Feldman & Weitz, 1991). PROPOSITION 7 A : Power Distance orientation of the employee moderates the influence of reduced continuance commitment on the employee’s intention to switch PROPOSITION 7 B: Power Distance orientation of the employee moderates the influence of optimism and general self-efficacy on the actual voluntary job switches an employee undertakes in his/her career over a period of time. PROPOSITION 8 A: Individualism/Collectivism orientation of the employee moderates the influence of reduced continuance commitment on the employee’s intention to switch PROPOSITION 8 B: Individualism/Collectivism orientation of the employee moderates the influence of optimism and general self-efficacy on the actual voluntary job switches an employee undertakes in his/her career over a period of time. PROPOSITION 9 A: Masculinity/Femininity orientation of the employee moderates the influence of reduced continuance commitment on the employee’s intention to switch PROPOSITION 9B: Masculinity/Femininity orientation of the employee moderates the influence of optimism and general self-efficacy on the actual voluntary job switches an employee undertakes in his/her career over a period of time.

Cultural Values as Moderators Uncertainty AvoidanceLong Term Orientation Low uncertainty avoidance is characterized by flexibility, openness for challenges and competition and low need for stability and has been associated with a propensity for risky investments ( Hofstede & Hofstede, 2005 ). In Long Term Orientation (LTO), a pragmatic outlook focused on the long term future is contrasted with a short-term orientation to life ( ITIM, 2011; Kohun et al, 2012 ). Acceptance of change as opposed to concern for stability PROPOSITION 10 A: Uncertainty Avoidance orientation of the employee moderates the influence of reduced continuance commitment on the employee’s intention to switch PROPOSITION 10 B: Uncertainty Avoidance orientation of the employee moderates the influence of optimism and general self-efficacy on the actual voluntary job switches an employee undertakes in his/her career over a period of time PROPOSITION 11 A: Long Term Orientation of the employee moderates the influence of reduced continuance commitment on the employee’s intention to switch PROPOSITION 11 B: Long Term Orientation of the employee moderates the influence of optimism and general self-efficacy on the actual voluntary job switches an employee undertakes in his/her career over a period of time

OPTIMISM GENERAL SELF- EFFICACY HI SAC LOW ALT VOLUNTARY JOB SWITCHING INTENTION TO SWITCH JOB SATISFACTION THE THEORETICAL MODEL PWDINDUAIMASLTO

OPTIMISM GENERAL SELF- EFFICACY HI SAC LOW ALT ACTUAL VOLUNTARY JOB SWITCHES UNDERTAKEN OVER A PERIOD (Years/switches – Feldman & Weitz, 1991) INTENTION TO SWITCH JOB SATISFACTION THE WORKING MODEL PWDINDUAIMASLTO

Method VariableMeasureNo. of Items Demographic VariablesGeneral Information Schedule5 OptimismLife Orientation Test-Revised (Scheier, Carver, & Bridges, 1994) 10 General Self EfficacyThe General Self-Efficacy Scale (Schwarzer & Jerusalem 1995) 10 Continuance Commitment Continuance Commitment Scale (Meyer & Allen, 2004) 6 3 = HiSAC 3 = LoALT Job SatisfactionGeneric Job Satisfaction Scale (Macdonald & Maclntyre, 1997) 10 Cultural ValuesCultural Values Scale (Yoo, Donthu, & Lenartowicz, 2011) 26 Intention to SwitchIntention to Quit Scale (Yin –fah et al, 2010) 6 Actual Voluntary Switches Years of work experience/ No of voluntary switches (Feldman & Weitz, 1991) (Data to be obtained from the General Information Schedule, partially cross-validated through Linkedin profile of subjects) Sample: 450 managerial level professionals with MBA from top-15 business schools (last 10 years), having experience of at least 2 years in the current job

Exploring voluntary job switching through the expectancy belief perspective and thus identifying new antecedents of voluntary job switching and intention to switch Proposing a model that may be applied during recruitment, as well as for internal employees, to identify those who are likely to display voluntary job switching Offering a better understanding of the personality drivers of voluntary job switching and hence providing clarity to career decisions of professionals Contribution

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