Author(s): Rui Silva
This study is built on the Conservation of Resources Theory (COR), which presents a framework for a better understanding of the impact of the workplace environment on employees’ emotional exhaustion. COR theory advocates that emotional exhaustion negatively influences employee job attitudes, which, in turn, affect the auditors’ individual performance. Based on a survey among Portuguese auditors, this study examines the effects and the relative importance of emotional exhaustion, job satisfaction and turnover intention on individual perceived performance. Data were collected from 222 auditors in audit firms in Portugal. The SPSS/SEM-AMOS 27 data analysis technique was used to analyse the research model. Results suggest that job satisfaction is the most influential predictor of both individual performance and turnover intention, followed by emotional exhaustion. From a practical standpoint, these results thus suggest that the most important predictors of turnover intention and individual performance can be shaped and influenced quite well by management. Regarding professional practice, managers of auditing firms can apply the findings learned from this study to improve employee retention in their organisation. The managers’ understanding of what motivates or fails to motivate employees can cause an effective retention employee strategy. Therefore, in order to improve their performance, firms must identify the factors that contribute to turnover intention and ways to retain a quality workforce.