Research Article: 2022 Vol: 21 Issue: 1
K. Subha, Xavier Institute of Management & Entrepreneurship, Bangalore
K.A. Asraar Ahmed, Xavier Institute of Management & Entrepreneurship, Bangalore
S. Senthilkumar, Skyline University, Nigeria
Citation Information: Subha, K., Ahmed, K.A.A., & Senthilkumar, S. (2022). Quality of work life (QWL) and its impact on employee turnover – a comparative study with respect to it and hospital sector. Academy of Strategic Management Journal, 21(1), 1-11.
Quality of Work life is an approach that is concerned with the overall climate of work and the impact that the work has on people as well as on organisational effectiveness. The presence of good Quality of work life in organisations leads to higher positive outcomes. There are studies on QWL in different sectors like banking, steel, food processing, and hospitals but there is not much comparative study of QWL within the service sectors like IT and hospitals in Indian context. The intention of this study is to analyse the perception of employees towards the QWL in IT firms and hospitals and its impact on employee turnover. The sample consists of 223 respondents chosen using convenient sampling technique, 110 samples from IT firms and 113 samples from hospitals working in Karnataka and Tamilnadu. IT firms chosen for the study holds a minimum of 100 employees and hospitals chosen for the study has a minimum of 100 beds. The constituted variables in the questionnaire were subjected to reliability test and have a score of above 0.7 as Cronbach’s alpha. The data was collected using structured questionnaire and analysed using Independent sample t- test and multiple regressions. The study found the influencing QWL factors on employee turnover in IT firms and hospitals. There is a significant variance in the level of perception of employees on QWL; the perception towards QWL is higher among the IT workforce compared to hospital workforce.
Quality of Work life (QWL), Employee Turnover, Perception, IT Firms, Hospitals
Quality of work life (QWL) is defined as the favorableness or otherwise of the job environment to the people. The improvements of QWL are aimed at the enhancement of human dignity and growth by creating appropriate processes in which all the stakeholders collectively work together to improve the living standards of employees and the efficacy of organizations (Jyothi & Venkatesh, 2009).
Scenario of Indian IT Sector
According to NASSCOM, Information Technology sector was the first sector to recover from the Covid 19 pandemic. Indian Information Technology firms continue to add jobs and revenue and are intending for higher growth and hiring than the year 2020. The industry hired over 1,38,000 new recruits in the financial year 2020-2021, raising the total employee base to 4.47 million in the year 2020-2021. IT industry has witnessed 146 Merges and Acquisitions deals in 2020. The voluntary attrition rate of IT industry in first quarter of 2019 was 20.2% and it has declined to 11.7% in 2020 (Business Line, 2020). As per the NASSCOM report, attrition rate in IT firms dropped by 50% in the second half of the calendar year 2020 compared to the first half. But the scenario has changed drastically from the beginning of 2021 and IT firms all go out to stop the attrition of skilled young staff as the demand and war for the tech talent rises among the firms (Economic Times, 2021).
Scenario of Indian Hospital Sector
Indian hospital industry is estimated to grow to 132 billion US dollars by 2022 at a compound annual growth rate of 16-17% (IBEF, 2021). The Indian government mulls to enhance its spending to 2.5% of the country’s GDP towards health by 2025. The attrition rate in hospital sector is sky rocketing in this Covid time and is about 40% for the two manpower categories: doctors and nurses, highest in the Indian industries.
The success of service sector mainly depends on its employees who they value as invaluable assets which bring distinct capabilities to their firms in terms of cost and differentiation. In service sector, some companies are perceived as more valuable than others because of these indispensable assets. For instance, Infosys is perceived as being worth 50 times the value of its recorded assets due to its workforce. However, attracting, maintain and retaining the skilled workforce in service sector has become a herculean task to the HR department, due to increasing war for talent among these firms. Knowledge employees find enormous job opportunities with lucrative pay and developmental offers, which motivate them to switch their jobs frequently. A few research studies reveal that QWL has significant relationship with employee turnover among the professionals and good QWL is essential to attract and retain the workforce. So, employers are forced to pay attention towards QWL of employees to withstand its competitive edge in the industry. Thus, the present study elucidates QWL and its influence on employee turnover among the employees working in hospitals and IT firms in Tamilnadu and Karnataka. Through this research an effort is made to find out employee’s perception towards the QWL factors in IT and hospitals, to compare the QWL in IT and hospitals and also to find the repercussions of QWL on employee turnover in IT and hospitals.
Nasl Saraji & Dargahi (2006) analysed the employee’s QWL in Tehran University of Medical Sciences, Iran. The study was conducted with a sample size of 908 respondents from 15 hospitals. The research findings showed that majority of the respondents are dissatisfied with career prospects and work life balance. It also revealed that high income, interesting and satisfying work is more important to nurture high quality of work life in the work place. Rahman et al. (2010) investigated the role of QWL in job satisfaction, job performance and turnover intention among 207 employees working in Chittagong City, Bangladesh using self-rated survey instrument. The analysis of the study revealed that QWL negatively influences the employee turnover and thus is a predictor of turnover among the employees.Bhattacharya (2012);Mapelu & Jumah (2013)analysed the impact of socio demographic profile on turnover of knowledge workforce in north India using attrition tracking survey and collected data from 807 respondents. The study revealed that intention to shift from the current job is the main predictor that affects the attrition and demographic characteristics like age, gender, education predicted the intention to shift among the knowledge workforce. Kaur & Randhawa (2012); Alzamel et al. (2020) focused on Punjab Food Processing Industry to explore its QWL. The study compared the QWL issues between Multi-National Companies and Inter National Companies and employee’s perception towards QWL taking 50 respondents from each. Data was analysed using independent sample t- test. It was apparent from the analysis that the employees of MNCs perceived better QWL than INCs because of better growth and developmental opportunities and high decision making authority delegated to them. Ramesh Babu & Ramesh (2013) explored the interconnection between the QWL and job satisfaction among staff working in office and field in Tamilnadu Electricity Board using a sample size of 300. Analysis revealed a high association among QWL and job satisfaction and perception of job satisfaction differed between the office and field staff.Venkatesh & Arun Kumar (2016) conducted a survey to compare the QWL of IT, Banking and PSU sectors with 225 samples using simple random sampling technique. The study manifested that there exists a significant variance in the QWL and determinants of QWL like motivation, culture, training and development, team cooperation among IT, Banking and PSU in Tamilnadu.Mily Velayudhan & Yameni (2016) analysed the QWL in steel manufacturing organisation in Chennai, Tamilnadu. Data was collected from 123 employees using structured questionnaire. The researcher came out with the suggestion that QWL can be revamped by providing training for the employees with more than 3 years of experience and further the organisation should enhance the job security for employees who are above 41 years to improve their confidence level and performance. (Alwi et al., 2016); Sudhir Bhokare et al. (2017) conducted a study on employee attrition in hospital sector and came up with the findings that employees with 1-2 years and 3-5 years of experience are more susceptible to attrition due to new job offers, higher pay and better opportunities in government sector and abroad. The research added that QWL is used by most of the hospitals to control attrition.Jabeen et al. (2018) examined the influence of QWL on turnover intention of Emirati women working in public sector in UAE. The data was analysed using Smart partial least square SEM, which revealed that QWL had a positive influence on job satisfaction of employees which in turn negatively influenced the turnover intention. Taware & Patil (2018);Gangwani et al. (2020) emphasised the QWL of private hospital nurses in Pune, India. The findings of the study revealed that there is lack of trust among nurses on management’s ability for equity, lack of coordination among doctors, nurses, administrators in healthcare team, poor organisation culture, lack of transparency in implementing rules and poor work schedule. The author suggested few measures to improve the QWL. Raeissi et al. (2019) described Iranian nurses QWL. The study was cross sectional with 2391 nurses from 85 public hospitals through convenient sampling technique. The data was analysed using multivariate analysis. The findings indicated that the nurses experienced a low status of QWL with a mean score of 2.58 and the major influencing factors seems to be inadequate pay, poor management support, job insecurity, and low involvement in decision making. The predictors for low QWL were found to be gender, marital status, age and educational qualification of the nurses. The impact of QWL on employee turnover among the Malaysian Nurses with a sample size of 430 nurses from a teaching hospital, using cross sectional design. The SEM analysis revealed that the relationship between QWL and employee turnover was partially mediated by organisational commitment with a path coefficient of -0.234.
Plethora of studies has been done in the past by researchers on the Quality of Work Life in different sectors starting from Steel, Food Processing to service sectors and its impact on performance, job satisfaction, and turn over. However reliable studies and information on comparison of QWL between two service sectors namely IT and Hospitals which reports highest employee turnover among the industries operating in India seem to be limited. Thus the current study was undertaken to analyse and compare the QWL and its impact on employee turnover among the IT and hospital workforce
To analyse the Quality of Work life of employees and its impact on employee turnover in IT firms and Hospitals.
1.To assess the perception of employees working in IT and Hospital sector on quality of work life.
2.To compare the quality of work life of employees in IT and Hospital sector.
3.To analyse the impact of quality of work life on employee turnover in IT and Hospital sector.
The design adapted is descriptive research as it describes the existing conditions of QWL and its influence on employee turnover in both the IT firms and hospitals in two different states of India- Tamilnadu and Karnataka.
Sample Size and Sampling Area
Samples were chosen from two different sector- Information Technology companies and Hospitals for the purpose of comparison of their Quality of work life. IT firms chosen for the study holds strength of minimum of 100 employees and Hospitals chosen for the study has a minimum of 100 beds. Samples were chosen from the state of Tamilnadu and Karnataka in India. The sample size and area of sampling are given in the following Table 1.
|Table 1 Sampling Area|
The sampling design adopted for this study is convenience sampling. The researcher has chosen the firms and hospitals based on his convenience and accessibility. The samples were chosen in such a way that they represent employees working in different shifts both in IT firms and hospitals.
The data was collected using online structured questionnaire. The data were collected on QWL factors, Fair compensation, Employee development, Job security, Management Attitude, Working conditions, Training and Development, Fair Treatment, Adequacy of resources, Organisational Communication and Employee Turnover by administering questionnaire through mail and through telephonic interview as well. The secondary data were also used from journals and books
Reliability of the variables is tested using Cronbach Alpha and are as follows (Table 2)
|Table 2 Cronbach Alpha Value|
|S. No||Variables||Cronbach Alpha Value|
|6||Training & Development||0.914|
|8||Adequacy of Resources||0.795|
The table shows a strong reliability among the items in the variable as the Cronbach’s alpha value is above 0.7. Thus the data collected were further used for analysis.
The collected data has been analysed with the help of statistical tools using SPSS (Table 3).
|Table 3 Perception of it Employees on Quality of Work Life|
|Training & Development||63||57||25||23||22||20||110|
|Adequacy of Resources||69||63||25||23||16||15||110|
To assess the perception of employees towards the QWL factors in the workplace, the frequency table and simple percentage was computed. From the Table 1 it could be inferred that the perception of IT employees towards the QWL factors are high. All the QWL factors chosen for the study, has scores above 55 % in the category of High perception except Management Attitude. IT employees show a good perception towards the Working conditions, followed by Fair treatment and Organisational communication. However, it is also crystal clear from the table that 32% of employees have low i.e. poor perception towards the Management Attitude.
The above table reveals that Perception of hospital employees towards the QWL factors is moderate as the percentage score for the factors range between 42 to 61 % in the moderate category. Moreover, the score of 46% in low category shows that the employees working in hospital has a poor perception towards Training and Development (Table 4).
|Table 4 Perception of Hospital Employees on Quality of Work Life|
|Training & Development||14||12||47||42||52||46||113|
|Adequacy of Resources||9||8||70||62||34||30||113|
When the perception of IT workers was compared with the perception of hospital workers towards the QWL factors, it could be inferred that IT employees has a high perception towards the QWL factors while the Hospital employees has a moderate Perception towards the QWL factors. Thus, it can be concluded that Hospital management need to focus more in improving the QWL factors particularly the Training and development, Employee Development and Fair Treatment as these factors score high in poor perception among the hospital employees. Further, IT firms could also take steps to towards improving the QWL factor Management Attitude.
H1: There is no significant difference in the perception of quality of work life factors between IT employees working in Karnataka and Tamilnadu.
H2: There is a significant difference in the perception of quality of work life factors between IT employees working in Karnataka and Tamilnadu.
Two sample t – test was used to compare the difference in perceptual level among IT employees working in Karnataka and Tamilnadu with respect to the various aspects of QWL. A significant difference is noted in their perception for the QWL factors like Fair compensation, Adequacy of resources and Organisational communication at 99% confidence level as the p value is .000. Significant difference in the perception of IT employees working in Karnataka and Tamilnadu is also noted in the factors like Employee Development and Working Conditions at 95% confidence level as the p value is .002 and .044 respectively. However, no difference in perception seems to exist for few QWL factors like Job security, Management Attitude, Training and Development and Fair Treatment. Thus out of the nine QWL factors chosen for the research study, a significant difference in perception could be noted for five QWL factors. IT employees working in Karnataka had better perception towards Fair compensation, Employee Development, Adequacy of Resources and Organisational communication compared to employees working in Tamilnadu. However, IT employees working in Tamilnadu have better perception towards their working conditions compared to employees working in Karnataka. The total mean score for IT employees working in Karnataka is 30.34 and Tamilnadu is 28.72. Hence, it can be concluded that this difference in mean is statistically significant and explains the difference between IT employees working in Karnataka and Tamilnadu with respect to their perception towards various aspects of QWL factors.
H1: There is no significant difference in the perception of quality of work life factors between Hospital employees working in Karnataka and Tamilnadu.
H2: There is a significant difference in the perception of quality of work life factors between Hospital employees working in Karnataka and Tamilnadu.
To analyse the difference in the perceptual level among the hospital employees working in Karnataka and Tamilnadu independent ‘t’ test was used (Tables 5 and 6). From the table it could be inferred that there is no significant variance in perceptual level among the hospital employees working in Karnataka and Tamilnadu except for one quality of work life factor working conditions (p-value–0.001) at 95% confidence level. The mean value of 3.71 for working conditions among the hospital employees denotes that hospital employees working in Tamilnadu had better perception on their working conditions compared to hospital employees working in Karnataka. Thus, it can be concluded that the difference in total mean score 27.85 in Karnataka and 29.67 in Tamilnadu is not statistically significant.
|Table 5 Independent Sample ‘t’ Test – Analysis of IT Employees|
|Factors||IT EMPLOYEES||t- value||p- Value||Alternative Hypothesis|
|Training & Development||57||3.29||1.269||53||3.27||1.128||0.114||0.909||Rejected|
|Adequacy of Resources||57||3.75||1.184||53||3.23||1.331||4.294||0.000*||Accepted|
|Table 6 Independent Sample ‘t’ Test – Analysis of Hospital Employees|
|Factors||HOSPITAL EMPLOYEES||t- Value||p- Value||Alternative Hypothesis|
|Training & Development||56||3.07||1.188||57||3.40||1.048||-1.050||0.294||Rejected|
|Adequacy of Resources||56||3.00||1.202||57||3.45||1.214||-1.626||0.105||Rejected|
Impact of QWL Factors on Employee Turnover
The impact of QWL factors on the employee turnover may have its own influence on the score of employee turnover in IT and Hospital sector. In this study the researcher has made an attempt to analyse the impact with linear multiple regression analysis. The regression model is
Y=Score on Employee Turnover among the employees
X1=Score on QWLF “Fair Compensation” among the employees
X2=Score on QWLF “Employee Development” among the employees
X3=Score on QWLF “Job Security” among the employees
X4=Score on QWLF “Management Attitude” among the employees
X5=Score on QWLF “Working Conditions” among the employees
X6=Score on QWLF “Training & Development” among the employees
X7=Score on QWLF “Fair Treatment” among the employees
X8=Score on QWLF “Adequacy of Resources” among the employees
X9=Score on QWLF “Organisational Communication” among the employees
H1: There is no significant impact of QWL factors on Employee Turnover
The significantly and negatively influencing QWL factors on the score of employee turnover among the IT employees are Employee Development, Fair Compensation, Fair Treatment, Training and Development. A unit increase in these 4 QWL factors would decrease the score of employee turnover in IT firms by 0.317, 0.195, 0.186 and 0.167 units respectively. The finding of the study is consistent with the previous studies carried out by Rahman & Nas (2013). Similarly, QWL factors like Adequacy of Resources, working conditions and Job security also significantly and negatively influences the score on the employee turnover for IT employees. A unit increase in these three QWL factors would decrease the score of employee turnover by 0.164, 0.149 and 0.116 units respectively. Organisational Communication is the QWL factor which has the minimal negative influence on the score of employee turnover in IT. A unit increase in organisational communication would decrease the employee turnover in IT by 0.086 units. To conclude all the QWL factors in the study significantly and negatively influences employee turnover in IT at five percent level, the maximum influence exerted by Employee Development and least by Organisational communication. The R2 represents the changes in the QWL factors, explains the variation in score on employee turnover in IT to the extent of 61%.
QWL factors that significantly and negatively influencing the score of turnover among the employees working in hospitals are Fair Compensation, Working conditions, Job security and Management attitude. A unit increase in these four QWL factors would decrease the score of employee turnover in hospitals by 0.227, 0.222, 0.214 and 0.206 units respectively. The finding of the study is consistent with the previous study (Corin et al., 2016). The other three QWL factors which show moderate impact on the turnover of employees in hospitals are Employee Development, Adequacy of Resources and Fair Treatment. A unit increase in these three QWL factors would decrease the turnover of employees in hospitals by 0.185, 0.179 and 0.162 units respectively. Among the selected QWL factors in the study Training and Development has the least impact on turnover i.e., a unit increase in Training and development would decrease the turnover of employees by 0.093 in hospitals. No significant impact is found between the organisational communication and employee turnover in hospitals at five percent level. The R2 value represents that 52.9% of variation in employee turnover in hospitals could be explained by QWL factors.
Thus, from the above Table 7 it is evident that Employee Development has higher impact on the turnover of IT employees, while Fair Compensation has a higher impact on the turnover of employees in hospitals.
|Table 7 Multiple Regression Analysis on Employee Turnover|
|S. No||QWLF||Regression Co-efficient among employees in|
|IT Firms||t- Value||Hospitals||t- Value||Pooled Data||t- Value|
|6||Training & Development||-0.167||-4.681||-0.093||-2.162||-0.146||-5.851|
|8||Adequacy of Resources||-0.164||-4.275||-0.179||4.446||0.033NS||1.426|
The significantly and negatively influencing QWL factors on the score of employee turnover in pooled data are Fair Compensation, Employee Development, Job Security, Management Attitude, Working Conditions, Training & Development and Fair Treatment. A unit increase in the level of above mentioned QWL factors would decrease the turnover of pooled employees by 0.272, 0.199, 0.176, 0.166, 0.150, 0.146 and 0.106 respectively. Moreover, Adequacy of resources and organisational communication could not impact the turnover of pooled employees at five percent level and proves not significant. The R2 value represents that 64.5% of variation in turnover among the pooled employees could be explained by QWL factors.
• IT employees have a good perception towards the QWL factors chosen for the study, except for the factor Management Attitude with a score of 32%.
• Employees working in hospitals have a moderate perception towards the QWL factors chosen for the study, and poor perception towards Training and Development programmes offered.
• IT employees working in Karnataka and Tamilnadu showed a significant difference in their perceptual level towards the QWL factors – Fair Compensation, Adequacy of resources and Organisational communication. Employees working in Karnataka had a better perception towards these factors compared to employees working in Tamilnadu.
• Hospital employees working in Karnataka and Tamilnadu showed a significant difference in their perceptual level towards the QWL factor – Working conditions. Hospital employees in Tamilnadu had a better perception on their working conditions compared to those working in Karnataka.
• The opportunities for employee development, providing fair compensation, fair treatment of employees by the management and adequate training and development programs significantly and negatively influence the employee’s turnover in IT firms.
• Maintaining fair compensation structure, facilitating good working conditions, ensuring job security and optimistic management attitude of the hospital administration towards its health workers significantly and negatively influence the employee’s turnover in hospitals.
• Analysis of the pooled data reveals that maintaining fair compensation structure and offering opportunities to the employees for development working in both IT and hospitals may reduce the employee’s turnover by 0.272 units and 0.199 units respectively.
Top management and managers in IT firms need to develop more supportive and caring attitude towards its workforce in the pandemic, as employees are not happy towards their management attitude. IT firms operating in Tamilnadu need to work on its market competitive compensation plan, allocate adequate resources and provide open and free communication channels in the organisation, to improve the perception of its workforce towards QWL factors.
Hospital administrators and HR managers in hospitals can focus more on training need analysis of their employees and come out with job specific training and development courses as employees are on the lookout for professional skills development in the work place. Hospitals located in Karnataka can improvise their working conditions to earn a good perception towards QWL factors
On the whole, top management in IT firms and hospitals can come out with policies and strategies which will ensure fair compensation structure and opportunities for employee development as it can reduce the employee turnover rate among the professionals.
The present study explored the QWL among IT and hospital employees and its impact on employee turnover. The QWL was measured with the help of nine constructs and its impact on employee turnover is ascertained. Employee development has the highest inverse impact on employee turnover in IT firms while Fair compensation has the highest negative statistical impact on employee turnover in hospitals. The management and policy makers should take imperative initiatives to enhance QWL in order to curtail the employee turnover as it will enhance the productivity and quality of services offered.
Alwi, S.F.S., Nguyen, B., Melewar, T.C., Loh, Y.H., & Liu, M. (2016). Explicating industrial brand equity: Integrating brand trust, brand performance and industrial brand image. Industrial Management & Data Systems, 116(5), 858-882.
Alzamel, L.G.I., Abdullah, K.L., Chong, M.C., & Chua, Y.P. (2020). The quality of work life and turnover intentions among Malaysian nurses: the mediating role of organizational commitment. Journal of the Egyptian Public Health Association, 95(1), 1-8.
Bhattacharya, I. (2012). Attrition of knowledge workforce in healthcare in northern parts of India – Health information technology as a plausible retention strategy. Systemics, Cybernetics And Informatics, 10(3).
Corin, L., Berntson, E., & Härenstam, A. (2016). Managers’ turnover in the public sector—The role of psychosocial working conditions. International Journal of Public Administration, 39(10), 790-802.
Gangwani, S., Sharma, S., & Zahra, N. (2020), Impact of quality of work life of employees on employee turnover in engineering sector. International Journal of Recent Technology and Engineering (IJRTE), 8(6).
Jabeen, F., Friesen, H.L., & Ghoudi, K. (2018). Quality of work life of Emirati women and its influence on job satisfaction and turnover intention: Evidence from the UAE. Journal of Organizational Change Management.
Jyothi, D., & Venkatesh, N. (2009). Human resource management. Oxford University Press, 420-421
Kaur, K., & Randhawa, G. (2012). Quality of work life issues: A comparative study of multinational and Indian food companies of Punjab. Gian Jyoti e-journal, 2(3).
Mapelu, I.C., & Jumah, L. (2013). Effect of training and development on employee turnover in selected medium sized hotels in Kisumu City, Kenya. Journal of Tourism, Hospitality and Sports, 1.
Mily Velayudhan, T.K., & Yameni, M.D. (2016). Quality of work life – a study. International Conference on Recent Trends in Physics 2016 (ICRTP2016), Conference Series 755.
Nasl Saraji, G., & Dargahi, H. (2006). Study of quality of work life (QWL). Iranian Journal of Public Health, 35 (4),8-14.
Raeissi, P., Rajabi, M.R., Ahmadizadeh, E., Rajabkhah, K., & Kakemam, E. (2019). Quality of work life and factors associated with it among nurses in public hospitals, Iran. Journal of the Egyptian Public Health Association, 94(1), 1-8.
Rahman, M.S., Ferdausy, S., & Karan, R. (2010). Role of quality of work life in job satisfaction, job performance and turnover intention: an empirical study. The Chittagong University Journal of Business Administration, 25, 117-137.
Rahman, W., & Nas, Z. (2013). Employee development and turnover intention: Theory validation. European Journal of Training and Development, 37(6), 564 – 579.
Sudhir Bhokare, A., Paul, D., Madhale, & Ashok Rajput, P. (2017). A study of employee attrition rate in hospital sector. International Journal of Engineering Technology Science and Research, 4(12).
Taware, M.P., & Patil, S. (2018), Study of quality of work life of hospital nurses. International Journal of Research and Analytical Reviews, 5(2).
Venkatesh, S., & Kumar, S.A. (2016). A comparative study on quality of work life in it, banking and psu sectors in tamil nadu. International Journal of Business and General Management (IJBGM), 5(6), 1-10.