Business Commons^™

The Contagion Effect: Understanding The Impact Of Changes In Individual And Work-Unit Satisfaction On Hospitality Industry Turnover, Timothy R. Hinkin Ph.D., Brooks Holtom Ph.D., Dong Liu Ph.D.

Timothy R. Hinkin

This report describes a two-year longitudinal study examining the effects on employee turnover of the change in individual and unit levels of satisfaction. Analyses of data collected from 5,270 employees in 175 business units of a hospitality company demonstrate that changes in an individual’s level of satisfaction affect that person’s turnover decisions. More important, unit-level job satisfaction change and its dispersion jointly affect the individual’s satisfaction change and the overall turnover rate in a unit, in what can be termed a “contagion effect.” As the work environment becomes more positive (employees are satisfied) and overall satisfaction in the unit increases …