Job satisfaction and employee turnover: A firm-level perspective

In this article I study how companies can use their personnel data and information from job satisfaction surveys to predict employee quits. An important issue discussed at length in the article is how employers can ensure the anonymity of employees in surveys used for management and human resources (HR) analytics. I argue that a simple mechanism whereby the company delegates the implementation of job satisfaction surveys to an external consulting company can be optimal. In the subsequent empirical analysis, I use a unique combination of firm-level data (personnel records) and information from job satisfaction surveys to assess the benefits for companies using data in their decision-making. Moreover, I aim to show how companies can move from a descriptive to a predictive approach.