THE IMPACT OF FINANCIAL BURDEN AND EMPLOYMENT ON STUDENT EMPLOYMENT TURNOVER AND
DROPOUT INTENTIONS
by
Meredith Haney
A Senior Honors Project Presented to the
Honors College
East Carolina University
In Partial Fulfillment of the
Requirements for
Graduation with Honors
by
Meredith Haney
Greenville, NC
May 2015
Approved by:
Dr. Mark Bowler
Department of Psychology
Finances and Work Stress Impacting College Students’ Academic Performance
Overall academic performance is a function of a multitude of factors. As noted by
Honken and Ralston (2013), in addition to academic ability, self-control impacts college
performance. Similarly, Kennedy and Tuckman (2013) determined that mastery goals and selfregulatory self-efficacy have a significant positive impact on academic performance while
procrastination has a negative impact. In addition, other personality dimensions, such as intrinsic
motivation and commitment, have also been shown to be significant predictors of academic
performance (Komarraju, Ramsey, & Rinella, 2012). Sleep patterns have also been shown to
greatly affect academic performance. Delayed sleeping patterns, including staying up late,
napping, and general sleeping pattern inconsistency, are related to lower academic performance
(Taylor, Vatthauer, Bramoweth, Ruggero, & Roane, 2013).
Stress
The effects of stress can influence both physical and mental well-being. As noted by
Hintz, Frazier, & Meredith (2014), high levels of stress can impact an individual’s health-related
behaviors (e.g., disrupted sleep patterns), as well as their physiology (e.g., decreased immune
functioning; cardiovascular disease) and their mental health (e.g., depression; anxiety). For
example, Avey, Luthans, and Jensen demonstrated that high levels of stress can lead to increased
accidents and burnout (2009). Stress also has a significant impact on students. For example,
stress is one of the primary risk factors for depression in college students (Sawatzky, Ratner,
Richardson, Washburn, Sudmant, & Mirwaldt, 2012). Moreover, academic stress has been
shown to negatively affect students’ overall academic performance, overall mood, and
disengaged coping (Arsenio & Loria, 2014).
The emotional state students bring to the classroom has a directly link to crucial academic
issues such as success and adjustment (Saklofske, Austin, Mastoras, Beaton, & Osborne, 2012).
Additionally, academic stress has been directly linked to the major of the student. As noted by
May and Casazza (2012), students majoring in what are typically considered to be more difficult
fields (e.g., engineering, chemistry, biology) report drastically higher levels of stress than those
in other fields (e.g., psychology, sociology, anthropology). A more recently acknowledged
source of stress is the demand for instant communication. Along with stress from the student’s
chosen major, email has begun to engender stress in students due to both professors and students
expecting immediate responses (Jerjian, Reid, & Rees, 2013). Moreover, this leads to both
habitually checking their email to ensure that nothing has been missed. This induces stress in the
classroom as well as stress at home. Academic stress is an issue for both students and professors
that can lower the effectiveness of both parties in the classroom and in their personal lives.
Financial Burden
College may be stressful but paying for college can bring its own issues. Financial burden
is one of the primary sources of stress for many college students. As noted by Ross, Niebling,
and Heckert (1999), financial issues account for over 70 percent of perceived stress in college
students. In addition to daily cost-of-living expenses increasing credit card debt, a substantial
amount of long-term debt is incurred by students who are required to take loans to pay for their
tuition (Jackson & Reynolds, 2013). Regarding the later, the amount of debt that is incurred by a
college student is typically a direct function of the socioeconomic status and education level of
the student’s parents (Houle, 2013). This disparity in the availability of resources due to parental
status creates a considerable burden on students who must attempt to balance academic success
with making ends meet (Smith, 2011). Students are also faced with an additional source of stress
resulting from the ambiguity regarding their career opportunities following graduation and the
subsequent ability to pay off their college loans (Guo, Wang, Johnson, & Diaz, 2011). In order to
pay off these extensive loans, many college students work during college. This additional role as
an employee adds stress to the student as well.
Work Stress
Work stress is a multifaceted issue facing employees today (Pereira & Elfering, 2014).
Almost half of all employees experience work stress of some form with many reporting their
jobs to be extremely stressful (Fritz, Ellis, Demsky, Lin, & Guros, 2013). Job insecurity, labor
intensification, and work-life balance are antecedents that increase workers’ stress levels (Senova
& Antosova, 2014). In addition to impacting work performance, social stressors during the
workday can also have an effect on non-work activities such as sleep patterns and the overall
health of employees (Pereira & Elfering, 2014). Work stress has been shown to have a strong
negative correlation with well-being and emotional stability, and a positive correlation with job
burnout (Ganster & Rosen, 2013). Overall, the level of job satisfaction has a direct correlation
with the work stress of the employee.
Job Satisfaction
An individual’s level of job satisfaction is a function of numerous factors. For example,
several individual differences such as self-esteem, generalized self-efficacy, locus of control, and
emotional stability, have been identified as correlates of job satisfaction (Judge & Bono, 2011).
Similarly, several job characteristics, such as autonomy and pay rate, have also been shown to be
related to job satisfaction (Loher, Noe, Moeller, & Fitzgerald, 1985). In turn, higher levels of job
satisfaction have been shown to lead to higher levels of satisfaction and perceived organizational
support (Gillet, Colombat, Michinov, Pronost, & Fouquereau, 2013). In contrast, lower levels of
job satisfaction have been shown to lead to greater instances of turnover and burnout (Zaniboni,
Truxillo, & Fraccaroli, 2013).
Proposed Study
The proposed study aims to examine the relationship between student financial burden
and dropout and turnover intentions. Of primary concern is the impact of financial burden on job
satisfaction. As previously noted, job satisfaction has been correlated with higher levels of
autonomy, self-esteem, and generalized self-efficacy (Judge & Bono, 2011). Similarly, students’
emotional state in the classroom has been linked to academic performance. Subsequently,
students’ satisfaction with their current employment should have an impact on their willingness
to dropout of school.
Hypothesis 1: Employed students’ job satisfaction will be positively related to drop out
intentions.
Similarly, the overall effects of stress can impact a student’s well-being. Stress from the
academic and occupational setting can lead to a decline in general well-being (Hintz, Frazier, &
Meredith, 2014), which can influence willingness to dropout or for a student to quit their job.
Thus, well-being should have negative relationships with both turnover and dropout intentions.
Hypothesis 2a: Physical well-being will be negatively correlated with turnover
intentions.
Hypothesis 2b: Physical well-being will be negatively correlated with dropout intentions
Additionally, work stress among employed students is also related academic performance.
Increased work stress is linked to disrupted sleep patterns, decreased emotional stability, and is
positively correlated to job burnout (Ganster & Rosen, 2013). Thus, work stress can decrease
overall job satisfaction and can increase the level of stress perceived by the individual.
Hypothesis 3a: Work stress will be positively correlated with turnover intentions.
Hypothesis 3b: Work stress will be positively correlated with dropout intentions.
Finally, among the many factors that affect academic performance and job satisfaction,
the level of financial burden that a student feels is linked to the level of stress a student perceives
and academic performance. Ross, Niebling, and Heckert (1999) noted that the majority of
students’ stress resulted from financial issues.
Hypothesis 4: Financial burden will strengthen the relationship of work stress with job
satisfaction, physical well-being, intentions to quit, and intentions to dropout.
Job
Satisfaction
-.315
-.464
Financial
Burden
Intentions to
Quit Work
-.530
-.453
.323
.414
-.200
.244
Intentions to
Drop Out of
School
Work Stress
-.204
-.358
Physical
Wellbeing
Participants
Data was collected from 148 participants (60% female) at a large southeastern university.
All participants indicated that they were currently employed and working at the time of the
survey (M = 16.97 hours/week; SD = 9.36). All participants were currently enrolled in
undergraduate psychology course and received partial credit towards a research activity
requirement in exchange for their voluntary participation. Students ranged in age from 18-28 (M
= 18.63; SD = 1.16). Participants were primarily Caucasian (74%) and African American (16%)
with only 7% identifying as being from either Hispanic or Latino.
Methods
The statistical program, M-Plus, will be used to test the hypothesized path model. This
program runs a series of sequential multiple regressions for each step in the model to calculate
path estimates, standard errors, t-values, and probability values for each path in the model.
Additionally, the statistical program SPSS will be used to evaluate one-way analysis of variance
for comparisons between the various measures and race, sex, and age.
Results
Intentions to Quit Work. Intentions to quit work were measured via the Turnover Intentions
Measure by Kelloway, Gottlieb, and Barham’s (1999). The measure consists of 4 questions with
responses being made on a 5-point Likert-type scale ranging from 1 (strongly disagree) to 5
(strongly agree). The mean score was 13.28 (SD = 3.01) and demonstrated an acceptable level of
internal consistency (a = .84). Scores were unrelated to age (r = .01, ns), sex, F(1,146) = .09, p =
.76, or race, F(4,143) = 1.03, p = .40.
Intentions to Drop Out. Intentions to drop out were measured via the Turnover Intentions
Measure by Kelloway, Gottlieb, and Barham’s (1999). The measure consists of 4 questions with
responses being made on a 5-point Likert-type scale ranging from 1 (strongly disagree) to 5
(strongly agree). The mean score was 12.66 (SD = 2.70) and demonstrated an acceptable level of
internal consistency (a = .77). Scores were unrelated to age (r = .11, ns), sex, F(1,146) = 1.47, p
= .23, or race, F(4,143) = 1.51, p = .20.
Financial Burden. Financial burden was measured via questions to respondents about lifestyle
changes that they have made since coming to college in order to afford tuition, fees, housing, and
other financial requirements of college students. The measure consists of 5 questions with
responses being made on a 5-point Likert-type scale ranging from 1 (strongly disagree) to 5
(strongly agree). The mean score was 12.06 (SD = 2.64) and demonstrated an acceptable level of
internal consistency (a = .84). Scores were unrelated to age (r = -.01, ns), sex, F(1,146) = .03, p =
.76, or race, F(4,143) = .16, p = .96.
Work Stress. Work stress was measured via the Stress in General – Revised (SIG-R) developed
by Yankelevich, Broadfoot, Gillespie, J., Gillespie, M., and Guidroz (2012). The measure
consists of 9 questions with responses being made on a 5-point Likert-type scale ranging from 1
(strongly disagree) to 5 (strongly agree). The mean score was 25.53 (SD = 4.93) and
demonstrated an acceptable level of internal consistency (a = .93). Scores were unrelated to age
(r = .14, ns), sex, F(1,146) = 2.91, p = .09, or race, F(4,143) = .85, p = .50.
Job Satisfaction. Job satisfaction was measured via the Satisfaction with Job Facets developed by
Rentsch and Steel (1992). The measure consists of 5 questions with responses being made on a
5-point Likert-type scale ranging from 1 (strongly disagree) to 5 (strongly agree). The mean
score was 12.82 (SD = 2.91) and demonstrated an acceptable level of internal consistency (a =
.88). Scores were unrelated to age (r = -.04, ns), sex, F(1,146) = .92, p = .34, or race, F(4,143) =
1.02, p = .40.
Physical Wellbeing. Physical wellbeing was measured via the Personal Wellbeing Index
developed by Cummins, Eckersley, Pallan, Van Vugt, and Misajon (2003). The measure consists
of 8 questions with responses being made on a 5-point Likert-type scale ranging from 1 (strongly
disagree) to 5 (strongly agree). The mean score was 21.53 (SD = 2.91) and demonstrated an
acceptable level of internal consistency (a = .84). Scores were unrelated to age (r = -.01, ns), sex,
F(1,146) = .42, p = .52, or race, F(4,143) = .72, p = .58.
Conclusion
From the research conducted, it is evident that students’ financial burden impacts other
facets of students’ lives. Students that reported a higher level of financial burden were more
likely to have lower job satisfaction, physical wellbeing, and less likely to quit their jobs.
Subsequently, students that reported higher levels of job satisfaction were more likely to drop out
of school. However, greater work stress was more likely to lead to a student dropping out of
school rather that quitting their job.
Financial burden had a negative correlation with job satisfaction, intentions to quit work,
and physical wellbeing, while having a positive correlation to intentions to drop out of school.
Financial burden had the most impact among the variables tested. Further research should be
done to examine engagement in both academic and work settings to determine if financial burden
is influenced by engagement in these settings.
Overall, college students’ intentions to drop out were positively correlated with job
satisfaction, work stress, and financial burden. Intentions to drop out were only negatively
correlated with physical wellbeing. Subsequently, students’ intentions to quit work were
negatively correlated with only job satisfaction and financial burden. Therefore, among the
students surveyed, financial burden is the factor that influences all other aspects of the workschool-life balance that impacts students’ decisions to drop out or quit their jobs.
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Appendix A
Study Measures
Demographics
What is your age?
What is your sex?
What is your race?
Are you Hispanic, Latino, or Chicano?
Are you currently employed? Yes, No
Is your current employment on or off campus? On, Off
Approximately how many hours per week do you work?
What is your current cumulative GPA?
What is your current major or intended major?
Intentions to Quit 1-5 Likert; SD to SA
1.
2.
3.
4.
I am thinking about leaving this organization
I am planning to look for a new job
I intend to ask people about new job opportunities
I don’t plan to be in this organization much longer
Intentions to Drop-out 1-5 Likert; SD to SA
1.
2.
3.
4.
I am thinking about leaving ECU
I am planning to look for a new university
I intend to ask people about alternative programs
I don’t plan to be at ECU any longer
Financial Burden Yes/No/Cannot Decide
1. In order to be able to pay for college, I have to restrain from purchasing some things that
I want.
2. I have to turn down invitations to social event because of college expenses.
3. Please answer “No” to this question. Your response to this question will not be included
when analyzing your responses.
4. Paying for college has not affected my social life in any way. (R)
5. The cost of college does not prevent me from shopping for nonessential or luxury items.
(R)
Work Stress (Stress in General – Revised (SIG-R)): Yes/No/Cannot Decide (current job):
1.
2.
3.
4.
5.
6.
7.
8.
9.
Demanding
Pressured
Calm (R)
Many things stressful
Please answer “No” to this question. Your response to this question will not be included
when analyzing your responses.
Nerve-wracking
Hassled
More stressful than I’d Like
Overwhelming
Personal Wellbeing (Personal Wellbeing Index Items): 10 = Completely Satisfied – 0 = No
Satisfaction at All
How satisfied are you with…?
1.
2.
3.
4.
5.
6.
7.
8.
Your standard of living?
Your health?
What you are achieving in life?
Please answer “5” to this question. Your response to this question will not be included
when analyzing your responses.
Your personal relationships?
How safe you feel?
Feeling part of your community?
Your future security?
Job Sastisfaction (Satisfaction with Job Facets): 7 = delighted, 6 = pleased, 5 = mostly satisfied,
4 = equally satisfied and dissatisfied, 3 = mostly dissatisfied, 2 = unhappy, and 1 = terrible
1.
2.
3.
4.
How do you feel about your job?
How do you feel about the people you work with--your co-workers?
How do you feel about the work you do on your job—the work itself?
Please answer “mostly satisfied” to this question. Your response to this question will not
be included when analyzing your responses. What is it like where you work—the
physical surroundings, the hours, the amount of work you are asked to do?
5. How do you feel about what you have available for doing your job—I mean the
equipment, information, good supervision, and so on?
Other
1. May we retrieve your GPA from the university?