The contribution of client embeddedness to an employee’s employment experience Gerrit (Gerry) GJM Treuren, University of South Australia Beni Halvorsen, RMIT University Purpose Treuren and Frankish (2014) demonstrated that client embeddedness - a recently proposed component of Job Embeddedness (Mitchell et al 2001) based on the relationship between employees and the beneficiaries of their work - can mitigate the impact of an employee’s adverse experiences on their turnover intention. This paper and presentation will extend knowledge of the properties of client embeddedness into two ways. First, this paper and presentation will examine whether client embeddedness contributes to an employee’s experience of their work as measured by satisfaction, affective commitment and employee engagement. Second, this paper and presentation examines whether the strength of the client embeddedness-employee outcome relationship is affected by adverse employment experiences such as psychological contract breach. Specifically, this paper will test the following hypotheses: H1: Client embeddedness positively improves as employee experience of work (such as job satisfaction, affective commitment and employee engagement) H2: The impact of client embeddedness on employee outcomes is moderated by psychological contract breach, such that employees experiencing higher levels of psychological contract breach report poorer employee experiences. Method Data were obtained from personal care, allied health professionals, hospitality and administrative employees of a large multi-site aged care organisation. Two waves of data were collected eight months apart, giving a two-wave sample of 121. Established scales for the various measures were used. Data were analysed using OLS regression. Results and key findings Table 1 reports on the standard descriptive statistics. ________________________________ Insert Table 1 here ________________________________ Hypothesis 1 was tested by regressing the various dependent variables at Time 2 on client embeddedness in Time 1. Table 2 reports on these regressions. Client embeddedness predicted job satisfaction, affective commitment and employee engagement, and explained between 6 and 15% of variance. Hypothesis 1 is supported. ________________________________ Insert Table 2 here ________________________________ Hypothesis 2 was tested using moderated regression. The three outcome measures at Time 2 were regressed on client embeddedness measured at Time 1, with psychological contract breach at Time 1 as the moderator. These regressions are reported in Table 2. As can be seen, psychological contract breach moderates the negative effect of client for only one employee outcome - job satisfaction. Figure 1 depicts this interaction. The role of client embeddedness was unexpected. Hypothesis 2 was partially supported – satisfaction is lower during times of breach. Satisfaction is unrelated to client embeddedness during high psychological contract breach (b = 0.11, t(118) = 1.24, p > .05). Satisfaction is positively related to client embeddedness during low psychological contract breach (b = 0.28, t(118) = 2.55, p < .05). Client embeddedness only buffers the breach during low levels of breach. ________________________________ Insert Figure 1 here ________________________________ Research implications/ limitations This paper finds that client embeddedness is positively associated with satisfaction, affective commitment and employee engagement, and directly contributes to an employee’s positive experience of employment. However, during times of high psychological contract breach, client embeddedness has no impact on employee satisfaction. Client embeddedness appears to have most effect as a buffer during low levels of breach. This is counter-intuitive. The presentation and subsequent paper will present some explanations for this finding. These findings increase our understanding of the determinants of employee employment experience (Zhang, Fried, & Griffeth 2012), and the properties of client embeddedness (Treuren and Frankish 2014). However, these findings are necessarily tentative due to small sample size, use of a single organisation, two wave rather than longitudinal data, and the exclusive use of self-report perceptual data. Practical and social implications These findings point to additional ways of increasing employee intrinsic motivation, leading to increased client satisfaction as well as employee quality of work life through recruitment and development practices aimed at the responsible cultivation of employee-client relationships. These findings are especially salient in industries such as aged care and disabilities services that are moving towards consumer-directed care (for example, MyAgedCare 2015), that experience difficulties in recruitment and retention (ACSA 2015). ACSA (Aged & Community Services Australia) (2015). The aged care workforce in Australia, Retrieved June 20, 2015, from http://www.agedcare.org.au/news/copy_of_2014-news/acsaposition-paper-the-aged-care-workforce-in-australia Mitchell, TR., Holtom, B., Lee, TW., Sablynski, C., & Erez, M. (2001). Why people stay: Using job embeddedness to predict voluntary turnover. Academy of Management Journal, 44(6), 11021121. MyAgedCare. (2015, May 2015). Home care packages Retrieved June 20, 2015, from http://www.myagedcare.gov.au/aged-care-services/home-care-packages Jiang, K., Dong, L., McKay, PF., Lee, TW., & Mitchell, TR. (2012). When and how is job embeddedness predictive of turnover? A meta-analytic investigation. Journal of Applied Psychology, 97(5), 1077-1096. Treuren, GJM., & Frankish, E. (2014). Pay dissatisfaction and intention to leave: The moderating role of personal care worker client embeddedness. Nonprofit Management and Leadership, 25(1), 5-21. Zhang, M., Fried, DD., & Griffeth, RW. (2012). A review of job embeddedness: Conceptual, measurement issues, and directions for future research. Human Resource Management Review, 22(3), 220-231. TABLE 1 Descriptive statistics Wave 1 1. Client embeddedness 2. Psychological contract breach Wave 2 3. Job Satisfaction 4. Affective commitment 5. Employee engagement M SD 1 2 4.06 2.87 0.55 0.78 (.84) .16 (.89) 4.13 3.51 3.81 0.62 0.73 0.59 .24** .34** .38** -.53** -.49** -.42** 3 4 5 (.84) .70** .73** (.83) .76** (.87) Notes: *p<.05; **p<.01; ***p<.001; Cronbach alpha score is reported on the diagonal; All items are measured on a five point scale (1– lowest, 5 – highest) TABLE 2 Regression results Job satisfaction H1 0.24** CE PCB CE x PCB H2 0.17* -0.48*** -0.17* Affective commitment Employee engagement H1 0.34*** H1 0.38*** H2 .27*** .43*** -.06 H2 0.33*** -0.36*** -0.03 R2 .06 .34 .12 .31 .15 .28 F 7.05** 19.45** 15.45*** 17.45*** 20.59*** 15.16*** Notes: Table reports standardised co-efficients; *p<.05; **p<.01; ***p<.001; CE – Client embeddedness; PCB – Psychological contract breach FIGURE 1 Psychological contract breach as a moderator of the relationship between client embeddedness and satisfaction 5 4.5 Satisfaction 4 3.5 3 2.5 2 Low PCB High PCB 1.5 1 Low CE High CE