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• Explain the methodology of the study
• Research Questions
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• Instruments used
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Walden University
College of Management and Human Potential
This is to certify that the doctoral study by
Ebony Phillips
has been found to be complete and satisfactory in all respects,
and that any and all revisions required by
the review committee have been made.
Review Committee
Dr. Elisabeth Musil, Committee Chairperson, Doctor of Business Administration Faculty
Dr. Denise Land, Committee Member, Doctor of Business Administration Faculty
Dr. Theresa Neal, University Reviewer, Doctor of Business Administration Faculty
Chief Academic Officer and Provost
Sue Subocz, Ph.D.
Walden University
2023
Abstract
Strategies to Reduce Employee Turnover in the Insurance Industry
by
Ebony Phillips
MBA, Walden University 2010
BS, Friends University, 2008
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration
Walden University
April 2023
Abstract
Employee turnover continues to increase in the insurance industry because no minimum
skill or education level is required to enter the U.S. insurance industry. Insurance leaders
are concerned with reducing employee turnover, as it creates a risk to employee
productivity and profitability. Grounded in Herzberg’s two-factor theory of motivation,
the purpose of this qualitative multiple-case study was to explore strategies five insurance
leaders from central Kansas used to reduce employee turnover. Data were collected using
semistructured virtual interviews and a review of company records. Data were analyzed
using Yin’s five-step approach, and three themes emerged: (a) supportive leadership, (b)
incentives/benefits, and (c) training strategy. A key recommendation is that insurance
leaders build relationships with employees and openly communicating with employees.
The implications for positive social change include the possibility of a lower
unemployment rate, creating stability for more families, and more money circulating
within the community.
Strategies to Reduce Employee Turnover in the Insurance Industry
by
Ebony Phillips
MBA, Walden University 2010
BS, Friends University, 2008
Doctoral Study Submitted in Partial Fulfillment
of the Requirements for the Degree of
Doctor of Business Administration
Walden University
April 2023
Table of Contents
List of Tables…………………………………………………………………………………………………… iv
Section 1: Foundation of the Study ………………………………………………………………………. 1
Background of the Problem……………………………………………………………………………. 1
Problem and Purpose ……………………………………………………………………………………. 2
Population and Sampling ………………………………………………………………………………. 2
Nature of the Study ………………………………………………………………………………………. 2
Research Question ……………………………………………………………………………………….. 3
Interview Questions ……………………………………………………………………………………… 4
Conceptual Framework …………………………………………………………………………………. 4
Operational Definitions …………………………………………………………………………………. 5
Assumptions, Limitations, and Delimitations ……………………………………………………. 6
Assumptions …………………………………………………………………………………………..6
Limitations ……………………………………………………………………………………………..6
Delimitations ………………………………………………………………………………………….6
Significance of the Study ………………………………………………………………………………. 7
Contribution to Business Practice ……………………………………………………………….7
Implications for Social Change ………………………………………………………………….8
A Review of the Professional and Academic Literature ………………………………………. 8
Literature Review Search ………………………………………………………………………….9
Herzberg’s Two Factor Theory ……………………………………………………………….. 10
Supporting and Rival Theories ………………………………………………………………… 13
i
Job Satisfaction …………………………………………………………………………………….. 18
Results of Job Dissatisfaction ………………………………………………………………….. 19
Employee Motivation …………………………………………………………………………….. 20
Employee Engagement…………………………………………………………………………… 22
Employee Turnover……………………………………………………………………………….. 25
Employee Turnover Reduction in the Insurance Industry …………………………….. 30
Transition …………………………………………………………………………………………………. 32
Section 2: The Project ………………………………………………………………………………………. 34
Purpose Statement ……………………………………………………………………………………… 34
Role of the Researcher ………………………………………………………………………………… 34
Participants ……………………………………………………………………………………………….. 36
Research Method and Design ……………………………………………………………………….. 37
Research Method ………………………………………………………………………………….. 37
Research Design …………………………………………………………………………………… 38
Population and Sampling …………………………………………………………………………….. 40
Ethical Research ………………………………………………………………………………………… 42
Data Collection Instruments …………………………………………………………………………. 43
Data Collection Technique …………………………………………………………………………… 44
Data Organization Technique……………………………………………………………………….. 47
Data Analysis ……………………………………………………………………………………………. 48
Reliability and Validity ……………………………………………………………………………….. 50
Reliability ……………………………………………………………………………………………. 50
ii
Validity ……………………………………………………………………………………………….. 51
Transition and Summary ……………………………………………………………………………… 52
Section 3: Application to Professional Practice and Implications for Change …………….. 54
Introduction ………………………………………………………………………………………………. 54
Presentation of the Findings …………………………………………………………………………. 54
Theme 1: Supportive Leadership ……………………………………………………………… 55
Theme 2: Incentives/Benefits Plan …………………………………………………………… 58
Theme 3: Training Strategy …………………………………………………………………….. 60
Applications to Professional Practice …………………………………………………………….. 63
Implications for Social Change …………………………………………………………………….. 64
Recommendations for Action ……………………………………………………………………….. 64
Recommendations for Further Research …………………………………………………………. 66
Reflections ………………………………………………………………………………………………… 66
Conclusion ………………………………………………………………………………………………… 68
References ……………………………………………………………………………………………………… 69
Appendix: Interview Protocol ………………………………………………………………………….. 100
iii
List of Tables
Table 1. Literature Review Content ……………………………………………………………………. 10
Table 2. Emerging Themes ………………………………………………………………………………. 55
Table 3. Theme 1: Supportive Leadership …………………………………………………………… 55
Table 4. Theme 2: Incentive/Benefits Plan ………………………………………………………….. 58
Table 5. Theme 3: Training Strategy ………………………………………………………………….. 60
iv
1
Section 1: Foundation of the Study
Employee turnover has attracted researchers, practitioners, and business owners
(Arif, 2018). Organizations need to consider necessary strategies during daily operations
to avoid excessive employee turnover and retain talented employees (Wandabwa &
Makokha, 2021). Influential leaders can use good strategies to build employees, have
higher levels of employee engagement, and reduce employee turnover (Visvanathan et
al., 2018). Through this qualitative multiple case study, I interviewed insurance leaders
and managers to explore strategies to reduce employee turnover. This section includes a
discussion about the background of the problem, problem and purpose statements, nature
of the study, research question, and interview questions. Section 1 also contains a
discussion about the theory that will serve as the conceptual framework and the
operational definitions, assumptions, limitations, delimitations, the significance of the
study, and professional and academic literature review.
Background of the Problem
Losing employees with talents and knowledge harms businesses by altering their
functions (Al Mamun & Hasan, 2017; Ladson, 2019), making employee turnover a
phenomenon worthy of consideration. Turnover at any level, from tenured employees to
entry-level, negatively affects group performance (Rajan, 2019). Voluntary and
involuntary turnover negatively affect the finances of any industry.
Service industry leaders deal with employee turnover plans daily (Ferreira et al.,
2017). Since no minimum skill or education level is required to enter the U.S. insurance
industry, there is already a potential threat to the growth of insurance companies (Martin,
2
2016). Leaders should strive to reduce employee turnover to run a steady organization
and remain competitive. Leaders require successful retention strategies to prevent the cost
associated with staffing, teaching, and placement of new workers (Al Mamun & Hasan,
2017). Further study on employee turnover could enhance awareness of how insurance
leaders can apply useful tactics for lowering employee turnover.
Problem and Purpose
The specific business problem was that some insurance leaders lacked strategies
to reduce employee turnover. Therefore, this qualitative multiple case study was
conducted to explore insurance leaders’ strategies to reduce employee turnover. The
participants were five central Kansas insurance companies’ insurance leaders who have
successfully reduced employee turnover.
Population and Sampling
The target population consisted of five purposively sampled central Kansas
insurance companies’ insurance leaders who have successfully reduced employee
turnover. I interviewed insurance leaders using a semistructured interview process to
stimulate their lived experience of successfully reducing employee turnover. I also
reviewed public company documents for relevant information.
Nature of the Study
The three study methods are qualitative, quantitative, and mixed method (Park &
Park, 2016). A qualitative approach is acceptable when researchers can explore the
phenomenon in their natural setting (Saunders et al., 2016). A qualitative method was
proper for this study because it allowed me to explore the research problem in the
3
participant’s natural environment. In quantitative research, the researcher uses numeric
collection techniques, such as questionnaires, surveys, or data analysis procedures, such
as graphs or statistics (Saunders et al., 2016). I did not select a quantitative method, as I
did not intend to use surveys or statistical relationships to examine a relationship between
variables. A mixed-method research design includes quantitative and qualitative
methodology and logical procedures to understand a research problem (Manzoor, 2020).
This method was not selected as the plan does not use both approaches to understand the
phenomenon.
I chose a multiple case study design for this research. A case study is a qualitative
research design that scholars use to investigate and understand complex issues in a realworld setting (Smith, 2018a). I selected a case study design over other qualitative
research designs, such as ethnography and phenomenology research. The goal was to
explore and understand complex issues in real-world settings. Ethnography involves
studying a group’s culture or social world (Saunders et al., 2016). I did not choose
ethnographic design as I did not focus on the cultural aspects of insurance companies. A
researcher who conducts a phenomenological study focuses on participants’ recollections
and interpretations of lived experiences (Kordes & Demsar, 2018). A phenomenological
method would not serve this study’s purpose because it does not pertain to participants’
recollections and interpretations of their lived experiences.
Research Question
The study’s research question was “What strategies do insurance leaders use to
reduce employee turnover?”
4
Interview Questions
1. What techniques have you used to reduce voluntary employee turnover in
your organization?
2. How did your employees respond to those strategies?
3. Based on your organization’s experience, how has employee turnover
affected your organization as a whole?
4. What strategies were most effective in reducing turnover?
5. What strategies, if any, were least effective in reducing employee turnover
in your organization?
6. What techniques have you used to monitor employees’ reasons for leaving
your organization?
7. What additional information would you like to share regarding your
strategies to reduce employee turnover?
Conceptual Framework
The theory that served as the conceptual framework of this study was Herzberg’s
two-factor theory. Herzberg (2003) introduced the two-factor theory, also known as the
motivator-hygiene, in 1959. Herzberg et al. (1959) developed the theory to understand
why employees become dissatisfied or satisfied with their jobs. Herzberg et al. asserted
that motivators are aspects of the job that provide workers with positive satisfaction,
which arises from essential employment conditions such as recognition, achievement, or
personal growth. The eight motivators included in the theory are (a) a sense of personal
achievement, (b) status, (c) recognition, (d) promotion, (e) growth, (f) opportunity for
5
advancement, (g) responsibility, and (h) challenging work. Herzberg (1987) mentioned
that implementing these eight motivating factors promotes high motivation, high
satisfaction, and strong job commitment (Grigaliunas & Herzberg, 1971). Hygiene
factors are aspects of the job that influence workers to do their jobs, such as incentives or
punishment threats (Herzberg, 2003). The five hygiene factors are (a) company policy,
(b) income, (c) benefits, (d) workplace conditions (e) personal relationships (Harder &
Hughes, 2022). Herzberg’s two-factor theory provided a lens to explore the participants’
approach and experiences to improve employee turnover.
Operational Definitions
Dissatisfiers: Dissatisfiers, also known as hygiene factors, are aspects of the job
that influence workers to do their jobs (Herzberg, 2003).
Employee productivity: Employee productivity is a person’s performance on the
job or the entire organization’s output (Lohela-Karlsson et al., 2022).
Motivation: Motivation makes an individual act and behave a certain way
(Maryani et al., 2021).
Satisfiers: Satisfiers, also known as motivators, are aspects of the job that
provides workers positive satisfaction (Herzberg et al., 1959).
Turnover intention: The turnover intention is employees’ willingness to leave
their existing position or company (Lazzari et al., 2022).
6
Assumptions, Limitations, and Delimitations
Assumptions
An assumption is what the scholar believes to be accurate but cannot verify
(Levitt et al., 2021). I made two assumptions. The first assumption was that the study
members would answer the research questions truthfully. The researcher cannot verify
the responses’ truthfulness since qualitative research is open-ended, leaving the
participants more control over the integrity of the data collected (Das, 2021). The second
assumption was that those interview responses would provide helpful information to help
resolve the underlying research question.
Limitations
Limitations are influences, shortcomings, or conditions out of the researcher’s
control that could affect the study’s outcome (Morgado et al., 2018). The first limitation
was that one of the data collection sources for this study was self-reported data, such as
interviews. Using interviews as a data collection source created an area for improvement
for the study, as the participants might need to provide more accurate information that
could positively affect the findings’ dependability and credibility. The second limitation
was transferability in that the research study findings may not transfer to other insurance
agencies. Results from qualitative studies are not transferable to other industries (Smith,
2018a).
Delimitations
Delimitations are elements of a research study that limits the research scope
(Theofanidis & Fountouki, 2018). In this study, there were several delimitations. The first
7
delimitation was the industry type. I explored the effective strategies of leaders in the
insurance industry. Another delimitation of the study was the location. The selected
companies were in central Kansas. The third delimitation pertained to participants who
implemented successful strategies for reducing employee turnover.
Significance of the Study
The study’s significance was rooted in identifying successful approaches to lessen
employee turnover, which may lead to improved organizational performance and
contribution to positive social change. Reducing employee turnover is critical because
losing skilled employees disrupts organizational performance, both directly and indirectly
(De Winne et al., 2018). Reducing employee turnover is crucial to an organization’s
longevity because keeping skilled employees help ensure profitability (Kazimoto, 2016).
A profitable company may bring positive social change by investing in the community
through payments, gifts, and employment openings.
Contribution to Business Practice
The study focused on recognizing strategies that may reduce employee turnover
in the insurance industry. Organizations with a high employee turnover rate might have
productivity challenges (De Winne et al., 2018). The study’s findings may contribute to
business practice because they reveal strategies for reducing employee turnover and
increasing profitability, productivity, and customer satisfaction. Productivity, customer
satisfaction, savings costs, and profitability increase when organizations minimize staff
turnover and absenteeism (Kazimoto, 2016). The findings could also contribute to leaders
8
of other businesses with strategies that may mitigate financial losses because of the cost
of turnover, such as new hiring, advertising, selecting, and training new employees.
Implications for Social Change
The implications for positive social change exist because leaders can apply
strategies suitable for reducing employee turnover. Businesses can create opportunities
such as sustainable income and job creation that encourage social change for the people
they serve (Steiner & Atterton, 2015). Decreasing the turnover rates could reduce
unemployment, creating more stable communities since employees may have a
sustainable income to spend in their local communities. Therefore, organizations in the
local area may improve the communities and environment by creating more jobs and
activities in the local area for positive social change.
A Review of the Professional and Academic Literature
This qualitative multiple case study was focused on practical strategies insurance
leaders used to reduce employee turnover. Researchers perform literature reviews to
locate and explore the diverse perspectives and themes related to the study topic (Ali et
al., 2022). This study’s overreaching research question was “What strategies do insurance
leaders use to reduce employee turnover?” The literature review included employee
turnover in the insurance industry and other organizations in other sectors. This literature
review contains the conceptual framework and other rival theories. Primary themes from
the literature on employee turnover included in this review are employee turnover,
potential causes of employee turnover, the effect of employee turnover on the
organization’s success, and several known strategies to reduce employee turnover.
9
Literature Review Search
The literature review involved conducting content searches using the Walden
University Library and Google Scholar. I searched for peer-reviewed journal articles and
books on employee turnover in the following databases: Business Source Complete,
Academic Search Complete, Dissertation and Thesis at Walden University, ProQuest,
SAGE, Google Scholar, U.S. Government agency websites, and search engines. In my
database searches, I used the following key terms: Herzberg’s two-factor theory,
employee turnover, employee turnover strategies, retention strategies, and employee
turnover in the insurance industry. I used a variety of sources, including peer-reviewed
journal articles, books, and government websites. The literature included 194 references,
of which 182 were peer-reviewed articles, and 129 were published within the past 5 years
(2019–2023). The literature also included six books, three government websites, and five
non-peer-reviewed articles (see Table 1).
10
Table 1
Literature Review Content
Literature review content
Total
5 Years
%>5 Years
Peer-reviewed articles
190
50
140
74%
Books
6
4
2
33%
Government websites
3
1
2
67%
Non-peer-reviewed articles
4
1
3
75%
Total sources by year
203
56
147
72%
I started my research by exploring insurance leaders’ strategies to reduce
employee turnover. I researched theories that involved motivation and job satisfaction. Of
the recommended theories, Herzberg et al. (1959) was the theory that related closely to
the conceptual framework for this research study. Other motivational theories included
Maslow’s hierarchy of needs theory and job embeddedness theory.
Herzberg’s Two Factor Theory
To better understand the research question, I used Herzberg’s two-factor theory as
the study’s conceptual framework. I also used Herzberg’s theory to see how workers’
satisfaction related to achievement, growth, and work quality (Herzberg et al., 2010).
Researchers use Herzberg’s theory to explore strategies for insurance leaders to decrease
11
employee turnover (Robinson, 2020). Researchers use Herzberg’s theory to explore
employees’ motivation to work.
Herzberg’s theory consists of two factors: motivation and hygiene factors.
Motivation factors are associated with satisfiers, and hygiene factors are associated with
dissatisfiers (Artaya et al., 2021). Understanding the two factors of Herzberg’s theory
may help explain why employees leave a job. These factors, intrinsic/motivation, and
extrinsic/hygiene, help leaders understand employee behavior (Riyanto et al., 2021). The
intrinsic (motivation) factors, also known as satisfiers, are components of the job that
positively affect the employees’ level of satisfaction and include achievement,
recognition, growth, responsibility, and an opportunity for why advancement (Herzberg
et al., 1959). Motivation factors can enhance motivation, but the absence of motivation
factors does not mean dissatisfaction (Artaya et al., 2021). Motivating factors include
achievement, responsibility, advancement, recognition, autonomy, promotion, and work
(Kok et al., 2018).
The second factor in Herzberg’s theory is the hygiene factor. Hygiene factors, or
dissatisfiers, relate to working conditions, salary, benefits, job security, quality of
supervision, relationship with peers, company policy, and work-life balance. The absence
of hygiene factors could cause employees to dislike the organization (Lee et al., 2022).
Hygiene factors are necessary, although it is not enough to create employee satisfaction
(Kok et al., 2018). Motivation factors affect long-term job satisfaction, and hygiene
factors affect short-term pleasure (Herzberg et al., 1959).
12
Further, the performance of an employee develops from physiological and
psychological satisfaction. The physiological aspect relates to a need for monetary
rewards to employees in the workplace, and the psychological need relates to acceptance,
empathy, and achievement (Kumar, 2019). An employee’s physiological needs
correspond to extrinsic factors, and an employee’s psychological needs relate to intrinsic
factors (Herzberg et al., 1959). Employees who are satisfied with their job are more likely
to meet job demands (Paais & Pattiruhu, 2020). As the conceptual framework for this
study, Herzberg’s two-factor theory provided a lens to explore participants’ approaches
and experiences to improve employee turnover.
Criticisms Against the Two-Factor Theory
Herzberg’s’ two-factor theory has worked in most cases, yet there is criticism as
some might not agree with how the theory works. According to Yadav (2019), the theory
has several complaints. Yadav identified that Herzberg assumed that satisfiers are the
same for all people. According to researchers, the two-factor theory cannot explain the
similarities between motivation and satisfaction. The methodology, according to
researchers, is biased because the interviewers reported exceptionally good or horrible
experiences. The theory’s development included accountants and engineers, making the
study findings inconclusive from other fields (Ozsoy, 2019). Most studies I have
reviewed revealed that Herzberg et al.’s (1959) two-factor theory is often used as the
framework in studies about turnover.
13
Supporting and Rival Theories
This section will cover three theories I considered but did not choose as my
study’s conceptual framework. My analysis focused on how motivation and satisfaction
affect employee turnover. Researchers use Maslow’s theory, job embeddedness, and
expectancy of motivation as the framework for studies on employee turnover often but
not over how motivating and satisfying factors affect the employee turnover of an
organization.
Maslow’s Hierarchy of Needs Theory
Maslow’s hierarchy of needs theory is another theory that researchers use to
understand employee turnover. Maslow (1943) noted that managers only sometimes try
to satisfy the employees’ needs by reducing employee turnover. Nevertheless, there is an
association between employee motivation and the leader’s adaptation to the employees’
changing needs to keep the employees engaged (Zhao & Sheng, 2019). Maslow’s theory
identifies five needs to help reduce employee turnover. Starting at the bottom, the five
needs identified in a pyramidal form are physiological/basic, safety/security, social/love,
esteem, and self-actualization (Maslow, 1943). Maslow suggested that as lower-level
needs are satisfied, the higher-level needs take over as motivating forces (Hardin, 2020).
As the needs of the pyramid are complete, a new condition replaces the one that has been
satisfied (Djallel & Rahim, 2020). The physiological groups include food, air, water, and
shelter (Maslow, 1943). The second level, safety/security, means a person is free from
harm or threats (Maslow). The next level is the need for social/love, which involves
belonging, associating with others, friendship, and affection (Maslow). The fourth need is
14
esteem, which consists of others’ appreciation, respect, and approval (Maslow). Lastly,
the pyramid’s tip is self-actualization (Maslow), which includes developing to the fullest
of one’s potential.
To enable employees to meet their full potential, employers must understand
which hierarchy of needs an employee belongs to (Kuranchie-Mensah & AmponsahTawiah, 2016). Both Maslow’s and Herzberg’s theories suggest that motivation depends
on certain factors essential in reducing employee turnover (Essel, 2019). Although both
theories relate to motivation and how the satisfaction of needs helps reduce employee
turnover, Maslow’s is unsuitable for this study; leaders cannot control employees’ needs
to motivate them not to leave. Unlike Maslow’s theory and Herzberg, job embeddedness
theory explains why employees stay in an organization.
Job Embeddedness Theory
Job embeddedness theory is another theory that explains how to reduce employee
turnover. The job embeddedness theory explains why employees stay in organizations
(Fuchs, 2022). Job embeddedness offers an understanding of the factors that keep
individuals from withdrawing (Qian et al., 2022). Job embeddedness is one strategy
business leaders adopt to inspire workers to continue in an organization (Burrows et al.,
2022). Job embeddedness is a collection of different forces that keep employees in their
organization (Alola et al., 2019). Job embeddedness consists of three dimensions (a) link,
(b) fit, and (c) sacrifice, which are significant on and off the job (Ampofo & Karatepe,
2022; Liu, 2018). On-the-job embeddedness is related to employee performance and
15
turnover, and off-the-job embeddedness relates to influences outside the workplace that
might lead to employee turnover (Porter et al., 2019).
The three dimensions of the theory are essential for the theory to work. The first
dimension in the job embeddedness theory links. Links can be formal or informal
between employees and colleagues, teams, and jobs (Gonzalez, 2016; Liu, 2018). Study
findings show that the more connections or links an employee has, the greater the sense
of attachment, promoting employee retention and reducing employee turnover while
increasing employee performance (Liu, 2018). Employees with strong relationships with
their teammates or associates might continue to work for the organization (Mohammed,
2020). Additionally, employees engaged in the area they work or live in are not prone to
leave their current job (Ayuningtyas et al., 2020). Community links or an employee’s
connection with community members, programs, and cultural relations can influence an
employee to stay in an organization (Faisal, 2022a). The different links can help
employees strengthen their relationships at work and in the community.
The second dimension in the job embeddedness theory is fit. Fit is an employee’s
closeness or comfort level with the company and its atmosphere (Liu, 2018). An
environment that provides comfort and compatibility can help an employee stay at an
organization. An employee’s fit to an organization relates to attachment; a better fit
makes it more likely to feel professionally and personally attached to the organization
(Liu, 2018). Employees who are fitter with their job and organization become more
attached (Mohammed, 2020). Organizational fit refers to how employees feel about their
organization’s compatibility (Faisal, 2022b). Community fit also
