Trust, job satisfaction, perceived organizational performance and turnover intention: A public-private sector comparison in the United Arab Emirates

The purpose of this paper is to examine and compare the differential impacts of job satisfaction (JS), trust (T), and perceived organizational performance (POP) on turnover intention (TI) in public and private sector organizations.

Draws on a sample of 311 employees from the service sector (129 public and 182 private) in the United Arab Emirates’ (UAE). The main concepts utilized in the study are borrowed from previous research and further tested for validity and reliability. Four main hypotheses are explored.

In support of previous research, statistical analysis (t-test) revealed that public sector employees tend to be more satisfied, more trusting, and have less intention to leave their organization. Regression analysis revealed that public sector employees’ TI are most significantly affected by their perceptions of the performance of their organization, with JS, work experience (WE) and education (Ed) also having significant effects. In contrast, private sector employees’ TI was most significantly affected by JS and feelings of trust (T).

Although very useful, the present study is limited in scope and therefore suffers from some limitations. The sample only includes employees from UAE organizations operating in education, some government institutions and the financial sector. Future research might consider including employees the health sector and other public organizations such as the immigration/police departments which play important strategic roles in the UAE economy. Also, future research might consider extending the scope of the study to include institutions in similar neighboring countries in the region, such as Qatar and Kuwait.

The findings of this study points to the relative importance of trust, JS and perceived organizational performance in affecting TI in public and private sectors. These can be considered as indicators to assist managers in these sectors to better manage/minimize TIs. In particular, the findings indicate that managers in general (and UAE public sector managers in particular) need to monitor and better manage not only their employees’ JS but also perceptions of the overall performance of the organization.

While research on the influence of JS on TI in both of these sectors has been abundant over the years, studies examining the impact of trust and perceptions of organizational performance remain few and are largely lacking. Also, studies on turnover in the UAE (and particularly those comparing public and private sectors) remain largely lacking. This study and its findings fill this gap and provide some insights on the differential impact of trust, JS and perceived organizational performance on employee TIs in public-private sectors, particularly in the UAE context.