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Should I Stay Or Should I Go? a Quantitative Study of the Staff Well-Being and Turnover Problem Within the Audit Industry

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Should I Stay Or Should I Go? a Quantitative Study of the Staff Well-Being and Turnover Problem Within the Audit Industry Should I stay or should I go? A quantitative study of the staff well-being and turnover problem within the audit industry. Master Thesis within: Business Administration Number of Credits: 30 ECTS Program of Study: Civilekonom Authors: Oscar Davidsson & Frida Falck Tutors: Timur Uman & Mattias Sandgren Jönköping: May 2021 Master Thesis in Business Administration Title: Should I stay or should I go? Authors: Oscar Davidsson & Frida Falck Tutor: Timur Uman & Mattias Sandgren Date: 2021-05-24 Key terms: Auditing, Audit Profession, Audit firm, Employee turnover, Job satisfaction, Well-being, Willingness to stay. Abstract Purpose: The purpose of this thesis is to explain how individual and strategic firm-level factors, through well-being as a mediating factor, make audit employees more prone to stay within the profession as well as to provide a more holistic picture of why they stay. Methodology: The study is built upon a positivistic standpoint with a deductive approach using a quantitative method where a survey was sent out to Swedish audit employees with at least three years of experience within the profession. The data collected were analyzed by a Harman single factor test, Spearman correlation matrix, and multiple regression analysis. Findings: The findings show that stress resilience, mentorship quality, career opportunities, and commercialization are positively related to the employee’s willingness to stay and are fully mediated through their subjective well-being. Further, the findings show that the individual expectation gap affects the willingness to stay directly and is only partly mediated through the individuals’ subjective well-being. Theoretical perspectives: The profession theory, person-organization fit theory, and motivational theory were applied to explain the variables and the willingness to stay. i Acknowledgments We would like to express our greatest gratitude to each, and everyone involved in the writing process of this thesis. First of all, we would like to express our foremost gratitude to our tutors Timur Uman & Mattias Sandgren for their extensive commitment, knowledge, and support during the development of the study. All the valuable feedback during the last five months has contributed significantly to the writing process. Secondly, we would like to acknowledge our thankfulness to all participating audit employees for taking their valuable time to contribute with their perception of the profession. The completion of this thesis would have impossible without their engagement. Thirdly, would like to thank our seminar group members who have provided valuable constructive feedback and support throughout the process. Lastly, we would also like to express our gratitude to teachers and staff at Jönköping International Business School for four fantastic years and for the knowledge and experiences we bring with us in our upcoming chapter. Oscar Davidsson Frida Falck Jönköping International Business School May, 2021 ii Table of contents 1. Introduction ............................................................................................................................ 1 1.1 Background ...................................................................................................................... 1 1.2 Problem Definition ........................................................................................................... 2 1.3 Purpose ............................................................................................................................. 5 1.4 Research Question ............................................................................................................ 5 1.5 Disposition ....................................................................................................................... 6 2. Literature Review................................................................................................................... 8 2.1 Profession Theory ............................................................................................................ 8 2.2 Personal-organization Fit Theory ..................................................................................... 9 2.3 Motivational Theory ....................................................................................................... 10 2.4 Staff Turnover ................................................................................................................ 11 2.5 Subjective Well-being .................................................................................................... 13 2.5.1 Subjective Well-being and Willingness to Stay ...................................................... 14 2.6 Individual Aspects and Well-being ................................................................................ 15 2.6.1 Heavy Workload ...................................................................................................... 15 2.6.2 Individual Expectation Gap ..................................................................................... 16 2.7 Firm-level Aspects and Well-being................................................................................ 17 2.7.1 Organization Culture ............................................................................................... 17 2.7.2 HR Practices ............................................................................................................ 18 2.7.3 Career Opportunities and Up-or-Out ....................................................................... 20 2.7.4 Commercialization of Audit Firms .......................................................................... 22 2.8 Research Model and Hypotheses ................................................................................... 24 3 Methodology ......................................................................................................................... 25 3.1 Research Philosophy ...................................................................................................... 25 3.2 Research Purpose ........................................................................................................... 26 3.3 Research Approach ........................................................................................................ 27 3.4 Research Methodology ................................................................................................... 28 3.5 Choice of Theory ............................................................................................................ 29 3.6 Criticism of Sources ....................................................................................................... 30 3.7 Data Collection ............................................................................................................... 31 3.7.1 Time Horizon ........................................................................................................... 32 3.7.2 Questionnaire ........................................................................................................... 33 3.8 Sample Selection ............................................................................................................ 35 3.9 Pilot Study ...................................................................................................................... 35 3.10 Operationalization ........................................................................................................ 36 3.10.1 Dependent Variable ............................................................................................... 36 iii 3.10.2 Independent Variables ........................................................................................... 36 3.10.4 Control Variables ................................................................................................... 41 3.11 Data Analysis ............................................................................................................... 43 3.12 Reliability and Validity ................................................................................................ 44 3.13 Ethical Consideration ................................................................................................... 45 3.13.1 Anonymity and Confidentiality ............................................................................. 45 4. Results and Analysis ............................................................................................................ 47 4.1 Descriptive Statistics ...................................................................................................... 47 4.1.1 Dependent Variable ................................................................................................. 47 4.1.2 Independent Variables ............................................................................................. 47 4.1.3 Control Variables ..................................................................................................... 50 4.2 Common Method Bias ................................................................................................... 52 4.3 Normal Distribution ....................................................................................................... 53 4.4 Spearman Correlation Matrix ......................................................................................... 54 4.5 Multiple Linear Regression Analysis ............................................................................. 59 4.6
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