The Effect of Internal Complaints Systems on Employee Retention and Turnover Intention: The Mediating Role of Organizational Justice.

Abstract

This study draws on exit, voice, and loyalty theory, a concept that has been used to examine the behaviour of customers after purchasing and to develop corresponding marketing defence systems that seek to retain customers. The internal complaint system (ICS) is considered the most prominent of these strategies. Studies related to understanding the impact of the ICS on employees are limited and primarily focused on how the ICS impacts organizational goals and customers. This study is concerned with understanding the impact of the ICS on the ability of the organization to retain its employees on the one hand and the extent of employees’ desire to leave the organization on the other hand by measuring organizational justice as a mediator. The population of this study includes employees engaged at the time of study in five-star hotels in Northern Cyprus. Partial least squares regression was used to analyse the study data. Results proved that there is a statistically significant relation between ICS on both employee retention and employees’ intention to leave through the mediating variable of organizational justice. Providing a highly efficient ICS is therefore recommended in order for organizations to achieve retention objectives for clients and employees alike.

Keywords

• defensive marketing strategies
• internal complain system
• organization justice
• turnover intention
• employee retention