2024 Study Finds Person-Organization Fit's Impact on Employee Turnover Intention Weakened by Generational Shifts

A recent study published in 2024 has presented findings that challenge the long-held understanding of "person-organization fit" and its influence on employee retention. The concept, concisely highlighted by "Fun Pilgrim" in a recent tweet as "person-corporation fit," traditionally emphasizes the alignment between an individual's values and an organization's culture as crucial for workplace stability. However, new research suggests this dynamic may be evolving, particularly among younger generations.

Historically, a strong person-organization (P-O) fit has been widely recognized as a cornerstone of effective human resource management. When employees' values, beliefs, and personality traits align with their company's culture, it typically leads to higher job satisfaction, increased organizational commitment, and ultimately, lower employee turnover rates. This compatibility is seen as fostering a more engaged and productive workforce, reducing the significant costs associated with recruitment and training new hires.

The 2024 study, conducted at PT Saraswanti Anugerah Makmur in Indonesia and published in the International Journal of Science and Research Archive, investigated the impact of P-O fit on employee turnover intention. Contrary to traditional theories, the researchers concluded that P-O fit did not significantly reduce employees' intention to leave the company. Furthermore, the study identified that digital task interdependence, where tasks are heavily reliant on digital collaboration, actually weakened the positive influence of P-O fit on retention.

Researchers attributed these unexpected results to what they termed a "switching culture" prevalent among the millennial and Generation Z workforce. Citing Professor Barry Schwartz's "The Paradox of Choice," the study suggested that an abundance of career options can lead to confusion and difficulty in decision-making, prompting younger employees to frequently consider new opportunities despite a good organizational fit. This indicates a shift in how these generations perceive long-term employment.

This research highlights a growing complexity in employee retention strategies, particularly in a digitally integrated and multi-generational workforce. Companies may need to re-evaluate traditional approaches to P-O fit, considering how evolving generational expectations and digital work environments reshape employee loyalty and career trajectories. The findings underscore the need for a nuanced understanding of what truly drives talent retention in today's dynamic labor market.