How Diversity Element Affects the Employee Satisfaction on Workplace. A Research on Al Yusr Industrial Contracting Co. (AYTB), Oil & Gas Industry, Jubail, Saudi Arabia

Kamran Nawaz¹, Mudassar Usman², Ronnie Ram Pearson Japzon¹, Engr. Hafiz Ghulam Murtaza Qamar³, Engr. Muhammad Imran Hashmi³, Engr. Ayesha Riaz³

¹Al Yusr Industrial Contracting-Industrial Area, Jubail, Saudi Arabia.
²Bahria University, Islamabad, Pakistan.
³University of Sargodha, Sargodha, Pakistan.

DOI: 10.4236/jhrss.2020.84022                

Abstract

With increase in globalization over the time, Diversity is become an important factor in heterogeneous working places. Diversity elements and its consequences on employee satisfaction is an important research topic in research and diverse markets. The purpose of current research paper is to investigate the impact of various diversity elements on satisfaction of employees at working place in Saudi Arabia. This research is taking workforce diversity elements as gender, age, education and ethnicity, and investigates their impact on employee satisfaction. A four hundred Employees of AYTB, a well reputed oil & gas contracting company working in Saudi Arabia, was taken as a sample. Questionnaire developed by (Omkar & Josiah, 2015) is used for data collection by random sampling technique. Software SPSS is used for data analysis. This study confirms the significant positive relationship b/w Gender & Ethnicity and Education with employees’ satisfaction towards diversity at working place. In addition, this paper finds no significant role of age for employee satisfaction towards diversity at working place. It is expecting, this research paper plays a vital role for understanding of diversity and its impacts on employee’s satisfaction. It is also expecting that this research study will be helpful for companies & managers for managing the diversity & enhancing human resource development and sustaining more employee’s satisfaction at working place.

Keywords

Diversity, Co-Relation, Multiple Regression, Employee Satisfaction, Human Resource Development

1. Introduction

Diversity is rapidly increasing across the world due to high immigrant’s rate. In the Market of Saudi Arabia, the diversity rate is very high. Markets & companies are mix of people with respect to demographics. Employees of different Age, Gender, Education and Ethnicity are working together at working place. Diversity is taking as a favorable factor for productivity and value addition (Van Ewijk, 2011). Employee diversity is a real asset for idea generation and creating ways to do the work in best way. But the place which is heterogeneous diversity has also issues related to employee satisfaction (Lee, 2013). Employees with different ethnicity not like to spend time with each other and have fewer social bonds. Sometime, this is creating dissatisfaction at working place (Kunze, Boehm, & Bruch, 2009). Employees of different ethnicity group have some gapes. They are not socially engaged. They have some distances between each other, which goes to employee dissatisfaction (Van Ewijk, 2011). Different education groups also some time source of dissatisfaction at working place. A high diverse place with different educational backgrounds created some communication barriers which resulted in dissatisfaction of employees (Shoreibah, Marshall, & Gassenheimer, 2019). The working places with high rate of diversity should maintain the openness and transparency of system. Companies applied the policies beyond of cultural differences. This will lead to higher trust & satisfaction of employees at working place (Aslam & Javed, 2018). Gender gapes also affect the satisfaction level of employee’s satisfaction. The diverse working place with high social codes causes some limitations, which as a result affects the satisfaction level of employees (Reeves, McKinney, & Azam, 2013). Highly diverse working places required better implementation of organizational justice and fairness of policies. Fairness of rules & polices, openness and enforcement of law improve satisfaction in employees at working place (Altahayneh, Khasawneh, & Abedalhafiz, 2014). The companies which have different age groups hold a basket of experiences which always improve value addition. As a fact, different age groups have different level of understanding and perception about the things. The senior age group has seen more demand for authority and directed the things according to their experience. It will sometime create distances and dissatisfaction of one group of employees at working place (Kunze, Boehm, & Bruch, 2009). The organizations fail to maintain the cultural diversity, fail to sustain for long time. Such companies have also high turnover rate & low value addition and probability (Tuzun & Kalemci, 2012). The workplace with diverse working place ethnicity of employees is also the factor of dissatisfaction. Formal policies are seen well, but on ethnicity base, some decision is biased at working place and has consequences on the level of satisfaction of employees (Brown, 2008).

Purpose of Research: This research paper focused aim is to investigate the impact of diversity elements on employee job satisfaction in AYTB Oil & Gas Company, Saudi Arabia with respect to Gender, Age, Ethnicity and Education. Data is collected from AYTB employees.

Research Method: To complete the research, questionnaire is used for data collection with using of random sampling technique. This research close with its core aims to find that how diversity elements affect the employee satisfaction of employee at working place.

Findings: After making analysis, it is found that age and education has positive impact on employee satisfaction. Whereas, Gender and Ethnicity find with negative impact on employee satisfaction at working place.

Roadmap for research: The major contents of this paper are as follows:

• Introduction & significance of research

• Research Objective & Questions

• Literature review

• Development of Hypothesis & testing

• Data Collection & Analysis

• Conclusion

• Limitation & Future research direction

1.1. Problem Statement

The market of Kingdom of Saudi Arabia is huge employee diversity. People of various countries are working in this market. This research aimed to find the issues that affect the employee satisfaction in a highly diverse working setting. This research titled as; “How diversity element affects the employee satisfaction on workplace”. A Research on Al Yusar Industrial Contracting co. (AYTB), Oil & Gas industry Jubail, Saudi Arabia. This paper takes the diversity with its component’s elements like Gender, Age, Ethnicity and Education level. The company which has high level of employee diversity will able its sustainability in the market with high profit ratio and value addition (Gelner & Stephen, 2009).

1.2. Research Objectives

As the immigrant’s rate is rapidly increasing across the world markets, the market of Kingdom of Saudi Arabia is one of the largest markets for immigrants and expatriates. It is being consider an extensive market for workforce diversity. Diversity and it consequences is burning issue in business research. Diversity is found as a best factor for idea exchange and company growth (Omkar & Josiah, 2015).

The core and concise objectives of this research paper are as follow:

• Investigating the impact of Gender on employee satisfaction

• Investigating the impact of Age on employee satisfaction

• Investigating the impact of Ethnicity on employee satisfaction

• Investigating the impact of Education on employee satisfaction

1.3. Research Questions

The following research questions are addressing in this research paper. Diversity is segmented into its elements like Gender, Age, Ethnicity and Education.

• How Gender impact on employee level of satisfaction towards diversity at working place?

• How Age impact on employee level of satisfaction towards diversity at working place?

• How Ethnicity impact on employee level of satisfaction towards diversity at working place?

• How Education impact on employee level of satisfaction towards diversity at working place?

2. Literature Review

2.1. Workplace Diversity

Diversity is considering one of the most important factors for the success of any organization. The companies which are working beyond the borders have huge rate of workforce diversity. As increasing the rate of migration towards developed countries, the rate of diversity is also increased. By the insight of some researchers, diversity is the most important factor for organization development and exchanging of ideas. Diversity has a key role for expansion of organizations (Abdullah, 2013). Diversity is key for success due to understand the trends across the world. People from different demographics have different experiences and taste. They carry different productive ideas for the organization (Hjort, 2014). Diversity has some issues; some working places and societies have high discrimination with respect to gender and race. This will always affect the satisfaction of employees. The environment of some working places is not enough favorable for females or still some societies have some limitations for women (Al Munajjed, 2010). Due to different cultural backgrounds, employees have different values. Sometimes, it is cause of dissatisfaction of employees at working place. The custom and values which are contradictory with any other culture, create the dissatisfaction in employees (Max, Pons, & Suri, 2015). The organizations which have shared values and open system for justice across the all employees have better employee satisfaction. The working place with discrimination with any aspect of age, gender, ethnicity and education is unable to keep a diverse mix of people (Catalyst Webinar Recording, 2018): The market of Saudi Arabia has massive employee diversity but the according to the vision 2030, many expatriates replaced by Saudi national. In future, this law may be badly affecting the employee diversity in the market of Kingdom of Saudi Arabia. Several different nationalities already switch their jobs and move to other countries. It is showing that the law base on nationalism will beneficiary for Saudi, but it will have severed effect on diversity elements and manpower satisfaction in the market (Looney, 2004). Employees with same ethnicity have more degree of satisfaction at working place. It is due to the same ethical code of conducts and shared custom as well (Brown, 2008). The employees which have different educational backgrounds not have significant effect on satisfaction level of employees. The working place which is diverse with respect to education levels will not affect the degree of satisfaction of employees (Alghazo & Al Shaiban, 2016).

2.2. Gender

Gender diversity is very important for any company as well a society. Before few years, the market of Saudi Arabia is not extensive gender diversity as now. Saudi national & expatriate Women got many rights according to the vision 2030 as they were not such right before. Many governments and private employed women in the market. This is increasing the image and value addition process in the market (Alghazo & Al Shaiban, 2016). Gender diversity shows that organization have secure environment for work. It is also important because as a fact, it showed organization have no biasness and any harassment for women for working place (Al Munajjed, 2010). The companies which have high degree of gender diversity have healthy working environment with tolerance and common shared values so that they satisfied employees (Reeves, McKinney, & Azam, 2013). Gender diversity is not key role for employee satisfaction. So, for employee satisfaction, this element has no role in a diverse working environment (Central Department of Statistics and Information, Retrieved November 1, 2015). This research associated with its core research objective and question by developing this hypothesis:

H₁: There is positive impact of gender on employee level of satisfaction towards diversity at working place.

2.3. Age

Young population is continuously increasing in many countries. So, the element of age diversity is getting an important place for employee satisfaction at diverse working places. Some research paper findings found that gapes in age is not an influence for employee level of satisfaction. Employees working together not getting dissatisfaction due the age gapes (Omkar & Josiah, 2015). The organizations sustaining all age of employees are more productive and gets expansion of business. The employees with different level of age, always have different life experiences. By using these experiences, company can get success and more value addition. Open culture and shared values minimize the effects of age gapes on working place. By doing this organizations have employees with high level of satisfaction (Nakagawa, 2015). Sometime, Old aging employees working on superior levels have not accepted the change and new ways of doing. They used transactional ways to complete the work. In this way, the employees who have new ideas, gets dissatisfaction on working place. So, age gapes might be cause of damaging the level of satisfaction of employees in a diverse age working settings (Gelner & Stephen, 2009). As linked with major purpose of this research paper develop a hypothesis for age as:

H₂: There is positive impact of age on employee level of satisfaction towards diversity at working place.

2.4. Ethnicity

The companies having huge ethnicity are rapidly getting success for expansion & value creation. Such companies have better problem-solving techniques due to employee’s different backgrounds (Pitts, 2005). High rate of ethnicity at working place increase the rate of conflicts b/w employees and disturb the level of satisfaction of worker at working place (Nakagawa, 2015). Highly diverse working place with different languages create communication barriers at working place. Employees from different countries with different native languages feel difficult to speak and understand. This factor in final decreases the satisfaction of company employees (Hjort, 2014). Organization justice decreases the repercussion of ethnicity at diverse working place. The companies focused on socialization and social bonding beyond of any biasness, employees of such organization have high degree of satisfaction (Mahboob & Khan, 2017). Environment whereas high ethnicity diversity, demanded efficiency in socialization. System of merit beyond of race discrimination enhances the satisfaction of employees and organizational citizenship behavior (Darwin & Palanisamy, 2015). This research paper also investigates the effect of ethnicity on employee satisfaction by establishing the hypothesis:

H₃: There is positive impact of ethnicity on employee level of satisfaction towards diversity at working place.

2.5. Education

As advancement in technology, companies are delivering product & services across the globe. Talent acquisition and management become an important challenge for companies. But the working place having full of education diversity becomes source of competitive advantage for companies. The firms with employees of different educational backgrounds have capability to respond on problems in an effective and efficient way so will increase the satisfaction of employees (Max, Pons, & Suri, 2015). Some research found that education has no positive impact on employee satisfaction in regard of diversity. As an argument and fact finding, education levels not directly link with satisfaction of employees (Omkar & Josiah, 2015). Different level of education enable organization to develop better strategy doing business, compete in the market and develop best career succession planning for employees. Employees are more motivated, and this will increase the trust & satisfaction of employees towards organization (Muchiti & Gachunga, 2015). This paper wants to find the education effect on employee satisfaction towards diversity by formalizing the following hypothesis:

H₄: There is positive impact of education on employee level of satisfaction towards diversity at working place.

2.6. Employee Satisfaction

There are many factors which affect the employee satisfaction at working place. Solely, no single variable summarizes the satisfaction of employees. A diverse place, where employees from different demographics are working together, maintain employee satisfaction is challenging. Working place with high rate of diversity have high rate of communication barriers which cause of disrupting the satisfaction of employees (Svyantek & Bott, 2004). Diverse working conditions educate the employees to be tolerant with each other and enhance their ability to work in teams (Tuzun & Kalemci, 2012). Hybrid structure of work is increased the competitiveness of organization in the market. In extensive competition, company can compete with hybrid structure which needs diversity and employee engagement as well (Christiansen, Lin, Perreira, Topalova, & Turk, 2016). Merit and equality at working sites, finally improve satisfaction of employees at organization. When employees are satisfied, they are more efficient and harder worker. Their capability to tackle the issues and problems is high. So, such organization will get rapid growth and value creation (Raza, Ishtiaqi, Kanwal, Butt, & Nawaz, 2013). Diversity is the source of competitive advantage and value creation for companies. But the company which is holding the diverse mix of employees has more responsible for developing social awareness program and social responsibility. Because, most of culture are very sensitive about the factor of social responsibility so that they get satisfaction by such incentives done by company (Darwin & Palanisamy, 2015). After the literature review, studying many past research papers and books related with the diversity and its consequences on employee satisfaction. Following conceptual model is developing for finding the core objectives of this research paper.

Hypnotical Model for Research:

Figure 1 is showing the research model for this research. Diversity is summarized with its elements like Gender, Age, Ethnicity and Education level. For finding the research objectives of this research, Figure 1 model is applied. This model is developed after literature review of diversity and employee satisfaction.

Figure 1. Hypnotical model I for research.

3. Methodology

Research Design & Technique: Table 1 is showing the pattern for this research. This paper is using the descriptive research design to find the research questions of this research. To complete the research, questionnaire (Omkar & Josiah, 2015) is used with random sampling technique.

Sample Size: A sample of 400 Employees of AYTB is taking as a sample. This sample size is sufficient for research findings. According to some past research, 100 sample size is acceptable for research and findings consider reliable (Hair, Black, Babin, & Anderson, 2010).

Data Collection: Sample has different gender, age, ethnicity and education levels. Questionnaire is distributed among the AYTB employees for data collection. Respondents have both gender male and females. Response is collecting from different age groups. To make the findings reliable, employees from different ethnicity are selected randomly for data collection. To connect close with research objectives, employees with diverse educational backgrounds are provided their feedback on questionnaire.

Data Analysis: To find the results and explore the research questions, this research used SPSS for analysis.

4. Results

From the sample of 400 employees of AYTB, Results in Figure 2 is showing the respondents with respect of gender. Figure 2 is showing that 69% of respondents are male employees whereas, 31% of respondents are female worker of AYTB.

As considering age as an important element for diversity, this research paper focused all age groups which are employed in AYTB according to company policy. Figure 3 is summarizing the results about age groups of respondents. Figure 3 is describing the ratio of respondents with respect to age groups. According to results and Figure 3 about 30% of respondents are 20 - 30 years of age. Whereas, 39% of from 30 - 40 years old. Furthermore, Figure 3 is describing that 23% of employees are 40 - 50 Years and 8% of workers are 50 - 60 years of age.

The employees from different countries are participated in the research. As per findings which are exhibiting in Figure 4 shows 168 participants are Pakistani

Table 1. Research design.

Figure 2. Participants ratio with respect to gender.

Figure 3. Participants age.

Figure 4. Participants ethnicity.

national, and 103 respondents have Indian nationality. 88 of respondents Pilipino and 41 are Saudi nationals.

Findings which are showing in Figure 5 provided the educational level of research participants. As per results, 85 workers have High school and 159 have diploma in different technical and general fields. 123 respondents are undergraduate and 33 are graduated.

Table 2 is showing the total sample size of 400 employees which are working in AYTB. In total 400, 276 respondents are male workers whereas, rest of 124 employees are female employees.

Figure 5. Participants education level.

Table 2. Gender ratio.

Table 3 is displaying that out of 400 total sample size. 120 employees are in the age of 20 - 30 years and 156 workers are 30 - 40 years old. Be in view of Table 3, 92 workers are in the age of 40 - 50 and 32 employees have 50 - 60 years of age.

Table 4 shows the employees from different countries are participated in the research. As per findings which are exhibiting in Figure 4 and Table 4, 168 participants are Pakistani national, and 103 respondents have Indian nationality. 88 of respondents Pilipino and 41 are Saudi nationals.

Table 5 provided the educational level of research participants. As per results, 85 workers have High school and 159 have diploma in different technical and general fields. 123 respondents are undergraduate and 33 are graduated.

Table 6 shows the reliability statistics for both independent and dependent variable. Gender is talking as a diversity element and measured by 4 items with Cronbach’s Alpha 0.781. The 2^nd independent variable is age which measured 3 items with alpha value of 0.743. Ethnicity is also a diversity element which may affect the employee satisfaction in diverse working conditions measured with 4 items and have alpha reliability value is 0.756. Educational level which is the last element for diversity and consider an independent variable in this paper measured 3 items with value of 0.791. Employee satisfaction is dependent variable in this research work and also measured with 4 items and has alpha value of 0.718.

Table 7 shows the correlation of diversity elements and satisfaction of employees. Findings show that significant positive relationship b/w gender and employee satisfaction. In addition, analysis also found the significant positive relationship of ethnicity and employee satisfaction towards diversity. Educational level also be finding significant positive relationship for employee satisfaction

Table 3. Age ratio.

Table 4. Ethnicity ratio.

Table 5. Education level ratio.

Table 6. Reliability statistics.

Table 7. Correlation for gender, age, ethnicity and education.

towards diversity. Age is not a significant factor for employee satisfaction towards diverse environment.

Table 8 is showing the multi regression analysis results. The value of F test is F = 18.473 which shows that overall regression is significant. The value of R² = 0.0573 which shows that model for regression is fit. The value of t = 6.234 that is showing that independent variables have significant impact on dependent variable. For multicollinearity, the value of VIF is less than 10 for all variables which clear the fact that it is complex to measure the impact of each independent variable on dependent variable separately. Keeping rule into account, if the value of VIF is more than 10, possible to measure the effect of each independent variable on dependent variable (Hair, Black, Babin, & Anderson, 2010).

From the findings show in Table 8, Gender has significant impact on employee satisfaction. The value of t = 4.891 at sig. = 0.000 that showing the positive influence on employee satisfaction towards diversity.

According to analysis, Ethnicity also found an influential factor for employee satisfaction of employees. As per findings in Table 8, t = 4.936 at sig. = 0.000, showing that ethnicity has positive effect on employee satisfaction towards the diversity holding firms.

Educational level also finds as factor which positively affect the employee satisfaction towards diversity. The value of t = 3.432 at sig 0.000 which explained that education level also positively impacts the satisfaction of employees.

Age is not found an important factor which affects the employee satisfaction of employee towards diversity. The value of t = 1.972 at sig 0.058 describe that age has no impact on employee satisfaction towards diversity.

Summary of Hypotheses Testing

Table 9 summarized the status of hypothesis which are being accepted or rejected based on analysis. Expect of Age, all other three independent variables are found positive impact on employee satisfaction towards diversity.

Discussion on Results

The some results of this study matched with some past studies. Gender is consider as an important factor which affect the employee satisfaction in positive

Table 8. Results of multiple regression.

(Note: The Dependent variable is Employee satisfaction whereas R² = 0.0573, F = 18.473, Sig. = (0.000).

Table 9. Summary of hypotheses testing.

way match with (Omkar & Josiah, 2015). Gender effect the employee’s satisfaction on the workplace more which have extensive diversity (Christiansen, Lin, Perreira, Topalova, & Turk, 2016). As per findings of this research paper, it finds that different age groups have no role for increasing or decreasing the employee satisfaction at diverse working scenarios. These findings also tie with some past research findings (Jackson & Joshi, 2004). Age is no role to enhance the satisfaction of employee in workforce diversity (Gelner & Stephen, 2009). Ethnicity is proven an important factor for employee satisfaction at diverse mix place. This research also finds the same fact and positive impact of ethnicity on employee satisfaction. These results are same with the findings of (Omkar & Josiah, 2015). The positive impact of ethnicity on employee satisfaction and performance also is found in (Max, Pons, & Suri, 2015). The findings of this research paper have some sort of contrast with some past research findings. This research paper confirms the significant positive impact of education on employee satisfaction. Educational levels are not found significant factor for employee’s satisfaction in diversity. Employees are satisfied beyond of educational levels so education level is not have significant effect on employee satisfaction (Alghazo & Al Shaiban, 2016). On other side, some past research also have same findings and found education level as an influential factor employee satisfaction (Al Munajjed, 2010). Education has positive impacts on employee learning, performance and level of satisfaction (Gobler, 2002).

5. Conclusion & Recommendations

The findings of this research paper confirm the significant positive impact of diversity elements: Gender, Ethnicity and Education on employee satisfaction towards diversity. Whereas, this research finds no significant role of Age for employee satisfaction at diverse workplace. The current research recommended the companies to consider the diversity element an important factor for satisfaction of employees. Companies which are working in diversity will also focus on ethnicity and development of common social awareness model. HR Managers and administration of companies take steps to manage the diversity elements for attaining the satisfaction of employees.

Limitations & Future Research Direction

This research paper suggests that there is a need for scholars and researchers to conduct more research regarding diversity element impact on employee satisfaction. As per findings, there is a need to research why the Age is not important factor for employee satisfaction. Age gapes may cause of different ways of things and perceptions about the subjects. So, it may be affecting the satisfaction of employees. This research finds education as an inflectional factor for employee satisfaction. This element of diversity may need more research from scholars and organizations. The current paper also recommended that there may be gaped to research the diversity elements separately and will find impact on employee satisfaction by scholars. The current research paper has some limitations for selections of ethnicity & nationality. Results may be different at different demographics. Current paper investigates the diversity with its four elements. It is also suggested for scholars to research the other element of diversity and will find impact on employee satisfaction. This paper analyses the diversity with four components. It is also a limitation of this research work, because there are some other elements also which have impact on diversity and employee satisfaction.

Appendix A: Questionnaire for Research

Conflicts of Interest

The authors declare no conflicts of interest regarding the publication of this paper.

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