Understanding the role of job quality in the association of employees’ career change to self-employment and job satisfaction

Purpose

– While researchers have discussed the association between career change to self-employment and job satisfaction, few have considered how the association is achieved. Therefore, in this study, the authors aim to explain this relationship from the perspective of job quality. The authors build on job design theory to propose and empirically test how fluctuations in job satisfaction as associated with the transition to self-employment can be explained by changes in job quality.

Design/methodology/approach

– The authors tested their propositions using a longitudinal, nationally representative database from Australia for the 2005–2019 period. The final sample included 108,384 observations from 18,755 employees.

Findings

– In line with the literature, the authors found that job incumbents experienced low job satisfaction in the years prior to their career change to self-employment and that their job satisfaction improved after the transition. More importantly, the authors found the same change pattern for job quality – measured as job autonomy and skill variety – and the statistical results demonstrated that job quality was the key determinant of job satisfaction during the process.

Practical implications

– This study advocates the importance of job quality in managing employee wellbeing and facilitating retention.

Originality/value

– The authors contribute to the literature by uncovering how job quality, represented by skill variety and job autonomy, can explain fluctuations in job satisfaction during individuals’ career change from paid employment to self-employment.