Can Organizational Career Management Reduce Turnover Intention Rate Among Employee? A Study of Millennial Generation in Banking Industry in Indonesia
Abstract
The increasing rate of turnover that occurs is caused by several factors, among others are job satisfaction and work engagement. Factor affecting these two variables is organizational career management. Another factor that influence these two variables is support from leaders. A company must provide good career management for its employees to increase job satisfaction and work engagement which in turn reduce employee turnover intention. Most of research focus on how job satisfaction and work engagement influence on turn over but not much on how organizational career management influences turn over. Several studies had been done about turn over in Indonesia mentioned that the highest turnover rate in Indonesia occured ini banking industry. This study aims to determine the effect of organizational career management on turnover intention. The research model is considering job satisfaction and work engagement as a mediating factor and leadership career support as a moderating variable. The data collection method used is survey with structured questionaire. As many as 161 respondens were involved in this study. The respondens are permanent bank employees in Jabodetabek (Jakarta, Indonesia and its surrounding cities) who had worked for at least one year. Data collected was analysed by method of Structural Equation Modeling (SEM). The results showed that organizational career management has no direct effect on turnover intention but job satisfaction and work engagement were proven to fully mediate the relationship between organizational career management and turnover intention. On the other hand, leadership career support is not proven to moderate the relationship between organizational career management and job satisfaction also turnover intention.
References
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de Oliveira, L. B., Cavazotte, F., & Alan Dunzer, R. (2017). The interactive effects of organizational and leadership career management support on job satisfaction and turnover intention. International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2017.1298650
De Vos, A., Dewettinck, K., & Buyens, D. (2009). The professional career on the right track: A study on the interaction between career self-management and organizational career management in explaining employee outcomes. European Journal of Work and Organizational Psychology, 18(1), 55–80. https://doi.org/10.1080/13594320801966257
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Jaharuddin, N. S., & Zainol, L. N. (2019). The Impact of Work-Life Balance on Job Engagement and Turnover Intention. The South East Asian Journal of Management, 13(1). https://doi.org/10.21002/seam.v13i1.10912
Jung, H. S., & Yoon, H. H. (2013). The effects of organizational service orientation on person-organization fit and turnover intent. Service Industries Journal, 33(1), 7–29. https://doi.org/10.1080/02642069.2011.596932
King, Z. (2004). Career self-management: Its nature, causes and consequences. Journal of Vocational Behavior, 65(1), 112–133. https://doi.org/10.1016/S0001-8791(03)00052-6
Kong, H., Okumus, F., & Bu, N. (2019). Linking organizational career management with Generation Y employees’ organizational identity: The mediating effect of meeting career expectations. Journal of Hospitality Marketing and Management, 29(2), 164–181. https://doi.org/10.1080/19368623.2019.1616644
Li, N., Zhang, L., Xiao, G., Chen, J., & Lu, Q. (2019). The relationship between workplace violence, job satisfaction and turnover intention in emergency nurses. International Emergency Nursing, 45(September 2018), 50–55. https://doi.org/10.1016/j.ienj.2019.02.001
Malholtra, N. K., & Dash, S. (2016). Marketing Research: An Applied Approach Seventh Edition. In Pearson India Education Services (7th Editio). Pearson Education.
Memon, M. A., Salleh, R., & Baharom, M. N. R. (2016). The link between training satisfaction, work engagement and turnover intention. European Journal of Training and Development, 40(6), 407–429. https://doi.org/10.1108/EJTD-10-2015-0077
Memon, M. A., Salleh, R., Mirza, M. Z., Cheah, J.-H., Ting, H., Ahmad, M. S., & Tariq, A. (2020). Satisfaction matters: the relationships between HRM practices, work engagement and turnover intention. International Journal of Manpower, 42(1), 21–50. https://doi.org/10.1108/IJM-04-2018-0127
Mobley, W. H., Horner, S. O., & Hollingsworth, A. T. (1978). An evaluation of precursors of hospital employee turnover. Journal of Applied Psychology, 63(4), 408–414. https://doi.org/10.1037/0021-9010.63.4.408
Ngo-Henha, P. E. (2017). A Review of Existing Turnover Intention Theories. International Journal of Economics and Management Engineering, 11(11), 2760–2767.
Nouri, H., & Parker, R. J. (2013). Career growth opportunities and employee turnover intentions in public accounting firms. British Accounting Review, 45(2), 138–148. https://doi.org/10.1016/j.bar.2013.03.002
Ohana, M., & Meyer, M. (2010). Should I stay or should I go now? Investigating the intention to quit of the permanent staff in social enterprises. European Management Journal, 28(6), 441–454. https://doi.org/10.1016/j.emj.2010.06.007
Park, K. A., & Johnson, K. R. (2019). Job satisfaction, work engagement, and turnover intention of CTE health science teachers. International Journal for Research in Vocational Education and Training, 6(3), 224–242. https://doi.org/10.13152/IJRVET.6.3.2
Pfeffer, J. (2007). Organizational Behavior Perspective: Journal of Economic Perspectives, 21(4), 115–134.
Pirola-Merlo, A., Härtel, C., Mann, L., & Hirst, G. (2002). How leaders influence the impact of affective events on team climate and performance in R&D teams. Leadership Quarterly, 13(5), 561–581. https://doi.org/10.1016/S1048-9843(02)00144-3
Prahadi, Y. Y. (2015). Turnover Talent Tinggi, Ini Dia Pemicunya. SWA Online Magazine. Retrieved from https://swa.co.id/swa/trends/management/turnover-talent-tinggi-ini-dia-pemicunya-survei
Price, J. L. (2000). Reflections on the determinants of voluntary turnover. International Journal of Manpower, 22(7), 600–624.
PwC Indonesia. (2014). Indonesian Banking Survey 2014.
Rachmawati, R. (2020). Pandemi, Ketenagakerjaan, dan “Social Partnership.” Detikcom. Retrieved from https://news.detik.com/kolom/d-5048219/pandemi-ketenagakerjaan-dan-social-partnership
Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior. In Pearson (17th ed.).
Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relaltionship with burnout and engagement: a multi-sample study. Journal of Organizational Behavior, 25(August 2003), 293–315.
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471
Schaufeli, W. B., Salanova, M., Gonzalez-Roma, V., & Bakker, A. B. (2002). The Measurement of Engagement and Burnout: A Two Sample Confirmatory Factor Analytic Approach. Journal of Happines Studies, 71–92. https://doi.org/10.1108/IJPSM-09-2017-0257
Schutte, N., Toppinen, S., Kalimo, R., & Schaufeli, W. B. (2000). The factorial validity of the Maslach Burnout Inventory-General Survey (MBI-GS) across occupational groups and nations. Journal of Occupational and Organizational Psychology, 73(1), 53–66. https://doi.org/10.1348/096317900166877
Siew, K. L. (2017). Analysis of the Relationship between Leadership Styles and Turnover Intention within Small Medium Enterprise in Malaysia. Journal of Arts & Social Sciences, 1(1), 1–11.
Sokhanvar, M., Hasanpoor, E., Hajihashemi, S., & Kakemam, E. (2016). The relationship between organizational justice and turnover intention: A survey on hospital nurses. Journal of Patient …, 1(6). http://psj.mums.ac.ir/article_6690_0.html
Spector, P. P. (1997). Job Satisfaction: Application Assessment, Causes, and Consequences.
Sturges, J., Guest, D., Conway, N., & Davey, K. M. (2002). A longitudinal study of the relationship between career management and organizational commitment among graduates in the first ten years at work. Journal of Organizational Behavior, 23(6), 731–748. https://doi.org/10.1002/job.164
Tett, R. P., & Meyer, J. P. (1993). Job Satisfaction, Organizational Commitment, Turnover Intention, and Turnover: Path Analyses Based on Meta-analytical Findings. Personnel Psychology, 46, 259–293.
An, S. H. (2019). Employee Voluntary and Involuntary Turnover and Organizational Performance: Revisiting the Hypothesis from Classical Public Administration. International Public Management Journal, 22(3), 444–469. https://doi.org/10.1080/10967494.2018.1549629
Arthur, M. B., Khapova, S. N., & Wilderom, C. P. M. (2005). Career success in a boundaryless career world. Journal of Organizational Behavior, 26(2), 177–202. https://doi.org/10.1002/job.290
Arthur, M. B., & Rousseau, D. M. (1996). The Boundaryless Career: A New Employment Principle for a New Organizational Era. Oxford University Press.
Bakker, A. B., & Demerouti, E. (2008). Towards a model of work engagement. Career Development International, 13(3), 209–223. https://doi.org/10.1108/13620430810870476
Baruch, Y. (1999). Integrated career systems for the 2000s. International Journal of Manpower, 20(7), 432–457. https://doi.org/10.1108/01437729910292239
Baruch, Y., & Peiperl, M. (2000). Career management practices: An empirical survey and implications. Human Resource Management, 39(4), 347–366. https://doi.org/10.1002/1099-050X(200024)39:4<347::AID-HRM6>3.0.CO;2-C
Bowling, N. A., & Hammond, G. D. (2008). A meta-analytic examination of the construct validity of the Michigan Organizational Assessment Questionnaire Job Satisfaction Subscale. Journal of Vocational Behavior, 73(1), 63–77. https://doi.org/10.1016/j.jvb.2008.01.004
Caceres, R. C., & Paparoidamis, N. G. (2007). Service quality, relationship satisfaction, trust, commitment and business-to-business loyalty. In European Journal of Marketing (Vol. 41, Issues 7–8). https://doi.org/10.1108/03090560710752429
Chen, T. Y., Chang, P. L., & Yeh, C. W. (2004). A study of career needs, career development programs, job satisfaction and the turnover intentions of R&D personnel. Career Development International, 9(4), 424–437. https://doi.org/10.1108/13620430410544364
Cooper, D. R., & Schindler, P. S. (2014). Business Research Methods (12th ed.). Mc Graw Hill.
de Oliveira, L. B., Cavazotte, F., & Alan Dunzer, R. (2017). The interactive effects of organizational and leadership career management support on job satisfaction and turnover intention. International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2017.1298650
De Vos, A., Dewettinck, K., & Buyens, D. (2009). The professional career on the right track: A study on the interaction between career self-management and organizational career management in explaining employee outcomes. European Journal of Work and Organizational Psychology, 18(1), 55–80. https://doi.org/10.1080/13594320801966257
Dess, G. G., & Shaw, J. D. (2001). Voluntary turnover, social capital, and organizational performance. Academy of Management Review, 26(3), 446–456. https://doi.org/10.5465/AMR.2001.4845830
Dessler, G. (2017). Human Resource Management. In Pearson (15 Edition).
Eloksari, E. A. (2020). Companies still hiring now looking ahead to post-epidemic recovery: Mekari survey. The Jakarta Post. Retrieved from https://www.thejakartapost.com/news/2020/05/15/companies-still-hiring-now-looking-ahead-to-post-epidemic-recovery-mekari-survey.html
Gallup. (n.d). What Is Employee Engagement and How Do You Improve It?. Retrieved from https://www.gallup.com/workplace/285674/improve-employee-engagement-workplace.aspx#ite-285704
Hall, D. T. (1996). Protean careers of the 21st century. Academy of Management Executive, 10(4), 8–15. https://doi.org/10.5465/ame.1996.3145315
Helen, D. (2014). SURVEI SDM PERBANKAN: Turn Over Karyawan 15%, Motif Utamanya Cari Tunjangan Lebih Menjanjikan. Bisnis.Com. Retrieved from https://finansial.bisnis.com/read/20140515/90/228134/survei-sdm-perbankan-turn-over-karyawan-15-motif-utamanya-cari-tunjangan-lebih-menjanjikan
Insight, H. (n.d.). What About Indonesia?. Retrieved from https://www.hofstede-insights.com/country/indonesia/
Jaharuddin, N. S., & Zainol, L. N. (2019). The Impact of Work-Life Balance on Job Engagement and Turnover Intention. The South East Asian Journal of Management, 13(1). https://doi.org/10.21002/seam.v13i1.10912
Jung, H. S., & Yoon, H. H. (2013). The effects of organizational service orientation on person-organization fit and turnover intent. Service Industries Journal, 33(1), 7–29. https://doi.org/10.1080/02642069.2011.596932
King, Z. (2004). Career self-management: Its nature, causes and consequences. Journal of Vocational Behavior, 65(1), 112–133. https://doi.org/10.1016/S0001-8791(03)00052-6
Kong, H., Okumus, F., & Bu, N. (2019). Linking organizational career management with Generation Y employees’ organizational identity: The mediating effect of meeting career expectations. Journal of Hospitality Marketing and Management, 29(2), 164–181. https://doi.org/10.1080/19368623.2019.1616644
Li, N., Zhang, L., Xiao, G., Chen, J., & Lu, Q. (2019). The relationship between workplace violence, job satisfaction and turnover intention in emergency nurses. International Emergency Nursing, 45(September 2018), 50–55. https://doi.org/10.1016/j.ienj.2019.02.001
Malholtra, N. K., & Dash, S. (2016). Marketing Research: An Applied Approach Seventh Edition. In Pearson India Education Services (7th Editio). Pearson Education.
Memon, M. A., Salleh, R., & Baharom, M. N. R. (2016). The link between training satisfaction, work engagement and turnover intention. European Journal of Training and Development, 40(6), 407–429. https://doi.org/10.1108/EJTD-10-2015-0077
Memon, M. A., Salleh, R., Mirza, M. Z., Cheah, J.-H., Ting, H., Ahmad, M. S., & Tariq, A. (2020). Satisfaction matters: the relationships between HRM practices, work engagement and turnover intention. International Journal of Manpower, 42(1), 21–50. https://doi.org/10.1108/IJM-04-2018-0127
Mobley, W. H., Horner, S. O., & Hollingsworth, A. T. (1978). An evaluation of precursors of hospital employee turnover. Journal of Applied Psychology, 63(4), 408–414. https://doi.org/10.1037/0021-9010.63.4.408
Ngo-Henha, P. E. (2017). A Review of Existing Turnover Intention Theories. International Journal of Economics and Management Engineering, 11(11), 2760–2767.
Nouri, H., & Parker, R. J. (2013). Career growth opportunities and employee turnover intentions in public accounting firms. British Accounting Review, 45(2), 138–148. https://doi.org/10.1016/j.bar.2013.03.002
Ohana, M., & Meyer, M. (2010). Should I stay or should I go now? Investigating the intention to quit of the permanent staff in social enterprises. European Management Journal, 28(6), 441–454. https://doi.org/10.1016/j.emj.2010.06.007
Park, K. A., & Johnson, K. R. (2019). Job satisfaction, work engagement, and turnover intention of CTE health science teachers. International Journal for Research in Vocational Education and Training, 6(3), 224–242. https://doi.org/10.13152/IJRVET.6.3.2
Pfeffer, J. (2007). Organizational Behavior Perspective: Journal of Economic Perspectives, 21(4), 115–134.
Pirola-Merlo, A., Härtel, C., Mann, L., & Hirst, G. (2002). How leaders influence the impact of affective events on team climate and performance in R&D teams. Leadership Quarterly, 13(5), 561–581. https://doi.org/10.1016/S1048-9843(02)00144-3
Prahadi, Y. Y. (2015). Turnover Talent Tinggi, Ini Dia Pemicunya. SWA Online Magazine. Retrieved from https://swa.co.id/swa/trends/management/turnover-talent-tinggi-ini-dia-pemicunya-survei
Price, J. L. (2000). Reflections on the determinants of voluntary turnover. International Journal of Manpower, 22(7), 600–624.
PwC Indonesia. (2014). Indonesian Banking Survey 2014.
Rachmawati, R. (2020). Pandemi, Ketenagakerjaan, dan “Social Partnership.” Detikcom. Retrieved from https://news.detik.com/kolom/d-5048219/pandemi-ketenagakerjaan-dan-social-partnership
Robbins, S. P., & Judge, T. A. (2017). Organizational Behavior. In Pearson (17th ed.).
Schaufeli, W. B., & Bakker, A. B. (2004). Job demands, job resources, and their relaltionship with burnout and engagement: a multi-sample study. Journal of Organizational Behavior, 25(August 2003), 293–315.
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471
Schaufeli, W. B., Salanova, M., Gonzalez-Roma, V., & Bakker, A. B. (2002). The Measurement of Engagement and Burnout: A Two Sample Confirmatory Factor Analytic Approach. Journal of Happines Studies, 71–92. https://doi.org/10.1108/IJPSM-09-2017-0257
Schutte, N., Toppinen, S., Kalimo, R., & Schaufeli, W. B. (2000). The factorial validity of the Maslach Burnout Inventory-General Survey (MBI-GS) across occupational groups and nations. Journal of Occupational and Organizational Psychology, 73(1), 53–66. https://doi.org/10.1348/096317900166877
Siew, K. L. (2017). Analysis of the Relationship between Leadership Styles and Turnover Intention within Small Medium Enterprise in Malaysia. Journal of Arts & Social Sciences, 1(1), 1–11.
Sokhanvar, M., Hasanpoor, E., Hajihashemi, S., & Kakemam, E. (2016). The relationship between organizational justice and turnover intention: A survey on hospital nurses. Journal of Patient …, 1(6). http://psj.mums.ac.ir/article_6690_0.html
Spector, P. P. (1997). Job Satisfaction: Application Assessment, Causes, and Consequences.
Sturges, J., Guest, D., Conway, N., & Davey, K. M. (2002). A longitudinal study of the relationship between career management and organizational commitment among graduates in the first ten years at work. Journal of Organizational Behavior, 23(6), 731–748. https://doi.org/10.1002/job.164
Tett, R. P., & Meyer, J. P. (1993). Job Satisfaction, Organizational Commitment, Turnover Intention, and Turnover: Path Analyses Based on Meta-analytical Findings. Personnel Psychology, 46, 259–293.
Published
2024-07-31
How to Cite
ISTIQOMAH, Isnaini Nurul; SULISTYARINI, Imbuh; ., Sumiyarto.
Can Organizational Career Management Reduce Turnover Intention Rate Among Employee? A Study of Millennial Generation in Banking Industry in Indonesia.
International Journal of Business and Technology Management, [S.l.], v. 6, n. 2, p. 423-437, july 2024.
ISSN 2682-7646.
Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/27284>. Date accessed: 19 sep. 2024.
Section
English Section
