Turnover Intention Model
Turnover Intention Model
Turnover Intention Model
Marketing
ISSN: 2146-4405
ABSTRACT
The purpose of this research to find out the influence of leadership, work environment, compensation, partial evaluation and jointly against job
satisfaction and know the influence of leadership, work environment, compensation and job satisfaction as partial and jointly over turnover intentions
of employees in the plastic industry of household appliances in the special capital region of Jakarta. The sample is taken using the proportionate
random sampling. Data are descriptive analysis and explanatory analysis using sample of 260 respondents from 6226 population. The data analysis
methods used are structural equation modeling (SEM) with LISREL8.51 program. Based on the research results, leadership, working environment
and compensation partially or jointly create significant positive effect on job satisfaction with the effect by 46% while the remaining 54% are
influenced by other factors, but the most dominant partial is that compensation effect positively and significantly on job satisfaction. Leadership,
work environment, compensation and job satisfaction partially or jointly significant effect on turnover intentions of employees with effect by 67%
while the remaining 33% are influenced by other factors, but the most dominant influence in turnover intentions of employees is job satisfaction. The
findings of this research are that for the turnover intention employees, especially the intention to move but for fear not getting better job (Y8) can be
lowered if employees feel satisfied with the work itself (Y2) that is reinforced by work environment extern/internal factors (X6) that in the form of
selfish abstinence. Work satisfaction especially satisfied on the job himself can be increased if the company is able to improve the compensation for
the employees which can be in the form of non-financial compensation (X9) especially a sense of security on the job as well as good leadership in the
form of participative managerial capabilities (X2).
Keywords: Leadership, Work Environment, Compensation, Work Satisfaction, Turnover Intentions
JEL Classifications: M12, M54, N75
This Journal is licensed under a Creative Commons Attribution 4.0 International License
and not trying to find other job. On the other hand employees active role and the dominant in any activity organization as a
who felt dissatisfied in his work tend to move, evaluate over planner, the offender and determine a creation of organizational
alternatives another job and wishes to move with hope of finding goals (Frese & Fay, 2001) this is an identification process to the
more satisfied work. factors that will affect turnover intentions, identification is also will
be incredibly important to considered and going to be something
The high level of turnover employees at companies will raises that is effective where this may reduce the rate turnover employees.
various potential costs and the costs of training which already
been invested on the employees, the level of performance that are The issue can be faced by any organization including the plastic
sacrificed, and the costs of recruitment and training back. Turnover industry, the plastic industry needs to be solid to meet consumer
employees potentially incurring high costs, hence a company demand in Indonesia. Frinces, (2015) states that the prospects for
should be able to suppress turnover intention of employees to the the plastics industries in Indonesian is good, based on three factors
level that can be accepted. The high level of turnover intention of that provide great opportunity for the plastics industry. first is by
employees in a company can be assumed that the company was the population, second are natural resources of raw materials which
not able to provide the best hope for their employees, in addition are rarely owned by other countries, third is the consumption of
become a yardstick for the company in terms of the quality of plastic in Indonesia is very low compared to other countries.
empowerment of human resources.
Jakarta is one of the industrial companies in Indonesia that had
A lot of factors cause turnover intentions, but an outline (Memon plastic household companies reached 26 plastic industry (Sodik,
et al., 2016) classify turnover due to factors of voluntary turnover 2007). Of the 26 companies such as a plastic household according
employees and involuntary turnover. Evaluation on various to a survey conducted by the research and interviews almost all
alternatives work will eventually manifest the turnover intention companies face problem on turnover intention, and this became
because individual who choose to move will hope to get more an interesting study to examine the industrial plastic household in
satisfaction in the new company. facing the challenges of high turnover intention on high demand
of goods.
Compensation is one of the factors that could affect the job
satisfaction. According to (Saluy et al., 2018), compensation Sutanto & Kurniawan (2016) declare that the high level of turnover
awarded to an employee’s influential on the level of satisfaction of on industries will increase various potential costs, the cost of
work and motivation of labor as well as the results in their work. the training that has been invested on employees, the level of
According to information obtained, it is known the payment system performance that should be sacrificed, and the costs recruitment
compensation imposed by the plastic industry is the daily paid and training back. Turnover intention of employees has the
system which is every Saturday. The weakness of the system is that potential to cause high cost in which company should be able
this system increase the opportunities for employees to be easily to reduce turnover intention of their employees to come into the
move to other company which can be the cause of the occurrence level that can be accepted. The high level of turnover employees
of turnover intentions on the company. Besides there are some in a company can be assumed that the company did not capable
similar companies in the environment which could increase the of giving their best for their employees, in addition become
turnover intention of the employees. yardstick for the company in the aspect of quality empowerment
human resources.
Other factors can affect the satisfaction of employment is
working environment. In general working environment in a Based on the data from the employee turnover originating from
company is the environment in which employees do their daily the plastic industry in Jakarta 2017, we can see that the number
activities, but emotionally work environment can also mean the of turnover employees from 2015 until 2017 increases, namely
service employees, working conditions and relations between 454 employees in 2015, with turnover reached 7.35% increase
employees. According to (Ukil, 2016) service employees by to 492 employees in 2016 with turnover 7.95%, increase to 534
companies will produce satisfaction in resolving the work carried employees in 2017 with turnover 8.6%.
out for the company. So appropriate environment for workers can
give positive impact on the job satisfaction, in other words the The increase in turnover employee who happened to the plastic
environment have positive relation to job satisfaction. Suitable industry, indicates the fundamental problems in the company that
working environment can be in the form of lighting, suitable air raises the intention of turnover intentions of employees. Although
temperature, controlled noise, space provided and others. there is no specific ideal turnover number but the higher the rate
of turnover, indicated a problem in the management of human
(Zablah et al., 2016) indicate that employees who have high resources.
satisfaction has low absentees, working in long term (low turnover
employees) and tending to work harder as well as demonstrate 2. LITERATURE REVIEW
his achievement. The high satisfaction the employees cannot be
separated from the kind of trust of employees to the manager. 2.1. Leadership
Management treatment over them is the management approach to Jin et al. (2016), said that leadership is the ability to affect a group
human resources as asset valuable and not only as a commodity of people to receive achievement (a goal). All members of the
that can be exploited by management due they always play an group as a unified organization, which made leadership can affect
2.6. Hypothesis Research The source of data in this research is a source of secondary data
H1: There is influence of leadership against employee’s job from a documentary or report that is available in the related
satisfaction in plastic industry households in Jakarta. institutions. The primary data of leadership, working environment,
H2: There is influence of working environment against employee’s compensation, the job satisfaction and turnover intention of
job satisfaction on plastic industry households in Jakarta. employees in the plastic industry of household appliances in Jakarta.
H3: There is influence of compensation against employee’s job
satisfaction on plastic industry households in Jakarta. The population in this research is all the employees in the plastic
H4: There are influence of leadership, working environment and industry households appliances in Jakarta were 6226 people from
compensation together against employee’s job satisfaction on 26 companies. This sample size is determined with regard to the
plastic industry households in Jakarta. analysis technique used in the hypothesis test that is a model of the
structural equation (SEM). Wah et al., (2012) said that to model ≥1.96 (on α = 0.05). So also latent exogenous as well
value
SEM with the number of variables latent up to five variables and as endogenous variable and having a good reliability, it is
each construct explained by three or more indicators, so the number indicated by all variables construct reliability having a value
of samples is between 100 and 150 is considered sufficient. To >0.70 (CR ≥ 0.70) and a larger variance extract value from
qualify the total sample that must be fulfilled if they use the SEM 0.50 (VE ≥ 0.50).
analysis, hence the total sample ranged is from 100 to 200 and
with the minimum of 5 times the number of indicators. Because Analysis structural model performed with the purpose to study
the indicator used in this research are 52 so the minimum sample the relationship between variables latent (latent variables or LV)
data research that is used is 5 x 52 = 260 respondents, with the in research in the model. Based on the analysis with lisrel 8.51
sampling methods used are proportionate sampling. obtained structural model as a whole that is visible in Figure 4
and 5 as follows:
4. RESULT AND DISCUSSION
Results from significant testing of relationship between variables
latent or trajectory between two variables latent, can be seen in
4.1. Result
Table 3 as follows:
Based on the results of data analysis using LISREL 8.51, retrieved
suitable size hybrid models (full SEM) with hybrid standard mode
Figure 2: Hybrid model (full structural equation modeling)
land t-value. The size of the suitability of the hybrid model are
standardized
as follows.
Table 1, shows that there are five suitable size of the hybrid
model (full SEM) obtained have the consistency of good fit index
measurement model, namely GFI, RMSEA, NNFI, IFI and CFI,
while the three size of consistency hybrid models (full SEM)
having index the measurement of that marginal fit, namely AGFI,
NFI and RFI. Marginal fit is the condition of consistency scaling
model under the criteria of absolute fit, as well as incremental fit,
but can still be continued in further analysis, because it is close
to good fit criteria size.
Hybrid model (full SEM) with using program lisrel 8.51 obtained
two models, namely standardized model and the t-values model,
Figure 3: Hybrid model (full structural equation modeling) t-value
as each model shown in Figures 2 and 3.
Figure 5: Structural Model (t-value). Chi-square=168.97, df=112, internal/(X2.6) loading factor value 0,79, and the most dominant
P=0.00041, RMSEA=0.044. KM – Leadership, LK - Work indicator are employees trying to abstinence from a selfish (Lk
environment, KI – Compensation, KK - Job satisfaction, TI - Turnover 12) the loading factor value is 0.81. Dominant compensation
intentions dimension is non financial compensation (X3.9) loading factor
value= 0.79, the most dominant indicator is employees feel save
when working (KI05) loading factor value 0.80.Dominant job
satisfaction dimension formed by satisfied employees with their
jobs (Y1.2) loading factor value = 0.79 and the most dominant are
employees get works according with their ability (KK03) loading
factor value = 0,73 dominant turnover intention dimension with
the aspects of better job (Y2.8) loading factor value = 0,87, and the
value of most dominant loading factor value = 0.59 is the level of
the desire of employees to move from the company if the family
support, It means getting better leadership, improving working
environment and compensation, the high level of job satisfaction
of the employee work in the plastic industry households in Jakarta
thus the turnover intention will decrease (El-Adly & Eid, 2016;
Jin et al., 2016; Riansari et al., 2012).
well as by increasing leadership managerial ability (X2) (El-Adly in Jakarta, the most dominant element of compensation is in
& Eid, 2016; Saluy et al., 2018; Thrun, 2014). non-financial compensation. This shows that the increase
in compensation to the employees of the plastics industry
5. CONCLUSION household appliance in Jakarta will result in reduced employee
turnover intentions.
The conclusion of this research is as follows: 8. Job satisfaction especially pleased with the work itself a
1. Leadership in the form of managerial abilities gives positive significant negative effect on turnover intentions partially
impact and significant in a partial way towards the job satisfaction employees primarily intention to move for fear of not getting
of the employee. Mainly they are satisfied with the work itself a good job in the plastics industry household appliance in
in the plastic industry households in Jakarta, the dominant Jakarta, with elements of job satisfaction is the most dominant
leadership qualities are managerial qualities. This shows that the on satisfaction top jobs. This shows that the increase in job
improvement of the leadership to the plastic industries household satisfaction of employees of the plastics industry household
in Jakarta will cause the increase of the job satisfaction. appliance in Jakarta will result in reduced employee turnover
2. Working environment in the form of factors of external and intention.
internal gives positive no significant in a partial way to the 9. Leadership in the form of managerial capabilities, working
job satisfaction of the employee, mostly satisfied with the job environment in the factors of external/internal, compensation
itself in the plastic household industry in Jakarta. This shows in the form of non-financial compensation and job satisfaction
that the improvement of working environment will not cause especially pleased with the work itself jointly significant
an increase in the job satisfaction of the employees. negative effect on turnover intentions of employees primarily
3. Compensation in the form of non financial gives positive intention to move for fear of not get a good job in the Plastics
impact and significant in a partial way towards job satisfaction Industry Household Appliance in
of the employee, mainly satisfied with the job itself in 10. Jakarta, by a factor of job satisfaction has the most dominant
the Plastic Household Industries in Jakarta, with the most influence on employee turnover intentions. This shows that
dominant element on compensation is non financial. This the improvement in the effectiveness of the leadership, work
shows that the increased compensation of the employees at environment, compensation and job satisfaction of employees
the plastic household industry in Jakarta will cause an increase of the Plastics Industry Household Appliance in Jakarta will
in work satisfaction of employees. result in a decreased level of employee turnover intentions.
4. The leadership in the form of managerial skill, working
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