Intention to Leave Among Private Sectors Workers in Malaysia Essay Example for Free

Intention to Leave Among Private Sectors Workers in Malaysia Essay Although, there is no standard framework for understanding the employees turnover process as whole, a wide range of factors have been found to be useful in interpreting employee turnover (Kevin MM, 2004). High turnover rate at any organizations levels constitutes a waste of human resources (Newstorm, 1994). Manager of Human Resource Department need to pay more attention regarding this issues. They need to identify the main sources of employee turnover; is it because of the company’s management or the workers itself. Private sector workers change their job more frequent as compared to government servants. Job nature and working environment plays an important role in influencing employee’s intention to leave. Currently there are numbers of studies looking at the relationship between turnover intention and job satisfaction. However the findings are different between each other’s. So we tend to investigate what actually influence people intention to leave the organization. Instead to identify the relationship between job satisfaction with intention to leave we also investigate is there any relationships between demographic factors (age, year of service and education level) towards intention to leave. The main objective of this study is to examine the factors associated with intention to leave among private sector workers. The primary focus of this study is to identify the major factors related with the intention to leave. The factors may help the Human Resource Department to solve this employer issues by making some changes or improvement in the organization. In other point, this research can be used by others researcher in order to investigate this problem. Human Resource Department also can have the information regarding on what workers want totally. So, HR Department may choose the best strategies or solutions in order to reduce workers turnover rate. 1. 2 Problem Statement In the era of globalization, turnover is a persistent problem in organizations and it is common in every type and size of organization and at every organizational level. Staff turnover is a serious issue especially in the field of human resources management. It is very costly for an organizational and the cost is due to termination, advertising, recruitment, selection, and hiring (Abbasi, Hollman, K. W. , amp; Hayes, R. D. , 2008). It is simply said that the level of job satisfaction of an employee could decline when his or her colleague left the company. This is true because the remaining employees may have to take over the job responsibilities of the previous worker in the case that the management has not find any replacement yet. The workload could be doubled; the stress level might increase thus affecting health conditions and also job performance. It is widely believe that in today’s working environment, job satisfaction has been the main factor to retain employees from leaving an organization. Many research also found that when job satisfaction is achieved by each employees, it could increase the level of job commitment towards task given or in other words; reduce the number of intention to leave among workers. To find out whether it is true that job satisfaction has significant effect on intention to leave among private sector workers, questionnaires has been distributed to ask the respondents how they feel working with the current organization. The elements that we tried to focus on are towards job challenge, supervision, income, and promotion. Besides that we would like to see how demographic factors such as age, year of services and educational level could influence one’s decision to quit a job. 1. 3 Research Questions There are many studies on the relationship between turnover intention and job satisfaction but the results are difference between each other’s. So we tend to investigate what actually influence people intention to leave the organization frequently. The research question for this study has been identified as follows: 1. Do job satisfaction factors have relationship with intention to leave? 2. Do demographic factors (age, year of service and education level) have relationship with intention to leave? 3. Which variables (Job Challenge, Supervision, Income or Promotion) are the strongest factors that might influence intentions to leave? 1. 4 Research Objectives The main objective of this study is to examine the factors associated with intention to leave among private sector workers. Generally this study is intended to measure whether job satisfaction is related to intention to leave. Therefore in order to answer the research question above, the following research objectives were formulated. 1. To identify the relationship between job satisfaction and intention to leave among private sector workers. 2. Do demographic factors (age, years of service and education level have relationships with intention to leave. 3. Which variables strongly related with intention to leave? 1. 5 Significance of Study The primary focus of this study is to identify the major factors related with the intention to leave. The factors may help the Human Resource Department to solve this employer issues by making some changes or improvement of the organization. In other point, this research can be used by others researcher in order to investigate this problem. Human Resource Department also can have the information regarding on what workers want totally. So, HR Department may choose the best strategies or solutions in order to reduce workers turnover rate. 1. 6 Definition of Terms 1. 6. 1 Job Satisfaction According to (Graham, 1982) job satisfaction is a measurement of one’s total feelings and attitudes towards one’s job. Job satisfaction is the main predictor of turnover intention (Milkovich amp; Boudreau, 1997). While (Hoppock, 1935) defined job satisfactions as a combination of psychological, physiological and environmental circumstances. Job satisfaction is attributed not only to one but many factors and varies in its impact on individuals’ satisfaction with life because work varies in importance from individual to individual (Nash, 1985). (Wong, 1989) Who did a research on impact of job satisfaction on intention to change jobs among secondary school teachers in Hong Kong. (Wong, 1989) Find that when the teachers’ have low job satisfaction then they will have low commitment and productivity. So, before the things become worse, Human Resource Manager needs to overcome this situation to prevent company loss. They should alert as one of the major company’s success come from employees. 1. 6. 2 Intention to Leave According to (Noor amp; Maad, 2008) intentions to leave are positively related with actual leaving. Intention can be defines as the most immediate determinants of actual behavior and practical value as one people have actually implemented the behavior to quit (Ajzen amp; Fishbein, 1980). Intention to leave the organization has been studied over several decades which in turn contributed to the findings of the positive and negative aspects of turnover (Mossholder, Bedeian, Norris, Giles, amp; Feild, 1988). Managers and researchers consider turnover as a problem because of costs associated with it (Noor amp; Maad, 2008) and difficulties that organizations face in the recruitment and retention of proficient employees (Villanueva amp; Djurkovic, 2009) and (Igbaria amp; Greenhaus, 1992). CHAPTER 2 LITERATURE REVIEW 2. 0 Introduction Recent research identifies a number of factors that increase the vulnerability of the young, adolescent girls in particular, including orphan hood, migration, forced sexual initiation, and the effects of residence. . 1 Turnover Intention A turnover intention is defined as employees to leave the organization voluntarily without being force by the management. According to (Liu, Liu, J. X. , amp; Hu, J. , 2010), reputation on organization might reduce and damage when their turnover rate is shown upward rate beside that the cost for recruiting a new employee will involve cost to the organization and company expenses also increase. Besides that, cost of employees tu rnover are hard to measure but can be control by organization. In addition, higher rate of turnover will cause the organization lose the high degree of knowledge, skill and abilities. In addition, turnover intention is a problem that needs to be solved by human resources and organization management. The organization need to solve the problem of turnover as soon as possible because it may diminishes the organization knowledge capital and weakens its reputation. The better the person fit the organization will lead to higher satisfaction, the organizational commitment and rate of turnover intention will be lower. 2. 1. 1 Relationship between job satisfaction with intention to leave Different individual will have different job satisfaction of needs in their life. Job satisfaction can be described as to what extent to which people or individuals satisfaction or dissatisfaction in their job. Job satisfaction is a general or global affective reaction that individual hold about their jobs. Job satisfaction among workers can be increase and creates by the organization. Job satisfaction facets may be including co-workers, salary, job condition, supervision, nature of the work and can be benefit that the employee received during their operation. According to research done by (Saari amp; Judge, 2004) shown that dissatisfied employees are more likely to quit their job or be absent compare than satisfaction employees. Job satisfaction will influence the performance of the employees in the organization. Most of the dissatisfaction employees tend to shown withdrawal behavior such as lateness, absenteeism, moving to other department and worst they will turnover or make a decision to retire. In addition, the research suggests that job satisfaction does effect life satisfaction but life satisfaction also effects job satisfaction (Judge amp; Watanabe, 1994). Consistent relationship between job satisfactions with depression and influence the employees to let go the job. This research also concludes that organization had so much control on creating and increasing the job satisfaction among their employees. This is because job satisfaction is only a result of spillover of their life satisfaction but if the company less pay attention on low job satisfaction, the organization can see the effectiveness of job performance of the employees reduce and the lead to absent and quitting the job. Intention to leaving the organization is an emotional state and designated as the degree of likelihood an employee will remain employed with an organization (Currivan, 1999). The research is on intention to leave by employees analyzed that there is a causal relationship between job satisfaction and employee turnover and found an inverse relationship. In addition, a studies by (Joel, 2004) found that they is a relationship between job satisfactions with intention to leave but this is not a strong affect as economic condition reasons. Besides that, job satisfaction is a positive or negative attitude the employee has toward his or job or some specific aspect of the job. It is can be consider as internal state of mind of an individual. If the feeling of job satisfaction is positive or the respond is active, then the member is satisfied and vice versa ( Ying, Ching amp; Rong, 2009). Other research from (Pascal, 2011), shown that Job satisfaction fully mediated the relationship between perceived stressful work and intention to leave the employer. The results highlight the importance of employee job satisfaction in stressful environments. . 1. 2 Relationship between demographic factor with intention to leave In this study, we would like to determine relationship between demographic factors such as year of service, education level, age, and years of services and so on toward intention to leave the job. A research done by (Samad, 2006) founded that age, income and tenure of services by employees had a negative effect on turnover intention by employees. Empirical studies indicate that demographic variables are relevant with turnover intentions (William amp; Hazer, 1986). Age, income and tenure are identified as negatively related to turnover intentions although the effects of employee demographic variables on turnover intentions may differ in different international environment, empirical research in international context including in Malaysia is scanty. Some studies have found no significant relationship between gender and correctional turnover for example (Byrd, 2000). However, (Camp, 1994) found that female federal correctional employees were more likely to quit than were male staffs. This research was done for US employees. Furthermore, research done by (Eric, 2006) found that female employees had higher rate of intention to leave the organization compare than male employees. In contrast, research done by Aaron (1999) found that there is a weak relationship between tenure of service with intention to leave the organization. He found that, longer tenure of services of employees will get respect by others employees and normally known is senior but due to age and condition their intention to leave is low. CHAPTER 3 RESEARCH DESIGN AND METHOD 3. 0 Introduction The purpose of this chapter is to describe the research design and methodology used in this research. We will outline the research framework to provide a better understanding towards how the research is done and how the data is being analyzed. 4. 1 Research Framework and Hypotheses This research looks at the cause and effect of job satisfaction on intention to leave between employees in private organizations. Basically four criteria has been define to be the independent variables in this study; Job Challenge, Supervision, Income and Promotion. The second independent variable that has been concerned is the demographic characteristics which include age, year of services and education level of selected respondents. The dependent variables in this study would be employees’ intention to leave. This can be drawn as per Figure 1 below: INDEPENDENT VARIABLES Job Satisfaction * Job Challenge * Supervision * Income * Promotion * DEPENDENT VARIABLES Intention to Leave Demographic Characteristics * Age * Year of Services * Education Level Figure 1: Research Framework 3. 2 Hypothesis Statement Based on previous study, in order to explain the concept of these research three hypotheses has been outlined to be the antecedent of the statement: H1: There is significant relationship between job satisfaction and intention to leave H2: There is significant relationship between demographic factors and intention to leave H3: There is significant influence of job satisfaction factors to intention to leave H4: There is significant influence of demographic factors to intention to leave 3. 3 Research Design This research is intended to lo look at the relationship between Job Satisfaction and the Intention to leave by private sector workers.