Syntax Literate: Jurnal Ilmiah Indonesia p–ISSN:
2541-0849 e-ISSN: 2548-1398
Vol.
9, No. 9, September 2024
ANALYSIS OF THE INFLUENCE OF PSYCHOLOGICAL EMPOWERMENT, RELATIONAL
PSYCHOLOGICAL CONTRACT, AND PAY SATISFACTION ON TURNOVER INTENTION MEDIATED BY
WORK ENGAGEMENT AMONG GEN Z EMPLOYEES
Universitas Indonesia, Depok, Indonesia1,2
Email: [email protected]1, [email protected]2
Abstract
The tendency of generation Z, which is the newest
group in the workforce, to leave their jobs is significant both globally and in
Indonesia. This research aims to reveal the impact of salary satisfaction,
psychological empowerment, and relational psychological contract on turnover
intention, with work engagement as a mediator. Using a quantitative research
design that adopts a cross-sectional approach, data was obtained from 220
generation Z employees. Data analysis was carried out using Partial Least Squares
Structural Equation Modeling (PLS-SEM). The research
results show that there is a direct influence of psychological empowerment on
turnover intention, while the relational psychological contract and salary
satisfaction do not have a direct influence. Additionally, work engagement was
identified as a mediating factor in the relationship between psychological
empowerment, relational psychological contract, pay satisfaction, and turnover
intention.
Keywords:
Turnover Intention, Pay
Satisfaction, Psychological Empowerment, Relational Psychological Contract,
Work Engagement, Generation Z
Introduction
Recruiting and retaining the best
talent is very important for a company's competitive advantage (Zahari & Puteh, 2023).
Therefore, a high turnover rate is not something to be liked because it
requires large costs (Zahari & Puteh, 2023). Talent Management and HR Magazine explains
that for entry-level employees, it costs between 30 to 50 percent of their
annual salary to replace them (Borysenko, 2015). For
mid-level employees, the cost is above 150 percent and for highly specialized
employees, it costs more than 400 percent of their annual salary to replace
them (Borysenko, 2015).
Employee turnover has a rampant
direct impact on the costs and performance of an organization (Al-Suraihi, Samikon, & Ibrahim,
2021). Apart from having an impact on increasing costs, this phenomenon also
has other indirect impacts, for example on reducing efficiency and performance,
especially for workers concerned before leaving their jobs and new workers
before they really master the job (Saleem & Qamar, 2017). Not only with the
aim of avoiding increased costs, studying employee turnover rates is also important
to help in planning and forming future human resource strategies (Serenko, 2024).
However, in reality, based on a
survey conducted by Michael Page in 2022 which was republished in Katadata, as many as 74% of workers in Asia Pacific plan to
resign from their workplace within the next six months, while for Indonesia
itself the percentage is higher, namely 84 %. In addition, based on the 2022
National Labor Force Survey (Sarkernas), it is known
that the percentage of the workforce who are in the 15-34 year age range and
left their previous jobs is 20.5%, an increase from the previous year which was
only 19.1%. This figure is also the highest when compared with other age
groups. It is known that internal reasons dominate the decision to change jobs
made by workers in this age range. The internal reasons referred to are
dissatisfaction with salary and incompatibility with the work environment
(Central Statistics Agency, 2023).
HR practitioners have their own
challenges in retaining young talent, because the younger generation tends to
easily leave their workplace for various reasons (Oladapo,
2016). The younger generation in the current labor
market are those who are included in Generation Z, where Maloni,
Hiatt, and Campbell (2019) group them based on births from 1995-2012. In
Indonesia, based on data from the National Statistics Agency in 2022, the
workforce with an age range of 20 years to 29 years who are classified as
Generation Z is 32,486,898. This number represents 22.55% of the total
workforce in Indonesia. This suggests that it is important to understand how
internal factors related to generation Z employee satisfaction can influence
their intention to leave the company.
Previous research explains that
employees' intention to remain or leave the organization (turnover intention)
is the final phase in the process of deciding to voluntarily withdraw (Lambert,
Lynne & Barton, 2001). Turnover intention is defined as a mental decision
that an individual has regarding the choice to continue or leave a job.
According to Sandhya and Sulphey (2021) a better way
to overcome turnover is to find the cause, so this research will focus on the
intention of turnover itself. Previous studies have found that various
individual, organizational, and environmental characteristics were found to
predict turnover intention (Harhara, Singh, &
Hussain 2015; Thomas & Lucas, 2019).
Sandhya and Sulphey
(2021) found that work engagement has a negative and significant influence on
turnover intention among IT employees in industry. High work involvement
actually leads to a full investment of emotional energy which will ultimately
provide better performance (Lai et al., 2020). Engagement was found to mediate
the relationship between empowering leadership and intention to resign (Van
Schalkwyk et al., 2010). In recent research, Abela and Debono (2019) found that
lack of employee involvement is one of the factors that can trigger the
intention to leave the company. In this research, work engagement is an
important variable to research because there is research which states that the
younger generation (Gen Z) has lower engagement than the older generation
(Haley et al., 2013).
Pay satisfaction refers to the
positive and negative feelings that employees feel about the compensation they
receive (Wu & Lin, 2018). The level of employee engagement correlates with
their perception of the rewards they receive after completing a task, as a
result, when employees perceive higher benefits from task performance they will
tend to be more involved in their work (Gulyani &
Sharma, 2018). A proper compensation system is essential for organizations to
achieve their goals, underpaid employees will not be able to meet those goals (Aboramadan et al., 2020). Research shows that pay
satisfaction creates a sense of responsibility among employees which leads to
work engagement (Kulikowski, 2018). Employee
incentives and rewards are considered practices that increase motivation and
positively influence work engagement (Goyal & Patwardhan, 2021).
Akhavan, Abzari,
Nasr, and Fathi (2017) stated that Gen Z views
compensation in a different way from previous generations, where they
prioritize compensation that is in line with the values they believe in and
in accordance with the valuable contributions they make. Apart from that, pay
satisfaction is one of the biggest causes underlying employee decisions to
resign based on the 2022 national workforce survey, so pay satisfaction is one
of the variables tested in this research.
Psychological empowerment is one of
the HR strategy designs that is carried out consciously and deliberately to get
the best results from employees (Li et al., 2015). Empowerment can facilitate
employees to use their individual and collective talents to achieve individual
goals and company goals, while also allowing organizations to respond quickly
to change (Sandhya & Sulphey, 2021). The need to
empower employees in order to reduce intentions to leave the company has also
been identified by (Sandhya & Sulphey, 2021).
observed that psychological empowerment was positively related to employee
engagement. Empowerment is an important variable to observe in the younger
generation (Gen Z), because this generation is considered to have less
experience, therefore they realize that they have a need for organizations and
leaders who can increase their skills and strengths (Nastasia
et al., 2023).
Psychological contract is defined
by Rousseau and Schalk as an individual's belief in reciprocal obligations
between that person and other parties such as employers (Liao et al., 2017).
Several studies have investigated the influence of the psychological contract
on employee engagement (Malik & Khalid, 2016; Parzefall
& Hakanen 2010; Sharma & Garg, 2017; Soares
& Mosquera, 2019). One of the studies by Malik & Khalid (2016) found
that if employees feel a violation of their psychological contract, this will result
in low work engagement and higher turnover intention. A study by Sharma and
Garg (2017) found that the psychological contract is an important driver of
employee engagement among IT employees.
The psychological contract consists
of two dimensions, namely transactional and relational, however research
conducted by Soares and Mosquera (2019) found that only the psychological
dimension is long term and provides development that is significantly related
to work engagement where the dimension in question is the relational
psychological contract. Meanwhile, the transactional dimension which is short
term and measured economically does not have this impact. This research is also
in line with research from Pohl, Bertrand, and Ergen
(2016) where this research examines psychological contracts through different
dimensions, namely economic, developmental and socio-emotional and shows the
results that only the developmental dimension produces a positive relationship
with performance.
Apart from that, other research
only uses relational contracts as a dimension that reflects psychological
contracts, for example in research from Rahman, Rehman, Imran, Aslam (2017)
which only links relational psychological contracts with work involvement. The
same thing was also found in research by Nguyen
et al., (2021) where relational contracts can increase work engagement and have
an impact on satisfaction and performance. Supported by this foundation, this
research will be conducted by focusing on relational psychological contracts as
an independent variable.
The psychological contract is one
of the things tested in this research because as we know, Gen Z are people who
have been exposed to digital technology and are often called tech savvy, this
causes a shift in the formation of the psychological contract (Coetzee &
Deas, 2021) . Digitalization replaces social interactions related to topics
that are important for perfecting a person's psychological contract. This also
reduces communication and negotiations around the psychological contract. which
eliminates the opportunity for employees to explore and probe their
psychological contracts in interactions. There is less information exchange
between HR staff and employees. Reduced social interaction affects the
socioemotional aspects of the psychological contract, especially the relational
psychological contract (Deas, 2019). This research aims to reveal the impact of
salary satisfaction, psychological empowerment, and relational psychological
contract on turnover intention, with work engagement as a mediator.
Research
methods
The approach used in this research
is a quantitative approach with a deductive thinking framework. Deductive here
means that the researcher looks at things that are general in nature as
antecedents, until they reach things that are specific and more particular. The
data used in this research is primary data. Primary data in this research was
obtained by collecting information through questionnaires from employees who
belong to generation Z (born between 1995 – 2006) and work in companies whose
main basis is technology or companies that use applications or websites as a
source of revenue stream. -his. Next, the employee concerned fills out a
questionnaire using the self-administered survey method. Self-administered
survey means the questionnaire is filled in directly by the respondent without
the help of a researcher.
The population in this study were
all private employees aged 18 to 29 years with a minimum length of service of 1
year and domiciled in the Jabodetabek area.
Respondents will also focus on those who work in industries whose main basis is
technology or use applications or websites as a source of company income. This
research uses a convenience sampling technique, which is the easiest technique,
where more respondents participate in the survey and allows researchers to get
a larger sample size in a short time (Malhotra, 2010).
Results
and Discussion
Causal Relationship Analysis
Causal relationship analysis is
carried out to see the significance of the influence of one variable on other
variables. Based on Malhotra (2010), it is explained that for one-tail research
the required t-values are ≥1.645 and the p-value is less than 0.05.
Figure
1. Results of analysis of t-values and path coefficients between variables
Source:
Researcher Process (2024)
The image above summarizes the t
values and path coefficient between variables. From the image it can be seen
that the relationship between relational psychological contracts is not
significant on turnover intention with t-values below 1.645. The same thing
also happened to the pay satisfaction variable which was also not significant
to the turnover intention variable.
Table
1. Direct Effect Test Results
|
Connection |
Path Coefficient |
t-values |
p-values |
|
Psychological
Empowerment -> Turnover Intention |
-0.258 |
2,149 |
0.016 |
|
Relational
Psychological Contract-> Turnover Intention |
-0.058 |
0.486 |
0.313 |
|
Pay
Satisfaction -> Turnover Intention |
0.076 |
0.653 |
0.257 |
|
Work
Engagement-> Turnover Intention |
-0.424 |
3,392 |
0,000 |
|
Psychological
Empowerment -> Work Engagement |
0.493 |
5,028 |
0,000 |
|
Relational
Psychological Contract -> Work Engagement |
0.254 |
2,646 |
0.004 |
|
Pay
Satisfaction -> Work Engagement |
0.206 |
2,880 |
0.002 |
From the seven direct relationships above, as previously mentioned, the
relationship between relational psychological contract on turnover intention
and pay satisfaction on turnover intention is not significant with t-values
of 0.486 and 0.653. The results of smart pls are different from lisrel where the t-values do not show the direction of
the relationship between these variables, but the direction of the relationship
is seen in the path coefficient value.
Apart from direct relationships, analysis was also carried out on
indirect relationships through the mediation of work engagement, the results of
which have been summarized in the table below where the results show
significant values with t-values above 1.645 in all three relationships.
Table 2. Indirect Effect Test
Results
|
Connection |
Path Coefficient |
t-values |
p-values |
|
Psychological
Empowerment -> Work Engagement -> Turnover Intention |
-0.209 |
2,678 |
0.004 |
|
Relational
Psychological Contract -> Work Engagement -> -> Turnover Intention |
-0.108 |
1,944 |
0.026 |
|
Pay
Satisfaction -> Work Engagement -> Turnover Intention |
-0.087 |
2,653 |
0.004 |
Source: Researcher Process (2024)
If you refer to the explanation of Hair et al., (2019), the mediation
that occurs in the table above is known as partial mediation and full
mediation. Partial mediation was found in the relationship between
psychological empowerment and turnover intention where the t-values increased
from 2.149 to 2.678. Full mediation was found in the relationship between pay
satisfaction and relational psychological empowerment with turnover intention,
which was initially insignificant with t-values below 1.645 and became
significant with work engagement as mediation. Next, the total effect of each
independent relationship on the dependent will be displayed in table 3 below.
Table 3. Total Effect Test Results
|
Track |
Direct Effects |
Track |
Indirect Effects |
Total Effect |
|
Psychological
Empowerment -> Turnover Intention |
-0.258 |
Psychological
Empowerment -> Work Engagement -> Turnover Intention |
-0.209 |
-0.258+ (-0.209) = - 0.467 |
|
Relational
Psychological Contract-> Turnover Intention |
-0.058 |
Relational
Psychological Contract -> Work Engagement -> -> Turnover Intention |
-0.108 |
-0.058+ (-0.108) = - 0.166 |
|
Pay
Satisfaction -> Work Engagement |
0.076 |
Pay
Satisfaction -> Work Engagement -> Turnover Intention |
-0.087 |
0.076+(-0.087) = -0.011 |
Source: Researcher Process (2024)
Research Hypothesis Analysis
Based on the results that have been
described in causal relationships, each hypothesis that has been proposed will
be discussed next. This research contains 5 variables in it which then form 10 hypotheses
that must be proven.
Table 4. Hypothesis Testing Results
|
Hypothesis |
Statement |
Results |
|
H1 |
Psychological
empowermentnegative and significant effect
on turnover intention |
Data
supports the hypothesis |
|
H2 |
Relational
psychological contractnegative and significant effect
on turnover intention |
Data
do not support the hypothesis |
|
H3 |
Pay satisfactionnegative and significant effect
on turnover intention |
Data
do not support the hypothesis |
|
H4 |
Work engagementnegative and significant effect
on turnover intention |
Data
supports the hypothesis |
|
H5 |
Psychological
empowermenthas a positive and
significant effect on work engagement. |
Data
supports the hypothesis |
|
H6 |
Relational
psychological contracthas a positive and
significant effect on work engagement |
Data
supports the hypothesis |
|
H7 |
Pay satisfactionhas a positive and
significant effect on work engagement |
Data supports the hypothesis |
|
H8 |
Work engagementmediates the
relationship between psychological empowerment and turnover intention |
Data
supports the hypothesis |
|
H9 |
Work engagementmediates the
relationship between relational psychological contract and turnover intention |
Data
supports the hypothesis |
|
H10 |
Work engagementmediates the
relationship between pay satisfaction and turnover intention |
Data supports the hypothesis |
Source: Researcher Process (2024)
Based on the results in table 4,
the researcher will then carry out an in-depth analysis of each hypothesis as
follows:
Psychological empowerment has a
negative and significant effect on turnover intention
Based on table 4, it can be seen
that there is a direct influence of psychological empowerment on turnover
intention with a path coefficient value of -0.258 and a t-value of 2.149 which
exceeds the critical t-value of 1.645. Apart from that, this relationship has a
p-value of 0.016 or smaller than 0.05 so it meets the significance
requirements. Thus, increasing psychological empowerment will reduce turnover
intention by 25.8% and in this case the hypothesis is accepted.
This is in line with research
conducted by Lan and Chong, (2015) which states that employees who feel
psychologically empowered will become more confident, energetic, active and
responsible for their work so that this will also reduce their intention to
leave the company. A similar thing was also found by Prati
and Zani, (2016) who stated that the empowerment felt by health professionals
will make them stay in the organization for a long time.
Relational psychological contracts
have a negative and significant effect on turnover intention
From table 4 it can be seen that
the relationship between relational psychological contract and turnover
intention has a t-value of 0.486 and a p-value of 0.313. These results indicate
that the hypothesis proposed regarding the relationship between relational
psychological contracts and turnover intention is rejected. This means that
there is no significant and negative relationship between these two variables.
This finding is not in line with
Wang et al., (2017) who stated that there is a significant relationship between
relational psychological contracts and turnover intention. Another finding that
is not in line with this research is that put forward by Liao et al., (2017)
which states that when employees' psychological contracts are fulfilled they
will remain in the organization for a long time. However, this research is in
line with what was found by Saputra and Heryjanto
(2021), who in their research also found that there is no negative and
significant relationship between relational psychological contracts and
turnover intention unless there is mediation between the two.
Pay satisfaction has a negative and
significant effect on turnover intention
From table 4 regarding the direct
relationship between pay satisfaction and turnover intention, a t-value of
0.653 is obtained, which is below the critical t-value for research where the
critical t-value is 1.645. If we look at the p-value, the value is also below
the specified value, namely 0.257, so it can be concluded that this hypothesis
is rejected.
This finding is not in line with
research conducted by Jung and Yoon (2015) where in his research it was found
that employee dissatisfaction with salary significantly influenced their
chances of leaving their job with the strongest predictor being knowledge of
the salary structure. Employee satisfaction increases when they know that the
salary determination process is carried out fairly. Another finding from
Mohamed et al., (2017) also states that an employee's sense of satisfaction
with the salary he receives is related in a curvilinear manner to his intention
to leave the company. So in this case, the level of satisfaction they feel with
their salary being too high or too low can have a different impact on their
intention to leave. In this research, it is stated that benefit is the
dimension with the greatest influence.
The different findings in this
discovery are because Gen Z's main priority is not salary, but there are things
that are considered more important such as organizational culture, balance
between work and life, and career development opportunities provided by the
organization. This is in line with what was found by Barhate
and Dirani (2021) where in their research they stated
that Gen Z does not consider salary as a factor that contributes to stability.
This could be due to their young age.
Work engagement has a negative and
significant effect on turnover intention
From table 4 regarding the direct
relationship between work engagement and turnover intention, significant
results were obtained with a t-value of 3.392 and a p-value of 0.000. It is
known that this relationship has a path coefficient value of 0.424, so here it
can be interpreted that increasing work engagement will reduce a generation Z
employee's intention to leave the company by 42.4%.
The results found are in line with
previous research presented by Abela and Debono (2019) where in their research
it was stated that the presence and high level of involvement of an employee
will reduce their intention to leave the company. Kaur and Randhawa (2021) also
stated that involvement will increase productivity, attendance and errors at
work which will lead to a willingness to remain at the company.
If we look at the most influential
dimensions, it can be seen that vigor has the largest
loading factor with WE03 the indicator with the largest loading factor in that
dimension.
Psychological empowerment has a
positive and significant effect on work engagement
Based on table 4, it is known that
the relationship between psychological empowerment and work engagement is
significant with a t-value and p-value of 5.028 and 0.000. Next, if you look at
the path coefficient value of this relationship, the value is 0.493, meaning
that increasing psychological empowerment will increase work engagement by
49.3%.
The results of this research are in
line with research by Sandhya and Sulphey (2021)
which also explains that with empowerment, an employee can maximize their
individual and collective talents in a positive way, which in the end will have
a good impact on the organization. Then in other research from Alhajaj and Ahmad (2023) found that empowerment can
significantly increase a person's work involvement through the dimension of
perceived control where employees who feel empowerment tend to feel they have
great control over their work so that their motivation at work will also
increase.
In contrast to the findings by Alhajaj and Ahmad (2021), in this research, mature
internalization of company goals through open communication is actually the
indicator that best reflects the empowerment felt by an employee. Especially if
employees feel included in planning to achieve the company's goals.
Relational psychological contracts
have a positive and significant effect on work engagement
Based on the test results in table
4, it can be seen that the relationship between relational psychological
contract and work engagement has a t-value of 2.646. This value is greater than
1.645 as the critical t, so it can be concluded that the proposed hypothesis is
accepted. Other information from the table shows that the p-value of this
relationship is 0.004 (smaller than 0.5) and the path coefficient is 0.254,
which means that the increase in relational psychological contracts felt by
generation Z employees will increase work engagement by 25.4% .
This finding is in line with
research conducted by Pohl et al., (2016) which found that for military
personnel the stability component indicated by items to measure relational
psychological contracts increased engagement among military personnel.
Pay satisfaction has a positive and
significant effect on work engagement
Based on table 4 which displays the
direct relationship between pay satisfaction and work engagement, the t-value
and p-value are 2.880 and 0.002, which indicates a significant relationship
between the two. Apart from that, it is known that these two variables have a
path coefficient value of 0.206, which means that increasing salary
satisfaction will increase the work engagement of a generation Z worker by
20.6%.
This positive significant research
result is in line with research proposed by Jung and Yoon (2015) which states
that job satisfaction significantly influences work engagement where employees
consider benefits (the most influential dimension) as a form of support from
the company which, if the number increases, will increase positive emotions in
the form of a sense of involvement. Jung and Yoon (2015) also say that with
fewer and fewer people adopting the principle of lifelong employment, benefits
can be the most effective way to increase a person's involvement. On the other
hand, this research is not in line with what was found by Memon et al., (2021)
who found that salary satisfaction did not affect an employee's work
engagement. This is allegedly due to changes in the values of the younger
generation of workers where financial motives are no longer the main concern of
professional employees. But employee priorities have shifted to job
characteristics that are more rewarding and offer a better life balance.
Work engagement mediates the
relationship between psychological empowerment and turnover intention
Judging from table 4, work engagement
significantly mediates the relationship between psychological empowerment and
turnover intention where this relationship has a t-value and p-value of 2.678
and 0.004. Apart from that, it is also known that the path coefficient value of
this relationship is -0.209, which means that increasing psychological
empowerment here will reduce a person's intention to leave their job by 20.9%.
Apart from that, it is known that the resulting mediation is partial mediation
where the presence of work engagement as a mediating variable changes the t
value which was previously 2.149 (significant) to 2.678 (significant).
The results of this research are in
line with those stated by Sandhya and Sulphey (2019)
in their research which states that there is a negative and significant
relationship between the empowerment felt by IT workers and their intention to
resign which is mediated by work involvement. This means that the empowerment
felt by IT workers increases work involvement which ultimately reduces the
intention to withdraw from the company. Similar findings are also found in
research by Alhajaj and Ahmad (2023) which states
that work engagement partially mediates the relationship between empowerment
and intention to resign.
Work engagement mediates the relationship
between relational psychological contract and turnover intention
The mediating role of work
engagement in the relationship between relational psychological contracts and
turnover intention is proven in this research. Relational psychological
contracts have a significant and negative relationship with turnover intention
indirectly through mediation from work engagement according to the results
listed in table 4.27, where the t-value and p-value of the indirect
relationship are 1.944 and 0.026. In the research, it was also found that the
path coefficient value of the relationship was 0.108, which means that
increasing the relational psychological contract through work engagement will
reduce a generation Z employee's intention to leave the company by 10.8%.
If we compare the t-value through
the direct effect between relational psychological contract and turnover
intention, it produces an insignificant value, namely 0.486, but through the
indirect effect with the mediation of work engagement, the relationship between
the two becomes significant. From these results it can be concluded that the
mediation of work engagement in the relationship between the two is full
mediation. This means that without a person's sense of involvement in their
workplace, even a strong relational contract will not influence a person's
intention to leave their workplace.
This research is in line with what
was found by Soares and Mosquera (2019) which stated that organizations that
focus on maintaining the relational psychological contract of their employees
will increase their employees' sense of involvement. This attachment through
psychological contracts and involvement will give rise to employee commitment
to the organization so that it will suppress their intention to leave the
organization. Other findings put forward by Phoung et al., (2021) also state
that relational contracts have a strong influence on employee engagement which
will increase job satisfaction and suppress intentions to leave the company. In
both studies, it was seen that work engagement significantly mediated the
relationship between relational psychological contracts and job satisfaction,
which ultimately reduced employees' intentions to leave the company.
Work engagement mediates the
relationship between pay satisfaction and turnover intention
This research proves that work
engagement significantly mediates the relationship between pay satisfaction and
turnover intention, where based on table 4, this relationship has a t-value of
2.653 and a p-value of 0.004. Apart from that, this indirect relationship is
known to have a path coefficient value of -0.087, which means that if an
employee is satisfied with the salary he receives, his intention to leave the
organization will decrease by 8.7% provided that his satisfaction with his
salary is accompanied by an increase in his involvement in work. .
If we compare the relationship
between pay satisfaction and turnover intention directly and indirectly, it can
be seen that the mediation of work engagement in the relationship between the
two is full mediation because indirectly, salary satisfaction does not
significantly influence the intention to withdraw, but indirectly with
mediation from work engagement relationship becomes significant. In table 4 it
is known that the direct relationship between pay satisfaction and turnover
intention has a t-value of 0.653 (not significant), but indirectly through the
mediation of work engagement the t-value is 2.653 (significant).
Conclusion
The results of this research found
that psychological empowerment has a positive and significant effect on
turnover intention in generation Z employees, meaning that the greater the
psychological empowerment felt by generation Z, the less likely the employee's
intention to leave the organization. Different things were found in two other
variables where pay satisfaction and relational psychological contract were
proven to have no direct influence on the employee's intention to withdraw from
the company. Work engagement can mediate the relationship between psychological
empowerment, relational psychological contract, and pay satisfaction on
turnover intention. In the relationship between psychological empowerment and
turnover intention, it is proven that work engagement has a partial mediating
effect, meaning that the influence of psychological empowerment will be
stronger in reducing turnover intention if the empowerment results in work
engagement. In contrast to the other two variables, work engagement provides a
total mediating effect, where without work involvement the relational
psychological contract and salary satisfaction do not have a significant effect
on the intention to resign, but if the relational psychological contract and
salary satisfaction increase the employee's work involvement then the intention
to resignations are reduced. Overall, the relationship between psychological
empowerment, relational psychological contract and salary satisfaction with the
mediation of work involvement will have a negative and significant effect on
employees' intention to resign.
BIBLIOGRAPHY
Abela,
F., & Debono, M. (2019). The Relationship Between Psychological Contract
Breach and Job-Related Attitudes Within a Manufacturing Plant. SAGE Open,
9(1), 215824401882217. https://doi.org/10.1177/2158244018822179
Aboramadan, M., Albashiti,
B., Alharazin, H., & Dahleez,
K. A. (2020). Human resources management practices and organizational
commitment in higher education. International Journal of Educational
Management, 34(1), 154–174.
https://doi.org/10.1108/IJEM-04-2019-0160
Akhavan,
S. A. R., Abzari,
M., Nasr Isfahani, A., & Fathi,
S. (2017). Generational differences in job engagement: a case study of an
industrial organization in Iran. Industrial and Commercial Training, 49(3),
106–115. https://doi.org/10.1108/ICT-10-2016-0068
Al-Suraihi, W. A., Samikon, S. A., Al-Suraihi, A. H.
A., & Ibrahim, I. (2021). Employee turnover: Causes, importance and
retention strategies. European Journal of Business and Management
Research, 6(3), 1-10.
Alhajaj, W. E., & Ahmad, S. Z. (2023). The
effectiveness of human resource management practices, work engagement and
self-efficacy in minimizing talent turnover intention. International
Journal of Productivity and Performance Management.
https://doi.org/10.1108/IJPPM-02-2023-0090
Barhate, B., & Dirani, K. M. (2021). Career aspirations of generation Z: a
systematic literature review. European Journal of Training and Development,
46(1/2), 139–157. https://doi.org/10.1108/ejtd-07-2020-0124
Borysenko. (2015). What was management thinking? The
high cost of employee turnover. Talent
Management and HR.
Coetzee,
M., & Deas, A. (2021). Redefining the psychological contract in the digital
era: Issues for research and practice. In Redefining the Psychological
Contract in the Digital Era: Issues for Research and Practice. Springer
International Publishing. https://doi.org/10.1007/978-3-030-63864-1
Deas,
A. (2019). Mapping antecedents of the psychological contract for digital
natives: A review and future research agenda. Cham: Springer, 237–252.
Goyal,
C., & Patwardhan, M. (2021). Strengthening work engagement through
high-performance human resource practices. International Journal of
Productivity and Performance Management, 70(8), 2052–2069.
https://doi.org/10.1108/IJPPM-03-2020-0098
Gulyani, G., & Sharma, T. (2018). Total rewards
components and work happiness in new ventures: The mediating role of work
engagement. Evidence-Based HRM, 6(3), 255–271. https://doi.org/10.1108/EBHRM-12-2017-0063
Hair,
J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the
results of PLS-SEM. European Business Review, 31(1), 2–24.
https://doi.org/10.1108/EBR-11-2018-0203
Haley,
L. M., Mostert, K., & Els, C. (2013). Burnout and work engagement for
different age groups: Examining group-level differences and predictors. Journal
of Psychology in Africa, 23(2), 283–295.
https://doi.org/10.1080/14330237.2013.10820625
Harhara, A. S., Singh, S. K., & Hussain, M.
(2015). Correlates of employee turnover intentions in oil and gas industry in
the UAE. International Journal of Organizational Analysis, 23(3),
493–504. https://doi.org/10.1108/IJOA-11-2014-0821
Jung,
H. S., & Yoon, H. H. (2015). Understanding pay satisfaction: The impacts of
pay satisfaction on employees’ job engagement and withdrawal in deluxe hotel. International
Journal of Hospitality Management, 48, 22–26.
https://doi.org/10.1016/j.ijhm.2015.04.004
Kaur,
R., & Randhawa, G. (2021). Supportive supervisor to curtail turnover
intentions: do employee engagement and work–life balance play any role? Evidence-Based
HRM: A Global Forum for Empirical Scholarship, 9(3), 241–257.
https://doi.org/10.1108/EBHRM-12-2019-0118
Kulikowski, K. (2018). The model of relationships
between pay for individual performance and work engagement. Career
Development International, 23(4), 427–443.
https://doi.org/10.1108/CDI-10-2017-0181
Lai,
F. Y., Tang, H. C., Lu, S. C., Lee, Y. C., & Lin, C. C. (2020).
Transformational Leadership and Job Performance: The Mediating Role of Work
Engagement. SAGE Open, 10(1).
https://doi.org/10.1177/2158244019899085
Lambert,
E. G., Lynne Hogan, N., & Barton, S. M. (2001). The Impact of Job
Satisfaction On Turnover Intent: A Test Of A Structural Measurement Model Using
A National Sample of Workers. The Social Science Journal, 38(2),
233–250. https://doi.org/10.1016/S0362-3319(01)00110-0
Lan,
X. M., & Chong, W. Y. (2015). The Mediating Role of Psychological
Empowerment between Transformational Leadership and Employee Work Attitudes. Procedia
- Social and Behavioral Sciences, 172,
184–191. https://doi.org/10.1016/j.sbspro.2015.01.353
Li,
Y., Wei, F., Ren, S., & Di, Y. (2015). Locus of control, psychological
empowerment and intrinsic motivation relation to performance. Journal of
Managerial Psychology, 30(4), 422–438.
https://doi.org/10.1108/JMP-10-2012-0318
Liao, S. H., Widowati,
R., Hu, D. C., & Tasman, L. (2017). The mediating effect of psychological
contract in the relationships between paternalistic leadership and turnover
intention for foreign workers in Taiwan. Asia Pacific Management Review, 22(2),
80-87.
Malhotra,
N. K.
(2010). Marketing research on applied orientation global edition (6thed.) New
Jersey: Pearson Education, Inc.
Malik
& Khalid. (2016).
Psychological contract breach, work engagement and turnover intention: evidence
from banking industry in pakistan. Pakistan
Economic and Social Review, 54(1), 37–54.
Maloni, M., Hiatt, M. S., & Campbell, S.
(2019). Understanding the work values of Gen Z business students. The
International Journal of Management Education, 17(3), 100320.
https://doi.org/10.1016/j.ijme.2019.100320
Memon,
M. A., Salleh, R., Mirza, M. Z., Cheah, J. H., Ting, H., Ahmad, M. S., &
Tariq, A. (2021). 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
Mohamed, A. A.,
Mohamad, M. S., & Awad, A. E. (2017). The
Relationship between Pay Satisfaction and Turnover Intention in Egypt. Journal
of Competitiveness Studies, 25(1), 65. https://www.questia.com/library/journal/1P3-4322081359/the-relationship-between-pay-satisfaction-and-turnover
Nastasia, K., Wahyuni, R., Zola Fenia,
S., Irfani, H., & Rahmadani,
S. (2023). Psychological Empowerment and Employee Engagement in Millennial
Generation Employees. 17(1). https://doi.org/10.22216/jit.v17i1
Oladapo,
V. (2014). The impact of talent management on retention. Journal of
business studies quarterly, 5(3), 19.
Parzefall, M., & Hakanen,
J. (2010). Psychological contract and its motivational and health‐enhancing
properties. Journal of Managerial Psychology, 25(1), 4–21.
https://doi.org/10.1108/02683941011013849
Nguyen, P. V., Nguyen, L. T., Doan, K. N. V.,
& Tran, H. Q. (2021). Enhancing emotional engagement through relational
contracts, management receptiveness, and employee commitment as a stimulus for
job satisfaction and job performance in the public sector. Equilibrium.
Quarterly Journal of Economics and Economic Policy, 16(1),
203-224.
Pohl,
S., Bertrand, F., & Ergen, C. (2016).
Psychological Contracts and Their Implications for Job Outcomes: A Social
Exchange View. Military Psychology, 28(6), 406–417.
https://doi.org/10.1037/mil0000127
Prati, G., & Zani, B. (2016). A moderated
multilevel study of work-to-family conflict, empowerment, and turnover
intentions. Quality & Quantity, 50(5), 2279–2292.
https://doi.org/10.1007/s11135-015-0262-5
Rahman, U. U., Rehman, C. A., Imran, M. K.,
& Aslam, U. (2017). Does team orientation matter? Linking work engagement
and relational psychological contract with performance. Journal of
Management Development, 36(9), 1102-1113.
Saleem,
S., & Qamar, B. (2017). An investigation of the antecedents of turnover
intentions and job hopping behavior: An empirical
study of universities in Pakistan. South Asian Journal of Business Studies,
6(2), 161–176. https://doi.org/10.1108/SAJBS-05-2016-0046
Sandhya,
S., & Sulphey, M. M. (2021). Influence of
empowerment, psychological contract and employee engagement on voluntary
turnover intentions. International Journal of Productivity and Performance
Management, 70(2), 325–349.
https://doi.org/10.1108/IJPPM-04-2019-0189
Saputra,
A., & Heryjanto, A. (2021). Pengaruh
Employee Empowerment Dan Psychological Contract Terhadap
Turnover Intention Yang Dimediasi Employee
Engagement. Jurnal Digismantech,
1(2), 31–41.
Serenko,
A. (2024). The human capital management perspective on quiet quitting:
recommendations for employees, managers, and national policymakers. Journal
of Knowledge Management, 28(1), 27-43.
Sharma, N., &
Garg, P. (2017). Psychological contract and Psychological empowerment as
employee engagement drivers in Indian IT sector. Social Science Research
Network. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2925141
Soares,
M. E., & Mosquera, P. (2019). Fostering work engagement: The role of the
psychological contract. Journal of Business Research, 101,
469–476. https://doi.org/10.1016/j.jbusres.2019.01.003
Thomas,
B., & Lucas, K. (2019). Development and Validation of the Workplace Dignity
Scale. Group & Organization Management, 44(1), 72–111.
https://doi.org/10.1177/1059601118807784
Van Schalkwyk, S., Du Toit, D. H., Bothma, A. S., & Rothmann, S.
(2010). Job insecurity, leadership empowerment behaviour, employee engagement
and intention to leave in a petrochemical laboratory. SA Journal of
Human Resource Management, 8(1), 1-7.
Wang,
Y., Li, Z., Wang, Y., & Gao, F. (2017). Psychological Contract and Turnover
Intention: The Mediating Role of Organizational Commitment. Journal of Human
Resource and Sustainability Studies, 05(01), 21–35.
https://doi.org/10.4236/jhrss.2017.51003
Wu,
X., & Lin, L. (2018). Resentment against the rich. International Journal
of Conflict Management, 31(4), 529–558.
https://doi.org/10.1108/IJCMA-09-2017-0100
Zahari, S. N. S., & Puteh,
F. (2023). Gen Z Workforce and Job-Hopping Intention: A Study among University
Students in Malaysia. International Journal of Academic Research in Business
and Social Sciences, 13(1).
https://doi.org/10.6007/ijarbss/v13-i1/15540
|
Copyright
holder: Hayatul Husna, Putri Mega (2024) |
|
First publication rights: Syntax Literate:
Indonesian Scientific Journal |
|
This article is licensed under:
|
