The Mediating Role of Work Engagement Between Pay Satisfaction and Turnover Intention
DOI:
https://doi.org/10.31436/ijema.v25i1.473Abstract
The relationship between pay satisfaction, work engagement and turnover intention has long been understudied. Drawing upon equity and social exchange theories, we hypothesized causal links between pay satisfaction, work engagement and turnover intention. Data were collected from professionals working in the Malaysian oil and gas sector (n = 409). Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the hypothesized model. The results indicate that pay satisfaction positively affects employee work engagement; and work engagement negatively affects employee intentions to leave. An analysis of the indirect effects suggests that work engagement mediates the relationship between pay satisfaction and turnover intention. Findings from this study confirm the importance of pay satisfaction as the key to achieving higher levels of work engagement and reducing voluntary turnover. These findings provide important implications for research and human resource management practitioners.
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Ghorbannejad, Parisa, and Ahmad Esakhani. “Capacity to Engage: Studying Role of Individual Differences in Work Engagement - Evidences from Iran.†Journal of Management Development, 35, no. 9 (2016): 1174-83.
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Hair, Joseph F., Christian M. Ringle, and Marko Sarstedt. “PLS-SEM: Indeed a Silver Bullet.†Journal of Marketing Theory and Practice 19, no. 2 (2011): 139-51.
Halbesleben, Jonathon R.B. “A Meta-Analysis of Work Engagement: Relationships with Burnout, Demands, Resources, and Consequences.†In Work Engagement: A Handbook of Essential Theory and Research edited by A.B. Bakker and M.P. Leiter. 102-17, 2010.
Hancock, Julie I., David G. Allen, Frank A. Bosco, Karen R. McDaniel, and A. Charles. “Meta-Analytic Review of Employee Turnover as a Predictor of Firm Performance.†Journal of Management 39, no. 3 (2013): 573-603.
Harman, H.H. Modern Factor Analysis. Chicago: IL: University of Chicago Press, 1967.
Hassan, Arif, and Kamariah Mohd Noor. “Organizational Justice and Extra-Role Behavior: Examining the Relationship in the Malaysian Cultural Context.†International Journal of Economics, Management and Accounting 16, no. 2 (2008): 187-208.
Hayes, Andrew F. “Beyond Baron and Kenny: Statistical Mediation Analysis in the New Millenium.†Communication Monographs 76 (2009): 408-20.
Hayes, Andrew F., and Nicholas J. Rockwood. “Regression-Based Statistical Mediation and Moderation Analysis in Clinical Research: Observations, Recommendations, and Implementation.†Behaviour Research and Therapy (2016): 1-72.
Hays. “Asia Braces for Change: Tailoring Talent Strategies for Uncertainty.†In The 2017 Hays Asia Salary Guide, edited by Christine Wright. Asia: Hays Recruiting Experts Worldwide, 2017.
Heerwegh, Dirk. “Mode Differences Between Face-to-Face and Web Surveys: An Experimental Investigation of Data Quality and Social Desirability Effects.†International Journal of Public Opinion Research 21, no. 1 (2009): 111-21.
Heneman, H.G., and D. Schwab. “Pay Satisfaction: Its Multidimensional Nature and Measurement.†International Journal of Psychology 20 (1985): 129-41.
Henseler, Jörg, Christian M. Ringle, and Marko Sarstedt. “A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling.†Journal of the Academy of Marketing Science 43, no. 1 (2015): 115-35.
Hewitt, Aon. “Talent Challenges and Compensation Budgets.†In http://asli.com.my/DOCUMENTS/HRSummit2011/21.%20Madvhi%20pande.pdf (2011).
Judge, Timothy A. “Validity of the Dimensions of the Pay Satisfaction Questionnaire: Evidence of Differential Prediction.†Personnel Psychology 46, no. 2 (1993): 331-35.
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2017-05-31
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Memon, M. A., Salleh, R., & Baharom, M. N. R. (2017). The Mediating Role of Work Engagement Between Pay Satisfaction and Turnover Intention. International Journal of Economics, Management and Accounting, 25(1), 43–69. https://doi.org/10.31436/ijema.v25i1.473
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