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FACTORS INFLUENCING TURNOVER INTENTION AMONG ACADEMICS IN A PRIVATE UNIVERSITY
By
THAVAPRIYA A/P KONASAGARAM
Dissertation Submitted to School of Business Management,
UUM College of Business, Universiti Utara Malaysia
in Partial Fulfilment of the Requirement for the Master of Human
Resource Management
PERMISSION TO USE
In presenting this research paper in partial fulfilment of the requirements for a Post Graduate degree from Universiti Utara Malaysia, I agree that the UUM Library makes a freely available for inspection. I further agree that permission for copying of this project paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor or, in their absence, by the Dean of Othman Yeop Abdullah Graduate School of Business. It is understood that any copying or publication or use of this research paper or parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition given to me and to the Universiti Utara Malaysia in any scholarly use which may be made of any material for my research paper.
Request for permission to copy or to make other use of materials in this research paper, in whole or in part should be addressed to:
Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia
06010 Sintok, Kedah Darul Aman.
ABSTRACT
In the recent years, higher educational institutions throughout the world including Malaysia have undergone rapid changes, and to meet those changes, the commitment of employees especially the academics is very important. Academics are the backbone of the business in education sector. High turnover rate among academics can hinder the institutions’ abilities to cope with changes and finally affect their performance. This research examines the relationships between salary, training and development, career promotion, working environment and turnover intention among academics in a higher learning institution in Negeri Sembilan. A total of 200 academics was surveyed through a self-administered questionnaire. Statistical Package for Social Science (SPSS) version 21 was employed to perform data analysis of the study. Descriptive, Correlations and Regressions Analyses were performed. The findings of the study revealed that there are significant relationships between salary, training and development, career promotion, work environment and turnover intention. This study however was done in single institution whereby the generalization of the findings could not be made to other higher learning institutions.
Keywords: turnover intention, salary, training and development, career promotion, working environment
ABSTRAK
Sejak kebelakangan ini, institusi pengajian tinggi di seluruh dunia termasuk Malaysia telah mengalami perubahan yang pesat, dan untuk memenuhi perubahan itu, komitmen pekerja terutamanya ahli akademik sangat penting. Akademik adalah tulang belakang perniagaan dalam sektor pendidikan. Kadar pekerja meninggalkan organisasi yang tinggi di kalangan ahli akademik boleh menghalang kebolehan institusi untuk mengatasi perubahan dan akhirnya mempengaruhi prestasi mereka. Kajian ini mengkaji hubungan antara gaji, latihan dan pembangunan, promosi kerjaya, persekitaran kerja dan niat menukar organisasi di kalangan ahli akademik di institusi pengajian tinggi di Negeri Sembilan. Sebanyak 200 ahli akademik ditinjau melalui soal selidik sendiri.
Pakej Statistik untuk Sains Sosial (SPSS) versi 21 digunakan untuk melakukan analisis data kajian. Analisis deskriptif, korelasi dan regresi dilakukan. Penemuan kajian mendedahkan bahawa terdapat hubungan yang signifikan antara gaji, latihan dan pembangunan, promosi kerjaya, persekitaran kerja dan niat perolehan. Walau bagaimanapun kajian ini dilakukan di sebuah institusi sahaja di mana penyebaran penemuan tidak boleh dibuat kepada institusi pengajian tinggi lain.
Kata kunci: matlamat menukar kerjaya, gaji, latihan dan pembangunan promosi kerjaya, persekitaran kerjaya
ACKNOWLEDGEMENT
Thank you for giving me the strength and ability to complete this study.
First of all I would like to extend my gratitude to my 1st supervisor, Dr. Zurina Bte Adnan and 2nd supervisor Dr. Tang Swee Mei who has been very supportive and encourage in guiding me to complete this research paper. I could not forget their advice and support throughout the completion of this research.
I am also grateful for the encouragement and love that I received from my family who are my courage and strength to achieve higher qualifications. Not to forget, all my dearest lecturers throughout my master studies Assoc. Prof. Dr. Kamal bin Abd. Hamid, Dr. Jasmani Mohd Yusuf, Assoc. Prof. Dr. Abdul Halim Bin Abdul Majid, Dr Wan Shakizah, Madam Norizan Binti Haji Azizan, and others.
The journey of completing this project paper comes with the support from my dearest course mates, the entire staff and acquaintances that had directly or indirectly gotten involved in making this and special thanks and deepest gratitude to all for your assistance, guidance, and support in accomplishing this educational endeavour. Finally, I would like to present my humble appreciation and gratefulness to all the people who made my journey possible.
TABLE OF CONTENTS
PERMISSION TO USE i
ABSTRACT ii
ABSTRAK iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FIGURES ix
LIST OF ABBREVIATIONS x
CHAPTER 1: INTRODUCTION 1
1.1 Introduction 1
1.2 Research Background 3
1.3 Problem Statement 4
1.4 Research Questions 7
1.5 Research Objectives 7
1.6 Significance of Study 8
1.7 Limitations of Study 9
1.8 Definition of Terms 9
1.8.1 Turnover Intention 1.8.2 Salary
1.8.3 Training and Development 1.8.4 Career Promotion
1.8.5 Working Environment
9 9 10 10 10
1.9 Summary 10
CHAPTER 2: LITERATURE REVIEW 11
2.1 Introduction 11
2.2 Dependent Variable 12
2.2.1 Dependent Variable: Employees Turnover Intention 12
2.3 Independent Variable 13
2.3.1 Salary 13
2.3.2 Training and Development Program 15
2.3.3 Career Promotion 16
2.3.4 Working Environment 17
2.4 Relationship between IVs and DV 19
2.5 Summary
20
CHAPTER 3: METHODOLOGY 21
3.1 Introduction 21
3.2 Research Framework 21
3.3 Research Hypotheses 22
3.4 Research Design 23
3.5 Instrument Development 24
3.5.1 Measurement of Variables/Instruments 24
3.6 Data Collection 25
3.6.1 Population and Sample 25
3.6.2 Sampling Technique 26
3.6.3 Pilot Test 27
3.7 Data Analysis Techniques 28
3.7.1 Data Coding 29
3.7.2 Cleaning of Data 29
3.7.3 Reliability Analysis 29
3.7.4 Inferential Statistics 30
3.7.4.1 Pearson Correlation 30
3.7.4.2 Multiple Linear 31
3.8 Summary 32
CHAPTER 4: RESULTS AND DISCUSSION 33
4.1 Introduction 33
4.2 Cleaning of Data 33
4.3 Demographic Analysis 34
4.3.1 Respond Rate
4.3.2 Frequencies Analysis
34 35
4.4 Reliability Analysis (Cronbach’s Alpha) 37
4.5 Descriptive Analysis 38
4.5.1 Mean and Standard Deviation 38
4.6 Inferential Analysis 40
4.6.1 Hypothesis Testing 40
4.6.2 Correlation Analysis 41
4.6.3 Regression Analysis 43
4.7 Summary 45
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 46
5.1 Introduction 46
5.2 Overview of Research 46
5.3 Discussion of Research Objectives 47
5.3.1 Research Objective 1 47
5.3.2 Research Objective 2 48
5.3.3 Research Objective 3 48
5.3.4 Research Objective 4 49
5.4 Recommendations 49
5.5 Conclusion 51
REFERENCES
APPENDIX A 53
60
SURVEY QUESTIONNAIRE 61
LIST OF TABLES
Page
Table 3.1 Research hypothesis 22
Table 3.2 Likert-scale definition 25
Table 3.3 Determinants of Turnover Intention 25 Table 3.4 Cronbach’s Alpha Reliability Study 28
Table 3.5 Significant relationship strength 31
Table 4.1 Frequency of questionnaire distributed 34 Table 4.2 Respondent’s demographic frequencies analysis 35 Table 4.3 Cronbach’s alpha reliability test results 37 Table 4.4 Distribution of mean and standard deviation 39
Table 4.5 Coefficient variance 40
Table 4.6 Hypothesis testing 41
Table 4.7 Correlation coefficient values 42
Table 4.8 Results for regression analysis 44
Table 4.9 Parameter Estimation 44
Table 4.10 Hypothesis Acceptance 45
LIST OF FIGURES
Page
Figure 1.1 Average turnover rate for non-manufacturing 6 sectors in Malaysia
Figure 1.2 Average yearly turnover rate of academics’ employees 6 for 2014 – 2016.
Figure 3.1 Conceptual framework 22
LIST OF ABBREVIATIONS
Abbreviation Description of Abbreviation
DV Dependent Variable
IV Independent Variable
MQA Malaysian Qualification Agency
THE Times Higher Education
1 CHAPTER 1
INTRODUCTION
1.1 Introduction
This study aims to examine the factors that may influence the turnover intention of academics. This chapter explains the background of the study, problem statement, research questions and objectives, significance of the study, limitations and definitions of key terms.
For decades, many researchers in the field of organizational behaviour and human resource management have examined the topic related to turnover intention. The researches basically have been focusing on the determinants as well as the effects of turnover intention. Among the determinants of turnover that have been studied include perceived organizational support, job stress, work life balance, job alternative opportunities (Hidayati & Fadilah, 2015), job satisfaction (Ucho et al, 2012), organizational culture (Macintosh & Doherty, 2010), compensation satisfaction (Chew, Ng & Fan, 2016).
According to Cascio (2010), turnover intention is beneficial to an organisation when an employee with poor performance leaves the organisation. However, it is harmful to the productivity of the company when the employee who leaves the company is someone who performs better and contribute highly to the organisation. Mitchell, Holtom and
Lee (2001) stated that when an employee leaves an organisation, the company faces both direct and indirect costs. Direct cost is defined as sums spend on the new hiring, replacement for the vacancy and training associated with the replacement. Meanwhile, indirect costs comprise the loss of efficiency and productivity of workers in the organisation. A study by Cascio (2010) studied the cost of efficiency loss for each employee in the organisation. From the study, it was proven that the efficiency loss observed is higher than the employee’s annual wage by 1.5% to 2.5%.
Moreover, several recent studies revealed that committed employees’ prioritise their effort to contribute to sustainable growth of the organisation. At the same time, employees with turnover intention do not impose any significant growth on growth of the organisation (Babin & Boles, 1996: Wagner, and Hollenbeck, 2010; Cheng &
Stockdale, 2003; Newman et al. 2011). Previous studies have also shown that turnover intention can give negative effects on organizations. These effects include high cost of recruiting new employees and training, decreased productivity during search and retaining, lowered morale of existing staff, customer dissatisfaction (Chew, Ng & fan, 2016; Abbas, Hollman & Hayes, 2008).
When an employee is highly committed to the organisation and appreciates the supporting environment in the workplace, eventually the productivity of the organisation increases. Besides that, employee engagement with the culture, vision and mission of the organisation retains the employee in the organisation for longer duration (Dilek, 2005).
The increasing challenges of the current business environment such as high operational cost, diverse customer preferences, rapid technological change has required organization to give high attention on turnover issue. In this regard, organization should have the best remedy to reduce the number of people leaving no matter what factors drive turnover intention.
1.2 Research Background
Ministry of Higher Education (2009) stated that Malaysian education system is going through dynamic changes and significant transformation. According to Grapragasem (2014), Malaysian education sector obtained huge development fund to comply with government vision and mission in establishing productive society. Due to constantly changing context of education, Malaysian higher study institutions became highly competitive to sustain themselves in the rapidly changing educational curriculum and syllabus. Universities begin to look for educators with plenty of skills, knowledge and expertise. Knight (2002) addressed globalisation as one of the emerging cause of higher education system in Malaysia.
According to the Ministry of Higher Education in year 2009 showed that the education in Malaysia has gone through dynamic changes and transformational (Grapragasem, Krishnan & Mansor, 2014). The education sector gained the highest country development budget which represents the compliance of Malaysian government in education system (StudyMalaysia.com, 2015). According to Azalea and Lin (2015), university in Malaysia have become highly competitive to withstand the rapidly changing education curriculum and syllabus, where universities begin to look for
educators with plenty of skills, knowledge and expertise. Knight (2002) addressed globalization as the main cause of changes taking place in higher education to prepare the graduates to face competitive career market.
Attaining international standards is mandatory requirement for a university so that students can enrol for their courses confidently. Specifically, the intense of achieving international standard is high in private service. Malaysian education board has taken necessary initiative in creating peaceful, smart and dynamic private sector educational by 2020. It is vital to continuously improve performance system, administration policy and private education sector business strategy in Malaysia. Right administration will enhance the performance of the educational institution by retaining its employees and attracting more manpower to join their educator force.
According to National Higher Education Action Plan 2007 to 2010, phase one aims to of achieve first-class mentality in teaching and learning. Academic staff should be abounding with various experiences professionally and be leaders in the field of teaching to concentrate on innovative delivery and sharing of knowledge.
1.3 Problem Statement
Currently, staff retention and job motivation had continued to plague organisations particularly in reference to Malaysia. Annual Surveys by Malaysian Employers Federation (MEF) states that there is high labour turnover rate which approximately more than 17% on average (Puteh, 2018) among Malaysians working in various sectors.
Figure 1.1 below shows the average turnover rate for the non-manufacturing sectors in
Malaysia from July 2010 until June 2011. Turnover rate in education sector is 29.28%, second highest in Malaysia.
A high turnover rate among academics can be very costly to educational institutions in specific and the industry in general. Human capital is becoming an increasingly important source of competitive advantage in this modern educational context. Skill and technical knowledge of academics become proliferate among educational institution. When an academic leaves an organisation, the organisation has to find most suitable candidate to replace the vacancy as the academic role is highly crucial.
In Malaysia, the turnover rate among academics is relatively high (MEF, 2017). The country is producing high number of academic scholars in various research fields. This indicates the vital role played by academics in respective higher education institutions.
Further readings on determinants of turnover intention revealed that various factors that influence employee turnover intention. However, in this research, only several determinants are selected as independent variables.
Figure 1.1
Average Turnover Rate for Non-Manufacturing Sectors in Malaysia Source: Malaysia Employers Federation, 2012
Figure 1.2 below show the average yearly turnover rate of employees for 2014-2016.
The turnover rate increase from 38% in 2015 to 61% in 2016. Thus, this study attempts to examine the factors that influence turnover intention among academics’ employees in a private university located in Nilai, Negeri Sembilan. The university is addressed as University AZ throughout this research.
Figure 1.2
Average Yearly Turnover Rate of Academic Employees for 2014 – 2016 Source: University AZ
1.4 Research Questions
The study intends to identify the factors that influence turnover intention in University AZ academic employees. As a result, the research attempts to answer the following questions:
1. What is the relationship between salary and turnover intention?
2. What is the relationship between training and development program and turnover intention?
3. What is the relationship between career promotions with turnover intention?
4. What is the relationship between working environment and turnover intention?
1.5 Research Objectives
The broad aim of this research is to examine the factors that may influence turnover intention of academics in Nilai University. Specifically, the followings are the research objectives:
2.1 To determine the relationship between salary and turnover intention?
2.2 To determine the relationship between training and development and turnover intention?
2.3 To determine the relationship between career promotion and turnover intention?
2.4 To determine the relationship between work environment and turnover intention?
1.6 Significance of the Study
The findings of this study will increase the understanding on the relationship between the salary, training & development, career promotion and working environment with turnover intention among the academic employees in University AZ Nilai. Higher education in Malaysia becomes highly competitive business due to increase in the number of private university. Employers may look for fresh graduates from high quality university or college. In short, university stress on the qualification of academic staff to provide valuable knowledge to students.
In addition, it is very important to understand factors that highly initiates turnover intention in private universities. Other than that, this research provides an insight for employers to design improvement plans and retain talent or potential staff. Solving the turnover problem will save huge sum of money for the university which can be invested in human capital development. Besides that, findings of this research This research work also provides statistical insight on how independent variables such as salary, training and development program, career promotion and working environment as well as pay and rewards satisfaction affects the turnover intention.
1.7 Limitations of Study
The study was conducted in University AZ, Negeri Sembilan. Given the study was done in single institution, the finding of this research cannot be generalised to other educational institutions. Questionnaire was distributed to 220 respondents. The survey questionnaire was shared to academic respondents through email.
1.8 Definition of Key Terms
There are few terms which had been used in this study.
1.8.1 Turnover Intention
Kim (2012) defined turnover intention as a sequence of psychological events that makes an employee to quit the organisation. Puteh (2018) defined Turnover intention as behaviour of employee leaving the organisation.
1.8.2 Salary
Salary is defined as monetary value offered by the organisation to employees in return of work performed (Kim, 2012). In this research context, salary is defined as monetary value received by the employee, comprising other benefits such as bonus, incentives, special rewards, allowances and increment (Cohen-Charash
& Spector, 2011).
1.8.3 Training and Development
Training as a precise modification of behaviour through events, learning, programs and instructions in order for individuals to accomplish the levels of knowledge, skills and competence required to make their work more productive and efficiently (Armstrong, 2006).
1.8.4 Career Promotion
Opportunity of career promotion been given to employees to get information pertaining on self-development and career advancement based on job performance (Demaki, 2012).
1.8.5 Working Environment
Working environment refers to a surrounding condition where employee performs job task and authority given to complete objectives of the task and duty (Robbins, 2009).
1.9 Summary
In conclusion, this chapter illustrates the background of this research, problem identified associated with objectives designated to aid the study. This chapter also explored the research question, research significance and research organisation. This chapter provides better understanding on the general direction of this research work.
CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
In this chapter, literatures relevance to this research scope has been explored and explained. Sekaran (2003) stated that a literature review is a documentation of the inclusive reviews from the published work and is obtained from the sources of data information gathered in the specific subject of the researchers. This section hence would look at the common factors that influence turnover intention and can be used to evaluate turnover intention of University AZ academic employees. This chapter also enable researcher to determine the relationship between independent variables and dependent variable.
2.2 Dependent Variable
Dependent variable is defined as a factor that is measured and affected during the research work. Generally, dependent variables interact with independent factors or parameters of the research.
2.2.1 Dependent Variable: Employees Turnover Intention
Ertureten, Cemalcilar and Aycan, (2013) defined turnover intention a foreseeable future of an employee who intends to leave the organisation.
Turnover intention is also defined as voluntary intention of the employee to leave the organisation when it is no longer beneficial for him. Hence, turnover intention can also be defined as an employee’s individual perception to leave the workplace (Mobley, Griffeth, Meglino, 1979). Psychological factors, cognitive factors and behavioural components are among components that influences employees decision to stay or leave the organisation.
A study by Hasselhorn, Muller and Tackenberg (2006) revealed that most of employees left their organisation within the half year of 2005 due to their determination. Besides that, Kim (2015) stated that career constraints at the organisation ssuch as work-stress, over-loaded and unskilled tasks at work place. Turnover intention also depends on colleagues’ behaviour as it affects employees’ perception on working environment.
According to Globerson and Malki (2015), internal turnover is defined as employees’ promotion or job title change within the organisation. External turnover is defined as employees quit the organisation entirely. According to Tett& Meyer (1993) turnover intention is the final option taken by the employee to resolve the problems they face in the company. Turnover intention is an indicator used to measure the intention of quitting the organization permanently or to stay by expressing turnover intention (Sun and Fernandez, 2015).
Measurement of turnover intention is a essential for an organisation in order to
retain the skilled employees and eliminate the unnecessary administration costs.
Moreover, Lam, Baum and Pine (2003) stated that there are two types of turnover intention, where employee leaves the organisation voluntarily or its an option given by employer to the employee. Mitchell, Holtom, Lee, Sablynski and Erez (2001). According to Jain (2013), it is very important to understand the employee turnover cause the turnover intention in education institute to minimize attrition with the growing in education field.
2.3 Independent Variables
Independent variables are defined as factors that affect the performance of dependent variables. Generally, independent variables represent the inputs of the research work which are used to interact with dependant variable and see if they are the cause.
2.3.1 Salary
Salary is defined as a total amount employees being paid by employer, basically every week or month in return for work performed (Kim, 2012). Salary has been investigated widely by researchers in exploring the implication of salary on employee job satisfaction in any of the organization. According to Locke (1976) several perceptions of salary according to each employee is different where some of the employee views salary as an achievement while the other view it as reward and recognition. Aksu and Aktas (2005) stated that an employee stress on salary when he aims for better living standard and protection.
Influence of salary on turnover intention of employee must take into consideration in context of salary system, fringe benefit, reward, promotion opportunities, job security and working condition (Nguyen, Taylor, & Bradley 2003). Adequate distribution of salary with remuneration package will increase the level of satisfaction and minimize the turnover problem. From the findings by Singh and Loncar (2010), both salary and job satisfaction correlated positively where the influence on intention to leave between nurses with regards to predictors such as turnover intent, salary satisfaction and job satisfaction.
Productivity, job performing among employee has a significant impact with the amount of salary received that paid by an employer as defined by Heathfield, S.M. (2012), compensation and remuneration must take in to account as an important factor in determining employee job satisfaction. Achievement of a better living resulting from adequate earning provides satisfaction towards employee needs and life in the future. An individual dissatisfaction due to the condition of they did not received fairness compensation.
Along with the job dissatisfaction, its proven that salary dissatisfaction can have a negative impact on the organization as well, where employees are not happy in working place. Finding showed that there is a significant negative relationship between “little” fringe benefit and satisfaction of an employee involve with the task itself (Pouliakas, 2010). Salary play an important role to satisfied for both employees and self-employed nature of their work according to (Millan, J.M. et al. 2011).
2.3.2 Training and Development
Previous literatures validated that training and self-development is a mandatory career growth aspect since the emergence of globalisation and technology. Training is an act of developing employee behaviour through learning and skill developing programs (Armstrong, 2006). Training equips employee with sufficient knowledge required to fulfil the task assigned to them.
In recent years, employers had begun to focus on employees training and skill development. There is continual demand for employees to attend necessary training that can help them to develop themselves to best fit the position requirement. Armstrong (2001) stated that investment on human resource development is a fruitful benefit to the organisation.
Besides that, training also enables an employee to learn gain new exposure in the industry and stay align to the developments. Training changes employees’ behaviour perpetually while completing a task. In several context of organisation, the efficiency and effectiveness of human resource management is measured by the number of training courses provided by the employer to their employees.
2.3.3 Career Promotion
Promotion opportunities have been affected by the criteria such as the length service of the employee, a position in a hierarchy and the superiority in age and educational background. According to Locke (1980), self-esteem and self-actualization affected by promotion where can be identified as a determinant contribute for satisfaction of individual. This gives a positive impact to employee for better job satisfaction in the same time reduces the turnover rate and absenteeism. The advantage being promoted related to the pay increment and employee work attitude to be more motivated to meet the job demands, to have a greater responsibility and social prestige.
Demaki (2012) determined the link between benefit of promotion is significant when the highest opportunity for promotion offers greater social prestige for employee. In another study, it was found that promotion and turnover intention is interrelated as promotion increases the commitment towards job and principles and standards among the employees.
Promotion has significant effect to employee in term of either moving towards a greater responsibility or satisfied the work itself otherwise it could be seen a situation cause to lower productivity, low commitment, high rate of turnover and absenteeism. To sum up, promotion should have significant value for the employee as explained further by Peterson and Ninseholz (1999). In several cases, promotion has no significant value when it is misused for productivity enhancement.
A study by Ellickson and Logsdon (2002) revealed that, promotion contribute to job satisfaction which significantly affected individual career as well as increment in salary. The impact on the promotion could be seen where employee acknowledgement of the work itself as well as the recognition been given. Apart from that, opportunities for promotion create an environment that motivates employee for better work performance in achieving organization mission and vision. According to Lawler (1971) an individual performance affected by having an implementation reward system with good remuneration and compensation.
Characteristics feature such as adequate, fairness and equity promotional opportunity should be considered where it is important to implement a good reward system in term of salary increment, bonuses, fringe benefits and recognition among employee in order to create a positive feeling among each other’s. Intention to turnover from promotion has been determined by Kreitner and Kinicki (2006) where basically based on an individual perception of justice and fairness. Hence, it is adequate to implement fair promotional criteria for all employees. It will initiate positive feeling for employees towards job and enhancing the turnover.
2.3.4 Working Environment
Working environment has been found as one of the important factors in developing employee’s job satisfaction where much research has been paid an attention to determine the relationship between turnover intention and working environment is interrelated. Labering
and Moskowitz (1984) defined working environment as an environment of positive feeling with pride, faith and satisfaction among co-workers towards their job.
Working environments comprises working durations, noise exposure, availability of resources, workplace safety, temperature, cleanliness and atmospheric conditions (Arnold and Feldman, 1996).
Unsatisfactory working environment lead to dissatisfaction of the employees therefore accelerates turnover intention and declines the performance. This is because unsatisfactory working environment will effect on employee mental and physical factors while performing a task.
Employee’s intention to retain with an organization is interrelated with the working environment, working durations, career advancement and high level of job satisfaction (Milman & Ricci, 2004). Working environment possess significant relationship with job satisfaction whereas employee’s motivation plays an important role in determining the job performance, the rates of turnover and absenteeism.
According to Ayers (2005), working environment affects employees’ motivations, responsibilities and commitment towards organizations, organizations mission, vision and business strategic.
Working environment balances self-satisfaction of employees in their career advancement offered by the organization. This is mainly
because, working environment influences lectures satisfaction where they perceive their job as valued and meaningful one. Hence, it’s important for management to create a satisfying working environment to fulfil the needs of the lectures. Another study carried by Slack (2001) also reveals that working environment significantly correlated with the employee’s performance, effectiveness, convenience and safety in organization. It shows that the good working environment has a significant influence on employees’
turnover.
2.4 The Relationship between IVs and DV
Organizational turnover among academics is severe risk faced by the educational organisation (Foster et al., 2011). Mano-Negrin and Tzafrir (2004) stated that employees tend to actively search for alternative job when the organisation fails to provide substantial growth opportunities. This indicates that there is positive relationship between turnover intention and career promotion. The organisation shall always offer opportunities to grow and improvise employee work related skills and experience. This will improvise employee engagement towards the organisation.
Besides that, Jo (2008) stated that employees decide to jump to another organisation to get more money and better remuneration package. Employee dissatisfaction on salary distribution induces the thought of quitting the organisation. Dissatisfaction of salary package offered eventually leads to job stress when employees are required to work beyond the wage they receive. Thus, it can be concluded that salary has positive relationship with turnover intention.
Rupp and Cropanzano (2002) stated that employee leaves an organisation when they receive low level of organisational support especially when the organisation fails to provide substantial growth opportunities. Training and development is mandatory component of career growth for most individuals. Most of the organisation today introduced human resource development fund (HRDF) to invest on the employees’ self- development. Specifically, in education, academics are required to continuously develop their skills and critical thinking so that they can deliver knowledge aligned with today’s industrial context. Hence, it is crystal clear that training and development has positive impact on employees’ turnover intention.
Dane (2014) stated that workplace environment is crucial element in determining the mindfulness of employees belonging any context of organisation. Working environment carries noticeable benefits and contributes to employee retention in the organisation. Study by Baer et al., (2006), Lau et al; (2006) and Fehr (2012) concluded that contextual elements of working environment influences the psychological behaviour of employee at work place, thus influences their turnover intention.
2.5 Summary
This chapter provides general guideline of literature review that is relevant to this research work. In this research, turnover intention is identified as dependent variable.
Meanwhile, career promotion, training and development, salary and working environment is identified as independent variables that interact with turnover intention.
CHAPTER 3
METHODOLOGY
3.1 Introduction
In this chapter, the researcher discusses the research methodology adopted to carry out this study. The chapter begins with the development of research framework together with hypothesis generated from the literature review in the previous chapter. This chapter presents the overall research design, sampling size and method implemented for data collection. This chapter also presents measurement development and questionnaire administration, measurements of research variables and data analysis procedures.
3.2 Research Framework
Figure 3.1 below shows the research framework developed prior to deploying survey.
The framework illustrates the relationship between dependent variable and independent variable. The research work aims to investigate the relationship between independent variables, which are salary, training and development, career promotion and working environment on turnover intention of academic in University AZ.
Figure 3.1
Research Framework
3.3 Research Hypotheses
This study aims to examine the relationship on the factors that influence turnover intention among academic employees in University AZ. Statistical Package for Social Science (SPSS) version 20.0 was utilized. A ray of statistical tests was conducted to process the data. Therefore, the research hypothesis for this study is tabulated as below:
Table 3.1
Research hypothesis
Hypothesis Hypothesis Develop
H1 There is a significant relationship between salary and employees’ turnover intentions.
H2 There is a significant relationship between training and development and employees’ turnover intentions.
H3 There is a significant relationship between career promotion and employees’ turnover intentions
H4 There is a significant relationship between working environment and employees’ turnover intentions
3.4 Research Design
The well-known two approaches in conducting research used by researchers namely are quantitative and qualitative research approaches (Neil, 2009). Research design (Neil, 2009) involves the overall arrangement and methods applied in conducting the test to prove the hypothesis according to the standards maintained for data collection and analysis.
According to Zikmund (2003), qualitative research is the research designs used by researchers done without involve any of the numerical measurements for better understanding of the particular events. This research method applied generally for collecting information of respondent’s opinions and view regarding to the situation of study (Uma & Roger, 2009).
Quantitative research according to Uma and Roger (2009) is a research design used by researchers referring to the data descriptive in nature and not qualified. Researchers widely applying this research method to establish the relationship between dependents variable and independent variable among the target population (Zikmund, 2003). Both qualitative and quantitative research design are important for suitable nature of the research study Zikmund (2003).
In this research work, quantitative approach is used to test the hypothesis on the relationship exist between independent variables such as salary, training and development, career promotion, working environment and turnover intention in University AZ. A cross sectional data collection is used to collect data from the intended sample group (Uma, 2009).
3.5 Instrument Development
This study applied quantitative method for data collection which the questionnaire had distributed to the respondent. The questionnaire involves of two main sections which are Section A and Section B. Section A which consists of the demographic and personal question of respondents which helps us to understand our respondents. In Section A, it has total 6 questions provided. The questions included are gender, ethnicity, marital status, age, highest education, employment status, working experiences and number of years in present institution. Furthermore, in Section B, it included four independent variables and a dependent variable. The question based on five-point Likert scale in order to measure the opinion of the respondent. It’s interpreted the result by ranging from strongly disagree to disagree, neutral and from strongly agree to agree.
3.5.1 Measurement of Variables / Instruments
The administration of the questionnaires was to the academic employees who serving at University AZ which is important in this study where they can provide with information related to their turnover intention. The measurement that has been adapted in this research is nominal scale that refers to demographic questions in section A and interval scale that refers to Likert scale (1 - 5) in section B (Table 3.2). Questionnaire is a pre-formulated written set of questions to which respondents record their answers, usually within rather closely defined alternatives. The advantages of using questionnaire are less cost and time consuming compared to other methods.
Table 3.2
Likert-Scale Definition Strongly disagree
Disagree Neutral Agree Strongly agree
1 2 3 4 5
Research questionnaire deployed in this study was adopted from Delery (1996). However, the determinant selected for questionnaire was adopted from previous study. as tabulated in Table 3.3.
Table 3.3
Determinants of turnover intention
Variable Source
Salary Chew (2016)
Working Environment Ramley Alan et al., (2009); Park & Kim (2009)
Training and Development Albrecht and Andreetta (2011) Career Promotion Jahangir (2006); Ucho et al., (2012)
3.6 Data Collection
Data collection comprises the selection of sample size, data analysis metrics and sampling techniques used in this research. Sample design and sample size have been important elements in conducting a study (Uma Sekaran, 2003). To simplify the interest of the population, a proper sampling design and size required to help the researcher to make a conclusion.
3.6.1 Population and Sample
According to Uma and Roger (2009) population refers to the researcher intention to examine the total number of people, things or event. Zikmund (2003) stated that the population selected for sampling usually share a common characteristic.
In addition, the common characteristic must fall into matter of which is the focus
of attention on a research subject. According to Zikmund (2003), Sekaran and Roger (2009) sample is the subset of the population. Whereas defined by Creswell (2008) which is studied for the research to be generalized on the overall population of study. For conducting a study, it is important to determine sample size where difficulty in gathering all the data and information from respondents (Zikmund, 2003). Hou (2011) stated that respondent size for quantitative research shall be more than 30 and less than 500. Initially, the sample size selected for this study was 169. However, the sample size was later increased to 220 to increase the response rate.
3.6.2 Sampling Technique
Sampling is an important characteristic in conducting a research that entails in- depth examination (Zikmund, 2003). Meanwhile sampling in business research is used to examine the unidentified characteristics of the population. Various sampling method widely been used in the academic research. Probability and non-probability sampling are most commonly used approach (Zikmund, 2003).
Sampling techniques including cluster sampling, systematic sampling, stratified sampling and simple random sampling is subject to randomization, providing the equal opportunity for the elements of the population to be included in the study (Olodele, 2007).
In this research, convenience sampling is used. According to Etikan (2016), convenience sampling is a non-probability sampling technique which depends on the data collected from population that is conveniently available to participate in the research study. Etikan (2016) stated that social media polls are one of the
best examples to describe the convenience sampling method.
Convenience sampling techniques is affordable, easy and the target population are readily available and accessible. Assumption made from convenience sampling is homogeneous, hence, there is no difference in the results obtained (Etikan, 2016). The research survey was conducted among academic staffs of University AZ. Target population was selected based on employment time, full time academic staffs. Full time academic staffs were selected for this study as they spend more time with the organisation and they obtain more benefits compared to part-time academic staffs. A research by Oppong (2013) revealed that convenience sampling must be made based on the relevance of target population to the problem statement and research question.
3.6.3 Pilot Test
Before intends study, a research study will be conduct is called a pilot study (Tracy, 2017). Pilot study is to check the accuracy, validity and the reliability of the questionnaire to improve the questionnaire’s quality. To check the variability of the questionnaire, we have prepared 30 sets of questionnaires. A total of 30 sets of questionnaires are randomly distributed to the lecturers in University AZ to check the reliable of the questionnaire. Besides that, all the 30 sets questionnaires were collected from respondents after few days.
Table 3.4
Cronbach’s Alpha Reliability Study
Variables Dimension Number of items Cronbach’s Alpha Dependent
Variable (DV)
Turnover Intention 6 0.746
Independent Variable
(IV)
Salary 3 0.777
Training and
Development 4 0.822
Career Promotion 7 0.868
Working Environment 4 0.804
From the pilot study, the questionnaire reflects good internal consistency and alpha value obtained is more than 0.7. Hence, this questionnaire is appropriate to be used for real data collection.
3.7 Data Analysis Techniques
The use of questionnaires is the leading instruments in data collection from the respondents. It facilitates gathering of quantitative data in standardized approaches to be internally reliable and consistent for analysis. A questionnaire is a prearranged set of question to be answered by the respondents (Uma and Roger, 2009). In term of the creativity, proficiency and the understanding of the researcher has a significant role in designing questionnaires.
In this study, IBM Statistical Package for Social Science (SPSS) program will be used to process the responses from survey questionnaires. Frequency analysis is used to generate the data from the demographic profiles. Additionally, regression analysis is
used to investigate the hypothesis and to verify the link between independent variables and dependent variables.
3.7.1 Data Coding
Data coding is the process of driving codes from the observed data. In 1 qualitative research the data is either obtained from observations, interview or
from questionnaires. The purpose of data coding is to bring out the essence and meaning of the data that respondents have provided.
3.7.2 Cleaning of Data
This research is requires the data cleaning process that significantly affect the final statistical results. The entire process is guided by the preliminary plan of data analysis, which was formulated in the research design phase. Cleaning the data requires consistency checks and treatment of missing responses, generally done through SPSS. Consistency checks serve to identify the data, which are out of range, logically inconsistent or have extreme values.
3.7.3 Reliability Analysis
The most prominent test for inter-item consistency reliability is Cronbach's alpha coefficient. The cronbach's alpha is utilized to quantify the reliability of the instruments in the study and the most well-known type of interior consistency reliability coefficient is between two scores going from 0 to 1.00. Sekaran and Bougie (2010) clarified that commonly reliability coefficient that considered
average in the range of 0.60, and the 0.70 and above is considered as high reliability standards. It was found that the questionnaire items in this research are in the range of 0.7 to 0.8 which considered acceptable as the minimum benchmark of the minimum cronbach’s alpha value is 0.50 indicated by Sekaran (2003).
3.7.4 Inferential Statistics
3.7.4.1 Pearson Correlation
The correlation analysis measures the closeness relationship for two and a above variables after considering joint variation of two measures without restriction by the experimenter (Sekaran, 2003). Correlation measures the degree to which two quantitative variables, X and Y, are in agreement that is the relationship between two or more classes of variables. When a higher value of X is associated with a higher value of Y, a positive correlation exists.
In a relationship where high value of X is linked with low value of Y, a negative correlation occurs. Pearson Correlation coefficient is the most currently used measures of dependence between two quantities. Correlation coefficient indicated by symbol r with array of -1 to +1 to signify positive and negative relationship respectively. When the entire distribution fall directly on a line with an upward incline r = -1. Strong correlations relate to dotted clouds that stick imaginary to the trend line. Therefore, the closer r is to +1, the stronger the positive correlation and the closer r to -1 the stronger the negative correlation (Salkind, 2009).
Table 3.5 below summarizes the strengths of the correlation as explained by Salkind (2009).
Table 3.5
Significant Relationship Strength
Value Relationship Strength 0.1 to 0.29 or -0.1 to -0.29 Weak
0.30 to 0.49 or -0.30 to -0.49 Moderate 0.50 to 1.0 or -0.50 to -1.0 Strong
3.7.4.2 Multiple Linear
Multiple linear regressions smoothing the progress of modelling the correlation between two variables by appropriating a linear equation to experimental data.
One variable is measured as a descriptive variable, while the other is observed as the dependent variable. However, the present makes use of multiple linear regression in analysing the relationship between salary, training and development, career promotion and working environment (independent variable) and turnover intention (dependent variables). In this situation, a scatterplot smoothing the progress in shaping the strength of the relationship. On the condition it becomes visible that no relationship between the propose explanation and dependent variables, or if the scatterplot does not signify if there is increasing or decreasing trends, then appropriating a multiple linear regression model to the data will possibly give a functional model
3.8 Summary
This chapter describes research framework, sample of the study, selection of the respondents, questionnaire development, research materials and survey procedure. The correlation analysis and descriptive statistics were briefly explained. Researcher will explain further on Chapter 4. Questionnaire was distributed to target population by hand and collected back within 2 weeks.
CHAPTER 4
RESULTS AND DISCUSSION
4.1 Introduction
The purpose of this study is to determine the relationship between salary, training and development, career promotion and working environment with turnover intention among the employee in University AZ located at Nilai, Negeri Sembilan. Statistical Package of the Social Science (SPSS) was used to examine all the data. This data examined with descriptive analysis, reliability analysis, regression analysis and correlation analysis. Moreover, frequency analysis has been used to analyses the respondents’ demographic characteristics such as gender, age, and marital status. In this chapter, it deliberates the statistical methods used in analysing the sample data and interprets the findings correlated to the study’s hypothesis.
4.2 Cleaning of data
According to Allison (2002) that the data screening is to make sure the given set has been returned to the researcher, an authentication process is followed that checks for the suitability of numerical codes for each of the values that has been placed in each variable under the study. Data screening is defined as the process of exploratory error data and correcting them based on previous studies in data analysis (Allison, 2002).
The showing may involve checking the unprocessed data. The purpose of data screening is to identify the outliers and handle the missing data. In this study, 220
questionnaires were distributed. Only 200 questionnaires were fully filled and returned to researcher through email. Thus, all the data was used for analysis in this study.
4.3 Demographic Analysis
Demography is the statistical study of the sampling size and background. This section will show descriptive analysis of demographic features like gender, ethnicity, marital status, age, highest education level, employment status, and number of years in the present institution, this statistic involves 200 respondents from University AZ.
4.3.1 Response rate
The data of survey has been collected through the employee and through personal contact number. Total of 220 questionnaires has been distributed to academics staffs of University AZ by hand and collected back within 2 weeks.
Table below show the summary of the questionnaire distributed.
Table 4.1
Frequency of questionnaire distributed
Items Frequency Percentage Cumulative Percentage Num. of questionnaires
returned
200 90.9% 90.9%
Num. of questionnaires not returned
20 9.09% 100%
Total 220
4.3.2 Frequencies Analysis
This chapter will discuss about how the researcher find the descriptive statistic by using frequency analysis. In statistics, frequency is the number of times an event occurs. In this research, frequency analysis is an important area of statistics that deals with the number of occurrences (frequency) and analyses measures of central tendency, dispersion, percentiles, etc.
Table 4.2
Respondent’s Demographic Frequencies Analysis
Demographic Variables Frequency Percentage (%) Gender
Male Female
93 107
46.5 53.5 Ethnicity
Malay Chinese Indian Others
77 82 41 0
38.5 41.0 20.5 0 Marital Status
Single Married Others
82 112
6
41.0 56.0 3.0 Age
18-25 years old 26-35 years old 36-45 years old 46-49 years old
50 years old and above
12 51 72 38 27
6.0 25.5 36.0 19.0 13.5 Highest education level
Diploma or equivalent
Bachelor’s Degree or equivalent Master’s Degree or higher
PhD and higher 0 29 151
20
0 14.5 75.5 10.0 Employment Status
Permanent Contract Temporary
162 29
9
81.0 14.5 4.5
Number of years in the present company Less than 1 year
1-5 years 6-9 years
10 years or more
11 72 65 52
5.5 36.0 32.5 26.0
The respondents’ demographic characteristics are presented in the Table 4.2 above.
The respondents’ frequency analysis revealed that 93 (46.5%) respondents were male, while 107 (53.5%) respondents were female. Most of the respondents in our research are Chinese. There have around 83 (41%) respondents. Besides that, there have 77 Malay respondents with 38.5% and 41 Indian respondents with 20.5% in our research.
For the marital status, most of the respondents are from married background where the number shows as 112 (56%) followed by single status with number 82 (41%), and there is another 6 (3%) respondent are answered as others status. Respondent also need to give their age status where from the result, the most respondent are from age 36 to 45 years old with total number is 72 (36%) followed by age 26 to 35 years old with number of 51 (25.5%). There is a young group also respond to this survey from age 18 to 25 years old with number shows 12 (6%).
There is 38 (19%) respondent are from age 46 to 49 years old and 27 (13.5%) respondent are from age 50 years old and above. Respondent highest education level is master’s degree or equivalent with total number is 151 (75.5%). Second highest is bachelor’s degree or equivalent with number is 29 (14.5%) followed by PhD and higher is 20 (10%). Furthermore, to complete this demographic section, the researcher also requests the respondent to answer their employment status. From the findings, the
researcher found that the highest number of 162 (81%) are from permanent status, following by 29 (14.5%) are contract status and 9 (4.5%) is temporary status. Final questionnaire was asked where the respondent are require answering number of years in the present institution. The highest is 72 (36%) are for 1 to 5 years number of years in the present institution and followed by 65 (32.5%) for year 6 to 9years. There are 52 (26%) respondent answering for 10 years and above together with number 11 (5.5%) for less than 1 year.
4.4 Reliability Analysis (Cronbach’s Alpha)
Cronbach’s alpha (α) is generally used to test the internal consistency in a quantitative research approach. In this project, a Likert scale questionnaire, with 4 sections was distributed among 220 respondents. SPSS IBM Software Version 22 was used to compute the Cronbach alpha value. According to Mohamed (2015), the Cronbach alpha value must be evaluated for each section to understand the internal consistency of the questionnaire. Table 4.3 shows the alpha value obtained for this study.
Table 4.3
Cronbach’s Alpha Reliability Test Results
Section Number of questions Alpha value
Turnover 6 0.746
Training 4 0.822
Career 7 0.868
Salary 3 0.777
Working Environment 4 0.804
Cronbach alpha value obtained for all the sections are more than 0.70. According to Hisham (2016), alpha value more than 0.70 indicates that the internal consistency of the questionnaire is acceptable. Alpha value more than 0.8 indicates that the section has good internal consistency. In conclusion, it can be deduced that all the questions
in the questionnaire are correlated within the section and contribute to acceptable internal consistency and reliability.
Validation of the questionnaire reliability is important for the correspondence of the research variable to conclusion and also to generalise the results as a theory (Krupic, 2016). In this research, the reliability of questionnaire is measured by each independent variable listed in Section B of the questionnaire. Reliability score obtained was more than 0.70, indicating that the questionnaire and research approach is stable and the data obtained can be re-code over a period of time.
4.5 Descriptive Analysis
4.5.1 Mean and standard deviation
For each section, mean value and standard deviation was computed by using SPSS IBM Software Version 22. Highest mean score was observed for section E, working environment, 3.98 out of 5. The standard deviation obtained was 0.49. This indicates that the respondents find that working environment is acceptable and does not influence their turnover intention. Lowest mean score was obtained for turnover, 2.60 out of 5. This indicates that majority of the respondents are having less turnover intention. The mean and standard deviation obtained for each section is tabulated in Table 4.4.
Table 4.4
Distribution of Mean and Standard Deviation
N Minimum Maximum Mean Std.
Deviation
Turnover 200 1.60 4.60 2.60 0.59
Training 200 3.00 4.75 3.82 0.47
Career 200 2.86 4.43 3.69 0.37
Salary 200 3.00 5.00 3.88 0.53
Working Environment 200 3.00 5.00 3.98 0.49
Valid N (Listwise) 200
Coefficient of variance (CV) was computed to understand the variation among respondent feedback for each section. According to Zhang (2014), CV can be calculated by using following equation:
CV = Standard Deviation
(4.1) Mean
Table 4.5 shows the CV value obtained for each section. All the values obtained are less than 1, indicating that there is relatively low variation in the data.
According to Kaufmann (2017), low CV values reflect that the data is distributed around the mean. Hence, it can be concluded that, there is no huge variation among respondent feedback and can be compared to one another in terms of correlation analysis. Besides that, values obtained for CV also indicate that the data obtained is reliable and appropriate to study and it spread around the average means score (Kaufmann, 2017).
Table 4.5
Coefficient Variance
Section CV Value
Turnover 0.23
Training 0.12
Career 0.10
Salary 0.14
Working Environment 0.12
4.6 Inferential Analysis
Generally, inferential analysis is used to make inferences on the populations by using the data obtained from them during the survey (Cranmer,2017). In this study, 220 respondents were randomly selected to participate in the survey to examine the factors that influence turnover intention among academic employees of University in Nilai. Out of 220 respondents, only 200 respondents provide their feedback. Correlation and regression analysis are performed to achieve the objectives of this research. SPSS IBM Software Version 22 is used to perform the inferential analysis.
4.6.1 Hypothesis Testing
Hypothesis testing was done to ensure all the hypothesis developed for this research is evaluated. Following table 4.6 shows the hypothesis designated for this research work.
Table 4.6
Hypothesis testing
Hypothesis Hypothesis Develop
H1
There is a significant relationship between salary and employees’ turnover intentions.
H2 There is a significant relationship between training and development and employees’ turnover intentions.
H3 There is a significant relationship between career promotion and employees’ turnover intentions
H4 There is a significant relationship between working environment and employees’ turnover intentions
Correlation coefficient analysis reflects the relationship between the independent variables and dependent variables explored in this research. All the four hypotheses developed for this study are proven, where the significant relationship between the factors are proven. The relationship is further validated by regression analysis. Both correlation and regression analysis findings are explained further in following subtopics.
4.6.2 Correlation Analysis
Correlation analysis was performed to understand the relationship between two variables in a research (Koo, 2016). Correlation analysis helps researcher to quantify the correlation between the variables statistically. Following Table 4.7 shows the correlation coefficient values of each section of the questionnaire.
Table 4.7
Correlation Coefficient Values
Variables B1 B2 B3 B4 B5
Turnover B1 1 -.757** -.748** -.740** -.710**
Training B2 -.757** 1 -.820 .763 .717
Career B3 -.748** .820 1 .833 .744
Salary B4 -.740** .763 .833 1 .755
Working Environment
B5 -.710** .717 .744 .755 1
The coefficient value for turnover with training is -0.757. The coefficient value for correlation between turnover and career is 0.-748. Meanwhile, correlation of turnover with salary is -0.740 and correlation of turnover with working environment is -0.710.
The correlation of turnover with other variables portraits a negative relationship.
According to Koo (2016), negative correlation indicates that when one variable increases, the other variable decreases. Besides that, he also emphasized that a perfect negative correlation value lies represented by -1.00 or lesser. Thus, it can be deduced that, when the values of training, career, salary and working environment improves or increases, academics intention to turnover decreases. It is vital and necessary for University AZ to ensure its employees are offered with enough training, beneficial career prospect, better salary range and encouraging work environment. When these values improve, employees’ intention to turnover will be minimised.
The correlation analysis between other variables, except turnover is positive correlation relationship. This indicates that there is positive relationship between the variables, where they tend to improve or decline together simultaneously. Overall, all the variables are correlated to each other, either negatively or positively. This indicates that
