The copyright © of this thesis belongs to its rightful author and/or other copyright owner. Copies can be accessed and downloaded for non-commercial or learning purposes without any charge and permission. The thesis cannot be reproduced or quoted as a whole without the permission from its rightful owner. No alteration or changes in format is allowed without permission from its rightful owner.
Universlti Utara Malaysia
1
THE DETERMINANTS OF TURNOVER INTENTION AMONG EMPLOYEES IN RETAILING INDUSTRY
TAN JIA MI By
Thesis Submitted to
Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia,
In Fulfillment of the Requirements for the Degree of Master of Science (Management)
Universlti Utara Malaysia
Universlti Utara Malaysia
2
PERMISSION TO USE
In presenting this dissertation/project paper in partial fulfillment of the requirements for a Post Graduate degree from the Universiti Utara Malaysia (UUM), I agree that the Library of this university may make it freely available for inspection. I further agree that permission forcopying this dissertation/project paper in any manner, in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their absence, by the Dean of Othman Yeop Abdullah Graduate School of Business where I did my dissertation/project paper. It is understood that any copying or publication or use of this dissertation/project paper parts of it for financial gain shall not be allowed without my written permission. It is also understood that due recognition shall be given to me and to the UUM in any scholarly use which may be made of any material in my dissertation/project paper.
Request for permission to copy or to make other use of materials in this dissertation/project paper in whole or in part should be addressed to:
Dean of Othman Yeop Abdullah Graduate School of Business Universiti Utara Malaysia
06010 UUM Sintok Kedah Darul Aman
Universlti Utara Malaysia
3 ABSTRACT
The purpose of this study is to investigate the influence of reward satisfaction and job satisfaction towards turnover intention among frontline employees in retailing industry in Alor Setar. The study also aim to determine the difference in turnover intention between male and female employees. The study was conducted in retail business companies in Alor Setar. This study used quantitative method in which questionnaire has been distributed to collect responses from respondents. From the total of 165 questionnaires distributed to the respondents, 119 questionnaires has been returned and collected. Thus, the response rate is for this study is 72.12% and 119 returned questionnaires which are valid and completed were used in the data analysis process. The data collected was processed using Statistical Package for Sosial (SPSS) version 25. Both descriptive and inferential statistics were used to analyze the data. Result of Multiple Regression Analysis showed that reward satisfaction and job satisfaction significantly and negatively influence turnover intention among employees. Reward satisfaction has the largest contribution to the turnover intention among employees in retailing industry with a beta value of -0.486. In the other hand, finding of Independent Sample T-test showed that there are no difference in turnover intention between male and female employees. Both male and female frontline employees in retailing industry are having the same level of turnover intention. This study contributes to the academic knowledge through providing insights and determining the key factors that influences the most on retail frontline employees’ turnover intention. This study also assist the manager to better understand their frontline employees in terms of turnover intention.
Keywords: turnover intention, reward satisfaction, job satisfaction.
Universlti Utara Malaysia
4
ABSTRAK (MALAY)
Tujuan kajian ini adalah untuk mengkaji pengaruh kepuasan ganjaran dan kepuasan kerja terhadap niat pusing ganti di kalangan pekerja barisan hadapan dalam industri peruncitan di Alor Setar. Kajian ini juga bertujuan untuk menentukan perbezaan niat pusing ganti antara pekerja lelaki dan wanita. Kajian ini dilaksanakan di syarikat perniagaan runcit terpilih di Alor Setar. Kajian ini menggunakan kaedah kuantitatif di mana soal selidik telah diedarkan untuk mengumpul maklum balas daripada responden. Daripada jumlah 165 soal selidik yang diedarkan kepada responden, 119 soal selidik telah dikembalikan kepada penyelidik dan dikumpulkan. Dengan itu, kadar tindak balas untuk kajian ini ialah 72.12%
dan 119 borang soal selidik yang sah dan lengkap telah digunakan dalam proses analisis data. Data yang dikumpulkan telah diproses menggunakan Statistical Package for Social (SPSS) versi 25. Dalam kajian ini, statistik deskriptif dan inferensial telah digunakan untuk menganalisis data. Hasil Analisis Regresi Berganda menunjukkan kepuasan ganjaran dan kepuasan kerja secara signifikan dan negatif mempengaruhi niat pusing ganti di kalangan pekerja barisan hadapan. Kepuasan ganjaran mempunyai sumbangan terbesar kepada niat pusing ganti di kalangan pekerja dalam industri peruncitan dengan nilai beta -0.486. Selain itu, hasil Ujian T sampel Bebas menunjukkan tiada perbezaan dalam niat pusing ganti antara pekerja lelaki dan perempuan. Niat pusing ganti pekerja lelaki dan wanita dalam industri peruncitan adalah pada tahap yang sama. Kajian ini menyumbang kepada pengetahuan akademik dengan memberi pandangan dan menentukan faktor-faktor utama yang mempengaruhi niat pusing ganti pekerja barisan hadapan dalam industri peruncitan.
Kajian ini juga membantu pengurus untuk lebih memahami pekerja barisan hadapan mereka dari segi niat pusing ganti.
Kata kunci: niat pusing ganti, kepuasan kerja, kepuasan ganjaran.
Universlti Utara Malaysia
5
ACKNOWLEDGEMENTS
This research paper was written and done with the help and support from many. I would like to extend my sincere appreciation to those who support me throughout the research process. Firstly, I would like to extend my gratitude to my project supervisor, Dr. Azelin Aziz for her supervision, support and imparting her knowledge in helping me to complete this research. My sincere appreciation to the Human Resource Manager of Taman Sultan Badlishah Superstore Sdn Bhd and Pacific Hypermarket Star Parade for their consent for the study to be conducted. Special thanks and appreciation to the frontline employees in Taman Sultan Badlishah Superstore Sdn Bhd and Pacific Hypermarket Star Parade for their participation in the data collection process and willingness to complete the survey. Finally, my love and gratitude to my family members who provide support and encouragement throughout the research project.
Universlti Utara Malaysia
6
TABLE OF CONTENT
TITLE PAGE i
PERMISSION TO USE ii
ABSTRACT iii
ABSTRAK (MALAY) iv
ACKNOWLEDGEMENT v
TABLE OF CONTENT vi-vii
LIST OF TABLES viii
LIST OF FIGURES ix
CHAPTER 1: INTRODUCTION
1.0 Introduction 1
1.1 Background of the Study 1-3
1.2 Research Problem Statement 3-7
1.3 Research Question 7
1.4 Research Objective 7
1.5 Significance of Study 8
1.6 Scope of Study 9
1.7 Operational Definitions 9-10
1.7.1 Reward Satisfaction 9
1.7.2 Job Satisfaction 9
1.7.3 Turnover Intention 10
1.8 Organization of the Study 10
CHAPTER 2: LITERATURE REVIEW
2.0 Introduction 11
2.1 Concept and Definition of Turnover Intention 11-17
2.2 Reward Satisfaction 17-19
2.2.1 Concept and Definition of Reward Satisfaction 17-18 2.2.2 Relationship between Reward Satisfaction and Turnover
Intention 18-19
2.3 Job Satisfaction 20-24
2.3.1 Concept and Definition of Job Satisfaction 20-22 2.3.2 Relationship between Job Satisfaction and Turnover Intention 22-24
2.4 Gender Difference in Turnover Intention 24-25
2.5 Research Framework 25-26
CHAPTER 3: RESEARCH METHODOLOGY
3.0 Introduction 27
3.1 Research Design 27
3.2 Sampling Techniques 28-29
3.2.1 Population 28
3.2.2 Sample Size 29
3.2.3 Unit of Analysis 29
3.2.4 Sampling Method 29
3.3 Measurement Instrument and Scale 30-33
Universlti Utara Malaysia
7
3.3.1 Questionnaire Design 30-32
3.3.2 Demographic Profile 32
3.3.3 Measurement for Reward Satisfaction 32-33
3.3.4 Measurement for Job Satisfaction 33
3.3.5 Measurement for Turnover Intention 33
3.4 Data Collection Procedure 33-34
3.5 Data Analysis 35-37
3.5.1 Descriptive Statistic 35-36
3.5.2 Reliability Analysis 36
3.5.3 Multiple Regression 37
3.5.4 Independent Sample T-test 37
3.6 Conclusions 37
CHAPTER 4: FINDINGS
4.0 Introduction 38
4.1 Response Rate 38
4.2 Descriptive Analysis 38-42
4.2.1 Frequency Analysis 39-40
4.2.2 Mean and Standard Deviation 41-42
4.3 Reliability Test (Cronbach’s Alpha) 42
4.4 Results 43-46
4.4.1 Multiple Regression Analysis 43-45
4.42 Independent Sample T-test 45-46
4.5 Summary of Hypothesis Testing 47
4.6 Conclusions 47
CHAPTER 5: DISCUSSION, RECOMMENDATIONS AND CONCLUSIONS
5.0 Introduction 48
5.1 Summary and Discussion on Findings 48-52
5.1.1 The Influences of Reward Satisfaction, and Job Satisfaction
towards Turnover Intention 50-51
5.1.2 The Difference in Turnover Intention between Male and Female
Employees 52
5.2 Implication of Study 53-55
5.2.1 Knowledge Implication 53
5.2.2 Managerial Implication 53-55
5.3 Limitations 55-57
5.4 Suggestions for Future Research 57-58
5.5 Conclusions 58
REFERENCES 59-66
APPENDIX A: QUESTIONNAIRE 67-70
APPENDIX B: NORMALITY TEST 71-78
Universlti Utara Malaysia
8 LIST OF TABLES
Table 3.1: Detail of Employees 28
Table 3.2: Summary of Questionnaire 30-31
Table 3.3: Five Point Likert Scale 31
Table 3.4: Level of Reliability based on the Alpha Value 36
Table 4.1: Frequency Analysis 39
Table 4.2: Mean and Standard Deviation 41
Table 4.3: Reliability Analysis 42
Table 4.4: Coefficients (Multiple Regression Analysis) 44
Table 4.5: Group Statistics 45
Table 4.6: Independent Sample T-test 46
Table 4.7: Summary of Hypothesis Testing 47
Universlti Utara Malaysia
9 LIST OF FIGURE
Figure 2.0: Research Framework 26
Universlti Utara Malaysia
10 CHAPTER 1 INTRODUCTION 1.0Introduction
This chapter discussed about the background of the study, followed by the research problem statement, research questions, research objectives, significance of study, and the scope of study. Then operational definitions and concepts of variables used in the study are presented. Finally, organization of study is included to give a picture on how this study is being organized.
1.1 Background of the Study
Nowadays, organization has viewed its employees as the most valuable and important assets in a company. Employees are the important people who will pursuing and achieving the vision, mission and objective that have been set by organization through the implementation of business strategies and performing of daily business operations as well as decision making. Organizations need employees to apply their skills and abilities in their jobs and create excellent results in order to achieve company’s objective and goals (Hee &
Ann, 2019). The challenging business environment require organizations to have capable employees to manage and carry out daily business activities. However, the most challenging issue in competitive organizational environment is employee turnover (Mendis, 2017).
Turnover intention has become a common and continuous issue which affected various organization in the world. A study by Tower Watson (2015) reported that employee retention or employee turnover has continues to be the key issues for employers in
Universlti Utara Malaysia
11
Malaysia. The survey findings reported that 36% of employees have the intention to leave their organization within two years, which is higher as compared to 29% in 2012. The survey findings also revealed that employees in Malaysia are becoming more demanding in regards to what it takes to keep them truly committed to their organization and the situation has makes the human resource tasks of retain top talent become more difficult.
In Malaysia, the employee turnover rate increased from 13.2% in 2014 to 14.3% in 2015 (Mystarjob, 2015). As reported by Institute of Labour Market Information and Analysis (ILMIA) (2017), the average turnover rate in Malaysia was at 20% in year 2017.
The retail industry is known for having a high rate of employee turnover (Lindblom, Kajalo
& Mitronen, 2016). As reported by Indeed (2019) reported that the average job tenure for retail frontline employees especially the sales associates is less than 1 year with an average salary of RM 1,777 per month in Malaysia.
From the human resources view, high turnover rate is a serious problem because it involved financial impacts, ruin organization reputation and image as well as impacts on organization’s productivity and performance (Hee & Ann, 2019). Turnover intention will impact the organization negatively in which it will resulted in poor labor conditions, low productivity and incur human resource costs (Andi & Syihabudhin, 2018). A high turnover rate can influence the productivity and increase cost of a company (Butali, Mamuli &
Wesang’ula, 2014). According to Siti and Nur (2015), employee turnover is a serious issue in management as it involve both financial and moral consequences on the company’s asset.
Turnover will impact certain cost to the organization in term of employee recruitment costs, new employee selection costs, cost of recovering during the period in which there is a
Universlti Utara Malaysia
12
vacancy, administration of the recruitment and selection process and induction training for the employee. (Nazdratu & Rosima, 2014).
High turnover rate is a serious problem for an organization as it could impact the organization internally and externally (AlBattat, Som, & Helalat, 2014). High turnover rate would impacted the organization internally by incur costs to the organization, affect the morale of remaining employees, caused employees’ dissatisfaction and resulted in low performance (Hussein, 2015). Externally, high turnover rate will ruin the organization reputation. Companies who unable to manage and reduce their employee turnover rate are most likely to lose their competitiveness in the long run. It is important for organizations to get better understanding on the factors that contribute to employee turnover. Thus, employee turnover issue in retailing industry require attention from both academicians and practitioners.
1.2 Research Problem Statement
Most organization has recognized the importance of having capable employees in pursuing and achieving their business and organizational goals (Johanim, 2012). An organization needs capable employees to execute daily business operation, to realize the business results, to attain the organizational goals and to accomplish financial objectives. In the competitive business environment, employees is an important part in the organization and the employers have to compete to retain their talented employees as talent of one employees cannot be inherited or duplicated by others (Nurul, Nurrul, Shafinar, Wei & Rozana, 2018).
However, in the edge of globalization, employee turnover has becomes a common and inevitable issues to all organization, no matter where the business locate, irrespective of the nature of business, the size of organization and the type of organization, either it is
Universlti Utara Malaysia
13
profitable or non-profitable organization, and this issues exists at all levels of employees (Choi, 2012). In other words, employee retention has become the most challenging tasks for human resource manager. Employee turnover is one of the challenges that the organizations have to face with (Hee & Ann, 2019).
A study by Michael Page (2015) reported that employee retention is a key concern for Malaysian employers as 44% of respondents expect to leave their company in less than one year, a further 40% of respondents only see themselves working in the current role for one to three years. Only 10 % of respondents stating that they expect themselves to remain in the same role for more than 3 years. This indicate that employers need retention strategies to build employee loyalty and manage turnover.
According to Convenience Store News (2017), attracting top quality employees who are loyal to the company is ultimate goal for retailer, however, they are often faced with turnover problem especially in the entry-level positions. According to Convenience Store News HR and Labor Study (2016), the turnover rate for employees in retailing or convenience store is around 54%. Basically, entry-level employees is the major contributor of retail industry turnover, and the length of employment increases as employee move to higher position. The study stated that average length of employment for enter level employees, assistant manager and manager are 2.2 years, 3.2 years and 6.4 years respectively.
Besides that, according to Yeong (2017), one panelist at the Global Business Services Forum 2017 has stated that the human resources practitioners must adapt to the current change of employment trends and accept the fact that the average turnover for any individual nowadays is 2 to 2.5 year in any organization in Malaysia. There is a rising trend
Universlti Utara Malaysia
14
in which people are more likely to get into contract work rather that permanent employment nowadays (Yeong, 2017). This phenomena has signified that there will be significant increase in employee turnover as peoples nowadays are more preferred to get into contract work rather than permanent work. The seriousness of employee turnover issue warrant attention from both academicians and practitioners to investigate the factors that leads to turnover intention so that proper strategy can be execute to manage and minimize the problem.
As for retailing industry, the major contributor of turnover rate is the frontline employees. Frontline employees are the one who directly deal with customers, answer the call or assist customers in shops. In retail industry, frontline employees include those cashiers, store assistants and sales associates, customer service and others who working at the sales floor of retail shops. Frontline employees are important because retail organizations rely on these employees to satisfy their valuable customers by delivering quality service and experiences as well as build customer loyalty (Jha, 2013). Frontline employees have a strong impact on customers experience and they influences the company reputation as well as public’s perception of the organization they served. However, retail organization often faced with the problem of high turnover rate among frontline employees.
According to Kartikay (2019), the turnover rate for frontline employees is high in which the average job tenure of frontline employee in retail industry is one to two years. Because of limited growth in salary, retail employees who began their first career in retail store will leave after they get married and having additional responsibilities.
Turnover intention among employees can be influenced by many aspects or factors.
Rewards include all types of benefits given to employees in which it can be in the form of
Universlti Utara Malaysia
15
cash or appropriate working conditions (Seema Arfan & Sharjeel, 2015). Rewards affect turnover intention and it has the most influential power on turnover intention (Andi &
Syihabudhin, 2018). Many of the studies has founded a negative and significant relationship between reward satisfaction and turnover intention (A’yuninnisa & Saptoto, 2015; Olawale & Olanrewaju, 2016; Andi & Syihabudhin, 2018). In other words, employees with high reward satisfaction tend to be having lower turnover intention.
Another factors that could affect employee’s turnover intention is job satisfaction.
Job satisfaction is the key factors that influenced employees’ turnover intention (Collin, 2018). Job satisfaction is the most studied field of organizational behavior by previous researchers and also the organizations. Reducing employee turnover rate is an important job for organizations (Parul & Havisha, 2015). The turnover crisis start when employees become unsatisfied with their current job (AlBattat & Som, 2013). Job satisfaction is about the positive and negative feelings as well as the thinking and attitude that a person have towards his or her job (Seema, et al, 2015). Many of the studies has founded a negative and significant relationship between job satisfaction and turnover intention (Nurul et al, 2018;
Yamazakia & Petchdee, 2015). In other words, if an employee is satisfied with their current job, they are more likely to stay with their current employers, work up to the employer's expectation. Thus, satisfied employees are more productive and can be considered as an asset to the company.
Besides that, turnover intention was also found to vary across gender. Previous studies reported significant difference in turnover intention between male and female employees (Begum, Orhan & Haluk, 2015; Ramatu, Ajay & Kabiru, 2014). Female employees tend to have higher turnover intention as compared to male employees.
Universlti Utara Malaysia
16
In summary, this study focuses on the influences of reward satisfaction and job satisfaction on retail frontline employees’ turnover intention.
1.3 Research Question
In accordance to the research problem statement, the study is carried out to investigate the influences of reward satisfaction and job satisfaction on turnover intention among employees in retailing industry in Alor Setar. Thus, the following questions are developed to further examine the issues.
1. Do reward satisfaction, and job satisfaction influence turnover intention among employee in retailing industry in Alor Setar?
2. Is there a difference in turnover intention between male and female employee?
1.4. Research Objective
Generally, the study aims to investigate the factors that might influence the turnover intention among employee in retailing industry in Alor Setar. In order to answer the research questions that has been posted above, the following research objectives were formulated:
1. To investigate the influence of reward satisfaction, and job satisfaction on turnover intention among employee in retailing industry in Alor Setar.
2. To examine the difference in turnover intention between male and female employee.
Universlti Utara Malaysia
17 1.5 Significance of Study
It is expected that the findings of this study may benefit both researchers and retail organization regarding the factors that affecting employees turnover intention and methods to manage employee turnover within organization. Firstly, this study is useful to other researchers who investigate on factors that affect turnover intention among employee in retailing industry. The potential findings from this study may add to the current body of knowledge and current existing literature on organizational behavioral study. So, this study may provide ideas to future researchers who investigate on the same issues and help them to focus on other potential factors which will influence employee’s turnover intention.
This study provide empirical evidence on the role of reward satisfaction and job satisfaction on employee turnover intention. After the findings of this study being analyzed, it would be able to provide information to management of retail organization about the expected or predicted rate of employee’s turnover within organization in the near future.
This study also provide insight into the factors that affecting the employee’s intention to leave their current job or position and help management to identify or focus on the most critical factors in managing employee turnover. It allows management to understand how each factors impact on employee’s turnover intention and getting better understanding on the needs of its employee and adjust accordingly in order to minimize turnover in retail organization. Information provided by this study also allow management to plan earlier action to react to expected turnover within organization thus help to minimize or avoid high turnover among employees and minimize cost of talent as well as ensure smooth functioning of task and business.
Universlti Utara Malaysia
18 1.6 Scope of Study
This study examine the relationship between reward satisfaction, job satisfaction and turnover intention among employees in retailing industry. Retailing industry is such a big industry in Malaysia, therefore, it would be difficult to collect data from every part of the country. Taking consideration into time, reach and costs, this study will be employed on the retail company in the area of Alor Setar, Kedah, Malaysia only. Participants of this study are frontline employees in retail companies. These people are considered as the right respondents who able to provide feedback on the study of relationship between reward satisfaction, job satisfaction and turnover intention. Questionnaire will be distributed to the frontline employees of retail companies in Alor Setar. The retail companies that have been selected are Pacific Hypermarket Star Parade and Taman Sultan Badlishah Sdn. Bhd.
1.7 Operational Definitions 1.7.1 Reward Satisfaction
Reward satisfaction is basically about how employee feel or satisfied from the rewards they received from organization they worked. This includes employees’ satisfaction on all types of rewards such as salary, recognition, promotion opportunities and appreciations given by the organization to the employees.
1.7.2 Job Satisfaction
Job satisfaction is basically about people felling towards their jobs and various characteristics that related to their jobs. It is about how people feel on their jobs, in which they like their job which refer to job satisfaction or dislike their job which is job dissatisfaction.
Universlti Utara Malaysia
19 1.7.3 Turnover Intention
Turnover intention is the employee’s thinking or desire to leave his or her job or organization. It is the stage before actual action taken by the employees to leave his or her job and organization.
1.8 Organization of the Study
This study consists of five chapter. In Chapter 1, important aspects of the study such as background of the study, research problem statement, research questions and objectives, significance of study, scope of study and operational definitions of important terms were discussed. Chapter 2 including a review on literature and previous studies that are related to the issue being investigated. The variables for this study include turnover intention as dependent variable while reward satisfaction and job satisfaction as independent variable will be explained in this chapter. The research framework and research hypothesis also being discussed in this chapter. Meanwhile, Chapter 3 involve the discussion on the research methodology of this study which include the population and sampling technique of the study, measurement of variables as well as questionnaire design. Data collection procedure and data analysis techniques will be explained in this chapter. Chapter 4 including the discussion on research findings in accordance to the research questions and research objectives which have been formulated in Chapter 1. Lastly, Chapter 5 summarized the findings of the study and explained about the limitation of the study.
Recommendations and suggestions for future research also will be discussed in this Chapter.
Universlti Utara Malaysia
20 CHAPTER 2 LITERATURE REVIEW 2.0Introduction
This chapter will presented a detailed review of literature on relevant area. This includes the conception and definition of variables in this study such as turnover intention as dependent variable and reward satisfaction and job satisfaction as independent variables.
In this chapter also, discussion on different factors that affecting turnover intention will be presented. Also, the findings of previous studies that are related to relationship between reward satisfaction, job satisfaction and turnover intention will be summarized in this chapter. At the end of this chapter, the research framework and research hypothesis for this study will be formulated and presented.
2.1 Concept and Definition of Turnover Intention
Employee turnover can be defined as an action by individual in which the individual whom receive payment from the organization terminate the employer employee relationship (Mobley, 1982). Employee turnover is the actual action made by an employee to quit from an organization. According to Siti and Nur (2015), employee turnover can be defined as the movement of employees within the labor market, transition of employees across the firms, jobs and positions as well as the status of employment and unemployment. It is the action taken by the employee to leave the organization they served (Seema et al, 2015).
Employee turnover can be defined as the ratio of the number of employees quitting an organization in a specific time period to the number of employees who remain in an organization for any period of time as well as the changes in the number of employees that
Universlti Utara Malaysia
21
is resulted from employee resignation, quitting, discharge and recruitment (Demir, Colakoglu & Guzel, 2007). Employee turnover is a situation that involved the leaving of employee from an organization and the vacancies has to be replaced by new employee (Abdul & Saraih, 2016).
In this study, the term turnover intention or intention to leave or quit is used instead of actual turnover. This is because Ajzen (1991) through his general theory of planned behavior has discussed that behavioral intention can be a good predictor of later actual behavior. One’s behavior is affected by his or her intention, attitudes and subjective norms.
This means that turnover intention is the antecedent of the actual turnover and it can be used to predict the occurrence of actual turnover. This idea is supported by Mobley (1979) in which he explained that intentions can better explain turnover because it involve individual own perception and judgment. There is a negative relationship between turnover intention and continuance commitment and turnover intention is widely recognized as predictor to the actual turnover (Mobley, 1979). A study conducted by Griffeth, Hom and Geatner (2000) also proven that turnover intention is the good precursor of actual turnover.
According to Lambert, Hogan and Barton (2001), turnover intention is found to be positively and significantly relate to actual turnover.
This idea is also supported by Firth, Mellor, Loquet and Moore (2004). The researchers suggested that intentions has different meaning towards each employee who leave and who remain in the organization and it is the most immediate precursor of actual behavior and it can be the good predictor of actual turnover. Usually, turnover intention would exist in one’s mind when people realized that the organization or department they served has not or unable to fulfill their needs and expectations anymore. According to
Universlti Utara Malaysia
22
Gregory (2007), it is founded that turnover intention is the strong predictor of personal actual turnover across different industries and it is theoretically believed to be an important precursor of the actual turnover. Employees’ turnover intention able to signified the loyalty level of employees to the organizations for which they served (Firth et al, 2004). According to Liew and Kaur (2008), turnover intention is usually founded to be correlate with actual turnover and it is often use as the predictor of actual turnover by researchers.
Mobley (1979) stated that turnover intention can be refers to as the employees’
intention to quit the organization at some point in the near future. Turnover intention is the process of thinking and planning by employees to quit from their job and organization (Belete, 2018). It is the probability of an employee to quit from job he or she currently served (Ngamkroeckjoti, Ounprechavanit & Kijboonchoo, 2012). Turnover intention is a desire of one on whether to continue his or her employment relationship with an organization and it is not an actual action to leave the organization (Sutanto & Gunawan, 2013). According to Michal and Corine (2013), turnover intention can be defined as individual’s desire or willingness to leave an organization. Turnover intention as defined by Chang, Black and William (2013) is a process of employee to quit the current job or employee intention to leave their employer organization. Turnover intention is usually the final stage before the occurrence of actual turnover. Arnold and Feldman (1982) supported the idea in which intention to leave is the final cognitive stage before the actual turnover takes place and it has direct casual impact on turnover. According to Andi and Syihabudhin (2018), turnover intention is an early antecedent of actual employee turnover in an organization. Turnover intention exist with one having the desire to look for job vacancies in other companies or evaluate the chances of getting a better job in other companies.
Universlti Utara Malaysia
23
Turnover intention can be defined as the intention to quit a job based on voluntary basis (Mobley, 1977). In other words, turnover intention can be defined as the intention to voluntarily quit and change the organization one served or to exit from the job market.
According to Bebe (2016), there are two types of employees’ turnover which are voluntary turnover and involuntary turnover. According to Hendries (2004), employee can quit from an organization by resignation, retirement or being dismissed by the organization’s management. The leaving of employee can be due to individual own decision, health problem, medical and maternity leave, while dismissal may because of overstaffing or misconduct. Usually, voluntary basis turnover is taken by the employee themselves because of a number of reasons such as better job opportunities while involuntary basis turnover decision is originated from the employer because of low performance and productivity, misconduct by employees or overstaffing.
Voluntary turnover occurs when employees made decision to quit from their employers company. Involuntary turnover occurs when the leaving of employees from organization is being forced by the management due to weak performance or misconduct (Bebe, 2016). Voluntary turnover is a process whereby an employee makes decision on whether to stay or leave the organization they served (Wells & Peachey, 2010). Voluntary turnover occurs when an employee leaves his or her job and the company based on own decision (Belete, 2018). Voluntary turnover can lead to dysfunctional workforce because it involve the leaving of good performance employees and force the employees who stayed to fill up the position and gap that exist after the leaving of top performers (Wallace &
Gaylor, 2012). There are many factors that can caused the top performers to leave the organization and the most common factor is lack of chance for career advancement.
Universlti Utara Malaysia
24
On the other hand, involuntary turnover is a situation in which the organization or management made decision or request the employees to stay or leave the organization (McPherson, 1976). Involuntary turnover is equal to functional turnover because this type of employee turnover usually involve the termination of low performance employees (Watrous, 2006). Functional turnover does not bring harm to the organization as employee who being terminated by their organization are mostly made up of low performers and unskilled part time employees, so, the organization is free from the threat of loss of talent and skilled workers (Wallace & Gaylor, 2012). The termination of employment of low performers does not affect the job process and the effectiveness of performing job. Instead, the organization can get a chance to replace those low performer with better performance employee and thus help to enhance the quality of job done, and eventually lead to the formation of functional workforce (Dalton & Todor, 1979).
Many researchers have investigated various possible precursor of turnover intention to determine the real factor that affect employee’s intention to quit. Moore (2002) through his study founded that low level of job satisfaction and job stressors are among the factors that caused employee intent to leave their job. Taylor and Weiss (1972) discovered that job satisfaction could determine turnover intention. An employee who has low level of job satisfaction is more likely to leave his or her job. The study also discovered that job stress and exhaustion can affect the rate of turnover among employees.
Besides that, job satisfaction is not the only factor that lead to the problem of turnover and there are many other predictor of turnover intention. This includes organizational communication, tasks given, working environment as well as the salary and benefit received (Qureshi, Iftikhar, Abbas, Hassan, & Khan, 2013). Demographic factors
Universlti Utara Malaysia
25
such as age as well as opportunities of getting new job and financial responsibilities also contributed to turnover intention (Schulz, Bigones & Gagnon, 1987). A study conducted by Tan, Vicky and Ngoh (2007) in cooperation with organization in Singapore had identified that there are three broad categories of factors that affect turnover intention among employee. The first categories is demographic factors which include employee’s age, gender, marital status, and number of responsibilities. Second categories is organizational factors which include job tenure, wages and number of employee in organization. Third categories is attitudinal factors such as job satisfaction, job stress and commitment level in organization.
The findings of a survey done by Michael Page (2015) that involved 869 respondents of employees who are holding position ranging from entry level to director in Malaysia has been recorded in his Michael Page Malaysia Employees Intentions report. In overall, the findings revealed that 52% of employees has rated lack of career progression and 43% of employees has rated seeking a fresh challenge as the top reasons that affect their intention to leave their current company. Increased salary (32%) and feeling of undervalued in current role (25%) also affect employees’ decision to stay or leave the company. This indicated that employers should focus more in rewards and recognitions program for the retaining of employees. As for employees in consumer and retail sector, the top reasons of leaving the company includes lack of career progression (52%), seek for fresh challenge (45%) and desire for increase salary (32%). The findings also reported that opportunities for career progression (54%), increase in salary (49%), and workplace flexibility or good work-life balance (32%) is the main reasons that attract and motivate Malaysia’s employees to shift to another job. While for employees in consumer and retail
Universlti Utara Malaysia
26
sector, opportunities for career progression (56%) and increase in salary (45%) serve as the main factors that attract employees to a new job. Based on review on previous studies, there are many factors that showed proven to be contributed to employees’ turnover intention, however, this study will mainly focus on examine the influence of reward satisfaction and job satisfaction.
2.2 Reward Satisfaction
2.2.1 Concept and Definition of Reward Satisfaction
Rewards as defined by Seema, Arfan and Sharjeel (2015) include all types of benefits given to employees in which it can be in the form of cash or appropriate working conditions. It is something that can be used to improve performance of employee via identification and setting of targets that relate to the job assigned (Maund, 2001). Extra reward or bonus to the pay can be gave to the employees when they are perform better than their target so that employees are motivated to achieve more and be committed. Rewards is something that given by the organization to employees based in their contributions and performance (Agarwal, 2010). There are many form in which rewards can be implemented such as financial rewards and recognition rewards (Govindarajul & Daily, 2004). In general, there are two major types of rewards, which are monetary and non-monetary reward (Armstrong & Murlis, 2005; Milkovich & Newman, 2008).
Monetary rewards are something that is tangible and those exist in physical form which given to employees after the accomplishment of goals (Seema et al., 2015).
According to Milkovich, George and Jerry (1993), monetary rewards includes cash based compensation such as bonus, increment, short term incentive, long term incentive and other
Universlti Utara Malaysia
27
benefits such as income protection, allowance and so on. Monetary reward includes basic salary, benefits, bonus and individual, group or organization based performance incentives.
Non-monetary rewards include intangible form of award such as recognition, a sense of achievement and accomplishment (Seema et al., 2015). It represent non-financial basis of appreciating and recognizing of employee contribution by employer. According to White and Drucker (2000), non-monetary reward focuses on people’s need for recognition, achievement, responsibility, exposure and personal growth. Non-monetary rewards is something that have no monetary value attached. Example of non-monetary rewards are tickets, coupons, certificates, appreciation from the bosses and managers, flexible work hour, special offday, recognition and free lunches. It is intangible returns or rational returns such as recognitions, status, employment securities and other.
2.2.2 Relationship between Reward Satisfaction and Turnover Intention
Researchers often revealed that rewards and compensation are among the vital aspects that employees value when they are considering a new job opportunity or shifting their job (Barber, Alison & Bretz, 2000).According to Sara, Barry and Kathleen (2004) cash is the most important factor that motivate employees and influences the employee intention as compare to other factors and there is no other incentives or motivator can exceed the influences of cash. Curral, Steven, and Annette (2005) in their study revealed that pay satisfaction significantly relate to turnover intention in an organization.
One of the most important factors that influences employees’ turnover intention is monetary rewards (Motshegwa, 2010). This is supported by Hassan (2014) in which salary is the most vital factor in satisfying employees’ economic needs and salary may have great impact on employees’ attitude and behaviors. As reported by Osibanjo, Adeniji, Falola,
Universlti Utara Malaysia
28
and Heirsmac (2014), there is a positive and significant relationship between employee retention and compensation. In other words, employees are more likely to quit if an organization fails to provide satisfying compensation to the employee. Rewards and job satisfaction are the important factors that the management should consider in their effort of employees retention (Terera & Ngirande, 2014). Job satisfaction and salary was found to be strongly relate to employees turnover intention. (Shah & Jumani, 2015).
A study by A’yuninnisa and Saptoto (2015) reported that pay satisfaction is highly correlate with turnover intention. Compensation is found to negatively influences turnover intention (Yudhistira & Emeraldo, 2015). According to Naeem, Abdul, Ahmad, Muhammad and Sohail (2016), salary was found to significantly and negatively relate to turnover intention. This means that a decrease in salary would resulted in higher turnover intention, vice versa. Olawale and Olanrewaju (2016) founded that there is a negative and significant relationship between financial reward and turnover intention in which low financial reward will lead to high turnover intention among employees. There is a strong and negative relationship between rewards and turnover intention among employees in logistic industry. In other words, there will be a reduction in employee turnover intention when employees receive better rewards (Mendis, 2017). Rewards is found to be significantly and negatively influences turnover intention (Andi & Syihabudhin, 2018).
Rewards is the main factor that affect turnover intention and it has the most influential power on turnover intention with a beta value of -0.624. Based on the discussion above, we hypothesized that:
H1: Reward satisfaction significantly influences turnover intention.
Universlti Utara Malaysia
29 2.3 Job Satisfaction
2.3.1 Concept and Definition of Job Satisfaction
There is no absolute definition for job satisfaction. The most commonly used definition was given by Locke (1976). Job satisfaction as defined by Locke (1976) is a pleasurable or positive emotional state that exist when one’s job or job experiences are being appreciate by others. In general, job satisfaction is basically about people felling towards their jobs and various characteristics that related to their jobs (Spector, 1997). It is about how people feel on their jobs, in which they like their job which refer to job satisfaction or dislike their job which is job dissatisfaction. Job satisfaction can be defined as the feelings, include both positive and negative, the thinking and attitude that a person have towards his or her job (Seema et al, 2015).
According to Bashir and Durrani (2014), job satisfaction is a state in which one is satisfied with his or her job. Job satisfaction is employee’s feel of comfort and positive experience that related to their job (Bakotic & Babic, 2013).Job satisfaction can be defined as the employees’ sense of fulfillment when they perform well in the job and being recognized by others (Hee & Ann, 2019). Luthan (1998) stated that there are three comprehensive vital dimensions that related to job satisfaction:
1. Job satisfaction is one’s emotional reaction to a circumstance. Thus, job satisfaction is invisible and it can only be inferred.
2. Each employee has their own expectation towards their job. Thus, job satisfaction is usually determined by how well outcome meet or exceed employee’s expectations. For example, if there is employee who feel that they are receiving
Universlti Utara Malaysia
30
fewer reward but they work harder than others in an organization, then there is likelihood that they possessed a negative attitude towards their job, managers and colleagues. On the contrary, if the employee feel that they have been treated well and being compensated equitably by the organization, then they are probably to express positive behavior in their job.
3. Job satisfaction includes several related aspects which considered as the most important characteristics of a job that people will have response on it. These aspects includes the work itself, pay, promotion opportunities, supervision and co-workers.
There are many factors that influence level of job satisfaction of employees. For example, the factors include the benefits and pay level, the perceived equitable of the promotion opportunities within an organization, the conditions and quality of the working place, leadership and social relationships and factors related to job itself such as the tasks variety, the level of interest and difficulties that the job provide, and the clarity of the job description or job requirements. According to Thwala, Ajagbe, Long, Bilau and Enegbuma (2012), the factors that influence job satisfaction include compensation, recognition, learning opportunity, relationship with co-workers as well as opportunities and challenges at job.
The Hertzberg Two Factor Theory that has been developed by Hertzberg (1959), which is also called the motivation hygiene theory can properly explain the factors that lead to employee’s job satisfaction and job dissatisfaction. Hertzberg (1959) in his theory has discussed that employee’s job satisfaction is affected by two sets of factors, which are hygiene and motivator factor. Hygiene factors are made up of several extrinsic factors of job that will contribute to employee’s dissatisfaction if these factors is not met or satisfied.
Universlti Utara Malaysia
31
This includes company policy and administrations, supervision, relationship with supervisor, work conditions, salary, relationship with peers, personal life, relationship with subordinates, status and security. On the other hand, motivator factors are made up of intrinsic factors that will contribute to job satisfaction when they are being met or satisfied.
This include personal achievement, recognition, the work itself, responsibility, advancement and growth.
2.3.2 Relationship between Job Satisfaction and Turnover Intention
Many of the studies that has been carried out amongst the employee revealed similar pattern of findings in which there is a negative and significant relationship between job satisfaction and turnover intention. For example, a study has been conducted by Nurul et al (2018) on factors that influence employee turnover intention in a Malaysian manufacturing company revealed that work engagement, job satisfaction and organizational commitment were significantly and negatively influenced employees’
turnover intention. Among those factors, job satisfaction was found to have the most influential power on turnover intention with a beta value of -0.407. Job satisfaction can affect the employees’ decision to leave or remain in the organization. Employees who are satisfied will remain in the organization while employees who are dissatisfied will consider to leave their current job and move into new job (Zulbahari & Alias, 2014). Besides that, Chang, Black and William (2013) founded that there is a negative and significant relationship between job satisfaction and turnover intention. In other words, higher job satisfaction will lead to lower turnover intention among employee.
Another study by Mahdi, Zin, Nor, Sakat,, and Naim (2012) also found a negative relationship between job satisfaction (both intrinsic and extrinsic satisfaction) and
Universlti Utara Malaysia
32
employees turnover intention. Intrinsic job satisfaction has found to have stronger impact on employees turnover intention as compared to extrinsic job satisfaction. That means the intrinsic job satisfaction such as the nature of work have stronger influence power on turnover intention as compared to extrinsic factors such as working condition, supervision and subordinates. A study by Shah and Jumani (2015) also found similar finding, such that, job satisfaction and salary was found to be strongly related to employees’ turnover intention. A study done by Yamazakia and Petchdee (2015) has revealed that job satisfaction significantly influences employee turnover intention. Specifically, satisfaction related to the aspect of supervision is an important determinants of employee turnover intention.
A study conducted by Terera and Ngirande (2014) has reported different pattern of finding in which there is a positive relationship between job satisfaction and employee turnover intention. In other words, the findings revealed that low level of job satisfaction resulted in lower level of turnover intention. Rewards and job satisfaction are the important factors that the management should consider in their efforts of employees retention (Terera
& Ngirande, 2014).
A number of studies related to retail industry also reported similar pattern of findings. Arnold and Landry (2006) and Saks (2006) founded a negative and significant relationship between job satisfaction and turnover intention. Besides that, several studies that involved retail employees has found that job dissatisfaction is positively and significantly related to turnover intention (Lucas, 1985; Schulz et al, 1987; McNeily &
Goldsmith, 1991; Menon, 1994). In overall, studies in the retail industry have interestingly revealed the similar pattern of findings to other industries. In other words, most of the
Universlti Utara Malaysia
33
studies that investigate the relationship between job satisfaction and turnover intention among employees in retailing industry has revealed that employees with low level of satisfaction are more intent to quit their organization and look for new job opportunities.
Thus, based on the discussion, we hypothesized that:
H2: Job satisfaction significantly influences turnover intention.
2.4 Gender Difference in Turnover Intention
Several studies on the relationship between gender and employee’s turnover intention has showed significant results. A study by Kim (2005) revealed that female employees have higher turnover intention as compared to male employees. Similarly, a study conducted by Begum, Orhan and Haluk (2015) to examine the relationship between turnover intention and demographic factors also revealed that there is a significant differences in turnover intention between male and female employees. Gender has been found to be a determining factor of turnover in which female tend to have higher turnover intention as compared to male employees. A study by Choong, Keh and Tan (2013) discovered that there is a difference in turnover intention in regards of gender in which female has higher turnover intention as compared to male. Mulu (2014) also founded that turnover intention is higher among female employees.
On the other hand, research done by Smith and Calasanti (2005), Kathri, Budhwar and Chong (2001) reported different results in which male employees have higher turnover intention as compared to female employees. Male employees were having higher turnover intention and they were more likely to quit from the jobs or organization as compared to female employees (Ramatu et al, 2014).
Universlti Utara Malaysia
34
A research that involved more than 3600 U.S. retail and consumer goods industry employees and hiring, promotion and turnover data from eight leading companies that represent more than 400,000 employees has been done by Network of Executive Women in partnership with Mercer and Accenture in October and November 2017. The findings report namely The Female Leadership Crisis report stated that the turnover rate among women, especially women executives is much higher than turnover rate among men in retail and consumer goods industry. In overall, the turnover rates for women in the industry is 31 percent, are significantly higher than that of men, which is 24 percent. Besides that, the report also stated that the turnover rate of women increases at higher job levels. The turnover rate for women as first and middle level managers is 24 percent, which is at nearly double the rate of men, which is 13 percent. The turnover rate for senior executive and C- suite level women is 27 percent as compared to men, which is 7 percent at the same job levels. Thus, we hypothesized that:
H3: There is a significant difference in turnover intention between male and female employee.
2.5 Research Framework
The research framework for this study is to show the link between reward satisfaction, job satisfaction and employee’s turnover intention. There are three variables will be designed into the framework, in which turnover intention served as the dependent variable while reward satisfaction and job satisfaction served as the independent variable for this study.
Universlti Utara Malaysia
35 Figure 2.0
Research Framework
Turnover Intention Reward Satisfaction
Job Satisfaction
Universlti Utara Malaysia
36 CHAPTER 3
RESEARCH METHODOLOGY 3.0Introduction
This chapter discussed about the research methodology used in this study to achieve three basic research objectives as stated in the chapter one. This includes the research design, sampling techniques, measurement instrument and scale, data collection procedure and also data analysis techniques.
3.1 Research Design
According to Sekaran (2003), research design is a guideline for the researchers to carry out the tasks of data collection, measurement, and data analysis based on the research objectives and research questions of the study. This study employed correlational study design because the study aims to investigate the relationship between reward satisfaction, job satisfaction and turnover intention among employees in retailing industry as well as the influence of reward satisfaction and job satisfaction on turnover intention.
In order to investigate the relationship between these variables, this study employed quantitative method for the purpose of data collection. Quantitative method were used to ensure that the data collected are reliable and valid and it is more objective and scientific.
In this study, the data were collected through the use of questionnaire. The questionnaire were adopted from previous studies and has been modified so to suite the context of this study. In the questionnaire, questions and appropriate scales are used to measure the employees’ rewards satisfaction, job satisfaction, and turnover intention.
Universlti Utara Malaysia
37 3.2Sampling Techniques
Sampling techniques include the discussion on the element of population, sample size, unit of analysis and sampling method. Proper sampling design and sample size are important to help the researcher to reach a conclusion and enable the generalization of results to larger population.
3.2.1 Population
According to Uma and Roger (2009), population is the entire group of people, events, or things of interest that the researcher will use to investigate in the subject related. It is the potential respondents that the researcher interested to generalize the result of the study. The population that involved in this study were the frontline employees who worked in Pacific Hypermarket Star Parade and Taman Sultan Badlishah Superstore Sdn. Bhd. Taman Sultan Badlishah Superstore Sdn. Bhd owned 7 branches in the area of Alor Setar. These two retail companies were chosen upon their agreement to participate in this study. The total number of target population from these companies is 165 employees. Table 3.1 shows the detail of employees that are provided by Human Resource Department of Pacific Hypermarket Star Parade and Taman Sultan Badlishah Superstore Sdn. Bhd.
Table 3.1
Detail of Employees
Name of company Number of target population
Pacific Hypermarket Star Parade 75
Taman Sultan Badlishah Superstore
Sdn. Bhd. 90
Total 165
Universlti Utara Malaysia
38 3.2.2 Sample Size
Sample can be defined as a subset of population. Since the population number is large, it is impossible to involve all members of population as respondents. As proposed by Krecjie and Morgan (1970), the minimum desirable sample size for total population of 165 population is 118 sample.
3.2.3 Unit of Analysis
Unit of analysis is about the level of data collection for the purpose of data analysis in the next step. In this study, individual has been the unit of analysis in which the data will be collected from each individual and the researcher accept every employee’s response as an individual facts basis. In this study, the individual respondents will be the frontline employees of Pacific Hypermarket Star Parade and Taman Sultan Badlishah Superstore Sdn. Bhd.
3.2.4 Sampling Method
The study has utilize convenience sampling method in which questionnaire was distributed to every member of the population. Employees who were willing to access to and participate in this study has provided their responses and returned the questionnaire. The frontline employees’ data are extracted from the system of human resource department of Pacific Hypermarket Star Parade and Taman Sultan Badlishah Superstore Sdn. Bhd.
Universlti Utara Malaysia
39 3.3Measurement Instrument and Scale
In this study, two variable which are reward satisfaction and job satisfaction has been selected as independent variable while turnover intention as dependent variable. These variables were selected because they are previously identified by other researchers as the variables that have great impact on employees’ turnover intention. Although there are only there variables selected to be used in this study, the researcher strongly believed that the variable chosen are able to answer the research question precisely and fulfilled the research objectives mentioned in Chapter one.
3.3.1 Questionnaire Design
This study use questionnaires as main instrument for data collection. The questionnaire were adopted from previous studies and has been modified to suite the context of this study.
The 4 pages questionnaire consists of four (4) section namely demographic profile, reward satisfaction, job satisfaction and turnover intention. The full version of the questionnaire is attached in Appendix A. The summary of the questionnaire are presented in the table below.
Table 3.2
Summary of Questionnaire Section Description
Section A This section consists of eight (8) questions related to demographic background of the respondents. This includes the Gender, Nationality, Race, Age, Marital status, Job tenure, Work Schedule and Basic salary of respondents. This information is vital to prove that the sample is representative and the generalization of sample results to wider population is applicable.
Universlti Utara Malaysia
40
Section B This section consists of six (6) questions to measure the independent variables on Reward satisfaction.
Section C This section consists of six (6) questions to measure another independent variables namely Job satisfaction.
Section D Section D consists of three (3) questions to measure the dependent variable namely Turnover intention of employees.
Basically, the questionnaire involve the use of two types of scale which are Nominal scale and Likert scale for the purpose of measurement. Nominal scale will be used on the questions that are related to demographic information of respondents in the section A of the questionnaires. Respondents are required to provide their responses by picking or pointing the most appropriate answer in question of section A. In the other hand, Likert scale of measurement are used in Section B, C and D of questionnaires. Respondents are required to show their degree of agreement of disagreement to items in the questionnaires by respond to five point Likert scales. The five point Likert scales are given as follows:
Table 3.3
Five Point Likert Scale Strongly
Disagree/
Sangat Tidak Bersetuju
Disagree/
Tidak Bersetuju
Neutral/
Tidak Pasti
Agree/
Bersetuju
Strongly Agree/
Sangat Bersetuju
1 2 3 4 5
The reply option ranged from strongly disagree to strongly agree. The respondents are requested to show their level of agreement by choosing a worth that is corresponds to what
Universlti Utara Malaysia
41
they feel or think in Section B, C, and D. They are asked to circle the answer that can precisely characterized how they agree or disagree about the items in questionnaire. A numerical code was assigned to each option in order to transform the respondent’s responses to data values that can be used for statistical analysis.
The original set of questionnaire was conducted in English. Taking into consideration in which the target respondents are frontline employees in retailing industry who are not proficient in English, the questionnaire was then translated into Malay and was prepared in dual language. The aim is to ensure that respondents are understand with each items in the questionnaire and able to provide their responses effectively throughout the questionnaire given. In addition, personal guidance and explanation also given to respondents in order to avoid any misunderstanding and confusion when completing the questionnaire. So, enhance the potential to reach more reliable and precise data.
3.3.2 Demographic Profile
There are nine (9) questions in demographic profile section. The aim is to collect demographic information that is important to show that the sample is representative and the generalization of sample results to wider population is reliable.
3.3.3 Measurement for Reward Satisfaction
Reward satisfaction is an independent variable in this study. This variable is conceptualized as how employee feel or satisfied from the reward they received from organization they worked. This questionnaire measures employees’ satisfaction on the reward they receive include salary, recognition, chances for job promotion and so on. This questionnaire was adopted from Spector (1985) and Truitt (2011). The sample items are ‘I feel I am being
Universlti Utara Malaysia
42
paid fairly’ and ‘When I do a good job, I receive the recognition for it that I deserve’. The reliability value for the present study is 0.775.
3.3.4 Measurement for Job Satisfaction
Job satisfaction is an independent variable in this study. According to Spector (1997), job satisfaction is about people feeling towards their jobs and various characteristics that are related to the jobs. It is about how people feel towards their job, in which they like their job or dislike their job. The measurement for job satisfaction was developed by Rehman (2009). The sample items are ‘My present job gives me internal satisfaction’ and ‘I am respected because of my job’. The reliability value for the present study is 0.891.
3.3.5 Measurement for Turnover Intention
Turnover intention is a dependent variable in this study. According to Mobley (1979), turnover intention can be refers to as the employee’s intention to quit the organization at some point in the near future. The measurement for turnover intention was developed by Mobley, Horner and Hollingsworth (1978) (as cited in Choi, 2012). The sample items are
‘I often think about leaving my present job’, ‘I will probably look for a new job in the next year’ and ‘As soon as possible, I will leave the organization’. The reliability value for the present study is 0.913.
3.4Data Collection Procedure
In this study, the questionnaire was used as the main instrument to collect data from the respondents as administering the questionnaire is the most suitable method for data collection. The use of questionnaire provide advantages such as relatively low cost, no interview bias, no prior arrangements are needed and the facts of anonymity among
Universlti Utara Malaysia
43
respondents (Schermerhorn, Hunt & Osborn, 2000). All questions in the questionnaire are structured questions and measured with Nominal and Likert scale. No amendment was made to the questionnaire upon the pretest study. Since all of the instruments were adopted from previous studies and all of the instruments were proven to be reliable with good Cronbach’s alpha scores, it was believed that the questionnaire is able to measure the items in this study.
All of the employees’ data are extracted from the system and obtained approval from the human resource department of Pacific Hypermarket Star Parade and Taman Sultan Badlishah Superstore Sdn. Bhd. The minimum desirable sample size for this study is 118 respondents. However, in order to get a good number, a total of 165 questionnaires has been distributed to frontline employees who are targeted as the sample of this study via human resource department of targeted company. The respondents
