THE INFLUENCE OF JOB SATISFACTION AND ITS EFFECT ON EMPLOYEE TURNOVER INTENTION IN FINANCIAL SERVICE INDUSTRY OF MALAYSIA

Andrew Sija

Abstract


High employee turnover has a severe impact on financial service industry, both financially and emotionally. The financial service industries must take a step to recognize possible causes of turnover intention, measure the turnover rate, determine the turnover cost and address the turnover problems seriously. The aim of this study is to measure the determinants of job satisfaction and its effect on employee turnover intention in the financial services industry in Malaysia. In specific, it is to assess the relationships between the independent variables (compensation and benefit, employee recognition, supervision support and promotional opportunity) and employee turnover intention. A total of 127 feedbacks obtained from employees in four selected well-known banks in this study. The survey questionnaires were in the form of google form and were sent via email to the respective representative of the selected bank. The study used two types of data analysis and had identified five (5) hypotheses which were tested using statistical technique SPSS version 26. The descriptive analysis was used to gauge the respondent’s demographic information such as gender, age, education level, bank served and tenure of services. Meanwhile the inferential analysis was mainly for examining the relationship between compensation and benefit, employee recognition, supervision support, promotional opportunity and employee turnover intention. The results revealed promotional opportunity is the strongest predictor in influencing employee turnover intention with unstandardized coefficients, β = .673, t = 7.016 p <.05, followed by compensation and benefit with β = .276, t = 2.861, p <.05. The most significant contribution of this study is that it explores for the first time the investigation of compensation and benefit with promotional opportunity affecting employee turnover intention in the most well-known and established banks in Malaysia. This study is hoping to contribute both on theoretical and practical value to the banks in maintaining their ranking, competitiveness and finding best solutions towards retaining talented employees.

JEL: J30; L20; L23

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Keywords


employee turnover intention, compensation and benefits, employee recognition, supervision support, promotional opportunity

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v5i1.1066

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