THE INFLUENCE OF PROCEDURAL JUSTICE AND JOB SATISFACTION ON TURNOVER INTENTION WITH WORK ENGAGEMENT AS A MEDIATING VARIABLE
DOI:
https://doi.org/10.31959/jm.v15i3.4051Abstract
Introduction: Turnover intention constitutes a key hurdle for human resource management in Indonesia's labour-intensive manufacturing sector, notably the textile industry, as it grapples with global competitive dynamics, a surge in imports, and a reduction in market demand expected by 2025. These factors urge businesses to improve their human resource management, especially by prioritising procedural justice and job satisfaction. It is conjectured that these factors do not consistently have a direct relationship with turnover intention but are mediated by work engagement.
Methods: This analysis applies a quantitative framework, utilising simple random sampling to choose 286 individuals, as derived from the Slovin formula. Empirical information was elicited through a survey instrument employing a five-category Likert response format. The collected observations were subsequently subjected to Partial Least Squares Structural Equation Modeling (PLS-SEM), with SmartPLS serving as the analytical platform for estimating the structural relationships among the constructs.
Results: The analysis showed that procedural justice exerted a significant direct effect on turnover intention, although in a positive rather than the hypothesised negative direction, whereas job satisfaction showed no significant direct effect. Employee work engagement appeared to be primarily driven by job satisfaction and, in turn, significantly reduced turnover intention. Instead, the influence of job satisfaction on turnover intention was evident only when it operated through work engagement, identifying this construct as the sole mediating mechanism within the proposed model. In contrast, procedural justice did not influence turnover intention through this mediating mechanism.
Closing Remarks and Advice: These observations substantiate that procedural justice is the foremost direct predictor of employee turnover intention in terms of effect size, though its influence was positive rather than protective, while job satisfaction affects turnover intention chiefly through work engagement, which in turn significantly reduces employees' intention to leave. Firms are urged to invest deliberately in work engagement, through meaningful feedback, autonomy, and recognition of job satisfaction, as the psychological pathway to increased employee retention, while further investigating why greater procedural fairness coincided with higher turnover intention in this sample. Further research should replicate the work engagement–turnover intention association, confirmed as negative in this study, and widen the sample range to include various textile companies.
Keywords: Human Resources, Job Satisfaction, Procedural Justice, Turnover Intention, Work Engagement
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