The effects of pay satisfaction and affective commitment on turnover intention

Abstract

One of the antecedents of turnover and turnover intention is job attitude.Among the job attitudes in the organizations, many researchers have focused on satisfaction and organizational commitment as the factors affecting turnover intention.Meta-analysis studies have noted that correlation between turnover intention and commitment is higher relative to its relationship with satisfaction which indicates the possibility of mediation relationship.One facet of satisfaction which is important in predicting turnover intention is pay satisfaction.Only a few studies have been conducted to test the mediation relationship among the variables.This study aimed to examine the direct and indirect effects of pay satisfaction on turnover intention, which is mediated by affective commitment.Instruments used in this study were the Indonesian version of Pay Satisfaction Questionnaire (Heneman & Schwab, 1985), Affective Commitment Scale (Allen & Meyer, 1990), and Turnover Intention Scale, which were delivered to 183 employees of an automotive manufacture company in Indonesia.The data of 150 respondents involved were analyzed using path analysis with latent variables.The result showed that turnover intention was significantly predicted by both pay satisfaction (γ 1 = -.19,p < .05)and affective commitment (β = -.77,p < .05),while affective commitment was significantly predicted by pay satisfaction (γ 2 = .32,p < .05).The model supported for a partial mediation and that there were both direct and indirect effects of pay satisfaction on turnover.Affective commitment played an effective role in mediating the relationship between pay satisfaction and turnover intention.

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