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Archives of Business Research – Vol. 10, No. 3

Publication Date: March 25, 2022

DOI:10.14738/abr.103.12053. Sari, S. R. S., & Nilasari, B. M. (2022). Antecedents of Turnover Intention on the Manufacturing Industry in Banten Province. Archives

of Business Research, 10(03). 235-250.

Services for Science and Education – United Kingdom

Antecedents of Turnover Intention on the Manufacturing

Industry in Banten Province

Salsabila Rizky Septinia Sari

Magister Management, Faculty of Business and Economics

Universitas Trisakti, Indonesia

B. Medina Nilasari

Magister Management, Faculty of Business and Economics

Universitas Trisakti, Indonesia

ABSTRACT

The objective of the empirical study is to analyse the effect of HRM Practices, Work

Family Conflict, Supervisor Support on Turnover Intention mediated by Work

Engagement. The data used in this study is primary data taken through by

distributing questionnaires using purposive sampling method involving 195

respondents in the manufacturing industry in Banten province, Indonesia. The

analytical tools in this research is Structural Equation Modeling (SEM) using AMOS

version 21. The results of this study are the HRM Practices, Work Family Conflict,

Supervisor Support have an influence on Work Engagement and also on Turnover

Intention. In the next result, Work Engagement can mediate the effect of HRM

Practices on Turnover Intention, Work Family Conflict on Turnover Intention, and

Supervisor Support on Turnover Intention. From the results of this study, it is

recommended for managers to maintain a low employee turnover rate by

increasing employee engagement and encouraging employee growth, so as to

achieve effective management performance supported by positive energy and

emotional attachment to work.

Keywords: HRM Practices; Supervisor Support; Turnover Intention; Work Family

Conflict; Work Engagement

Business organizations in the field of services and products desire to be able to achieve their

goals to keep growing. Organizations need to organize and manage resources where one of the

important assets is employees (Menezes et al., 2018). According to a survey of the Central

Statistics Agency's annual data report, it was found that the Open Unemployment Rate in

Banten Province in the last 5 years had a fluctuating percentage, expressed in the following

data:

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Archives of Business Research (ABR) Vol. 10, Issue 3, March-2022

Services for Science and Education – United Kingdom

Figure 1. The Open Unemployment Rate of Banten Province - Indonesia

Source: Central Bureau of Statistics - Republic of Indonesia (2020)

Based on the data above, 2020 was the highest unemployment rate compared to 2015 to 2019

due to the Covid-19 pandemic that affected the employment sector in Indonesia. The regional

and social restriction policies followed by a reduction in operational working hours resulted in

the loss of working hours for employees to the loss of jobs. In addition, the high unemployment

rate is also caused by the Turnover Intention. According to the International Labor

Organization (ILO) data report, the labor sectors that require the most workers are the retail

and wholesale sectors, trade, transportation, real estate, restaurants, and manufacturing.

The manufacturing industry is one of the main drivers of economic growth in Indonesia

(kemenperin.go.id). Banten Province is one of the largest provinces that makes a significant

contribution to the regional and national economy and has approximately 20 industrial estates

in which there are 2,430 manufacturing industries which are still the center for the production

of goods and services (bps.go.id). The main capital in facing global competition is quality and

competitive manufacturing products. To be able to realize this, human resources are needed to

help increase the growth of an industry.

Turnover Intention is one of the special concerns of an organization because it leads to on

productivity, product and service quality, and the profitability of an organization (Belete, AK

2017). This phenomenon makes various organizations try to control the level of employee

turnover. A supervisor can use appropriate HRM Practices to provide a workplace that

motivates employees and reduces turnover intentions due to the emergence of higher trust and

lower intentions to leave the organization (Haque, Fernando, and Caputi, 2019). The value of

balance between work and family becomes important for an organization because conflicts

between areas of life will lead to several negative consequences for both individuals and

organizations. Thus, a balance between roles will reduce conflict so that the organization gets

a low turnover rate and employee retention which leads to organizational policies in order to

prevent employee turnover (Ribeiro et al., 2021). According to Harun, Mahmood, and Som

(2020), Work Family Conflict comes from the demands of working conditions that burden

family life, causing a decrease in work results, which then makes employees have the desire to

leave the organization. According to Pattnaik and Panda (2020) Supervisor Support, which is a

work resource, can help employees overcome problems and make employees feel that their

superiors support and care about their welfare. Supervisor Support is also part of the

employee's work environment that can help retain or cause them to stop working (Gordon et

al., 2019). Employees who are engaged in work will show low intention to move because

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Sari, S. R. S., & Nilasari, B. M. (2022). Antecedents of Turnover Intention on the Manufacturing Industry in Banten Province. Archives of Business

Research, 10(03). 235-250.

URL: http://dx.doi.org/10.14738/abr.103.12053

employees feel they have the best qualities and have a trusting relationship with the

organization (Tetteh et al., 2021). Yucel, Sirin, and Bas (2021) suggest that employees who face

conflict between family and work will experience fatigue, depression, and anxiety which result

in increased absenteeism and intention to move. Thus, the existence of Work Engagement is

important for the development of positive psychology and it is an issue that organizations

attach importance to employees who are engaged in work, have high energy at work, and try to

do work with a sense of responsibility.

LITERATURE REVIEW

HRM Practices

HRM Practices are a series of activities used to influence and shape employee attitudes,

behavior, and performance to ensure the achievement of organizational goals. HRM Practices

can directly or indirectly increase employee performance engagement, increase job satisfaction

and commitment, better career paths, intention to stay in the organization, lower absenteeism

rates, lower turnover, minimize work stress, and increase comfort at work. superiors,

subordinates, or co-workers (Al-Kahtani, 2018). A boss or supervisor can use appropriate HRM

Practices to provide a workplace that motivates employees and reduces turnover intentions

due to the emergence of higher trust and lower intentions to leave the organization (Haque,

Fernando, and Caputi, 2019).

Work Family Conflict

Work Family Conflict is a mismatch of work demands that prevents a person from fulfilling the

responsibilities of family roles, causing a conflict. Ribeiro et al., (2021) found that low levels of

Work Family Conflict will make employees have greater involvement because they can express

more positive emotions such as happiness, enthusiasm, better physical and psychological

health. Work Family Conflict is considered to be able to increase stress that leads to Turnover

Intention, because ongoing conflict due to work will interfere with employees' personal

activities (Rasheed, Iqbal, and Mustafa, 2018).

Supervisor Support

Supervisor Support is a form of encouragement in which supervisors can be actively involved

in providing learning, developing skills, and being able to assist employees in solving various

work problems. Supervisor Support helps employees to cultivate a positive attitude towards

the organization so that they become motivated and produce high quality output through

increased Work Engagement (Kaur and Randhawa, 2021). Emotional feelings supported by

supervisors make employees more prepared to tolerate a stressful work environment and still

show higher levels of satisfaction and commitment, characterized by lower intentions to quit

work (Chami-Malaeb, 2021).

Work Engagement

Work Engagement is a state where employees are ready to hire and express themselves which

reflects employee participation in completing the work tasks to be carried out. Paul and Kee

(2020) explain that Work Engagement is a potential mediator between HRM Practices and

Turnover Intention supported by social exchange theory in which employees who receive

economic and social emotional resources in terms of HRM Practices feel obliged to repay the

organization through work involvement, commitment high, and the increase in work that

causes a decrease in intention to quit. According to Yucel, Sirin, and Bas (2021), organizations