Satisfaction with HRM Practices, Work Engagement and Turnover Intention among Malaysian Oil and Gas Professionals

• Main Author: MEMON, MUMTAZ ALI
• Format: Thesis
• Language: English
• Published: 2017
• Subjects: HD28 Management. Industrial Management
• Online Access: http://utpedia.utp.edu.my/id/eprint/22032/1/MumtazAliMemon_PhD_Thesis_G02443.pdf; http://utpedia.utp.edu.my/id/eprint/22032/
• Institution: Universiti Teknologi Petronas

Malaysia aspires to become a high-income nation by 2020. Achieving the said vision demands attention being given to the retention of highly skilled human resources. However, voluntary turnover is a major issue affecting Malaysian organisations, thereby jeopardising the chances of the country’s strategic objectives being met. Particularly, Malaysia’s oil and gas (O&G) professionals tend to move from one to other organisations and/or other countries, depriving local organisations of their talents. Despite the fact that employees’ satisfaction with HRM practices and work engagement have been credited for reducing employee turnover intention, to date there has been limited research which investigated the causal relationship among these factors. The present study addresses this research gap. The purpose of this study was threefold. Drawing on the social exchange theory and the JD-R theory, it first examined the impact of employees’ satisfaction with HRM practices (i.e., person-organisation (P-O) fit, training satisfaction, performance appraisal satisfaction, and pay satisfaction) on work engagement. Second, it examined the impact of work engagement on employee turnover intention. Lastly, it investigated the mediating role of work engagement between employee satisfaction with HRM practices and turnover intention among Malaysian O&G professionals. Additionally, the study was also designed to determine respondents’ level of work engagement and turnover intention. Data was collected from 442 O&G professionals using multiple sampling methods. The Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to test the hypothesised model. The findings indicated that P-O fit, training satisfaction, and performance appraisal satisfaction are the key drivers of employee’s engagement at work, and work engagement has a significant negative impact on employees’ turnover intentions. Another major finding of this study was that work engagement mediates the relationship between employees’ satisfaction with HRM practices, particularly P-O fit, training satisfaction and performance appraisal satisfaction, and turnover intention.