The Effect of Job Stress and Organizational Climate on Turnover Intention with Job Satisfaction as a Mediation Variable

Aulia Shafira Vanessa¹, Ribhan², Nova Mardiana³

^1,2,3 Magister Management, University of Lampung, Indonesia

ABSTRACT: Human resources (HR) is a crucial aspect that determines the effectiveness of an organization. Therefore, organizations need to pay attention to the turnover rate within their companies. This research aims to determine the effects of job stress and organizational climate on turnover intention, mediated by job satisfaction. The sample of this study consists of 200 employees from a housing development company scattered across the city of Bandar Lampung. Data collection was carried out through a questionnaire using probability sampling techniques and processed using Structural Equation Modeling (SEM) with the assistance of AMOS software. The results of the study show that job stress has a positive and significant impact on the turnover of employees in the housing development company in Bandar Lampung, while organizational climate has a negative and significant impact on employee turnover. Job satisfaction mediates the effects of job stress on turnover intention, and job satisfaction also mediates the effects of organizational climate on turnover intention. Companies can offer mental well-being support programs, open communication channels for all employees, periodically evaluate the workload of employees, and conduct interviews with employees regarding the primary reasons for the desire to leave the company.

Purpose: The aim of this research is to determine the effects of job stress and organizational climate on turnover intention, mediated by job satisfaction.

Patients and methods: The sample of this research consists of 135 employees from a housing development company in Bandar Lampung. Data collection was carried out through a questionnaire based on the simple random sampling method, with the sampling technique being probability sampling.

Results: The results of the study show that job stress has a positive and significant impact on the turnover of employees in the housing development company in Bandar Lampung, while organizational climate has a negative and significant impact on employee turnover. Job satisfaction mediates the influence of job stress on turnover intention, and job satisfaction also mediates the effects of organizational climate on turnover intention.

Conclusion: Companies can offer mental well-being support programs, open communication channels for all employees, periodically evaluate the workload of employees, and conduct interviews with employees regarding the primary reasons for the desire to leave the company.

KEYWORDS: Work Stress, Organizational Climate, Employee Job Satisfaction and Turnover Intention.

INTRODUCTION

The housing industry sector in Indonesia has experienced positive and increasing growth in the last few decades. This condition has spurred the growth of the housing industry, with many property developers investing in housing projects in various regions in Indonesia. In order to optimize housing sales and face competitive challenges, some property development companies choose to hire employees on a contract basis. The contract employee status provides flexibility for companies to manage the workforce according to project needs and changing market conditions. These employees move from project to project as they are employed for specific seasons, busy periods, and unforeseen spikes or increases in demand(Malik, 2017). Contract employees may tend to have lower loyalty to the company due to the lack of long-term job security. In line with this, high turnover in a company is often attributed to contract employees, as indicated in research conducted by(Singh et al., 2019;Lee et al., 2021).

High turnover is also supported when a company tends to neglect the psychological conditions of its employees, leading to job-related stress experienced by the employees(Kachi et al., 2020). Job-related stress is a detrimental physical or emotional response that occurs when job requirements do not match the abilities, resources, and needs of employees(Yu et al., 2021). Studies show that job-related stress has a significant positive effect on job turnover intention in a company (Salama et al., 2022; Liu et al., 2019).

High turnover rates can also be influenced by a poor organizational climate. Organizational climate includes common practices, shared beliefs, and value systems followed by an organization as a whole (Chen & Huang, 2007). When the organizational climate is supportive, the risk of employees having the intention to leave their job is reduced (Ryu et al., 2020; Pranata & Utama, 2019). lack of opportunities for career development is one of the reasons for employee turnover. When employees feel that they do not have the chance to learn and grow within the company, they may seek better career opportunities elsewhere that offer more favorable development prospects (Raharso, 2021). Research conducted by (Hao & Wang, 2022) found results based on regression analysis, indicating that a supportive organizational climate has a significant negative effect on employee turnover intention.

High job stress and a poor organizational climate are two interconnected aspects that can have a serious impact on job satisfaction. Job satisfaction is not about how hard or how well someone works but how much they like their job (Permana et al., 2021). Other studies indicate that job-related stress and organizational climate directly effects employee turnover intention through job satisfaction as a mediating variable (Askiyanto et al., 2018; Liu et al., 2019).

The problem raised in this research is the reduction of turnover intention rates in several housing development companies in the city of Bandar Lampung. Job-related stress and organizational climate should be considered as they impact job satisfaction and reduce turnover intention rates. This research aims to examine the effects of job stress and organizational climate on turnover intention through job satisfaction among employees of housing development companies in the city of Bandar Lampung.

METHOD

This research employs a descriptive-verification research design with an ex post facto and survey approach. Ex post facto research is a type of study in which the researcher attempts to analyze what might be the causes of an effect that has already occurred(Ignou, 2012). The population in this study consists of employees in several housing development companies in the city of Bandar Lampung, with a total of 200 employees. The sample calculation in this study follows the guidelines for determining the sample size proposed by Joseph F. Hair, et al. (2016) which is the number of indicators used in all latent variables multiplied by 5 to 10. Therefore, the sample size is determined to be 135 employees from housing development companies in Bandar Lampung. The sampling technique in this research uses probability sampling with the simple random sampling method. Probability sampling, according to (Taherdoost et al., 2016), means that each item in the population has an equal chance of being included in the sample. Data collected from the questionnaire are analyzed using statistical programs such as SPSS and AMOS. The data analysis methods include descriptive analysis, confirmatory factor analysis (CFA), and structural equation modeling (SEM).

RESULTS

The goodness-of-fit test aims to determine how well the observed frequencies align with the expected frequencies. The results of the Goodness of Fit Index analysis indicate that Structural Equation Modeling (SEM) obtained a chi-square value of 696.947, which is classified as a good fit. Meanwhile, RMSEA=0.064; this study is considered good because, according to(Byrne, 2016), a model is considered a good fit if the RMSEA value is less than 0.08. Other indicators from the Goodness of Fit Index analysis show that all aspects in the model evaluation are good, such as GFI=0.927, TLI=0.090, and AGFI=0.976, meeting the criteria and indicating a good fit.

Table. 1 Goodness of Fit Index Results

Table 1 indicates that all of criteria of model fitness have reached the threshold, indicating that the evaluation deems this model as good. This suggests that the model used in this research is capable of generating the expected level of estimation. Therefore, this model is considered good and reliable in explaining the relationships among variables in the structure. A comprehensive analysis of the Structural Equation Model (SEM) was conducted after evaluating the unidimensionality level of indicators forming latent variables, tested using confirmatory factor analysis. At the full SEM model analysis stage, suitability tests and statistical tests were performed on the processed data. The results of the data analysis for the full SEM model are presented in Figure 1.

Figure 1. Result of the Structural Equation Model (SEM) Test  (See in PDF File)

Figure 1 shows the coefficients of the job stress and organizational climate variables suspected to effectsturnover intention through job satisfaction. Calculations using the AMOS tool can generate direct, indirect, and total effect values that will be used to observe and analyze direct and indirecteffects(mediation). The table below presents the results of the direct, indirect, and total effect values.

Table 2. Direct Effect Result

Table 3. Indirect Effects Result

Table 4. Total Effects Result

Researchers can measure and calculate the effects of job stress on turnover intention through job satisfaction as a mediation variable, and the effects of organizational climate on turnover intention through job satisfaction as a mediation variable can be done by comparing the values of direct and indirect effects.Comparing the direct effect values with indirect effects is a way to observe the effects of independent variables on dependent variables through mediating variables (indirect effects). Therefore, it can be concluded that if the value of direct effects is smaller than the value of indirect effects, it means that the variable has an indirect effects through the mediating variable.

3.1 Hypothesis Testing

Hypotheses regarding the direct effects between independent variables on dependent variables can be explained through the Regression Weight values. Decision-making based on the Regression Weight results involves comparing the p-value with the alpha level. If the p-value is smaller than the alpha value (0.05), then the independent variable significantly affects the dependent variable. The following are the results of the Regression Weight:

Table 5. Regression Weight Result

Information:

X₁                  : Job Stress

X₂                  : Organizational Climate

Y             : Turnover Intention

3.2 The Effects of Job Stress on Employee Turnover Intention

The results of the calculation of the job stress variable on the turnover intention of employees in the housing development sector in Bandar Lampung andthe results show that the coefficient of job stress on turnover intention has a value of 0.871, with a CR (Critical Ratio) value > 1.96, specifically 7.353, and a P-value < 0.05, specifically 0.000. Therefore, it can be concluded that there is a significant positive effectsbetween job stress and turnover intention. This result also supports the statement in the research hypothesis. H1 is supported.

3.3 The Effects of Organizational Climate on Employee Turnover Intention.

The results of the calculation of the organizational climate variable on the turnover intention of employees in the housing development sector in Bandar Lampung andthe results show that the coefficient of organizational climate on turnover intention has a value of0.154, with a CR (Critical Ratio) value > 1.96, specifically 8.537, and a P-value < 0.05, specifically 0.000. Therefore, it can be concluded that there is a significant negative effectsbetween organizational climate and turnover intention. This result also supports the statement in the research hypothesis. H2 is supported.

3.4 Job Satisfaction Mediates the Effect of Job Stress on Turnover Intention

The direct effect value of 0.871 is smaller than the indirect effects value of 0.921. If the direct effects value is smaller than the indirect effects value, it means that the mediating variable has a direct effects between the independent variable and the dependent variable. Therefore, this result also supports the statement that job satisfaction mediates the effects of job stress on turnover intention. H3 is supported.

3.5 Job Satisfaction Mediates the Effect of Organizational Climate on Turnover Intention

The direct effect value of 0.154 is smaller than the indirect effects value of 0.231. If the direct effects value is smaller than the indirect effects value, it means that the mediating variable has a direct effects between the independent variable and the dependent variable. Therefore, this result also supports the statement that job satisfaction mediates the effects of organizational climate on turnover intention.

 DISCUSSION

The Effects of Job Stress on Employee Turnover Intention

The results of data analysis show that job stress has a positive and significant effect on turnover intention, so H1 is accepted.These results are in line with the hypothesis stating that there is a positive and significant effects between work stress and turnover intention. This research is also supported by studies conducted by(Kurniawaty et al., 2019;Salama et al., 2022). Their research states that work stress has a positive and significant impact on turnover intention. Work stress can be depicted through various indicators and dimensions such as concerns about time constraints, job dependency, insufficient leave, company demands, anxiety, high job impact, viewing work as a burden, and experiencing physical symptoms, even feeling guilty when taking time off.

The Effects of Organizational Climate on Employee Turnover Intention

The results of data analysis show that organizational climate has a negative and significant effect on turnover intention, so H2 is accepted.These results are in line with the hypothesis stating that there is a negative and significant effects between work stress and turnover intention. These results align with the hypothesis stating that there is a negative influence between organizational climate and turnover intention. This research is also supported by studies conducted by (Hao & Wang, 2022;Gaunya, 2016). Their research states that organizational climate has a negative impact on turnover intention. Organizational climate can be depicted through various indicators and dimensions such as the organization listening to employees’ opinions, providing assistance when there are problems, caring about employee well-being, employees’ contributions being recognized, and performance supporting employees’ positions.

The Effect of Job Stres on Turnover Intention Through Job Satisfaction

These results align with the hypothesis stating that there is an effect between job stress and turnover intention through job satisfaction as a mediating variable. H3 is accepted. This result also supports the statement in the research hypothesis and previous research conducted by (Prayogi et al., 2019), which states that work stress has a positive effect on turnover intention through job satisfaction. A similar study was also conducted by (Askiyanto et al., 2018) where their findings indicated that work stress and organizational climate have a direct effects on employee turnover intention through job satisfaction.

The Effect of Organizational Climate on Turnover Intention Through Job Satisfaction

These results align with the hypothesis stating that there is an effect between organizational climate and turnover intention through job satisfaction as a mediating variable. H4 is accepted. These results also support the statement in the research hypothesis and previous research conducted by (Hidayat, 2018) which states that organizational climate has a negative impact on turnover intention through job satisfaction. Another study addressing a similar topic was conducted by (Hao & Wang, 2022), where the research findings showed that a supportive organizational climate can significantly reduce employee turnover intention through job satisfaction. These results align with the hypothesis stating that organizational climate influences turnover intention through job satisfaction as a mediating variable.

CONCLUSION

1. The results of the research show that this research supports the proposed hypothesis, namely that a job stress has a positive and significant effect on turnover intention employees of a housing development company in Bandar Lampung. Companies need to offer mental well-being support programs, such as counseling, stress management training, or access to resources that can help employees overcome anxiety and stress.
2. The results of the research show that this research supports the proposed hypothesis, namely that a organizational climate has a negative and significant effect on turnover intention employees of a housing development company in Bandar Lampung. The company needs to establish open and easily accessible communication channels to support collaboration and create a positive organizational culture and climate.
3. The results of the research show that this research supports the proposed hypothesis, namely that job satisfaction mediates the effect of job stress has a positive significant effect on turnover intention employees of a housing development company in Bandar Lampung.The company implements a work-life balance policy that includes periodicevaluations of employee workloads to ensure they are not burdened with excessive work.
4. The results of the research show that this research supports the proposed hypothesis, namely that job satisfaction mediates the effect of organizational climate has a negative significant effect on turnover intention employees of a housing development company in Bandar Lampung and the company can conduct exit interviews to understand the reasons behind employees’ desire to leave the company and identify key issues that need to be addressed, such as salary concerns, career development, company culture, management, or excessive workload.

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