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Human resource management, job satisfaction and employee commitment affecting information technology staff turnover intention: A structural equation model
Author(s)
Manistitya, Marrut
Fongsuwan, Wanno
Date Issued
January 1, 2015
Type
Article
Abstract
Thailand's information technology sector is crucial to economic development and growth but is unfortunately significantly under skilled and in many areas having little to no experience. This study therefore was undertaken to determine how human resource management, job satisfaction and employee commitment affect staff turnover intention. Studies indicate that staff retention has a direct effect on the bottom line as companies judged 'Best employers' had a 33% higher growth in revenues compared to an industry 12% average. 'Best employers' also attained an 8% attrition rate which was 5% less than the average of 13%, with almost 80% of Thai CEOs mentioning people issues as the biggest business challenge. Given these numbers, one can quickly understand the economic impact and importance of factors affecting turnover intention within the IT sector. Using quantitative research methods, 220 Bangkok IT professionals were surveyed with qualitative analysis being conducted with Partial Least Square (PLS-Graph). Results showed that human resource management factors had an immediate and positive effect on job satisfaction and employee commitment. Job satisfaction and employee commitment had an immediate and negative effect on turnover intention. The findings from this study found that if an organization has good human resource management systems and policies, this will result in information technology professionals being satisfied in their work which leads to employees being committed to their work and loyal to the organization. This will therefore, result in a reduction in turnover intention.
Citation
Research Journal of Business Management, 9(1), 157-172, 2015