Employer Branding, Person-Job Fit, and Psychological Empowerment's Impact on Turnover Intention of Gen Y and Z in Indonesian Private Banks

Badiah Badiah; Rojuaniah Rojuaniah

doi:10.55047/transekonomika.v5i1.851

Badiah* Department of Management, Faculty of Economics, Universitas Esa Unggul, Indonesia
Rojuaniah Department of Management, Faculty of Economics, Universitas Esa Unggul, Indonesia

DOI: https://doi.org/10.55047/transekonomika.v5i1.851

Keywords: Turnover, Employer Branding, Person-Job Fit, Psychological Empowerment, Generation Y, Generation Z, Private Banks

Abstract

The objective of the study is to examine the impact of employer branding, person-job fit, and psychological empowerment on turnover intention among Generation Y and Z employees in private banks in Indonesia. This study focuses on analyzing indicators for each variable to describe the characteristics of Generation Y and Generation Z employees. The findings will aid in formulating effective management strategies to reduce turnover intention. This quantitative study employs the Structural Equation Model (SEM) with data collected through online questionnaires from 243 respondents in JABODETABEK areas from May 11 to May 23, 2024. Purposive sampling criteria included Generation Y and Z employees with at least one year of work experience in a private bank and a minimum diploma education. The findings reveal that employer branding, especially regarding compensation and benefits, significantly affects turnover intention, aligning with prior research. Both person-job fit and psychological empowerment negatively impact turnover intention, emphasizing the importance of role alignment and workplace empowerment in reducing employee departures. Generational differences between Generations Y and Z do not significantly moderate these relationships. This research aids organizations in developing effective retention strategies to retain top talent and enhance performance.

Downloads

Download data is not yet available.

References

Achmad, L. I., Noermijati, Rofiaty, & Irawanto, D. W. (2023). Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and Intention to Stay in Generation Z Workers. International Journal of Professional Business Review, 8(1). https://doi.org/10.26668/businessreview/2023.v8i1.814

Ahmad, N. A., & Daud, S. (2016). Engaging people with employer branding. Procedia Economics and Finance, 35, 690–698.

Amjad, S., Basit, H. M., Khan, A. U., & Akram, H. (2022). The Influence of Psychological Empowerment & Turnover Intention Through Career Growth in Pharmaceutical Companies, Lahore, Pakistan. Jurnal Aplikasi Manajemen, Ekonomi Dan Bisnis, 7(1). https://doi.org/10.51263/jameb.v7i1.154

Arasanmi, C. N., & Krishna, A. (2019). Employer branding: perceived organisational support and employee retention–the mediating role of organisational commitment. Industrial and Commercial Training, 51(3), 174–183.

Auditya, R. P., & Hendarman, A. F. (2020). Identifying Employer Branding Factor in Bank XYZ to Increase Employee Retention for Millennials Generation. American International Journal of Business Management (AIJBM) ISSN, 3(7), 1–13.

Baša, K., Machová, R., Baša, P., & Doležaiová, V. (2023). Comparative Analysis of the Workplace Expectations of Generations Y and Z. Acta Polytechnica Hungarica, 20(3). https://doi.org/10.12700/APH.20.3.2023.3.13

Bencsik, A., Horváth-Csikós, G., & Juhász, T. (2016). Y and Z Generations at Workplaces. Journal of Competitiveness, 8(3).

Berisha, G., & Lajçi, R. (2020). Fit to last? Investigating how person-job fit and person-organization fit affect turnover intention in the retail context. Organizations and Markets in Emerging Economies, 11(2), 407–428.

Berthon, P., Ewing, M., & Hah, L. L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), 151–172.

Bhatnagar, J. (2012). Management of innovation: Role of psychological empowerment, work engagement and turnover intention in the Indian context. The International Journal of Human Resource Management, 23(5), 928–951.

Böhlich, S., Hindley, C., & Müller, M. C. (2022). Enhancing Employer Attractiveness: The Impact of COVID-19 on Generation Z. Proceedings of the European Conference on Management, Leadership and Governance, 2022-November. https://doi.org/10.34190/ecmlg.18.1.795

Cable, D. M., & DeRue, D. S. (2002). The convergent and discriminant validity of subjective fit perceptions. Journal of Applied Psychology, 87(5), 875.

Campbell, W. K., Campbell, S. M., Siedor, L. E., & Twenge, J. M. (2015). Generational differences are real and useful. Industrial and Organizational Psychology, 8(3), 324–331.

Chen, X., Hansen, E., Cai, J., & Xiao, J. (2023). The differential impact of substantive and symbolic CSR attribution on job satisfaction and turnover intention. Business Ethics, the Environment and Responsibility, 32(4). https://doi.org/10.1111/beer.12572

Chhabra, B. (2015). Person–job fit: Mediating role of job satisfaction & organizational commitment. The Indian Journal of Industrial Relations, 638–651.

Chiu, J. L., Fajardo, J. J., Lopez, P. N., & Miranda, J. L. F. (2020). The effect of employer branding on turnover intention and employee satisfaction of the utility indeustry in the Philippines. Management Review: An International Journal, 15(2), 53–76.

Cho, Y. J., & Lewis, G. B. (2012). Turnover intention and turnover behavior: Implications for retaining federal employees. Review of Public Personnel Administration, 32(1), 4–23.

Dalgiç, A. (2022). The effects of person-job fit and person-organization fit on turnover intention: The mediation effect of job resourcefulness. J. Gastron. Hosp. Travel, 5, 355–365.

De Clercq, D., & Belausteguigoitia, I. (2023). How social interaction can prevent interpersonal conflict from inducing turnover intentions and diminishing championing behaviour. International Journal of Organizational Analysis, 31(7). https://doi.org/10.1108/IJOA-07-2022-3350

Deloitte. (2022). Striving for balance, advocating for change: The Deloitte Global 2022 Gen Z & Millenial Survey. Deloitte Global.

Dwivedi, S. (2015). Turnover intentions: Scale construction & validation. The Indian Journal of Industrial Relations, 452–468.

Efe-Imafidon, E. O., Adeniji, A. A., & Gberevbie, D. E. (2022). A Conceptual Review Of The Role Of Psychological Empowerment On Turnover Intention In Nigerian Healthcare Sector. Academy of Strategic Management Journal, 21(3), 1–8.

Florek-Paszkowska, A. K., & Hoyos-Vallejo, C. A. (2023). A comprehensive bibliometric analysis and future research directions in the nexus of sustainable business practices and turnover intention. In Cleaner and Responsible Consumption (Vol. 11). https://doi.org/10.1016/j.clrc.2023.100146

Gracita, I., & Anindita, R. (2023). The Impact of Employer Branding on Turnover Intention in Pharmaceutical Industries: Does Generation Matter? Media Ekonomi Dan Manajemen, 38(2). https://doi.org/10.56444/mem.v38i2.3700

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24.

Hair Jr, J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–123.

Hemavathi, G. P., & Frank Sunil Justus, T. (2023). Flexibility Culture, Person–Job Fit, and Job Benefits as Predictors of Eudaimonic Workplace Well-Being and Turnover Intention of Employees. Prabandhan: Indian Journal of Management, 16(10). https://doi.org/10.17010/pijom/2023/v16i10/171900

Iftikhar, M., Shahid, M. U., Shahab, M. H., Mobeen, M., & Qureshi, M. I. (2016). Exploring the relationship among organizational citizenship behavior, psychological empowerment and turnover intensions with the mediating role of affective commitment. International Review of Management and Marketing, 6(4), 296–304.

Islam, T., Khan, M. M., & Bukhari, F. H. (2016). The role of organizational learning culture and psychological empowerment in reducing turnover intention and enhancing citizenship behavior. The Learning Organization, 23(2/3), 156–169.

Kang, J.-S. (2012). Psychological empowerment to the organizational commitment and turnover intention of social worker. International Journal of Contents, 8(1), 88–94.

Karnadi, M., & Baskoro, T. (2019). The Effect of Employer Branding on Employee Expectation and Turnover Intention in Online Streaming Industry (A Case Study of The Permanent Employees at Vidio. com). Economics and Law, 19(2), 56–63.

Krishnan, R., Loon, K. W., Ahmad, N. A. F., Alias, N. E., Othman, R., & Kanchymalay, K. (2023). The relationship between person-job fit, employee engagement and turnover intention: a proposed framework. Information Management and Business Review, 15(4 (SI) I), 214–218.

Kucherov, D., & Zavyalova, E. (2012). HRD practices and talent management in the companies with the employer brand. European Journal of Training and Development, 36(1), 86–104.

Latifa, S., & Rojuaniah, R. (2022). Hubungan Antara Beban Pekerjaan, Meaningful Work, Turnover Intention, Dan Kinerja Karyawan. SIBATIK JOURNAL: Jurnal Ilmiah Bidang Sosial, Ekonomi, Budaya, Teknologi, Dan Pendidikan, 1(10), 2181–2194.

Mathews, J. (2023). The Dynamics of Employer Branding and Employer Brand. IUP Journal of Brand Management, 20(1), 5–27.

Mercer. (2020). Mercer’s Total Remuneration Survey predicts Indonesia’s salary increase to rise in 2020.

Modgil, S., Singh, R. K., & Agrawal, S. (2023). Developing human capabilities for supply chains: an industry 5.0 perspective. Annals of Operations Research. https://doi.org/10.1007/s10479-023-05245-1

Mouton, H., & Bussin, M. (2019). Effectiveness of employer branding on staff retention and compensation expectations. South African Journal of Economic and Management Sciences, 22(1), 1–8.

Muardi, J., Rohmawan, K., & Nurminingsih. (2022). The Effect Of Discipline And Training On Performance Of Employees At The Fire And Rescue Service In City Administration Of Central Jakarta. MARGINAL : Journal Of Management, Accounting, General Finance And International Economic Issues, 1(2), 83–92. https://doi.org/10.55047/marginal.v1i2.137

Muchtadin, M. (2024). The Influence of Altruism and Work Engagement on Millennial Worker Job Satisfaction. Jurnal Psikologi Teori Dan Terapan, 15(02), 126–135.

Pariyanti, E., Adawiyah, W. R., & Wulandari, S. Z. (2023). We need to talk about kinship: how kinship weakens turnover intentions among academicians at private higher education institutions in Indonesia. Journal of Applied Research in Higher Education, 15(4). https://doi.org/10.1108/JARHE-04-2022-0118

Prilatama, A., & Churiyah, M. (2023). Job Satisfaction: A Bibliometric Analysis. JOURNAL OF HUMANITIES, SOCIAL SCIENCES AND BUSINESS, 2(3), 434–443.

Queiri, A., & Madbouly, A. (2017). Generation Y-turnover: a complementary fit perspective. Journal of Economics and Behavioral Studies, 9(1 (J)), 217–231.

Rachapaettayakom, P., & Sopanik, S. (2023). Adoption of Financial Literacy in Entrepreneurial Intention: The Case of Generations Y and Z in Thailand. 2023 8th International Conference on Business and Industrial Research, ICBIR 2023 - Proceedings. https://doi.org/10.1109/ICBIR57571.2023.10147741

Rattanapon, K., Jorissen, A., Jones, K. P., & Ketkaew, C. (2023). An analysis of multigenerational issues of generation X and Y employees in small-and medium-sized enterprises in Thailand: The moderation effect of age groups on person–environment fit and turnover intention. Behavioral Sciences, 13(6), 489.

Rehatta, P. N. R., Sijabat, A., Tutupoho, S., Muskita, F. I., & Waly, N. (2022). Pengaruh Employer Branding Terhadap Turnover Intention Di Mediasi Oleh Employee Engagement Pada PT. Federal International Finance Ambon. Management Studies and Entrepreneurship Journal (MSEJ), 3(6), 3346–3358.

Sari, F. Y., Saraswati, K. D. H., & Lie, D. (2023). Pengaruh Person Job-Fit Terhadap Turnover Intention Pada Karyawan Di Industri Manufaktur PT. X. Jurnal Serina Sosial Humaniora ISSN (Versi Cetak), 1(1).

Saufi, R. A., Mansor, N. N. A., Kakar, A. S., & Singh, H. (2020). The mediating role of person-job fit between person-organisation fit and intention to leave the job: Empirical evidence from Pakistan. Sustainability, 12(19), 8189.

Sigaeva, N., Arasli, H., Ozdemir, E., Atai, G., & Capkiner, E. (2022). In Search of Effective Gen Z Engagement in the Hospitality Industry: Revisiting Issues of Servant and Authentic Leadership. Sustainability (Switzerland), 14(20). https://doi.org/10.3390/su142013105

Simmons, A. M. (2016). Exploring millennial retention strategies and methods in the workplace. Walden University.

Solikha, S. M., & Rojuaniah, R. (2023). Pengaruh Kompensasi, Terhadap Kinerja Karyawan Dan Turnover Intention Melalui Job Embeddedness Sebagai Variabel Intervening. Innovative: Journal Of Social Science Research, 3(3), 11175–11188.

Spreitzer, G. M. (1995). Psychological empowerment in the workplace: Dimensions, measurement, and validation. Academy of Management Journal, 38(5), 1442–1465.

Tanwar, K., & Prasad, A. (2017). Employer brand scale development and validation: a second-order factor approach. Personnel Review, 46(2), 389–409.

Timokhovich, A. N., Filenko, T. S., & Lelyakova, A. S. (2023). New Opportunities for Employment: The View of Young People. Lecture Notes in Civil Engineering, 378 LNCE. https://doi.org/10.1007/978-3-031-38122-5_56

Ulutaş, M. (2018). The Effect Of Empowerment On Employees’job Satisfaction: A Research On Konya Industrial Zone. Manas Sosyal Araştırmalar Dergisi, 7(1), 589–600.

Utami, F. P., & Siswanto, T. (2021). Pengaruh employer branding dan employee engagement terhadap turnover intention generasi z pada industri FMCG. Liquidity: Jurnal Riset Akuntansi Dan Manajemen, 10(2), 236–246.

Yadav, L. K., Kumar, A., & Mishra, S. (2020). Can organizations leverage employer branding to gain employee engagement and reduce turnover intention? An empirical study with organizational trust as a mediator. Vision, 24(4), 496–505.