CC BY
6
UDC 331; DOI 10.18551/rjoas.2023-09.17
HOW JOB SATISFACTION MEDIATES THE EFFECT OF JOB STRESS AND ETHICAL LEADERSHIP ON TURNOVER INTENTION?
Mahaputra I Gede Yuma Adithya*, Wibawa I Made Artha
Faculty of Economics and Business, University of Udayana, Bali, Indonesia *E-mail: yumaadityamahaputra@gmail.com
ABSTRACT
The purpose of this study is to determine the role of Job Satisfaction as a mediator in the effect of Job Stress and Ethical Leadership on Nurse Turnover Intention in Private Hospitals in Klungkung Regency, Bali, Indonesia. The sampling method used was nonprobability sampling with a saturation or census sampling technique. Data collection was through interviews and questionnaires. The analysis techniques used path analysis using SPSS 26 for windows. The results on this study found that Job Stress has a positive and significant effect on Turnover Intention, Ethical Leadership has a negative and significant effect on Turnover Intention, Job Satisfaction has no effect on Turnover Intention, Job Stress has a negative and significant effect on Job Satisfaction, Ethical Leadership has a positive and significant effect on Job Satisfaction. However, Job Satisfaction does not mediate the influence of Job Stress and Ethical Leadership on Turnover Intention as Direct-only no mediation.
KEY WORDS
Turnover intention, job satisfaction, job stress, ethical leadership.
Improving the quality of hospital services requires good human resource management to improve the quality of hospital services. Good human resource management will help companies achieve their goals effectively and efficiently, otherwise poor HR management will cause one of the phenomena that often occur in the business world, one of which is employee turnover intention (Nivethitha et. al., 2018).
Turnover Intention is the intensity of employees' desire to leave the company which illustrates the low loyalty of employees to the company and can also show stability in the company, the more frequent employee turnover, this indicates a high level of turnover intention in employees in the company (Ksama, 2016). A high turnover rate will disrupt the company's activities; therefore maintaining existing human resources in the company is a valuable investment for the company, especially if the company has good employees doing their jobs (Chen et. al., 2020). High turnover can be detrimental to the company because it is related to the cost of recruiting and training new employees and can reduce service quality (Astuti, 2020).
Turnover at Grha Bhakti Medika General Hospital is of particular concern for several reasons based on the results of the pre-survey interview with hospital management: first, the quality indicators of the HR section are one of which each employee participates in training for 20 hours / year, if employee turnover is high it will interfere with the achievement of the quality indicators of the HR section which will certainly have an impact on the quality of service quality and with the supervision of the Hospital Accreditation Commission (KARS) regarding the quality indicators of the HR section, if the achievement is low it will have an impact on future hospital accreditation surveys.
Employees at Grha Bhakti Medika General Hospital have not been in accordance with Man Power Planning (MPP) is the second reason why turnover is important at Grha Bhakti Medika General Hospital. High turnover results in quite a lot of cost risks, such as: recruitment costs, training costs and lost productivity costs. Research on Turnover Intention has been widely conducted, but found mixed results about the factors that influence Turnover Intention including: leadership, organizational commitment, organizational justice, job stress, job satisfaction, and others (Nivethitha et. al., 2018). Grha Bhakti Medika General Hospital
has a clearly defined Vision and Mission, to achieve these organizational goals it must be supported by good Human Resource management at Grha Bhakti Medika General Hospital to reduce employee turnover so as not to interfere with hospital services and the hospital can achieve its goals optimally.
Grha Bhakti Medika General Hospital (GBM General Hospital) in an effort to retain its employees, implements a 3P compensation system, namely, pay for person, pay for position, pay for performance. Pay for person is done to determine the amount of salary to be given to the workforce by determining the level of competence and experience required by a position indicated by the level of education, training certificates and work experience of employees. Pay for position, where the company refers to the standards applied to a position occupied by an employee. The standard of a position is determined by using the reference salary for each grade (class) applied to positions with the same grade. Pay for performance, determined based on the level of performance through performance appraisal, where high-performing employees will receive greater compensation than low-performing or average-performing employees (Fitrios, 2021).
The implementation of a compensation system using the 3P system (pay for person, pay for position, and pay for performance) serves to motivate employees and retain employees. Fadila (2021) states that maintaining employees with work motivation can take various forms or ways, one of which is a competitive compensation system. Compensation that is in accordance with the results of work will provide motivation for employees to always give their best to the organisation as a result of perceived job satisfaction. The application of the 3P compensation system is expected to increase employee job satisfaction and can reduce turnover intention in employees. The application of the 3P compensation system can also cause job stress, because employees must accept more responsibilities and workloads to earn more income. For example, such as participating in hospital activities outside of their main job and occupying higher positions such as unit heads who have extra responsibilities and workloads to get greater compensation, this is supported by a statement from Septian (2020) which states that the factors that cause job stress include stress due to workload.
The application of Ethical Leadership by the leadership of Grha Bhakti Medika General Hospital in supervising is expected that employees who feel ethical leadership from their leaders can increase employee job satisfaction and have an impact on reducing employee intention to leave the organization. The ethical leadership in question is to implement the dimensions of safety culture at Grha Bhakti Medika General Hospital, including: Open Culture, Reporting Culture, Justice Culture, Learning Culture. Open culture is a process of open exchange of information both vertically and horizontally within the hospital which has the characteristics of all employees feeling comfortable discussing incidents or problems that exist in the hospital, especially issues related to patient safety. Reporting Culture builds employees' sense of security when reporting so that they can assess the type of error and can identify risk factors for incidents or problems to take further action. Justice Culture is implemented by not focusing on finding individual faults (blaming), but rather studying the system that resulted in the error. Learning Culture is applied in a way that every line in the organisation uses incidents that occur as a learning process to find out the factors that cause problems, follow-up on incidents or problems to prevent recurrence of errors and carry out continuous improvement through Plan, Do, Study, Act (PDSA) to improve service quality (Nugraha, 2021).
LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT
The effect of job stress on turnover intention can have a positive effect, because a high workload without being balanced with reciprocity from the company in accordance with the workload will cause employees to feel dissatisfied with their current job and will lead to thoughts of quitting which leads employees to look for other alternatives and stimulates employees' desire to leave the company (turnover intention). The hypothesis supports previous research from Yuda (2017), Prasetio (2018), Samrotu (2018), Sofia (2019), Novitasari (2020), Rahmizal (2020) while research from Wulansari (2017) and Sabrina
(2018) get different results about the effect of job stress on turnover intention.
H1: Job stress has a positive and significant effect on turnover intention.
Ethical leadership can have a good influence on individuals and organizations (Feldman 2015). Ethical leadership can reduce employee turnover intention because ethical leadership creates a positive environment in the organization; this can help employees do their work effectively and efficiently. Ethical leadership can reduce job stress in employees because leaders set clear expectations and goals, have concern for their employees and manage the organization fairly, this can reduce the stress felt by employees (Brown et. al., 2005). Strong ethical leadership allows employees to thrive, which in turn reduces their desire to leave the organization (Demirtas, 2015). This hypothesis supports previous research from Taghrid (2020), Shareef (2019), Imran (2018), Marquardt (2022), Nejati (2021) but research from Fitriana (2020) found different results about the effect of ethical leadership on turnover intention.
H2: Ethical leadership has a negative and significant effect on turnover intention.
Nabawi, (2019) states that job satisfaction reflects a person's attitude towards his job which is seen in a positive attitude towards work and everything faced in the work environment. Factors that affect job satisfaction vary, including: the job itself, wages, promotion opportunities, supervision and co-workers. Employees who have a good experience about this tend to be comfortable in the company so that they have little potential to leave the company or have a career elsewhere (Prasetio, 2018). Mobley et. al., (1977) describe how the process of employees making decisions to leave the company, starting with employees evaluating their current jobs then employees who experience job dissatisfaction will proceed to the next stage, namely Thinking of quiting. The higher the employee's job satisfaction, the less likely it is to leave the company. The hypothesis supports previous research from Hidayat (2017), Nasution (2017), Indarti (2017), Sofia (2019), Ardianto (2021) and Research from Olusegun (2015) and Olawale (2016) found different results about the effect of job satisfaction on turnover intention.
H3: Job satisfaction has a negative and significant effect on turnover intention.
Job stress on the one hand is considered as something positive because of the demands to achieve certain goals. Job stress can have an impact on many things, one of which affects job satisfaction and employee performance (Susilo, 2010). Stress can help or damage job performance and employee job satisfaction depending on how big the stress level is and the response of the individual, job stress can help individuals to achieve their duties at work, on the other hand, if job stress is too great, job satisfaction can decrease because stress interferes with employees in doing work. Job stress can reduce employee job satisfaction when what employees get from the organisation does not match the workload felt by employees (Hasyim, 2020). Stress is usually considered a negative term, stress is considered to occur due to something bad but it does not always mean this because job stress can be interpreted as a form of individual interaction with the environment depending on the individual's own response whether the perceived job stress is bad for him (Wulansari, 2017). This hypothesis supports previous research from Suartana (2020), Sandhiarta (2020), Novaritpraja (2020), Irawan (2020), Ramadanty (2020), Bhastary (2020), Andika (2021) on the other hand research from Novi (2018)), Rauan (2019) found different results about the effect of job stress on job satisfaction.
H4: Job stress has a negative and significant effect on job satisfaction.
Ethical leadership is someone who influences ethical behaviour to subordinates to encourage ethical behaviour (Nejati, 2021). Richard (2020) Job satisfaction is an emotional attitude of employees who show feelings of pleasure and love their work, this attitude is reflected in work morale, discipline and work performance. Leaders who apply ethical leadership build good communication related to ethical values to their employees so that they can increase the harmony between leaders and their employees. Forming a bond between leaders and followers that is ethical makes employees will show feelings of pleasure and love their work (Kim, 2011). This hypothesis is supported by previous research from Taghrid (2020), shareef (2019), Imran (2018), Marquardt (2022), Nejati (2021).
H5: Ethical leadership has a positive and significant effect on job satisfaction.
Employees who feel dissatisfied with their work will cause thoughts of leaving the company. Job stress can affect employee job satisfaction, Mangkunegara (2013: 157) reveals that job stress is caused by the perceived workload, lack of work supervision, the work time given is quite tight, the work environment is not good, there is work conflict and there is injustice in employee assessment but if employees feel job satisfaction such as getting work, wages, promotion opportunities, supervision and colleagues who match their workload or the difference between expectations and reality that employees feel is getting smaller, employees tend to feel job satisfaction which will reduce turnover intention from employees (Ardana et al, 2012: 23). This hypothesis supports previous research from Bayu (2018), Sofia (2019), Liu (2019), Stanlie (2020), Pratiwi (2020), Anees (2021), Rusdi (2021).
H6: Job satisfaction mediates the effect of job stress on turnover intention.
Doing good can help organizations "do well" which indicates that ethical leadership is not only good from a normative point of view but can also be an investment for the company, because ethical behaviour will take the organisation in a better direction (Nejati, 2021). Ethical leaders provide care and support to employees and create an ethical and positive work environment (Trevino et. al., 2000). Job satisfaction is a person's assessment of his job, while the factors that make up a person's job satisfaction consist of the job itself, salary, promotion, supervision and colleagues. The positive experience gained from a leader who supervises with ethical leadership can increase employee job satisfaction which in turn will reduce employees' intention to quit their jobs or look for work elsewhere, in other words, ethical leadership perceived by employees can increase employee job satisfaction and reduce employee turnover intention (Festim, 2020). This hypothesis supports the research results from Imran (2018) and Nejati (2021).
H7: Job satisfaction mediates the effect of ethical leadership on turnover intention.
METHODS OF RESEARCH
The variables studied in this study are Turnover Intention (Y) as the dependent variable, Job Satisfaction (Z) as the mediating variable, Job Stress (X1) and Ethical Leadership (X2) as independent variables. The population in this study was all nurses who worked at private hospitals in Klungkung Regency, totaling 149 people in 2022. This study uses nonprobability sampling with a type of saturated sampling technique or census. So, all nurses in the population at private hospitals in Klungkung Regency in 2022 totaling 149 peoples. The data collection method used a questionnaire with a Likert scale of 1-5 and was analyzed using path analysis techniques with SPSS.
RESULTS AND DISCUSSION
Based on the results of multiple linear regression analysis of Sub Structure 1 in table 1, the regression equation results are as follows:
Y = 10.061 - 0.178 X1 + 0.278 X2
The first structural equation for the job stress variable can be interpreted, namely the job stress variable has a coefficient of - 0.178, which means that job stress has a negative effect on job satisfaction, this means that if job stress increases, job satisfaction will decrease and vice versa.
Table 1 - Multiple Linear Regression Analysis Results on Sub Structure 1
Model Unstandardized Coefficients Standardized Coefficients Sig.
B Std. Error Beta t
(Constant) 10.061 1.483 6.784 0.000
Job stress - 0.178 0.088 -0.145 -2.026 0.045
Ethical Leadership 0.278 0.032 0.623 8.705 0.000
R2: 0.402
Source: Primary Data, 2023.
The first structural equation for the ethical leadership variable can be interpreted, namely the ethical leadership variable has a coefficient of 0.278, which means that ethical leadership has a positive influence on job satisfaction, this means that if ethical leadership increases, job satisfaction will increase and vice versa.
Table 2 - Multiple Linear Regression Analysis Results on Sub Structure 2
Model Unstandardized Coefficients Standardized Coefficients Sig.
B Std. Error Beta t
(Constant) Job stress Ethical Leadership Job satisfaction 8.143 0.352 - 0.082 - 0.117 1.460 0.075 0.034 0.077 0.378 -0.243 - 0.154 5.578 4.712 -2.397 -1.512 0.000 0.000 0.018 0.133
R2: 0.279
Source: Primary Data, 2023.
Based on the results of multiple linear regression analysis of Sub Structure 2 in table 1, the regression equation results are as follows:
Y = 8.143 + 0.352 X1 - 0.082 X2 - 0.117 X3
The second structural equation for the Job stress Variable can be interpreted, namely the Job stress variable has a coefficient of 0.352, which means that job stress has a positive effect on Turnover Intention, this means that if Job stress increases, Turnover Intention will increase and vice versa.
The second structural equation for the Ethical Leadership Variable can be interpreted that the Ethical Leadership Variable has a coefficient of - 0.082, which means that Ethical Leadership has a negative effect on Turnover Intention, this means that if Ethical Leadership increases, Turnover Intention will decrease and vice versa.
The second structural equation for the Job Satisfaction Variable can be interpreted that the Job Satisfaction Variable has a coefficient of - 0.117 Job Satisfaction has a negative effect on Turnover Intention, this means that if Job Satisfaction increases, Turnover Intention will decrease and vice versa.
Figure 1 - Path Analysis Model
Table 3 - Path Analysis Results on Sub Structure 1
Model
Unstandardized Coefficients
Standardized Coefficients
B
Std. Error
Beta
t
Sig.
(Constant) 10.061 1.483 Job stress -0.178 0.088 Ethical Leadership 0.278_0.032
-0.145 0.623
6.784
-2.026
8.705
0.000 0.045 0.000
R2: 0.402
Source: Primary Data, 2023.
Based on the results of the Path Analysis Sub Structure 1 in Table 3, the structural equation formed can be formulated as follows:
Z = p3X1 + p4X2 = - 0.145 X1 + 0.623 X2
The first structural equation for the job stress variable can be interpreted, namely the job stress variable has a coefficient of - 0.145, which means that job stress has a negative effect on job satisfaction, this means that if job stress increases, job satisfaction will decrease and vice versa.
The first structural equation for the ethical leadership variable can be interpreted, namely the ethical leadership variable has a coefficient of 0.623, which means that ethical leadership has a positive influence on job satisfaction, this means that if ethical leadership increases, job satisfaction will increase and vice versa.
Table 4 - Path Analysis Results on Sub Structure 2
Model Unstandardized Coefficients Standardized Coefficients Sig.
B Std. Error Beta t
(Constant) Job stress Ethical Leadership Job satisfaction 8.143 0.352 - 0.082 - 0.117 1.460 0.075 0.034 0.077 0.378 -0.243 - 0.154 5.578 4.712 -2.397 -1.512 0.000 0.000 0.018 0.133
R2: 0.279
Source: Primary Data, 2023.
Based on the results of the path analysis in Table 4, the structural equation formed can be formulated as follows:
Y = p1X1 + p2X2 + p5Z = 0.378 X1 - 0.243 X2 - 0.154 Z
The second structural equation for the Job stress Variable can be interpreted that the Job stress variable has a coefficient of 0.378, meaning that Job stress has a positive influence on Turnover Intention, this means that if Job stress increases, Turnover Intention will increase and vice versa.
The second structural equation for the Ethical Leadership Variable can be interpreted that the Ethical Leadership Variable has a coefficient of - 0.243, which means that Ethical Leadership has a negative effect on Turnover Intention, this means that if Ethical Leadership increases, Turnover Intention will decrease and vice versa.
The second structural equation for the Job Satisfaction Variable can be interpreted, namely the Job Satisfaction Variable has a coefficient of - 0.154, meaning that Job Satisfaction has a negative effect on Turnover Intention, this means that if Job Satisfaction increases, Turnover Intention will decrease and vice versa.
Testing the coefficient of determination (R2) and the error variable (e)
In this test, we will see the value of each coefficient of determination for sub structure 1 and sub structure 2 as well as the value of each error variable in each structure with the aim of preparing the final path diagram model. The following are the results of the calculation of the error variable value in each structure.
ei = V1- R2 = 0.849
In the calculation of the effect of error (e), the results obtained for the effect of error sub structure 1 (e1) of 0.773 and the effect of error sub structure 2 (e2) of 0.849. Furthermore, the total coefficient of determination will be calculated as follows:
R2m = 1 - (e1)2 (e2)2 = 0.571
In the calculation of the total coefficient of determination, it is obtained at 0.571, so the conclusion is that 57.1 percent of the Nurse Turnover Intention Variable in Private Hospitals in the Regency is influenced by Job Stress, Ethical Leadership and Job Satisfaction while the remaining 42.9 percent is influenced by other factors that are not included in the research model or outside the research model.
Test the mediating effect of the Job Satisfaction variable using the method applied by Hair et, al. (2017) to test the mediating effect between variables. The mediating effect test shows the direct effect of p3 between X and Y and the indirect effect of X on Y in the form of the sequence X ^ Z ^ Y. The indirect effect of p1p2 represents the mediating effect of construct Z on the relationship between X and Y:
• pi: Indicates the direct effect between the exogenous variable (X) and the mediating variable (Z);
• p2: Indicates the direct effect between the mediating variable (Z) and the endogenous variable (Y);
• p3: Shows the direct effect between exogenous variables (X) and endogenous variables (Y);
• pi, p2: Shows the indirect effect in the form of the sequence X ^ Z ^ Y representing the mediating effect of construct Z on the relationship between X and Y.
Figure 2 - Mediation Test
Determining the mediating role of a variable is based on the results of examining the four effects by referring to the following criteria:
Figure 3 - Mediation Effect Analysis Procedure
• Direct-only no mediation: The direct effect is significant but the indirect effect is not significant;
• No-effect no mediation: Both direct and indirect effects are insignificant;
• Complementary mediation: Indirect effect and direct effect are both significant and point in the same direction;
• Competitive mediation: The indirect effect and direct effect are both significant and in the opposite direction;
• Indirect-only mediation: The indirect effect is significant but the direct effect is not significant.
The role of Job Satisfaction mediates the effect of Job Stress (X1) on Turnover Intention (Y). Based on the test results of the direct effect and indirect effect of each construct relationship can be described as follows: The direct effect coefficient of the Job Stress construct on Turnover Intention is 0.378 and significant (p3), while the indirect effect of the Job Stress construct to the Job Satisfaction construct is - 0.145 and significant (pi) from the Job Satisfaction construct to the Turnover Intention construct - 0.154 and insignificant (p2), meaning that mediation is not proven in the model.
Figure 4 shows that based on the criteria of Hair et, al. (2017) the role of Job Satisfaction does not mediate the effect of Job Stress on Turnover Intention because it is included in the Direct-only no mediation category.
Figure 5 - The Role of Job Satisfaction Mediating the Effect of Ethical Leadership on Turnover
Intention
The role of Job Satisfaction mediates the effect of Ethical Leadership on Turnover Intention. Based on the test results of the direct effect and indirect effect of each construct relationship can be described as follows: The direct effect coefficient of the Ethical Leadership construct on Turnover Intention is - 0.338 and significant (p3), while the indirect effect of the Ethical Leadership construct to the Job Satisfaction construct is 0.623 and significant (pi) from the Job Satisfaction construct to the Turnover Intention construct - 0.154 and insignificant (p2), which means that mediation is not proven in the model.
Figure 5 shows that based on the criteria of Hair et, al. (2017) the role of Job Satisfaction does not mediate the effect of Ethical Leadership on Turnover Intention because it is included in the Direct-only no mediation category.
CONCLUSION
The results of this study provide the development of the science of organizational behaviour and human resources and this research can be one of the literatures for other researchers who want to examine Job Stress, Ethical Leadership, Job Satisfaction and Turnover Intention. This study also provides the view that Job Stress, Ethical Leadership and Job Satisfaction can affect Turnover Intention. Hospital leaders can keep employee job stress low because when Job stress increases, Turnover Intention will increase and vice versa, Hospital leaders can strengthen Ethical Leadership because when Ethical Leadership increases, Turnover Intention will decrease and vice versa, Hospital leaders can increase employee Job Satisfaction because when Job Satisfaction increases, Turnover Intention will decrease and vice versa, Hospital leaders can keep employee job stress low when Job stress increases, it will decrease Job Satisfaction and vice versa, when Ethical Leadership increases, Job Satisfaction will increase and vice versa.
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