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Effects of Psychological Capital and Gratitude on Employees Intention to Leave: The Role of Job Satisfaction

  • Received : 2020.08.05
  • Accepted : 2021.01.15
  • Published : 2021.02.28

Abstract

This study investigated development of Intention to Leave concept or model, by positioning psychological capital and gratitude, and job satisfaction as mediator to Intention to Leave. It is expected that findings contribute to Human Resource Management theories, specifically ones which are related to employee behavior. This study used qualitative approach in which survey and questionnaires were employed during data collection. This study was conducted in PT. Pupuk Kalimantan Timur located in Bontang, East Kalimantan. PT. Pupuk Kalimantan Timur was selected as the setting since it has had a lot of achievement. Population was 500 employees of PT. Pupuk Kalimantan Timur in Bontang, while total samples were 250. This study uses a sampling technique of proportional stratified random sampling. Data analysis methods were descriptive and quantitative. Inferential statistics, namely Generalized Structured Component Analysis (GSCA) were used to confirm model developed based on empirical data. This study showed that there is a significant and positive influence between Psychology Capital (X1) on Job Satisfaction (Y1) and Gratitude (X2) on Job Satisfaction (Y1). Gratitude is the strongest influencing variable on job satisfaction. Meanwhile, a significant but negative effect between Job Satisfaction (Y1) on Intention to Leave (Y2). This means that high job satisfaction will reduce the intention to leave.

Keywords

1. Introduction

A growing and developing company will emphasize on human resources in order to run its operational activities optimally, particularly to face current changes in the environment. Human resource is one of the most invaluable assets that any company has. Skillful, professional and techno-savvy staff are needed and become a major element to support operational activities of a company. Each company should pay attention to Intention to Leave, an important aspect in human resource management. This element is inevitable. Intention to Leave is a voluntary decision-making of employee to leave the company or quit working. It may also be affected by organizational decision-making. This intention gives negative impact toward company, for example declining productivity, as recruitment can sometimes be time-consuming.

PT. Pupuk Kaltim, a state-owned company, is a subsidiary of PT. Pupuk Indonesia (Persero). Focusing on fertilizer, petrochemical and other types of chemicals, this company aims to run an integrated business ranging from industry, trade, and distribution to service. As an addition, it strives to use its available resources to produce quality goods and services that both perform well in the market and support the National Food Security. One of its missions is the utilization of resources available in both surrounding environment and global markets including human resources and cutting-edge technology to keep up with growing business sector.

Intention to leave is a threat to HRD of PT. Pupuk Kaltim. However, it succeeds in overcoming the intention to leave and as the result, has a high performance. Job rotation is the method that the company has selected to reduce the number of employees leaving the company. Number of employees who resigned from the company increased but recruitment level decreased in 2017 in the company. In 2017, PT. Pupuk Kaltim had a high turnover percentage as 150 staffs retired, 7 staffs were transferred to other office per PIHC instruction, 5 staffs died, 3 staffs resigned, and 1 staff retired early. On the other hand, from PIHC recruitment, Pupuk Kaltim hired 14 new employees. The number increased from the previous year following normal turnover trends in PT. Pupuk Kaltim. It indicates that employee turnover percentage in PT. Pupuk Kaltim is low. Nevertheless, we should analyze to which degree Intention to Leave in PT. Pupuk Kaltim occurs, particularly analysis on psychological capital, gratitude, and job satisfaction.

Psychological capital is closely associated to and is an important part of human resources. Human resource is the strongest asset of any company as it determines the success of company. Psychological capital influences one another and thus, should be measured as a whole so that it is able to develop skills of employees. It comprises of four components, namely self-efficacy, optimism, hope, and resiliency. It is predicted that gratitude decreases intention to leave. It refers to a type of emotion that evolves into an attitude, good characteristics, habit and personality traits, and eventually, affects individual reaction toward something or a situation, and his or her motivation; gratitude comprises several aspects such as warm appreciation, good intention, tendency to act positively, and transpersonal (Emmons & McCullough, 2003). Employee satisfaction is pivotal and it is proportional to company performance. Another important component closely related to employee is job satisfaction. Job satisfaction refers to satisfaction toward how employees are treated at work. Objective of this study was to test relationship between psychological capital and gratitude toward intention to leave mediated by job satisfaction. Based on the background, combination between psychological capital and gratitude encourage job satisfaction that eventually reduces Intention to Leave, more particularly in PT. Pupuk Kaltim. Therefore, this study investigated development of Intention to Leave concept or model, by positioning psychological capital and gratitude as drive, and job satisfaction as a mediator to Intention to Leave. It is expected that findings contribute to Human Resource Management theories, specifically ones related to employee behavior.

2. Literature Review

2.1. Psychological Capital

Psychological capital is defined as positive development of an individual on “who you are “ and “what you are capable of.” Therefore, it is characterized as sufficient amount of confidence to face and complete a challenging task, a positive point-of-view toward success both in the present and future, resilience and flexibility in achieving targets, and problem-solving (Luthans et.al., 2007). It refers to positive development of emotional state of individual, and is characterized by self-efficacy, optimism, hope, and resilience. Furthermore, job involvement is defined as a positive and satisfied thought about occupation that is characterized by motivation, dedication, and absorption (Cha & Seo, 2019). Psychological capital itself means psychological capacity of an individual that keeps developing and is characterized by self-efficacy, optimism, hope, and resilience.

2.2. Gratitude

In organization, thankfulness of organization and its representatives, namely entrepreneur/ supervisor/ manager for employee’s effort to align individual and organizational objectives and to work hard to achieve these objectives (Patil et al., 2018). Even though, number of research focusing on gratitude in organization is limited, studies have showed and emphasized on fundamental role of gratitude on success of organization. It is an integral part of organization as it directly increases climate of organization, contributes to an increase in individual welfare, and decreases negative emotion at work, such as resentment and envy (Emmons, 2003).

2.3. Job Satisfaction

According to Hays (2014), job satisfaction refers to emotional response or general feeling toward various aspects of working. It is closely related to performance and quality of work of an employee and is translated as success of organization. Only satisfied employees can participate and contribute to success of organization. Job satisfaction assessment comprises of three elements, namely 1) perception on several aspects of work, 2) implicit or explicit standard of value, and 3) conscious or subconscious assessment on relationship between individual perception and value. Job satisfaction of an individual can be predicted and explained in a short-term by considering its specific objectives (Nguyen et al, 2020). However, to achieve this in a long-term, one should consider his or her broader value. The value will determine future goals one seeks having fulfilled his or her present goals.

2.4. Intention to Leave

The Intention is expressed in readiness of the user to use the product/service (Phan et al. 2020). Halawi (2014) stated intention to leave or turnover refers to intention or desire of employee to quit working. It is voluntary. Intention to leave represents dissatisfaction of employee and results in resignation. March and Simon (1958) turnover model predicted aspects affecting intention to leave, namely evaluation on how dissatisfied an employee is toward his or her current position. In addition, studies by Firth et al. (2004) and Kim et al. (2017) say that measured intention to leave showed two indicators, namely thoughts of quitting and intention to leave.

2.5. Hypotheses

Previous researchers have conducted studies investigating relationship between psychological capital and job satisfaction. Badran and Youssef-Morgan (2015) conducted a study that extended limitations of positive organizational behavior to North Africa and the Middle East. Specifically, relevance of Psychological Capital consists of resources of positive psychological expectation, efficacy, resilience, and optimism which is conceptualized and tested toward job satisfaction in Egypt. Besides that, Karatepe and Karadas (2015) investigated psychological capital toward job, career, and life satisfaction, mediated by job involvement, drawing from resource conservation theory and motivation process of work resource-demand. Badran and Youssef-Morgan (2015), and Karatepe and Karadas (2015) showed that Psychological Capital has significant influence toward Job Satisfaction. Celik (2018) explained that an important debate is a method to increase resistance of employee toward stress. Objective of the study was to test influence of psychological capital toward stress at work and turnover rate. It also explained mediating role of stress at work with influence of psychological capital of employee toward turnover intention.

As an addition, Dhiman & Arora (2018) investigated psychological capital in professional health context and effect of PsyCap toward turnover. Studies by Celik (2018) and Dhiman & Arora (2018) showed significant influence with negative coefficient between Psychological Capital toward Intention to Leave. Previous researchers have discussed relationship between gratitude and job satisfaction. Patil et al. (2018) analyzed possible impact of gratitude toward morale of employees as well as explored and understood effect of gratitude at work toward organization in India. Cortini et al. (2019) investigated influence of gratitude toward satisfaction, explored how public administration staff expressed and showed their gratitude at work, and validated model used in their study. It showed that three types of gratitude (relational, collective, dispositional) are predictors of job performance and satisfaction. Ritzenhöfer et al. (2017) investigated gratitude and intention to leave. Its objective was to examine effect of employer’s gratitude and pride for employees. The data analysis methods were variance and regression analysis. Furthermore, Ng (2016) tested respect at work as an important condition that encourages increase in embedded perception of organization (POE). A concept that the study proposed was to increase in respect would improve gratitude toward organization, which in turn promoted POE from time to time. Increasing POE reduced turnover (intention to leave). Studies by both Ritzenhöfer et.al. (2017) dan Ng (2016) showed that gratitude has significant influence toward Intention to Leave. It means grateful employees have lower Intention to Leave. Alzayed and Murshid (2017) and Robyn and Preez (2013) examined relationship between job satisfaction and intention to leave. Alzayed & Murshid (2017) tested factors affecting employees’ intention to leave their current job. It was conducted in Ministry of Information in Kuwait. On the other hand, Robyn & Preez (2013) investigated intention to quit among generation Y academy in universities. It showed that employee engagement, job satisfaction, remuneration, reward, recognition, transformational leadership have significant influence toward intention to quit. The investigation is based on the following hypotheses:

H1: Psychological Capital has significant influence toward Job Satisfaction.

H2: Psychological Capital has significant influence toward Intention to Leave.

H3: Job Satisfaction has significant influence toward Job Satisfaction.

H4: Gratitude has significant influence toward Intention to Leave.

H5: Job Satisfaction has significant influence toward Intention to Leave

3. Research Methods and Materials

This study used qualitative approach in which survey and questionnaires were employed during data collection. It aimed to explain causal relationship among the variables through hypothesis testing. This study was categorized as perceptional study and analysis unit was individuals, in which data was in the form of respondent’s assessment or perception (Singarimbun & Effendi, 1989). This study was conducted in PT. Pupuk Kalimantan Timur located in Bontang, East Kalimantan. PT. Pupuk Kalimantan Timur was selected as the setting since it has had a lot of achievement. Population was 500 employees of PT. Pupuk Kalimantan Timur in Bontang, while total samples were 250. This study uses a sampling technique of proportional stratified random sampling. Data analysis methods were descriptive and quantitative. Inferential statistics, namely Generalized Structured Component Analysis (GSCA) were used to confirm model developed based on empirical data. The following is conceptual model in this study (see Figure 1).

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Figure 1: Conceptual Research Model

4. Results and Discussion

4.1. Result of Descriptive Analysis

Descriptive analysis was conducted to get an overview on the variables, namely Psychological Capital, Job Satisfaction, Gratitude, and Intention to leave as well as identify characteristics of each of these variables (See Figure 2 until 5).

Figure 2 showed that Hope (X1.2) was indicator with the highest outer loading (0.905). It means X1.2 is the strongest and most important indicator. It implied that Hope (X1.2) is an aspect we should pay the highest attention to in order to improve Psychological Capital. Furthermore, average score of the indicators was 4.09 showing that PT. Pupuk Kaltim has been able to accommodate its staff’s expectation.

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Figure 2: Psychological Capital Profile​​​​​​​

Figure 3 showed that Collective Gratitude (X2.1) had the highest loading factor (0.596) and as the result, it was the strongest and most important indicator. It means collective gratitude is integral in improving gratitude. As an addition, Collective Gratitude (X2.1) was indicator with the highest average score (4.45). The score showed that Collective Gratitude (X2.1) level of PT Pupuk Kaltim staffs was remarkably high.

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Figure 3: Gratitude Profile

Figure 4 showed that Work-itself (Y1.1) was indicator with the highest loading factor (0.301) and therefore, it is the strongest and most important indicator. It means one aspect to consider in improving job satisfaction is work itself. As an addition, average score of working atmosphere was 4.11 which means PT Pupuk Kaltim has been able to provide a conducive working atmosphere that encourages employees to have high performance.

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Figure 4: Job Satisfaction Profile

Figure 5 showed that thoughts of quitting (Y2.1) has the highest loading factor (0.918), which means that the indicator is the highest and most important one. It implied that in order to lower intention to leave, the company should pay attention to how often employees look for thoughts of quitting in company. Average score of the indicator was 1.08 showing that intention to leave of PT.Pupuk Kaltim staff was low.

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Figure 5: Intention to Leave Profile

4.2. Influence between Variables

4.2.1. Model Feasibility

The next step after inner model analysis is to calculate coefficient of determination (R2 ) in order to identify ability of exogenous variable to explain endogenous one. Table 1 showed coefficient of determination

Table 1: Coefficient of Determination​​​​​​​

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R-squared of Job Satisfaction (Y1) was 0.590 or 59% that means Psychology Capital (X1) and Gratitude (X2) can explain 59% of Job Satisfaction (Y1). Furthermore, R-squared of Intention to leave (Y2) was 0.176 or 17.6%, which means 17.6% of Intention to Leave (Y2) can be explained using Psychology Capital (X1), Gratitude (X2) and Job Satisfaction (Y1). Furthermore, Q2 showed that data variance in the model was 0.662 or 66.2%.

4.2.2. Model Feasibility

Inner model testing was conducted using GSCA. Table 2 showed result of Inner Model testing.

Table 2: Inner Model​​​​​​​

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Based on the first hypothesis testing, coefficient was 0.418 and p-value < 0.001. p-value < 0.05 showed that the first hypothesis can be accepted and Psychology Capital (X1) has a significant influence toward Job Satisfaction (Y1). The second hypothesis testing resulted in coefficient of 0.097 and p-value 0.128. These show that the second hypothesis was rejected and Psychology Capital (X1) doesn’t have a significant and negative influence toward Intention to Leave (Y2). Furthermore, the third hypothesis can be accepted since p-value was 0.000 less than 0.05 which shows a significant effect and a positive coefficient of 0.435. It means Gratitude (X2) has a significant and positive influence toward Job Satisfaction (Y1). The fourth hypothesis testing resulted in coefficient of −0.103 and p-value 0.112 showing that Gratitude (X2) doesn’t have significant and negative influence toward Intention to Leave (Y2). Finally, the fifth hypothesis testing resulted in coefficient of −0.405 with p-value 0.000 which means Job Satisfaction (Y1) has a significant and negative influence toward Intention to Leave (Y2). It has been shown in the analysis model (See Figure 6).

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Figure 6: Analysis Model

4.3. Indirect Effect

The effect of mediation is analyzed using GSCA which aims to determine whether the job satisfaction variable becomes a mediating variable between Psychological Capital and Gratitude towards Intention to Leave. And, to find out the indirect effects in the model. Table 3 shows the results of the Inner Model test.

Table 3: Indirect Effect​​​​​​​

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Based on table 3 the results show that the influence of Psychological Capital has a significant indirect effect on Intention to Leave through Job Satisfaction. This is indicated by the P-value of 0,000 and the path coefficient shows a negative value. This means that psychological capital of employees if balanced with employee job satisfaction will have a low intention to leave at PT Pupuk Kaltim. One form of real psychological capital at PT Pupuk Kaltim is the need for family support. PT Pupuk Kaltim is located in Bontang, East Kalimantan, if recruited employees from East Kalimantan will have an impact on psychological capital and job satisfaction so that the motivation for intention to leave is low.

The indirect effect between Gratitude and Intention To Leave through Job Satisfaction is significant. This is supported by a p-value less than 0.05 which is 0.001 with a coefficient of −0.176. Based on table 3, it means that gratitude for PT Pupuk Kaltim employees will reduce the Intention To Leave through Job Satisfaction. In line with the real conditions at PT Pupuk Kaltim where the intention of PT Pupuk Kaltim’s employees is to work and worship. The condition of the work environment that helps each other between colleagues will foster gratitude and reduce the high intention to leave at PT Pupuk Kaltim

4.4. Discussion

4.4.1. Influence of Psychological Capital (X1) toward Job Satisfaction (Y1)

Table 2 showed that path coefficient was 0.418 and p-value 0.000. In conclusion, Psychology Capital (X1) has a significant and positive influence toward Job Satisfaction (Y1). It means that higher Psychology Capital (X1) will increase Job Satisfaction (Y1). It indicates that the higher the Psychology Capital (X1) of PT Pupuk Kaltim staff is, the higher Job Satisfaction (Y1) level they have. The finding is in line with Badran and Youssef-Morgan (2015), which showed that hope, efficacy, resilience and optimism individually and when combined with a high-level multidimensional construction, there were positive relationship between PsyCap and job satisfaction of Egyptian employees. Furthermore, Karatepe and Karadas (2015) showed that optimism is the best indicator of psychological capital, followed by resilience, self-efficacy and hope. Employees with high psychological capital are involved in their work at a higher level. Employees with high psychological capital are more satisfied with their work, career, and life. It is at the opposite of this study that Hope (X1.2) is the highest indicator of PsyCap. However, the result showed that psychological capital increases work engagement which in turn leads to job satisfaction, career, and life

4.4.2. Influence of Psychological Capital (X1) toward Intention to Leave (Y2)

Based on inner model testing, shown in Table 2, path coefficient was 0.097 and p-value 0.128. It means Psychological Capital (X1) doesn’t have a significant and negative influence toward Intention to Leave (Y2). That is, the better Psychology Capital (X1) will not decrease or increase Intention To Leave (Y2). This indicates that the better Psychology Capital (X1) of employees of PT Pupuk Kaltim will not affect Intention To Leave (Y2). The results of this study are not in line with previous studies conducted by Celik (2018), which claimed that psychological capital has a negative and significant influence toward stress at work and turnover intention. In addition, stress at work has a mediating relationship between psychological capital and turnover. Furthermore Dhiman and Arora (2018) showed that psychological capital has a significant and negative influence toward turnover. It also confirmed four factors and dimensions of psychological capital, namely self-efficacy, hope, optimism, and resilience.

The direct effect shows no significant effect. However, based on the indirect effect of psychological capital on intention to leave through job satisfaction shows a significant effect that can be seen in table 3. That is, Gratitude will affect employee job satisfaction and can reduce the existence of Intention to Leave. The gratitude of the employees at PT Pupuk Kaltim is supported because the Company is able to create a work environment which has a comfortable working relationship with colleagues.

4.4.3. Influence of Gratitude (X2) toward Job Satisfaction (Y1)

The result of inner model testing (Table 2) revealed that path coefficient was 0.435 and p-value 0.000. In conclusion, Gratitude (X2) has a significant and positive influence toward Job Satisfaction (Y1). Increasing level of Gratitude (X2) will increase Job Satisfaction (Y1). In other words, the more grateful PT Pupuk Kaltim staff is, the higher job satisfaction level they have. The finding is in accordance to Patil et al. (2018) that gratitude has a positive influence toward motivation, happiness, and satisfaction. Personal gratitude has a higher impact than one revealed to co-workers or team members. It also supports the finding. Furthermore, Cortini et al. (2019) explained three types of gratitude (relational, collective, dispositional) which become predictors of performance and job satisfaction because the Company is able to create a work environment including a comfortable work environment with colleagues.

4.4.4. Influence of Gratitude (X2) toward Intention to Leave (Y2)

Based on Table 2 on the inner model testing the path coefficient is −0.103 and the p-value is 0.112. It can be concluded that the influence between Gratitude (X2) on Intention To Leave (Y2) is not significant and the effect is negative. That is, the better Gratitude (X2) will not decrease or increase Intention To Leave (Y2). This indicates that the better Gratitude (X2) score of employees of PT Pupuk Kaltim does not affect the employee’s Intention To Leave (Y2). The results of this study are not in line with previous studies conducted by Ritzenhöfer et.al. (2017), that supervisor’s gratitude decreases staffs’ intention to leave. In addition, Ng (2016) showed that increase of gratitude from time to time increases gratitude level of educated young staffs, which in turn improves POE and minimizes intention to leave over time. It can be concluded that in this model, respect and gratitude of employees have a significant influence and causes decrease in intention to leave indirectly through POE.

On the other hand, a significant effect is gratitude towards Intention to Leave through Job Satisfaction (can be seen in table 3). PT Pupuk Kalimantan Timur from the beginning was able to meet all needs including the spiritual needs of employees. This supports employees having a high level of gratitude for their work and has an impact on satisfaction while working at PT Pupuk Kalimantan Timur.

In addition, indicators of gratitude and job satisfaction are interrelated and can hamper intention to leave. The existence of a compact team work means that comfortable working environment in PT Pupuk East Kalimantan guaranteed. Also, the facilities provided by the company are already adequate and the closeness between employees and their superiors is very high. These real conditions can support the existence of this research hypothesis.

4.4.5. Influence of Job Satisfaction (Y1) toward Intention to Leave (Y2)

Path coefficient was −0.405 and p-value was 0.000, which indicated that Job Satisfaction (Y1) has a negative and significant influence toward Intention to Leave (Y2). It means higher Job Satisfaction (Y1) will decrease Intention to Leave (Y2). In other words, when staff of PT. Pupuk Kaltim has a high Job Satisfaction (Y1) level, they will have a low Intention to Leave (Y2) percentage. The finding supports Alzayed & Murshid (2017) showing that job involvement has a negative influence toward employee turnover. Perception of employees about support and complexity has a positive influence toward intention to leave. In conclusion, identification of factors affecting employees’ intention to leave is pivotal to improve human resource in public organization, particularly in Ministry of Information in Kuwait. Besides that, Robyn & Preez (2013) argued that employee engagement, job satisfaction, remuneration, reward, recognition, and transformational leadership have a significant influence toward intention to quit. In partial model, three out of six other variables explained 45% of intention to quit. Partial least square path modeling revealed that employee engagement and job satisfaction have a negative and significant influence toward intention to leave.

5. Conclusions

This study showed that there is a significant and positive influence between Psychology Capital (X1) on Job Satisfaction (Y1) and Gratitude (X2) on Job Satisfaction (Y1). Meanwhile, a significant but negative effect between Job Satisfaction (Y1) on Intention to Leave (Y2). Research results show that there is no significant effect between Psychology Capital (X1) on Intention to Leave (Y2), and Gratitude (X2) on Intention to Leave (Y2). However, indirectly Psychology Capital (X1) and Gratitude (X2) affect Intention to Leave (Y2) through Job Satisfaction (Y1). Therefore, it is suggested that in order to decrease Intention to Leave, PT Pupuk Kaltim should improve Psychological Capital, Gratitude and Job Satisfaction of the staff. Employees with a high job satisfaction have a low or even no satisfaction to leave their job. Giving expectation suitable with one’s job description is indicator to improve these variables (Psychological Capital, Gratitude and Job Satisfaction).

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