An investigation of factors moderating the relationship between job satisfaction and turnover intention among bank’s staff in Thailand By Warayu Thienpramuk

Significance of the research problem New competitors from foreign banks.  Such changes in ownership structure as well as entry in the industry may affect the degree of competition (Koji Kubo, 2006). Human resources (HR) of the firm are potentially the sole source of sustainable competitive advantage for organizations (Kochan and Dyer, 1993; Pfeffer, 1994).  Since year , the average turnover rates are 4.6% and 5.2% respectively and the research department of Thai Bank Association predicts that it was higher in year 2008.

Literature Review Mobley (1982) – turnover cost carried by organizational include  acquisition cost such as recruitment, selection and placement,  learning costs, including training cost and lost of the trainer’s time,  separation cost, including direct costs of separation pay and indirect costs from loss of efficiency prior to separation and the cost of the vacant position during the search time. Job dissatisfactions are sufficient to determine the turnover intention (Dole & Schroeder, 2001; Abdel-Halim, 1981; Choo, 1986, Rasch and Harrell, 1990).  Increase job satisfaction to decrease turnover intention, with the converse of those relationships being true, as well (Kristof-Brown et al., 2005; Verquer et al., 2003).

Literature Review Inadequate of Literature  Aranya et al., 1982; Aranya and Ferris, 1984; Omundson et al., 1997 have argued that job satisfaction should not be sufficiently used as determinant of turnover intention, there should be the possible impact of other variables.  Lee and Mitchell (1994) theorized that job dissatisfaction could indeed result in turnover but that it was more likely that other factors would act as precursors to the turnover intention.  Kristof-Brown et al., 2005; Verquer et al., 2003 stated that recent empirical studies have shown a weak relationship between the two constructs. Lack of research in this area  Moderators between Job satisfaction and Turnover intension  Especially in Thai banking industry

Research Questions 1. To what extent does job satisfaction influence turnover intention for bank staff in Thailand? 2. Do demographic factors, family factors, perceived job mobility and employee commitment significantly moderate the relationship between job satisfaction and turnover intentions?

Overall conceptual framework Overall JS Turnover intension Job mobility Employee commitment Demographic -Gender -Age -Education level -Length of service Family factors -Marital status -Number of Children

Research Methodology Quantitative method Total population = 80,000 (9 Thai banks, 4,882 branches) Sample size = 399 (Taro Yamane’s,1967) The data collection 20 sample respondents and experts for Pre-test an HTML-based web survey 418 participants ( incomplete questionnaires) The data analysis Mediated and moderated regression analyses revealed statistical support for the hypothesized relationships

The predicted results Overall JS Turnover intension Job mobility Family factors -Marital status -Number of Children Employee commitment

Conclusions and Implications  While previous researches typically associate with decreased job satisfaction and increased turnover, the present research suggests that intervening variables, such as job mobility and family factors, influence employee intentions to turnover.  HR manager should focus on specific job training (core competency) rather than general knowledge training and provide more employee’s family welfare (scholarship, health insurance or retirement fund)

Thank you

Source: Polsiri and Wiwattanakantang, 2005