Investigating the Source of Employees' Intention to Leave: A Case on Outsourced Employees

DOI

10.2991/ebic-17.2018.67How to use a DOI?

Keywords

Outsource, Organizational Commitment, Job Stress, Job Satisfaction, Intention to Leave

Abstract

Outsourced employment system has been well-known worldwide to improve organizational performance. An organization can reduce its recruitment and employee-related costs by using the outsourcing system. However, organizations should not rely on outsourcing too much. Agency problem may rise in the outsourcing system since the organization's performance does not benefit outsourced employees. Any employee-related benefit is managed by outsourcing provider. It will be hard for outsourced employees to deal with the client. The phenomenon may invite employees' intention to leave. This study is aimed to suppress employees' intention to leave as it may create a disadvantageous situation for both the client and provider. A number of 52 outsourced employees were participated in this study. Data were gathered using self-administered questionnaires. A correlation and path analysis were used to evaluate the proposed model. The research shows that intention to leave has a strong and significant correlation with job stress and job satisfaction. A regression analysis showed that the more stressed out the employees were, the stronger their intention to leave would get. However, the intention to leave can be reduced through their job satisfaction. There is no significant effect of employees' commitment on intention to leave. Nevertheless, commitment has a positive and significant effect towards their job satisfaction while stress does not affect it. Employees' organizational commitment becomes a great source of intention to leave through mediating effect of job satisfaction.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Elisabet Siahaan
PY  - 2018/01
DA  - 2018/01
TI  - Investigating the Source of Employees' Intention to Leave: A Case on Outsourced Employees
BT  - Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)
PB  - Atlantis Press
SP  - 431
EP  - 436
SN  - 2352-5428
UR  - https://doi.org/10.2991/ebic-17.2018.67
DO  - 10.2991/ebic-17.2018.67
ID  - Siahaan2018/01
ER  -