Employee Organızatıonal Commıtment and Its Effect On Turnover Intentıon Behavıor In Multı-Fınance Industry

Abstract

One of the indicator of successful organization that boost HR practices is that they can retain employees. Therefore companies are encouraged to take action to reduce turnover as one of the popular HR program that could retain employees. This study aims to examine the impact of multi-finance employee organizational commitment on turnover intention behavior. The research was conducted in the Manado area because the development of finance companies in the region has progressed very rapidly, seen from the number of finance companies that have opened branches in Manado. Data was collected by distributing questionnaires to 212 respondents from 30 multi-finance companies. The data were analyzed through the PLS-SEM model using smartPLS-3 software. The results show that organizational commitment has a positive and significant effect on attitude toward leaving, subjective norm, and perceived behavioral control; thus, it impacts employee turnover intention. The significant indirect impact of organizational commitment on turnover intention was also revealed. The model clearly expresses the organizational commitment of multi-finance employees and its impact on turnover intention through the theory of planned behavior construct. Managers need to understand these factors and their impact on turnover intention.