Mediating Role of Employee Engagement on Person-Organization Fit and Turnover Intention in Indonesia

Abstract

Purpose: The aim of this study is to examine the effect of person-organizational fit (PO-fit) on turnover intention. It also analyzes employees' engagement (EE) as a variable that mediates the relationship between the two variables.   Theoretical framework:  An organization tends not to avoid the problem of turnover intention when employees voluntarily submit resignations letter. Therefore, all companies need to understand the factors such as person-organization fit (PO-fit) that can affect this turnover. Previous studies failed to fully show a negative relationship between PO-fit and turnover intention. Theoretically, there is an increased engagement when employees have values that suit the organization's own. It ultimately increases individuals' intention to remain in the company where they work.   Design/Methodology/Approach:  The respondents of this study were 366 employees from several big cities on Java island in Indonesia. The sampling criteria were those that had worked for at least 1 year. This survey was conducted using internet-based questionnaires and data were analyzed by testing the validity and reliability, as well as the hypotheses.   Findings: The results showed a significant relationship between PO-fit and turnover intention while examining the total 366 employees in Indonesia. Furthermore, all hypotheses are supported because there was an indirect effect of EE on turnover intention.   Research, practical & social implications: This study has several implications including managers being required to ensure that organizational culture is conveyed to increase the PO-fit value between employees and their organization.   Originality/Value: The research focuses on studying examine the effect of person-organizational fit (PO-fit) on turnover intention. Moreover, only a few studies that discuss employee engagement to be a mediator of PO-fit and turnover intention. Therefore, this study examines the EE role as a mediating variable in explaining the relationship between PO-fit and employee turnover in Indonesia.