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* Corresponding author.

E-mail address: [email protected] (O. Aburumman)

doi: 10.5267/j.msl.2019.9.015

Management Science Letters 10 (2020) 641–652

Contents lists available at GrowingScience

Management Science Letters

homepage: www.GrowingScience.com/msl

The impact of human resource management practices and career satisfaction on employee’s turn-

over intention

Omar Aburumman

, Ahmad Salleh

, Khatijah Omar

and Mohammad Abadi

School of Maritime Business and Management, Universiti Malaysia Terengganu, Malaysia

Faculty of Business, Al- Balqa' Applied University, Jordan

C H R O N I C L E A B S T R A C T

Article history:

Received: June 28 2019

Received in revised format: July

30 2019

Accepted: September 9, 2019

Available online:

September

, 201

Banks in Jordan are facing a crisis related to their employees, where it has recently become clear that employees

are leaving their jobs in increasing numbers. Thus, this study examined the impact of the human resources

management (HRM) practices (compensation, performance appraisal, promotion, and training & development)

on employee’s turnover intention and the mediating role of career satisfaction. The survey questionnaire was

gathered from 394 employees located in 25 banks in Jordan. The study used PLS-SEM to get the results and

examine the hypotheses. The findings indicate that HRM practices (compensation, performance appraisal, pro-

motion, and training & development) negatively impact employees’ turnover intention, and career satisfaction

partially mediated the relationship between HRM practices (compensation, performance appraisal, promotion,

and training & development) and employee’s turnover intention. The study recommends that banks in Jordan

provide a high compensation, fair performance appraisal, fast promotion systems, sufficient training & devel-

opment program and high level of career satisfaction to maintain the human element and reduce the employees’

turnover intention. Future studies may include other practices such as employee empowerment, teamwork, em-

ployment security information sharing, and job description.

Keywords:

HRM Practices

Employees Turnover Intention

Career Satisfaction

1. Introduction

Presently, banks are exposed to intense competition in the national and international markets, great change in the external and

internal environment, the increasing demands by stakeholders to achieve the goals, aspirations, and profits required from

banks to deliver best services and innovations to customers (Rowland et al., 2017). These pressures and requirements fall on

managers and employees in all levels of the hierarchy, thus, they must have the knowledge, skills, and abilities related to their

work to achieve integration between all levels of the hierarchy in order to achieve the aspirations and objectives to both

stakeholders and customers (Suifan & Al-Janini, 2017). The annual report of the Association of Jordanian banks (2017) states

that banks in Jordan are faced with problems of employees leaving the work. This is because the offers provided to employees

from bank management such as compensation systems, appraisal systems, and promotion systems do not fit the needs and

employees’ aspirations. The report also indicated that the percentage of employees leaving their bank career is increasing each

year. The researchers in Jordanian banking sector suggest that this increase could be the result of the ineffective HRM practices

and a significant decrease in the level of satisfaction for employees (Madanat & Khasawneh, 2018; Al-Abdullat & Dababneh,

2018). Al-Abbadi (2018) stated that the banks should fulfill the employees’ wishes, because they are the main driver of the

banking business and banks cannot carry out their works in the absence of talented employees.

Turnover intention is an ongoing issue to researchers and organizations in the context of business organizations, where this

issue still a concern for many organizations to nowadays (Hancock et al., 2013; Li et al., 2019). Researchers considered that

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the turnover intention of employees is a serious issue because high turnover intention will generate high stress for employees

in the workplace and prohibit employees from increasing their loyalty and their commitment toward their work (Lin et al,

2017). In addition, management will outlay more costs in the attracting and training of new employees due to the high em-

ployees’ turnover rate (Juhdi et al., 2013). Thus, employee turnover intention is very costly and has become a crucial factor

that can affect the overall for organizational performance (Busari et al., 2017). Shah and Beh (2016) pointed out that employ-

ees’ turnover intention is not only an issue in Western countries, but it is also a dangerous problem facing organizations in

Asian countries. At the local level, Jordanian banks face a significant increase in employee turnover (Kasasbeh, 2018). For

example, a study of Al-Quraan (2016) found that employees’ turnover intention in Jordanian banks sector can also cause

abundant and sometimes irreparable damage to these organizations, because the human factor is an element that is difficult to

imitate, and continuity of banks in the markets need the permanence of the human element. In addition, when leaving these

employees will take with them the skills and work procedures they have acquired and thus will present these banks with the

problem of “workflow” because skilled employees’ turnover (Nantsupawat et al., 2017). Thus, the current research purposes

to search about factors that lead to increasing employees’ turnover intention by examining the impact of HRM practices and

career satisfaction on employees’ turnover intention in Jordanian banks sector. Kong et al. (2012), indicated that increase

career satisfaction for employees contributes to reducing the employee’s turnover intention. The literature that studied career

satisfaction in the Arab world and Jordan is rare because their focus was on job satisfaction (Malkawi, 2016). On the other

hand, Lang et al. (2016) confirmed that most of the literature examining the relationship between career satisfaction and

employees’ turnover intention occurred in the West (e.g. UK, USA, and Germany), but there is an urgent need to study it in

other countries, and evaluate the measurements of these dimensions from several sources. The literature that studied HRM

practices did not focus on the dimensions that are associated to employee well-being, for example, the compensation, career

promotion, career orientation, and safety and health, which could impact on the employee’s turnover intention (Srirangam et

al., 2018). Hassan et al. (2013) explained that there is a relationship between HRM practices (e.g. training systems provided

by organizations) and career satisfaction, but the nature of the relationship is still under consideration and it has not been

identified. On the other hand, Jyoti et al. (2015) recommend that researchers should in the future explore more mediating

variables between HRM practices and employees’ turnover intention. Table 1 shows the research gab and the extent of the

contribution of the current study in the literature related to these variables.

Table 1

Research Gap

Author/Year COM

and ETI

PA and

ETI

PRO

and ETI

T&D

and ETI

COM

and CS

PRO

and CS

T&D

and CS

CS and

ETI

SET

Lee et al.(2018)

√

Alkalha et al. (2012)

√

Duarte et al.(2015)

√

BaniMelhem et al. (2018)

√

Santhanam et al. (2017)

√

Busari et al. (2017)

√

Queiri & Dwaika (2016)

√

Chen et al. (2018)

√

Yap et al. (2010)

√

Yean & Yahya (2013)

√

Hee et al. (2016)

√

Madanat & Khasawne

(2018)

√ √ √

Mahatanankon(2007)

√

Jung & Takeuchi (2018)

√

Chan &

Mai

(2015)

√

Guan et al. (2014) √ √

Joo & Park (2010) √

Chan et al. (2016) √

Ahmed (2017) √

Current Study √ √ √ √ √ √ √ √ √ √

Note: COM: Compensation, PA: Performance Appraisal, PRO: Promotion, T&D: Training and Development, CS: Career Satisfaction, ETI: Employees

Turnover Intention, SET: Social Exchange Theory

2. Literature review

2.1 Employees Turnover Intention

The concept appeared of “turnover intention” or “intention to leave” from Porter and Steers (1973, p 153), which they defined

it as “the next logical step after experienced dissatisfaction in the withdrawal process”. Employees’ turnover intention is the

ability of the employee to quit the work, which is classified as voluntary and involuntary discrimination, in addition to its

dysfunction in the job that led to quitting the work, and that each type of employee turnover affects the organization to varying

and different degrees (Long et al., 2012), where employees’ turnover intention is formed when the individuals feel their job

does not meet their ambitions and expectations (Zeffane & Bani Melhem, 2017). The concept of employees’ turnover intention

has not expanded in the last 10 years, where the researchers relied on the models developed by Porter and Steers (1973),

Mobley (1977). According to Arshadi and Damiri (2013), intention to leave is a conscious decision to get for alternative

O. Aburumman et al. / Management Science Letters 10 (2020)

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employment opportunities in other companies, this is due to different factors and reasons that prompted employees to leave

their jobs. From the point of view of Thirapatsakun et al. (2014), employee turnover intention is divided into three main

components as follows: (1) thinking to leave the work; (2) intention to look about a new job and (3) actual leave.

2.2 HRM Practices

HRM Practices have been defined as “a set of distinct but interrelated activities, functions, and processes that are directed at

attracting, developing, and maintaining (or disposing) a firm’s human resource” (Lado & Wilson, 1994, p. 701). HRM prac-

tices in many organizations are mostly involved in operations, systems and issues of setting compensation, development of

individuals and recruiting. However, when HRM practices adopt a strategic role, it focuses on producing high performance

in the near future (Pfeffer, 2005). The investments in the HRM practices adopted by the organizations will contribute to

creating organization-specific human capital that is difficult to imitate and will contribute to improving the knowledge, skills,

and abilities of the employees, reduce the number who leave the organization, and increase their motivation for work (Huselid,

1995). In addition, HRM practices that aim to develop employees’ abilities, opportunities, motivation and which balance

between their lives and work are considered effective practices and widely accepted by employees and organizations (Blom

et al., 2018). Hiltrop (1996) presents eleven practices for HRM, which can be used as a checklist for evaluating the effective-

ness of HRM practices. Although several HRM practices can be introduced as dimensions, this study would focus on four

practices, which are compensation, performance appraisal, promotion, and training & development. These practices were

selected for their solid connotation with the study’s variables. It is widely believed that these dimensions have the possibility

of motivating employees and help prevent employees from leaving their work by offering them some level of safety, inde-

pendence, continuity and opportunity to achieve career satisfaction (Hee et al., 2016; Busari et al., 2017; Gadi & Kee, 2018).

2.3 Career Satisfaction

Career satisfaction is defined as “the satisfaction that stems from intrinsic and extrinsic parts of their careers” (Judge et al.,

1995, p. 487). Career satisfaction reflects the satisfaction for employees with internal aspects (e.g. compensation and promo-

tion) and external aspects (e.g. performance appraisal and training & development) along their career (Seibert & Kraimer,

2001), which is considered as a result of work-related psychological consequence accumulated for the employee through work

experience (Judge et al., 1995; Kang et al., 2015), which include outcomes for employees well-being and the quality of their

life-career (Stauffer et al., 2018). Career satisfaction is abstracted in the present study as an individual subjective evaluation

for the level of success, which they have attained in their job fully (Judge & Kammeyer-Mueller, 2007), and we focus on

career satisfaction as an important factor, because it has the ability to contribute to reducing the employee’s turnover intention

(Chan & Mai, 2015). There are a few main reasons to study the career satisfaction of employees. First, career satisfaction is

an important variable, where it reflects feelings the employees have about the work environment, and the extent of achieve-

ments which have been achieved by employees in their career lives (Van Der Weijden et al., 2016). Second, the researchers

began investigating the sources of career satisfaction. For instance, Hee et al. (2016) found that career satisfaction is an out-

come of diverse and effective HRM practices. Thus, the employees are appraisers of the progress they have achieved in their

careers, are able to evaluate their career success and whether they want to stay or leave their work through a level of career

satisfaction which they have achieved in their work (Spurk et al., 2015; Nie et al., 2018). Third, career satisfaction is more

appropriate with the objectives and variables of the current study, because it is expected to explain the relationship between

HRM practices and employee turnover intention.

3. Theoretical Framework

3.1 Hypotheses Development

HRM practices contribute to develop and raise the level of skills, knowledge, and commitment of employees, thus, employees

are empowered to work and motivate themselves to continue their careers, and increase their desire to stay longer at work

(Yousaf et al., 2018). High compensation systems and fair performance appraisal systems are the most important HRM prac-

tices associated with employee turnover intention, because they are the main driver of employees’ intention to stay or leave

the work (Rubel & Kee, 2015; Shaukat et al., 2017; Dechawatanapaisal, 2018). Moreover, the lack of promotion speed and

training & development programs that do not contribute to the progress and growth of employees are considered as the reasons

to drive employees to leave work (Busari et al., 2017; Santhanam et al.,2017). The following hypotheses are drawn from the

above discussion:

H1a: Compensation will be negatively related to employee’s turnover intention.

H1b: Performance appraisal will be negatively related to employee’s turnover intention.

H1c: Promotion will be negatively related to employee’s turnover intention.

H1d: Training and development will be negatively related to employee’s turnover intention.

The effective use of HRM practices contributes to suit the needs of employees to increasing the level of career satisfaction for

employees and increasing employee’s correlation with their organizations (Yean & Yahya, 2013). Using compensation sys-

tems and performance appraisal based on equitable reward may lead to increase the productivity and employee’s loyalty,

decrease the bias in work environment and increase the level of career satisfaction of employees (Howell et al., 2016; Hee et

al., 2016). In addition, promotion to high positions, receiving a high salary, and training & development programs which

644

ensure career progression and performance improvement, will lead the employees to a highly satisfied about the career (Ka-

ratepe & Vatankhah, 2015; Ahmed, 2017). The following hypotheses are drawn from the above discussion:

H2a: There is a positive relationship between compensation and career satisfaction.

H2b: There is a positive relationship between performance appraisal and career satisfaction.

H2c: There is a positive relationship between promotion and career satisfaction.

H2d: There is a positive relationship training & development and career satisfaction.

Career satisfaction is an important indicator of employees’ turnover intention, and employees who have the intention to stay

and not leave their organizations have a high level of satisfaction for their career (Egan et al., 2004). Thus, organizations must

expend greater effort to better understand and improve career satisfaction, which can help to decrease the employee turnover

intention (Direnzo & Greenhaus, 2011). Recent research has revealed that career satisfaction is negatively related with em-

ployees’ turnover intention (Chan & Mai, 2015; Kang et al., 2015; Chan et al., 2016; Guan et al., 2014, 2017). The following

hypothesis is drawn from the above discussion:

H3: Career satisfaction will be negatively related to employee’s turnover intention.

Previous studies show that the relationship between HRM practices and employees’ turnover intention is not a direct relation-

ship, and may be mediated by other variables (Allen et al., 2003; Duarte et al, 2015; Dechawatanapaisal, 2018; Srirangam et

al., 2018). Career satisfaction can be used as a mediator in the mentioned relationship (Karatepe, 2012; Chan & Mai, 2015;

Zopiatis et al., 2018). According to social exchange theory (Blau, 1964), the current study suggests that career satisfaction for

employees should mediate the expected negative relationship between HRM practices and employees’ turnover intention. The

following hypotheses are drawn from the above discussion:

H4a: Career satisfaction mediates the relationship between compensation and employee’s turnover intention.

H4b: Career satisfaction mediates the relationship between performance appraisal and employee’s turnover intention.

H4c: Career satisfaction mediates the relationship between promotion and employee’s turnover intention.

H4d: Career satisfaction mediates the relationship between training & development and employee’s turnover intention.

3.2 Research Model

The theoretical framework of the current study was developed through a model of Peterson (2004) as it corresponds to the

variables of the current study. The model of Peterson (2004) highlights the part played by the human resource management

and other internal factors (e.g. HRM practices) over which the organization has large control in influencing the intentions of

employees to leave or stay in work. Peterson (2004) confirmed that intentions to leave ultimately lead to actual turnover, and

that intention, goals, commitment, and satisfaction are factors over which the organization has substantial control and over

which HRM can play a critical role in controlling it. There are factors that are external to the organization, and which the

organization has no control over (e.g. socialization). The focus of this model is on internal organizational behaviors that the

organization has substantial control over. Many studies in the field of turnover intention have been focused on job satisfaction

as a mediating variable (Poon, 2004; Liu et al., 2010; Kuo et al., 2014; Huang & Su, 2016). This meaning that the focus has

not been on career satisfaction (Kong et al., 2016). There is a marked difference between career satisfaction and job satisfac-

tion; career satisfaction is broader and more comprehensive than job satisfaction; in career satisfaction case, the employee is

satisfied with all aspects of the career such as promotion, administrative decisions, achievement and income (Chan & Mai,

2015), while job satisfaction is associated with the work environment (Raziq & Maulabakhsh, 2015). In the current study,

HRM practices were selected as an independent variable and career satisfaction as a mediating variable, because they're man-

aged by HRM and it conforms to the model of Peterson. Fig. 1 shows the research model of the current study.

Fig. 1. Research Model

Employees

Turnover Intention

Career

Satisfaction

Independent

Variables

Mediating

Variable

Dependent

Variable

Compensation

HRM Practices

Performance

Appraisal

Promotion

Training &

Development

O. Aburumman et al. / Management Science Letters 10 (2020)

645

4. Research Methodology

4.1 Population, Sample Size, and Respondent

The current study adopted a quantitative research design method based on a survey questionnaire (cross-sectional study).

According to the Association of banks in Jordan for the annual report for 2017, the Jordanian banking sector consists of 25

banks (Commercial, Islamic and Foreign) and the number of employees in the Jordanian banks sector is 21090 employees.

The study sample included the main management and main branches for these banks in the Amman capital, where it contains

81% of the total number of employees in the Jordanian banks sector. As for the respondents to study are all employees in

Jordanian banks sector for the three management levels (general manager, regional directors, heads of department/ deputies,

branch managers/deputies, supervisors, and front-line employees). According to the table of Krejcie and Morgan (1970), a

sample size of 377-379 should be obtained from participants ranging from 20000-30000. Thus, the researcher selected 379 as

the sample size. On the other hand, As stated by Creswell (2012), the larger the sample size, the higher will be the confidence

level, the smaller will be the error variance, the better will be a representation of results, the more homogenous will be the

sample. Thus, we have added a 20% to the study sample, to become a sample study 455 (20%×379) employees from the

Jordanian banking sector. This was done after recommendations of Hair et al. (2010) to reduce the sampling error, to take

care of non-response bias and reduce from a problem the missing questionnaire. The method of the stratified random sample

was used for data collection from respondents, because it fits in with the current study. The study sample was divided into 25

strata (each stratum represents one bank). Then, within strata, we have used the simple random sampling method to select the

respondent from each stratum. All banks in Jordan agreed to participate in the current study through the filling in the ques-

tionnaire. The questionnaire was distributed with the assistance of one employee of the human resources department to dis-

tribute the questionnaire randomly. The total number of responses was 394 which represent 86.6 percent of the number of

distributed questionnaires were taken for further analysis, and a total of 61 questionnaires were missing.

4.2 Measurements of Study

HRM Practices: Measurements of Lee et al. (2010) and Mostafa et al. (2015) were used to measure HRM practices in 17

items. In measurements of Lee et al. (2010), the compensation was measured in four items, performance appraisal in five

items, training & development in four items, and achieved reliability of 0.87, 0.70 and 0.77, respectively. In the measurement

of Mostafa et al. (2015), the promotion was measured in four items, and achieved the reliability of 0.94. Career Satisfaction:

Measurement of Greenhaus et al., (1990) was used to measure career satisfaction in five items. These items have been used

in many previous studies with a consistently top reliability outcome of 0.88. Employees Turnover Intention: Measurement of

Kuvaas (2008) was used to measure employee’s turnover intention in five items, which carried out in a Norwegian setting.

These items have been used in many previous studies with a consistently top reliability outcome of 0.74. All variables were

measured by used a 5-point Likert scale.

4.3 Demographic Information of Respondents

Fig. 2 shows the demographic information for 394 respondents in the current study. The results of the analysis indicate that

223 respondents are male and 171 respondents are female. The age group from 21 to 25 years is the largest group to employees

in the Jordanian banking sector, it reached about 93 respondents. Regarding the job position, 239 respondents were in the

lower level of management, 126 respondents were in the middle level of management, 29 respondents were in the top level

of management. Finally, 162 respondents get a monthly salary from 250 to 500$ and it is the largest group to employees in

the Jordanian banking sector.

Fig. 2. Demographic Information of Respondents

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5. Data Analysis and Results

The first step to data analysis was descriptive statistics analysis by using the software SPSS version 25. Table 2 shows the

findings of the descriptive statistics of the variables. The mean for all variables ranged from 2.861 to 3.533, and the standard

deviation for all variables ranged from 0.956 to 1.124.

Table 2

Descriptive Statistics of The Variables

Variable N Mean Std. Deviation Variance

HRM Prac-

tices

Compensation 394 3.062 1.036 1.074

Performance Appraisal 394 3.533 1.116 1.246

Promotion 394 3.358 .956 .914

Training and Development 394 3.300 1.073 1.152

Career Satisfaction 394 3.056 1.124 1.266

Employees Turnover Intention 394 2.861 1.117 1.248

Note: Five-points scale: 1=strongly disagree; 5=strongly agree

5.1 Measurement Model Assessment

Based on recommendations of Hair et al. (2017), the measurement model was an assessment by two aspects including con-

vergent validity and discriminant validity. In convergent validity, we must retain the items that achieve loading more than

0.70, Cronbach’s alpha and composite reliability should be more than 0.7 and AVE should be more than 0.5. Table 3 shows

the results of convergent validity analysis, and it achieved the minimum requirement suggested by Hair et al. (2017). Thus,

all latent constructs in the current study are valid and reliable.

Table 3

Convergent Validity Analysis

Variable Items Factor

Loadings

Cronbach's

Alpha

Composite

Reliability

AVE

HRM Practices

Compensation

COM1

0.708

0.864

0.906

0.709

COM2

0.887

COM3

0.874

COM4

0.887

Performance Appraisal

PA1

0.886

0.924

0.943

0.767

PA2

0.867

PA3

0.890

PA4

0.890

PA5

0.844

Promotion

PRO1

0.860

0.851

0.900

0.692

PRO2

0.800

PRO3

0.876

PRO4

0.787

Training & Development

T&D1

0.850

0.885

0.920

0.743

T&D2

0.889

T&D3

0.852

T&D4

0.857

Career Satisfaction

CS1

0.818

0.904

0.929

0.724

CS2

0.885

CS3

0.878

CS4

0.842

CS5

0.828

Employees Turnover Intention

ETI1

0.745

0.909

0.932

0.735

ETI2

0.875

ETI3

0.912

ETI4

0.857

ETI5

0.887

Note: COM: Compensation, PA: Performance Appraisal, PRO: Promotion, T&D: Training and Development, CS: Career Satisfaction, ETI: Employees

Turnover Intention

Regarding the discriminant validity, Table 4 shows the results of discriminant validity based on Fornell-Larcker Criterion,

where the results indicate that construct has discriminant validity based on recommendations of (Henseler et al., 2016).

O. Aburumman et al. / Management Science Letters 10 (2020)

647

Table 4

Discriminant Validity Based on Fornell-Larcker Criteria

Fornell

Larcker Criterion

COM

PRO

T&D

ETI

COM

0.842

0.249

0.876

PRO

0.229

0.328

0.832

T&D

0.141

0.045

0.237

0.862

0.399

0.519

0.613

0.289

0.851

ETI

0.440

0.489

0.595

0.313

0.819

0.857

Note: COM: Compensation, PA: Performance Appraisal, PRO: Promotion, T&D: Training and Development, CS: Career Satisfaction, ETI: Employees

Turnover Intention

5.2 Structural Model Assessment

Structural model assessment includes the coefficient of determination (R²) and path coefficients (Hypotheses Testing).

Table 5 shows the R² values for the endogenous latent variables based on recommendations of Chin (1998). These

results indicate the structural model developed in the current study has predictive accuracy.

Table 5

The R² Values for The Endogenous Latent Variables

Endogenous Variable R

Predictive Relevance

Career Satisfaction (CS)

0.561 Moderate

Employees Turnover Intention (ETI)

0.712 Substantial

Regarding the path coefficients (Hypotheses Testing), the current study used a PLS algorithm and bootstrapping techniques

embedded with Smart PLS version 3.2.8 with 5000 bootstrap samples. Fig. 3 shows the results of the structural model.

Fig. 3. Results of the Structural Model Based on P-Value

Table 6 shows the path coefficient values and e bootstrapping results for hypothesized relationships between study variables.

As indicated in Table 6, compensation had a negative direct effect on employee’s turnover intention (β = -0.130; t = 4.589; p

< 0.001), as a result, H

was supported. Performance appraisal had a negative direct effect on employee’s turnover intention

(β = -0.102; t = 2.864; p < 0.01), as a result, H

was supported. Promotion had a negative direct effect on employee’s turnover

intention (β = -0.142; t = 2.941; p < 0.01), as a result, H

was supported. Training and development had a negative direct

effect on employee’s turnover intention (β = -0.092; t = 2.628; p < 0.01), as a result, H

was supported. According to these

results, the employees in Jordanian banks sector are working in an environment with ineffective HRM practices, will respond

to such an environment by displaying the intention to leave work. Compensation is the most HRM practice that negatively

impacts an employee’s turnover intention followed by promotion, performance appraisal, and training & development respec-

tively. The current study highlighted that HRM practices caused negative emotions that affected the employee’s turnover

intention. Therefore, when employees realize that their organizations’ compensations do not commensurate with their needs

648

and desires, there are some unfair performance appraisal, promotion speeds are low, training & development programs do not

contribute to improve the job performance, they may leave work. These observations are in line with previous results (San-

thanam et al., 2017; Busari et al., 2017; Yousaf et al, 2018; Srirangam et al., 2018).

Table 6

Hypotheses Testing (Direct Effect)

No. Hypotheses Path Coefficient Standard Error T-Value

(T Statistics)

P-Value Decision

H1a COM →ETI -0.130 0.028 4.589 0.000 Supported***

H1b PA

→ ETI

-0.102 0.036 2.864 0.004 Supported**

H1c PRO

→ ETI

-0.142 0.048 2.941 0.003 Supported**

H1d T&D → ETI -0.092 0.035 2.628 0.009 Supported**

H2a COM

→ CS

0.194 0.034 5.718 0.000 Supported***

H2b PA

→ CS

0.343 0.040 8.691 0.000 Supported***

H2c PRO → CS 0.414 0.043 9.569 0.000 Supported***

H2d T&D → CS 0.179 0.037 4.865 0.000 Supported***

H3 CS

→ ETI

-0.600 0.043 14.025 0.000 Supported***

Note: ***: p<0.001; **: p<0.01

Note: 5,000 bootstrap samples

As indicated in Table 6, compensation had a positive direct effect on career satisfaction (β = 0.194; t = 5.718; p < 0.001), as

a result, H

was supported. Performance appraisal had a positive direct effect on career satisfaction (β = 0.343; t = 8.691; p

< 0.001), as a result, H

was supported. Promotion had a positive direct effect on career satisfaction (β = 0.414; t = 9.569; p

< 0.001), as a result, H

was supported. Training and development had a positive direct effect on career satisfaction (β =

0.179; t = 4.865; p < 0.001), as a result, H

was supported. According to these findings, that HRM practices of compensation,

performance appraisal, promotion, and training & development have significant positive impacts on career satisfaction. There-

fore, if organizations provided to employees’ a high compensation and benefits, fair performance appraisal based on equitable

compensation and rewards, fast promotion systems based on performance and qualifications and provide sufficient training

& development program, then we expect that to see an increase in the level of career satisfaction and employees stay longer

at work. These observations are in line with previous results (Karatepe & Vatankhah, 2015; Saxena & Rai, 2016; Hee et al.,

2016; Lee et al., 2017, 2018).

Additionally, the results showed that career satisfaction had a negative effect on employee’s turnover intention (β = -0.600;

t=14.025; p < 0.001), as a result, H

was supported. The results were consistent with those reported by previous researchers

(Chan & Mai, 2015; Chan et al., 2016; Guan et al., 2017) who highlighted that employees that have a high level of career

satisfaction may have the intention to keep working for their firms. The current study used the method of Preachers and Hayes

(2008) and recommended by Zhao et al. (2010) for mediating the necessary tests, through bootstrapping techniques embedded

with Smart PLS 3.2.8. There are two main steps to mediation test using the method of Preacher and Hayes (2008). The first

step is bootstrap for the indirect effect, which is associated with the relationships between independent variables and a de-

pendent variable via mediator. The second step is bootstrapped confidence interval (lower level and upper level). Table 9

shows the results of mediating test.

Table 7

Results of Mediating Test

Hypothesis Path a Path b

Indirect Ef-

fect

SE T-value

Confidence Interval

Decision

95% LL

95% UL

H4a

COM

→

ETI

0.194

-0.600

-0.116 0.034 -3.424 -0.183 -0.050

Partial Mediation

H4b

PA → CS → ETI

0.343

-0.600

-0.206 0.042 -4.900 -0.288 -0.123

Partial Mediation

H4c

PRO→CS→ ETI

0.414

-0.600

-0.248 0.044 -5.645 -0.335 -0.162

Partial Mediation

H4d

T&D→CS→ ETI

0.179

-0.600

-0.107 0.040 -2.685 -0.186 -0.029

Partial Mediation

Note: LL: Lower Level, UL: Upper Level

Note: 5,000 bootstrap samples

As indicated in Table 7, Career satisfaction mediates the relationship between compensation and employee’s turnover inten-

tion (Indirect Effect = -0.116, p < 0.001, LL = -0.183, UL = -0.050), as a result, H

was supported and the career satisfaction

(CS) partially mediated this relationship. Career satisfaction mediates the relationship between performance appraisal and

employee’s turnover intention (Indirect Effect = -0.206, p < 0.001, LL = -0.288, UL = -0.123), as a result, H

was supported

and the career satisfaction (CS) partially mediated this relationship. Career satisfaction mediates the relationship between

promotion and employee’s turnover intention (Indirect Effect = -0.248, p < 0.001, LL = -0.335, UL = -0.162), as a result, H

O. Aburumman et al. / Management Science Letters 10 (2020)

649

was supported and the career satisfaction (CS) partially mediated this relationship. Career satisfaction mediates the relation-

ship between training & development and employee’s turnover intention (Indirect Effect = -0.107, p < 0.001, LL = -0.186,

UL = -0.029), as a result, H

was supported and the career satisfaction (CS) partially mediated this relationship.

According to these findings, when compensation systems, performance appraisal, career promotion, and training & develop-

ment programs are satisfactory to employees and reflect the intrinsic and extrinsic aspects of career satisfaction, then employ-

ees have less turnover intention and increase their motivation at work. These findings support previous suggestions (Duarte

et al., 2015; Dechawatanapaisal, 2018; Srirangam et al., 2018).

6. Conclusions and Future Directions

The current study focused primarily on the employee’s turnover intention, through looking at factors that affect the turnover

intention, which includes HRM practices (compensation, performance appraisal, promotion, and training & development) and

career satisfaction. The current study found that HRM practices and career satisfaction had a significant negative impact on

employee turnover intentions. In addition, career satisfaction partially mediated the relationship between HRM practices

(compensation, performance appraisal, promotion, and training & development) and employee’s turnover intention.

Social exchange theory for Blau (1964) supported these relationships. The researchers stressed that this theory is based on the

principle of reciprocity, whether positive or negative, that is to say if any party makes a positive commitment, the other party

will make a positive commitment, and if any party makes a negative commitment, the other party will make a negative com-

mitment (Cropanzano & Mitchell, 2005). Therefore, if organizations provide a positive behaviour such as a high compensation

and benefits, fair performance appraisal, fast promotion systems, and sufficient training & development program; the employ-

ees will behave similarly and will commit to positive behaviours by staying longer and demonstrating a high commitment and

satisfaction.

This study was limited to four main practices which are compensation, performance appraisal, promotion, and training &

development. Therefore, future studies may include other practices such as employee empowerment, teamwork, employment

security information sharing, and job description.

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