Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)

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

Authors
Elisabet Siahaan
Corresponding Author
Elisabet Siahaan
Available Online January 2018.
DOI
https://doi.org/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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Volume Title
Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)
Series
Advances in Economics, Business and Management Research
Publication Date
January 2018
ISBN
978-94-6252-470-5
ISSN
2352-5428
DOI
https://doi.org/10.2991/ebic-17.2018.67How to use a DOI?
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/).

Cite this article

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  - https://doi.org/10.2991/ebic-17.2018.67
ID  - Siahaan2018/01
ER  -