Employees’ Turnover Intention in the Construction Industry in Indonesia

Abstract

Employee turnover costs pose a big challenge for many companies. Studies show that employee turnover can cost about 20% of the salaries in hiring, training and lost productivity, although estimates give much higher figures. Therefore, company management must have a strategy in terms of retaining employees to avoid the desire of moving (turnover intention) from the company. This study aims to analyse the turnover intention of construction employees by extending the planned behaviour model’s theory. The research method used is a survey method with a quantitative descriptive approach. The population in this study are employees who work in construction companies in Indonesia. The sampling method using a non-probability sampling technique, namely using a convenience sampling technique is employed in the current study. A questionnaire was used to collect data from 197 respondents. The data were collected and analysed using structural equation modelling (SEM) techniques, using maximum likelihood estimation with covariance matrix as the input with Amos 24 software. The results indicated that attitude and perceived behavioural control had a positive and significant effect on turnover intention. In contrast, subjective norm had a positive but not significant effect on turnover intention. Subjective norms indirectly had a significant effect on turnover intention through attitude and perceived behavioural control.