Abstract

The Indonesian military is currently faced with a situation in the colonel's career bottleneck so that there is the potential for overqualification of military employees working in government institutions. This symptom can lead to the situation of early retirement for military employees in civilian settings. As many as 157 colonels and lieutenant colonels working at the Ministry of Defense of the Republic of Indonesia were involved in a study to find out how the perceived overqualification and leader-member exchange was independently related to job satisfaction and the early retirement intention. The results show that leader-member exchange has a positive effect on job satisfaction but has positive effect on early retirement intention. Meanwhile, the perceived overqualification affects only employee job satisfaction, not on early retirement intention. Job satisfaction influences early retirement intention. Even so, leader-member exchange does have a negative effect on perceived overqualification. Policies aimed at improving the quality of subordinate superiors' relationships are needed to prevent early retirement intentions of employees who experience overqualification.

Highlights

  • Retirement within the civil service is undesirable because it leads to loss of public returns (Bonke, Kemptner, & Luthen, 2018) and has a detrimental effect on individual health (Wu, Odden, Fisher, & Stawski, 2016)

  • We propose that perceived overqualification and leader-member exchange will affect the job satisfaction of military employees, which in turn encourages them to intend to make early retirement in civilian institutions

  • This study provides an examination of the potential influence of Leader-Member Exchange (LMX) and perceived overqualification of military personnel in civil institutions to their job satisfaction and intention to retire early

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Summary

Introduction

Retirement within the civil service is undesirable because it leads to loss of public returns (Bonke, Kemptner, & Luthen, 2018) and has a detrimental effect on individual health (Wu, Odden, Fisher, & Stawski, 2016). In countries where employment as a civil servant is a job that guarantees a good future and pensions like Indonesia, public employee turnovers are rare. When these benefits are certain to be obtained, turnover intentions can manifest through early retirement. Military staff in civilian organizations can lose the motivation to work longer because of mismatch between the militaristic capabilities possessed with the civilian work environment. These capabilities can be channeled to other places if good opportunities are available such as security services

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