Satisfaction matters: the relationships between HRM practices, work engagement and turnover intention

Abstract

PurposeThis study aims to examine the impact of employees' satisfaction with human resource management (HRM) practices (i.e. training satisfaction, performance appraisal satisfaction and pay satisfaction) on work engagement and subsequently employee turnover intentions. The mediating role of work engagement between employee satisfaction with HRM practices and turnover intentions is also assessed.Design/methodology/approachData were collected from Malaysian oil and gas (O&G) professionals. A total of 442 useable questionnaires were obtained for the final data analysis. Partial least squares structural equation modeling (PLS-SEM) was performed to test the hypothesised relationships.FindingsThe findings indicate that training satisfaction and performance appraisal satisfaction are the key drivers of employee engagement at work. Work engagement in turn has a negative impact on employee turnover intentions. Furthermore, work engagement mediates the relationship between employees' satisfaction with HRM practices (i.e. training satisfaction and performance appraisal satisfaction) and turnover intentions. Nevertheless, it did not have any mediating effect on pay satisfaction and turnover intention.Practical implicationsTraining plans should be designed to make the relevant jobs more attractive and fulfilling, thus increasing employees' level of work engagement. Besides, ensuring that the appraisal system is fair is pivotal to work engagement. Work engagement will cultivate a strong sense of emotional attachment between employees and employers, thus reducing the turnover intention of Malaysian O&G professionals.Originality/valueTo date, little has been done on employees' satisfaction with HRM practices with respect to their attitudinal and behavioural outcomes. The present study enhances our understanding of the importance of employees' satisfaction with HRM practices and its relation to employees' work engagement and turnover intentions.