The effect of person-organization fit and hardiness on turnover intention among graduate trainee of a private palm oil enterprise in Indonesia

Abstract

Turnover is a critical issue for companies because of its negative impact on companies, such as recruitment costs, training costs, low productivity, and operational disruption. Turnover intention has been acknowledged as the best predictor of actual turnover, hence, the importance of studying turnover intention. Most of the private palm oil enterprises in Indonesia offer trainee programs as their recruitment strategy for operational employees. Training programs are designed to help recruited fresh graduate to adapt to the company's culture and their job role. Training programs are mostly 3-6 months in length, and adapts semi-military concepts. Most of the trainees are reported to experience difficulty in following the semi-military training and adapting to the company's culture due to misfit and incapability to handle stressful situation. This study aims to measure and analyze the effect of person-organization fit and hardiness on graduate trainee's turnover intention in one of Indonesia’s Private Palm Oil Enterprises. This research uses quantitative approach with multiple linear regression analysis method. The sample size of this study is 103 graduate trainees who were taking part in the orientation training program within the enterprise. The result of study indicates there is a negative influence of person-organization fit and hardiness together on turnover intention with an effective contribution of 62.4%.