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Does Person-Organization Fit (P-O Fit) Mediate the Relationship Between Employee Job Satisfaction and Turnover Intention: The Case of Insurance Agents in Malaysia

Author

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  • Oscar Dousin
  • Pei Sung Toh
  • Arsiah Bahron
  • Iklima Husna Abdul Rahim

Abstract

Turnover intention is becoming a critical issue in most organization. Employees’ are leaving their job due to an alternative job offer with an attractive salary and employment benefits, supportive supervisors and a better work environment. The study examines the relationship between job satisfaction on employee turnover intention as well as the mediating effect of person-organization (P-O) fit among insurance agents in Malaysia. The study adopts a quantitative research methodology by surveying 184 insurance agents in Sabah, Malaysia in 2019. Four hypotheses were tested with validated measures of job satisfaction (pay, supervision and communication), turnover intention and person-organization fit. The study revealed that job satisfaction (pay and supervision) has a significant and negative impact to turnover intention. In addition, job satisfaction (communication in organization) has a significant and positive impact to turnover intention. However, person-organization fit found to be not significantly mediates the relationship. The study suggested that organizations should acknowledge the importance of pay, supervision and communication in organization to improving employees’ motivation and retention in organization. The three elements of job satisfaction could improve and promote harmonious and positive work environment.

Suggested Citation

  • Oscar Dousin & Pei Sung Toh & Arsiah Bahron & Iklima Husna Abdul Rahim, 2020. "Does Person-Organization Fit (P-O Fit) Mediate the Relationship Between Employee Job Satisfaction and Turnover Intention: The Case of Insurance Agents in Malaysia," International Journal of Human Resource Studies, Macrothink Institute, vol. 10(2), pages 117130-1171, December.
    • Handle: RePEc:mth:ijhr88:v:10:y:2020:i:2:p:117-130
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    References listed on IDEAS

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    1. Adriana Burlea-Schiopoiu & Laurentiu Stelian Mihai, 2019. "An Integrated Framework on the Sustainability of SMEs," Sustainability, MDPI, vol. 11(21), pages 1-22, October.
    2. Aliya Alam & Muhammad Asim, 2019. "Relationship Between Job Satisfaction And Turnover Intention," International Journal of Human Resource Studies, Macrothink Institute, vol. 9(2), pages 163-194, December.
    3. Chunjiang Yang & Qinhai Ma & Ling Hu, 2011. "Job embeddedness: a new perspective to predict voluntary turnover," Nankai Business Review International, Emerald Group Publishing Limited, vol. 2(4), pages 418-446, October.
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    Cited by:

    1. Yen Phin Ng & Oscar Dousin & Balvinder Kaur Kler, 2022. "Conceptualizing Person-environment Fit and the Meaning of Work for Tourist Guides in Malaysia During and Post COVID-19 Pandemic," International Journal of Human Resource Studies, Macrothink Institute, vol. 12(1), pages 92111-92111, December.

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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