How Salary and Supervision Affects Turnover Intention Through Job Satisfaction the Case of Industrial Zone Located in Ethiopia

Mulugeta Girma Dibiku ()
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Mulugeta Girma Dibiku: Dire Dawa University College of Business and Economics

Journal of Human Resource Management, 2023, vol. 26, issue 1, 12-22

Abstract: Purpose – Industrial parks face shortage experts, and it is important to examine the factors that influence turnover intention among experts working in the industrial parks. Low salary and supervision may lead to employee dissatisfaction and a significant inverse relationship between job satisfaction, including subsequent effects on turnover among employees working in the industrial parks. However, little or no study was done on the mediating role of job satisfaction and turnover intention among industrial park workers in Ethiopia industrial parks considering supervision and salary as independent variables. Aim - This study examine the mediating effects of job satisfaction on turnover intention among employee of industrial parks located in the eastern part of Ethiopia. Design/methodology/approach – A cross-sectional survey design employed by including 400 sample in the study. SEM based PLS were used to examine the mediating effect of job satisfaction between salary, supervision and employee turnover intention. Findings: This study showed that job satisfaction significantly mediated the relationship between salary, supervision and turnover intention. 19.4 percent of the variance in turnover intention explained by salary whereas, 66.6 percent of the variance caused by supervision. The mediation pathway accounted for 41.6 percent of the variance between the independent and dependent variables. Significant relationship between pay, supervision and job satisfaction of workers at the industrial park. It is imperative to state unequivocally that, satisfied workers perform more efficiently, are more committed, and desire to work with their respective. Organizations for a lifetime. Efforts should therefore be made to enhance the workers’ satisfaction with their job. Implications for nursing management - This study provides industrial park administrators with a resource to build a supportive environment to increase employees job satisfaction and to decrease turnover that affects overall productivity of the sector at regional level.

Keywords: job satisfaction; salary supervision; turnover intention (search for similar items in EconPapers)
JEL-codes: O15 (search for similar items in EconPapers)
Date: 2023
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