Authors : Rohani Salleh and Mumtaz Ali Memon
Abstract: The issue of voluntary turnover is a global phenomenon that hampers the strategic objectives of organizations and a hindrance to achieving high level of productivity and efficiency in business operation. Past studies have indicated that employees’ satisfaction with their pay can be a key factor that may assist organizations to increase the likelihood of a long stay of their skilled workers. Although, research has empirically revealed a negative relationship between pay satisfaction and employees’ intention to leave, studies on the role of a mediator between the former and the latter are rather limited. As a contribution, the present paper theoretically conceptualizes the role of employee engagement as a mediator between pay satisfaction and voluntary turnover. Drawing on social exchange theory, it is suggested that employees’ satisfaction with their pay will develop a sense of fairness and being valued which consequently will lead to positive attitudinal and behavioural outcomes such as high level of engagement. Consequently, highly engaged employees will less likely involve in voluntary movements. The recommendations for future studies are also proposed.
Rohani Salleh and Mumtaz Ali Memon, 2015. A Review on the Effects of Pay Satisfaction on Employee Engagement and Turnover: A Proposed Mediating Framework. International Business Management, 9: 344-348.