Environment and Social Psychology

Psychological perspective: The effect of job satisfaction as a mediating variable on turnover intention in the banking sector

Roy Ban Boon Hwei

Graduate School of Management, Post Graduate Centre, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, Selangor, 40100, Malaysia

Aimi Anuar

Faculty of Business Management and Professional Studies, Management and Science University, University Drive, Off Persiaran Olahraga, Section 13, Selangor, 40100, Malaysia

DOI: https://doi.org/10.59429/esp.v10i1.3374

Keywords: Human resource management (HRM), performance evaluation (PE), training and development (TD), reward (RE), job satisfaction (JS), turnover intention (TI), banking sector

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Abstract

The purpose  of this  study  is to  investigate the  importance  of job  satisfaction  as  a  mediator between  human resource management (HRM) practices and turnover intention in the banking sector. Data was collected through a self- administered questionnaire, yielding 422 valid responses, which were analyzed using SPSS and SmartPLS to assess both  direct  and  mediating  effects.  The  results  identified  significant  associations  between  performance  evaluation, reward, and job satisfaction, while the association between training and development initiatives and job satisfaction was not significant. Specifically, the study indicated that performance evaluation, training and development, reward, and job satisfaction all have significant relationships with turnover intentions. Furthermore, job satisfaction was identified as a critical mediator in the relationships between performance evaluation, reward, and turnover intention. The findings highlighted the significance of enhancing job satisfaction and provide valuable insights into the intricate relationships between performance evaluation, training and development, rewards, job satisfaction, and turnover intention within the banking sector. This study contributed to the human resource management literature within the context of the banking sector   and   offers  practical   implications   for  researchers,   organizational   leaders,  managers,   and  policymakers. Policymakers  and  organizational  leaders  can  leverage  these results to  inform the  development  of human  resource policies, while human resource managers should implement comprehensive strategies to foster employee satisfaction. Overall, the findings presented important implications for refining human resource management practices aimed at improving employee satisfaction and retention within the banking sector.

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