Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia

Research Article

Psychological Contract, Employee Engagement, and Perceived Organizational Support Influence on Employee Turnover Intention in Pharmaceutical Industry

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  • @INPROCEEDINGS{10.4108/eai.27-7-2021.2316894,
        author={Marsha Grasiani Hadiana Putri and Riani  Rachmawati},
        title={Psychological Contract, Employee Engagement, and Perceived Organizational Support Influence        on Employee Turnover Intention in Pharmaceutical Industry},
        proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2022},
        month={3},
        keywords={psychological contract employee engagement perceived organizational support employee turnover intention pharmaceutical industry},
        doi={10.4108/eai.27-7-2021.2316894}
    }
    
  • Marsha Grasiani Hadiana Putri
    Riani Rachmawati
    Year: 2022
    Psychological Contract, Employee Engagement, and Perceived Organizational Support Influence on Employee Turnover Intention in Pharmaceutical Industry
    ICE-BEES
    EAI
    DOI: 10.4108/eai.27-7-2021.2316894
Marsha Grasiani Hadiana Putri1,*, Riani Rachmawati1
  • 1: Universitas Indonesia
*Contact email: marsha.grasiani@ui.ac.id

Abstract

Employee turnover still remains as a chronic problem in an industry and even worsens because of global pandemic. Turnover intention can be used to understand actual turnover. This study aims to measure effect of psychological contract and employee engagement out of a number of organizational behavior factors which have been identified as crucial driver on employee turnover intention and using organizational support theory, perceived organizational support which has been recommended to strengthen each factors relation in employee’s behavior in a Pharmaceutical – Health Service Firm. The study used a cross-sectional and analysis is based on sample of 335 Pharmaceuticals Professionals collected using online questionnaire. Data was analyzed using AMOS - Structural Equation Modelling. This study has identified significant relationship between psychological contract, employee engagement to turnover intention. There exists positive influence of psychological contract on employee engagement and negative influence on turnover intentions while employee engagement partially mediated its relationship. Based on findings, perceived organizational support proven significantly moderating relationship of employee engagement that employees who perceived higher organizational support will increase employee’s engagement to the company and reduce their turnover intention.