Organization Culture and Employee Experience:

Do They Affect Job Satisfaction and Turnover Intention?

DIENA DWIDIENAWATI1*, LILIAN ANGELA JATMIKO1, REIVIKA NINGTYAS DEWANTI1,

DYAH GANDASARI2

1Business Management,

BINUS Business School,

Jakarta,

INDONESIA

2POLBANTAN BOGOR,

Bogor,

INDONESIA

*Corresponding Author

Abstract: - The current existence of Gen Z, who just entered the workforce, is closely connected with high

turnover in the organization. The relationship of employee experience to turnover intention is still inconsistent.

This study aims to determine the impact of Positive Organizational Culture, Employee Experience, and Job

Satisfaction on Turnover Intention. The quantitative research method is conducted, with a 354 sample of

employees from Generation Z (born 1995-2012). The results of data processing using the Partial Least Square –

Structural Equation Model (PLS-SEM) showed that Positive Organizational Culture and Employee Experience

have a positive significant effect on Job Satisfaction. This study also showed the direct effect of Positive

Organization Culture on Turnover intention but failed to show the direct effect of Employee Experience on

Turnover intention. This study confirmed the relationship of Job Satisfaction to Turnover Intention.

Key-Words: - Employee Experience, Indonesia, Gen Z, Job Satisfaction, Positive Organizational Culture,

Turnover Intention

Received: May 2, 2023. Revised: September 10, 2023. Accepted: October 13, 2023. Available online: November 17, 2023.

1 Introduction

A company’s competitive advantages can be created

from human resource practice initiatives. This

initiative is often overlooked. Human capital is

important as a competitive advantage because of

human involvement and thinking that can be a

differentiator in every company, [1]. The study, [1],

also explained that Human Resources (HR) is a True

Sustainable Competitive Advantage. This can be

interpreted to mean that employees are assets of

competitive advantage that are difficult for

competitors to imitate, [2]

One challenge in HR is the high rate of turnover

rate. The study, [3], revealed that the high turnover

in the company is considered a serious problem. It is

said that a high turnover rate hurts the level of work

efficiency, work productivity, organizational

performance, and customer satisfaction. The study,

[4], argues that the high turnover rate of a company

also poses a new challenge for the company, namely

the difficulty of replacing employees with high

work performance who leave the company. It was

added by, [3], [4], that employee turnover in

organizations is rated as expensive and negatively

affects the quality of the organization's products or

services. This identifies that a high Turnover

Intention is an important threat that has a significant

impact on a company, [4].

Today, the post-Millennial Generation also

known as Gen Z has just entered the labor market.

This group of Gen Z is people born between 1995 –

2015 who are currently starting to be found as new

employees who meet the company. Gen Z is often

considered a population that has differences from

previous generations because of differences in

cultural practices and values, [5], [6].

Sourced from a survey conducted by Deloitte on

Gen Z & Millennials, [7]. The survey revealed that

Gen Z has a much higher percentage rate of leaving

the organization in less than 2 years, which is 40%

compared to Millennials who are only 24%. The

preliminary research of 100 respondents was

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conducted to find out the reasons for the high

turnover intention rate of Gen Z. The Top 5 reasons

for leaving the workplace were organization culture,

benefits, career development, workload, and

leadership. In addition to that, the preliminary study

also confirmed that a bad employee experience

could cause them to want to leave the company.

Studies on organization culture, benefits, career

development, workload, and leadership to turnover

intention have been studied extensively. The studies,

[8], [9], [10], showed that Leadership, Work-Life-

Balance, and the overall work environment is

related to Organizational Culture influenced

turnover intention. The study, [10], also confirmed

the relationship of organizational culture to turnover

intention. Research conducted by [4], says that a bad

organizational culture can cause employees to leave

their workplaces. In, [11], the authors have shown

that Job Satisfaction is significantly a mediator

between Organizational Culture and Turnover

Intention. Meanwhile, Employee Experience is a

variable that has not been widely studied for its

effect on turnover. From limited research, it was

found that Employee Experience can cause

turnover, [12], [13].

The advancement of technology has made it

enable to evaluate employee experience at every

touch point. Therefore, there is an argument that

employee satisfaction is no longer enough, [14].

Employee Experience will be more important to

employee performance and retention. However,

whether Employee Experience has a greater impact

on job satisfaction, or even job satisfaction has a

mediated role, is still not extensively study.

This study aimed to confirm the impact of

organizational culture and employee experience

directly on turnover intention and indirectly through

job satisfaction. This study contributes to extending

the body of evidence on employee experience which

currently is still have limited publication.

2 Literature Review

2.1 Theory Planned Behavior (TPB)

A person's decision to take action to leave an

organization is based on the existence of intention

which is the strongest factor that drives someone to

take this action. In this case, Theory Planned

Behavior (TPB) can be used as the applied theory to

explain a person's intentions or behavior in actions

related to Turnover Intention. TPB is a

psychological theory related to attitudes, intentions,

and behaviors. This theory is the expansion of taken

from the Theory of Reasoned Action (TRA) by

Fishbein & Ajzen in 1975, [15]. TRA explained that

attitudes and norms are the main factors that

influence a person's behavioral intentions. The

"norms" factor refers to social pressures that

encourage or hinder a person from engaging in a

particular behavior, while "attitude" refers to a

person's assessment of behavior. According to

Ajzen, TPB is described as the intention to perform

or influence certain behaviors as the main predictor

of a person's actions, [16]. A person's intentions or

behaviors in the TPB cannot be fully predicted by

himself but rather influenced by other factors. This

factor is unwittingly one of the main factors that

encourage a person to have intentions other than

attitudes and norms, namely Perceived Control

Behavior. A person's behavioral intentions are

influenced also by factors such as talents and

resources as a control of perceived behavior, [15].

2.2 Turnover Intention

Turnover Intention is defined as the process that a

person goes through when considering quitting an

organization, [10]. According to, [4], Turnover

Intention is interpreted as a prediction that an

employee makes regarding how long he will work

within the company. Turnover Intention is a form of

manifestation of the possibility that a person will

change his job in a certain period, [10]. So, it can be

concluded that Turnover Intention is a desire of an

employee to move or leave the company where they

work.

Turnover Intention is influenced by several

factors such as employee satisfaction, compensation

& rewards, Organizational Culture, job security,

training, and development of the work environment,

[10]. The study, [11], revealed that the occurrence

of Turnover Intention is triggered by unexpected

events that cause employee dissatisfaction. The

study, [17], has identified cultural factors that

encourage and prevent Turnover Intention, namely

Organizational Learning Culture, Team-Oriented

Cultures, and Cultural Change to the Absence of

Culture.

2.3 Positive Organizational Culture and

Turnover Intention

Organizational Culture is generally defined as a way

of doing things in an organization and is based on

the idea of symbolic interaction between individuals

in a social environment, [11]. In the study, [4], the

authors are illustrating Organizational Culture as a

set of beliefs, norms, and values that guide the

thinking and actions of employees in the

organization. In, [10], the authors are interpreting

Organizational Culture as typical organizations,

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habits, prevailing attitudes, and patterns of behavior

that adults accept and expect. Therefore,

Organizational Culture can be defined as a

collection of traits, values, actions, or interactions

formed between employees who are in one

company.

Organizational culture has been studied

expensively. The study, [18], reveals that the

beliefs, norms, and values involved in

Organizational Culture affect employee behavior to

Turnover Intention in the organization. In contrast,

[17], added that a high turnover intention rate

directly hurts Organizational Culture. Studies from

[4], [19], stated that Organizational Culture is very

important because it can affect the employees’

performance. Organizational culture has been

studied to influence change management in

organizations, [20], at the same time it is influenced

by Transformational leadership, [20].

Organizational culture also affects employee

commitment.

Positive organizational culture will result from

positive impact and vice versa. A study from, [10],

in South Africa showed that there was a positive

direct relationship between positive organizational

culture with Turnover Intention. In, [11], the study

also showed similar results in the relationship

between positive organizational culture to turnover

directly and indirectly through Jobs. The impact of

positive organizational culture on turnover intention

is also suggested from the studies of, [4], [19].

H1: Positive Organizational Culture negatively

and significantly affects Turnover Intention

2.4 Positive Organization Culture, Job

Satisfaction, and Turnover Intention

Job Satisfaction is defined as an employee's

emotional and cognitive reaction to their work in the

company, [21]. Meanwhile, according to, [22], Job

Satisfaction is a positive state of emotion obtained

from work or employee experience evaluation. This

statement is in line with, [23], that Job Satisfaction

is a complex emotional response to a job. In

conclusion, Job Satisfaction can be interpreted as a

level of satisfaction that an employee feels towards

the work he does.

The study, [21], states that several factors affect

Job Satisfaction such as work stress, work

conditions, role conflicts, organizational

environment, and others. Meanwhile, [23], Job

Satisfaction affects Employee Engagement, training

programs, fair payments, social assistance, and

Work-life Balance. Job Satisfaction has an impact

on Organizational Commitment and Turnover

Intention, [22].

The study, [11], in 2017 conducted research on

the influence of Organizational Culture mediated by

Job Satisfaction on Turnover Intention. The results

showed that Organizational Culture significantly

positively affects Job Satisfaction. Another study

from, [24], in 2019 also found that Organizational

Culture significantly positively affects Job

Satisfaction.

The study, [22], conducted a study on the use of

social media that had an impact on Job Satisfaction

and Turnover Intention. The results revealed

Satisfaction and a negative impact on Turnover

Intention. The study, [23], the study also showed a

negative relationship between Job Satisfaction and

Turnover Intention. [25], the study showed similar

results. This study has the result that Job

Satisfaction is inversely proportional to Turnover

Intention.

H2: Positive Organizational Culture positively

and significantly affects Job Satisfaction

H3: Job Satisfaction negatively and significantly

affects Turnover Intention

2.5 Employee Experience, Job Satisfaction,

and Turnover Intention

The study, [26], stated that Employee Experience is

a set of thoughts that employees have about their

work experience in reaction to contracts with

organizations. The study, [27], stated that Employee

Experience refers to a person's overall perception of

their interaction with their entire journey with their

workplace organization. In the same way, [26],

illustrates Employee Experience as an organization's

comprehensive approach to identifying workplace

practices to drive a better customer experience.

From this understanding, it can be concluded that

Employee Experience is a way for an employee to

process all interactions and learnings obtained while

working in a company.

Employee Experienced is still not well studied,

especially turnover intention. The study, [28],

showed that Employee Experience influences the

attitudes and behaviors of focused employee levels

such as Organizational Commitment. This is in line

with the opinion that the purpose of Employee

Experience is to create and maintain a workforce

that exceeds expectations. By paying attention to

Employee Experience, an organization can

understand its workforce better and allow

employees to participate in making a high

contribution to an organization, [26].

The study, [29], conducted research on

Employee Experience on 231 HR professionals

working in companies with more than 1000

employees and revenues of more than US$500m.

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Although not directly related to Turnover Intention,

it is known that Employee Experience is related to

Employee Engagement and Employee or Job

Satisfaction. Based on this understanding, it can be

illustrated that Employee Experience in the

company can increase the level of employee loyalty

in the company which can have an impact on

Turnover Intention. PwC in 2022 conducted a study

on Investing in Employee Experience in reducing

absenteeism and Turnover rates. It was revealed that

investing in Employee Experience in the company

can save expenses up to 12.6% of revenue and

increase company productivity which has an impact

on reducing the level of absenteeism and turnover.

H4: Positive Employee Experience positively and

significantly affects Job Satisfaction

H5: Positive Employee Experience negatively

and significantly affects Turnover Intention

3 Methods

3.1 Design and Procedure

The design of the method used is descriptive

quantitative study is a set of assumptions that are

organized and produce predictions that can be

tested. From the development of specific

hypotheses, testing can then be carried out by

making observations of the theory to confirm the

theory used.

The data collecting method used in this study is

the survey method using a questionnaire as an

instrument. There were 4 parts of the questionnaire:

(1) The initial section containing a description of the

research being carried out and the terms regarding

the privacy of the study; (2) The screening questions

that ensure participant consent and fit the study

design (Gen Z and employee) (3) Demographic

information of respondents; and (4) questions

related to variables.

3.2 Measurement

The measurement of variables was referred to in the

previous study. Organization Cultured was

measured by 9 items modified from, [4]. Employee

Experience was measured by 12 items modified

from, [30]. Job satisfaction was measured by 3

items modified from, [22]. The turnover intention

was measured by 3 items modified from, [22]. The

operational variable of the study was depicted in

Table Appendix 1. Six-item Likert scale is used to

test how strongly respondents agree or disagree with

the statement posed on the questionnaire. Even a

number scale was used to avoid center tendency,

[31].

3.3 Population and Sample

The population specified in this study is working

Gen Z (born in 1995 – 2012). The study, [32], stated

that number of the sample can be calculated by the

rule of thumb which is the minimum sample size

equal to ten times the number of indicators.

Therefore, the number of minimum samples of this

study was 270 respondents.

3.4 Data Analysis

The data analysis technique used in this study is

Partial Least Square (PLS). The analysis of the PLS

program is divided into two parts, namely the

analysis of the measurement model and the analysis

of the structural model. Measurement model

analysis aims to measure the validity and reliability

of the indicators. Validity was measured by outer

loading, AVE, and HTMT. Reliability was

measured by Cronbach’s alpha and Composite

Reliability. As structural model analysis is carried

out to show the interrelationships between latent

variables in the form of a structured model (R2, F2,

Q2, Good Fit, Path Coefficient, and T-test), [32].

4 Result

There were 453 questionnaires returned. After

screening based on the study criteria (completeness

and consistency), only 354 questionnaires can

undergo further analysis. The respondents were

female (48%), male (50%), and preferred not to

answer (2%). Most of them hold bachelor’s degrees

(81%) followed by High School (12%), others (4%),

and master's degrees (3%). Respondents currently

work in the HR (12%), Finance (8%), Marketing

(21%) divisions, and others, such as manufacturing,

sales, and entrepreneurship (59%). Most of the

respondents (52%) have worked for less than 1 year,

followed by (43%) worked for 1 – 5 years, and (5%)

worked for more than 5 years. For Positive

Organization Culture, Employee Experience, and

Job Satisfaction, the mean value was more than 4. It

meant respondents agreed that they have a Positive

Organization Culture, a good Employee Experience,

and good Job Satisfaction. As for turnover, the

mean value was 3.42. It meant that respondents

slightly disagreed that they had the intention to

leave.

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4.1 Measurement Model Analysis

Convergent Validity was tested using outer loadings

and AVE with an expected number of outer loadings

greater than 0.708, and an expected number of AVE

over 0.50. Based on the outer loadings table in the

first test results, three indicators were found to be

unfit or invalid. Variable values that are considered

invalid or unfit have a value of >0.708. The

indicators are EE10, EE3, and OC6 respectively

with a sum of 0.444 each; -0.673; and -0.681 which

amounts to lower than 0.708. Therefore, all three

indicators were removed and retested. From the

results of the second outer loadings test, it can be

concluded that all indicators have met the

requirements (>0.708). The AVE value was more

than 0.5. HTMT tests above, it can be judged that

the HTMT value has qualified, which is below 0.90.

For reliability, Composite Reliability and

Cronbarch's Alpha measurements are used with each

value must be more than 0.70 (Table 1). All

variables met the criteria. Therefore, it can be

concluded that all variables were reliable.

Table 1. Reliability Test

4.2 Structural Model Analysis

R2 analysis showed that variables tested affected Job

Satisfaction variables by 61.4% (medium) and

Turnover Intention variables by 33.8% (weak).

From the evaluation of f2, it can be concluded that

the effect size of Positive Organization Culture on

Job Satisfaction, and Employee Experience on Job

Satisfaction is small. This is because the value of f2 is

greater than 0.02 and smaller than 0.15. The effect

size of Positive Organization Culture on Turnover

Intention and Employee Experience to Turnover

Intention was considered to have no effect because

its f2 was smaller than 0.02. The effect size of Job

Satisfaction on Turnover Intention was small with

an f2 value of 0.082.

The Fit Model was measured with NFI. The result

showed the NFI figure was 0.843 and it can be

stated that 84.3% of the model is fit. The path

coefficient is shown in Table 2. The path coefficient

showed that Employee Experience and Positive

Organization Culture have positive relationships

with Job Satisfaction. All variables (Employee

Experience, Job Satisfaction, and Positive

Organization Culture) have negative relationships to

Turnover intention. Employee Experience showed a

greater influence compared to Positive Organization

Culture. Job Satisfaction showed the greatest

influence on Turnover Intention compared to

Employee Experience and Positive organizational

culture.

Table 2. Path Coefficient

EE

JS

OC

TOI

EE

0.444

-0.055

JS

-0.375

OC

0.372

-0.192

EE: Employee Experience; JS: Job Satisfaction;

OC: Organizational Culture; TOI: Turnover Intention

4.3 Hypothesis Testing

Table 3 showed the coefficient and the significance

of the relationship.

Table 3. Hypothesis Testing

T-Stat

P-value

Coefficient

Result

H1:

OC TOI

1.773

0.038

-0.192

Supported

H2:

OCJS

3.589

0.000

0.372

Supported

H3:

JSTOI

4.236

0.000

-0.375

Supported

H4:

EEJS

4.355

0.000

0.444

Supported

H5:

EEIT

0.459

0.323

-0.055

Rejected

5 Discussion

Positive Organizational Culture has a negative and

significant influence on Turnover Intention. The

results of this study are aligned with the previous

study such as, [4] [10], [11], [17], [19]. This study

has added evidence that Positive Organizational

Culture has a positive and significant relationship

with Turnover Intention. This study also found that

Positive Organizational Culture has a positive and

significant influence on Job Satisfaction which is

aligned with the study from, [11], [24]. This study

also showed that Employee Experience has a

positive and significant influence on Job

Satisfaction. This result aligns with studies from,

[29], [33]

Positive Organization culture which includes

organizational adaptability, customer focus,

innovation, collaboration, and transparency is

shown in this study to be a significant factor for Gen

Z to gain job satisfaction and also to consider

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staying in one organization. Gen Z is known to

value transparency, innovation, respect, and

collaboration.

Positive organizational culture fosters a

conducive work environment, builds trust among

members of the team, and creates collaboration. A

good environment and support system will enhance

satisfaction and performance which will lead to low

turnover intention. Studies such as from, [17],

showed that autocratic leadership style and hostile

organizational culture made employees want to

leave the organization.

However, this study failed to show a negative

relationship between positive employee experience

to turnover intention. This study showed that

Positive Employee Experience has a negative and

insignificant influence on Turnover Intention. This

did not align with previous studies from, [29], [34].

This result can be explained by several arguments.

Employee Experience itself is a variable that is

still not extensively studied. Employee Experience

borrows the concept from Customer Experience,

which has been extensively researched. According

to, [35], Employee Experience and Customer

Experience are interconnected chains of experiential

benefits that generate human experiences. To

explain the positive significant relationship, due to

the limited research on Employee Experience,

studies on Customer Experience are utilized.

According to, [36], in their journal discussing the

role of brand experience and affective commitment

in determining brand loyalty, the results show that

there is no direct relationship between customer

experience and customer loyalty, but it is mediated

by the affective commitment of customers. Through

this concept, the possible conclusion explained is

that since experience has several aspects (cognitive,

affective, and sensory), not all aspects are directly

and significantly related to loyalty. Instead, they are

mediated by the affective commitment variable.

There is also a study by, [37], that states that

customers highly value the ability of an application

to entertain and satisfy them in an appealing way

within a shopping application. This is evidenced by

satisfaction with the application, which can impact

not only the customer's experience with the

application but also with the seller. The study found

that not all variables of customer experience

(cognitive, affective, and sensory) are related to

loyalty but are mediated by customer satisfaction. It

is shown that there is a direct and significant

relationship between cognitive and affective

customer experiences and customer loyalty, but

there is an indirect relationship between sensory

experience and customer loyalty.

6 Conclusion

Organizational culture has been studied extensively

in influencing both job satisfaction and turnover

intention. This study confirms the effect of positive

organizational culture on job satisfaction and

turnover intention. This study adds the body of

evidence on the effect of organizational culture on

the organization. However, this study shows that

the effect of employee experience is not directly to

turnover intention through job satisfaction. This

study strengthens the evidence that the relationship

of employee experience is mediated by Job

Satisfaction.

6.1 Research Limitations and Further

Research

Based on the results of the research that has been

carried out, several obstacles and challenges must be

considered for future research. The limitations of

this study are as follows. There are limitations to

finding sources regarding the Employee Experience

variable because it has not been studied much in its

effect on turnover. So, subsequent researchers

should be able to increase efforts to search from

other sources. This research was conducted with a

quantitative research design. Therefore, it is

advisable for subsequent research to conduct

research with a qualitative research design to be able

to obtain deeper information about the factors of

turnover intention.

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APPENDIX

Appendix 1. Operational Variable

Variable

Definition

Code

Indicators

Reference

Organizational

Culture

According to

Davoodalmousavi in

[4] illustrating

Organizational

Culture as a set of

beliefs, norms, values

that guide the thinking

and actions of

employees in the

organization.

OC1

The environment in which I work is open to various changes.

Modified

[4]

OC2

The environment in which I work is able to anticipate the

needs and desires of consumers.

OC3

The environment in which I work provides many

opportunities to innovate, learn new knowledge, and develop

capabilities for workers.

OC4

The environment in which I work has a clear plan for

achieving the company's goals.

OC5

The environment in which I work has a clear role and duties

for each of its employees so that it can contribute to the

company.

OC6

The environment in which I work does not have shared

values. (R)

OC7

The environment in which I work is open to all the issues at

hand and is willing to resolve them together despite the many

differences.

OC8

The environment in which I work has a good level of team

reconciliation.

OC9

The environment in which I work has good team

collaboration between functions and units to achieve a

company goal.

Employee

Experience

Employee Experience

refers to a person's

overall perception of

their interactions

throughout the

journey with their

workplace

organization, [27]

EE1

I found out what was expected of me at work.

Modified

from [30]

EE2

I have all the necessary necessities to do my job properly.

EE3

I wasn't given the opportunity to do my best every day at

work. (R)

EE4

I receive recognition or praise for having done a good job.

EE5

I receive the attention given by superiors and co-workers

where I work.

EE6

I received positive encouragement from my co-workers

where I worked.

EE7

I get the opportunity to give opinions at work.

EE8

I feel like my job is important because I know the mission

and goals set where I work.

EE9

My colleagues and I are committed to doing the job

optimally.

EE10

I have a best friend at work.

EE11

I received praise related to the progress I had made in the last

six months from my co-workers.

EE12

I have the opportunity to learn and grow where I work.

Job

Satisfaction

According to Huang

et al., in the journal

[38]Job Satisfaction is

defined as an

employee's emotional

and cognitive reaction

to their work in the

company.

JS1

I feel very satisfied with my current job.

Modified

from [22]

JS2

I get inner satisfaction from the work I'm doing right now.

JS3

I feel satisfied with what I'm working on right now.

Turnover

Intention

According to Son

[10], Turnover

Intention is defined as

the process that a

person goes through

when considering

quitting an

organization.

TI1

I often think about quitting my job.

Modified

from [22]

TI2

I will probably find a new job in the next year.

TI3

I didn't think about quitting my job. (R)

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DOI: 10.37394/23207.2024.21.18

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The authors equally contributed in the present

research, at all stages from the formulation of the

problem to the final findings and solution.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

This study is partially funded by Bina Nusantara

University.

Conflict of Interest

The authors have no conflict of interest to declare.

Creative Commons Attribution License 4.0

(Attribution 4.0 International, CC BY 4.0)

This article is published under the terms of the

Creative Commons Attribution License 4.0

https://creativecommons.org/licenses/by/4.0/deed.en

_US

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211

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