The Impact of Employee Engagement and Employee Motivation on

Employee Turnover Intention and the Mediating Role of Organizational

Commitment

MERLIN, PANDE KETUT TAMARA ARDHANARESWARI, YOVITA HASTIKA,

ABDUL ROHMAN

Department of Management,

examining the role of Organizational Commitment (OC) in mediating the relationship between Employee

Engagement (EE) and Employee Motivation (EM) toward TI. This study is designed as quantitative research

that surveyed 105 employees using online questionnaires in the Sales Marketing division of Fast Moving

Consumer Goods (FMCG) companies in the Jabodetabek area, Indonesia. SmartPLS 3.0 was used to analyze

the data to obtain the SEM model form and hypothesis outcomes. This study found that EE had an insignificant

positive effect on OC, while EM had an insignificant negative effect on OC. This study also remarkably found

that OC did not serve the role of mediating the relationship between EE on TI and EM on TI. However, the

study has revealed that EM and OC have a significant negative effect on TI, while EE has a significant positive

effect on TI. In conclusion, these existing results indicate that, besides these three variables, other variables

may affect TI in FMCG industrial organizations.

1 Introduction

COVID-19 pandemic has accelerated three trends

among employees in terms of the pursuit of

meaning, the desire for flexibility, and the speed of

technological transformation, which has enabled

hybrid and virtual working but has also

fundamentally changed jobs and the skills required,

[1]. A study conducted by McKinsey discovered

that within the next six months, several employees

resignations and retirements is known as the great

resignation. Dr. Anthony Klotz first coined the term

Great Resignation, referring to the estimated

number of employees leaving their jobs during or

towards the end of the pandemic. Klotz argued that

individual awareness has increased due to the

pandemic, especially about family time, remote

changes due to the pandemic, ranging from

difficulties in obtaining candidates, challenges

related to retention, flexibility, and hybrid working,

and problems from external pressures related to the

competition to acquire high-quality talents, [5].

TI reflects the withdrawal behavior and the

encouragement of employees' awareness to leave

the organization shortly, [6]. When an organization

is aware of the risk of the intention to resign among

to join the company.

Organizations will be more successful with

engagement among employees and can improve

business performance when organizations treat

employees as stakeholders for their future and

organizations. It means focusing on actual

management performance activities such as

clarifying job expectations, giving directions to

employees about what they need to do with their

work, providing professional and career

work, [7].

About 81% of employees surveyed had an

engagement, and 19% had no engagement.

Employees who do not engage tend to perform

poorly, actively seek other jobs, and say bad things

about the management or organization in which

they work, [8]. This research, [9], shows the

achievements Caterpillar can make as a

manufacturer of assembly construction equipment

due to EE that can save about $8.8 million in cost

employees are committed to the organization, it will

result in low turnover levels, increase EM, improve

the organization, and provide sustainable support,

[13]. OC is critical in determining more value in the

organization, and increasing EM and EE, [10].

Employee turnover within an organization is

considered normal. However, it should be noted that

if the organization involves its employees, the

attachment to the organization), (2), continuance

commitment (reflects the need to stay due to the

calculation of costs and benefits or economic

benefits obtained from the organization), (3),

normative commitment (the employee's feeling of

responsibility or 'obligation' to the organization due

to the implementation or appreciation of the loyalty

norms given by the employee to the organization),

[27].

motivated employees tend to have higher levels of

OC and less desire to resign. EM will contribute to

an increase in OC and reduce the level of TI.

Neutral, 4 = Agree, 5 = Strongly Agree, which

describes the level of respondent agreement with the

statements in each variable measuring instrument.

with an age range of 24-40 years and a minimum

3.3 Data Analysis

Based on the data collection methods and variable

measurements above, it is known that this research

is a Structural Equation Model (SEM) modeling,

that EE and EM are independent variables, and OC

as a mediator variable that mediates the influence of

EE and EM on TI as the dependent variable.

Therefore, this study used the PLS-SEM approach

to examine the validity and reliability of research

Most extended working experience ranges from

to the second criterion, the AVE value is >0.5.

Table 2 shows the results of AVE for each

dimension and variable. The AVE value is above

0.5, meaning all constructions qualify for

convergent validity based on outer loading and

AVE.

Several methods for discriminant validity testing

were employed, the Fornell Larcker results were

presented, considered the most accurate test. Table

3 shows the Fornell Larcker ratios for all variables.

from Cronbach's Alpha and composite reliability

with a minimum limit of 0.7. If we look at the

available data, everything already meets the

minimum limits that have been set.

4.5 Effect of F-Square and R-Square

A determination coefficient is a coefficient that

indicates how far a free variable's contribution in a

regression model can explain the variation of a

bound variable.

From Table 5, this R-Square value shows that

both variables, EM and EE, can explain the

variability of OC of 100%. Whereas OC can explain

Refer to Table 6, F-Square value is divided into

three: 0.02 is meant to have a small influence, 0.15

has a moderate influence, and 0.35 has a large

influence. Based on the table, small influences with

a value of 0.02 to 0.15 are the influence of EE on

OC, EM on OC, and EM on TI. A medium influence

with a value of 0.15 to 0.35 is the impact of OC on

TI of 0.2.

4.6 Hypothesis Testing

Table 8. Indirect Hypothesis Test

organization will influence the level of desire to

resign from an organization. Three dimensions that

build OC are affective, normative, and continuance

commitment. OC is one of employees' most critical

and sensitive attitudes toward their organization. At

the same time, a decrease in turnover rates

demonstrates the positive effect of OC, [56]. For the

third hypothesis (H3), OC has a significant negative

influence on the TI shown with a statistical value p

individual loyalty to the organization and

willingness to dedicate themselves to jointly

achieving the goals of the organization, [58]. The

level of employee commitment to the organization is

influenced by adequate resources and supportive

supervision so that these committed employees will

choose to survive in the organization, [44].

Therefore, strategies are needed to increase OC to

overcome TI. EE becomes an important concept that

needs to be built in an organization because when an

hypothesis (H4), OC has proved not to mediate the

relationship between EE and TI because the focus of

these two variables is different. EE refers to

employee loyalty and commitment to their work.

OC is the extent to which an individual identifies

with the organization and is committed to its goals.

Therefore, in line with the results of this study, it is

obtained that the p-value is 0.49 > 0.05, and the t-

value is 0.025 < 1.645 (where the condition to be

met is t-value> 1.645). The data results mean that