The Impact of Career Growth on Turnover Intention with Employee

Engagement as a Mediator Variable: Study among the Generation Y

Employees in Indonesia

Anggraini Delina Putri

and Seger Handoyo

Faculty of Psychology, Airlangga University, Surabaya, Indonesia

Keywords: career growth, employee engagement, turnover intention, generation Y.

Abstract: This research aims to determine effects of career growth on turnover intentions and the mediating roles of

employee engagement (job and organizational engagement). When employees feel satisfied with career

growth in their organization, they will feel more engaged and by then it also reduces turnover intentions.

Using accidental sampling methods. Empirical data was collected using questionnaires distributed online.

With a total of 105 subjects born between 1980 - 2000 spread around Indonesia, which has worked in the

industrial sector for more than six months. As for the measurement instruments, this study uses the career

growth scale by Weng and Hu (2009), employee engagement by Saks (2006), and turnover intention scale

by Mobley et al., (1979). Using multiple regression analysis to analyze the influence of these variables and

test the mediation of employee engagement variables. Result of this study shows that career growth

significantly influences turnover intention without mediation of employee engagement, neither it is job nor

organizational engagement. Explanations of why employee engagement does not mediate influence of

career growth on turnover intention as well as research finding implication are discussed to provide

knowledge in keeping the generation Y employees to stay in organization.

1 INTRODUCTION

Turnover issue is frequently being discussed in

Indonesia recently, as revealed by Director of Talent

and Reward Towers Watson, Awaldi explained that

the ability to recruit and keep the best employees

always be a challenge for many companies one of

them is companies in Indonesia. This occurs because

many companies in Indonesia fail to understand the

factors that cause the employees have done turnover

(Nanda, 2017). The high turnover carried out by

employees, many experts who are now starting to

consider the generation approach.

Currently, there is a shift in generations within

organizations and companies, because slowly

working field will be dominated by Y generation. In

an organization the role of human resources is felt so

important as a driver of the company. Related with

talent management, especially to earn and keep the

best human resources, it is necessary to take

attention to the character and personality change

within the generation to the next generation

(Fatimah, et al., 2015).

Y generation are those who were born in the

period of year 1980-2000 (Meier & Crocker, 2010).

Distant age differences make working value and

orientation within generations become diverse.

Organizations and companies have to be dynamic on

responding the shift, different values will differ the

requirements and expectations. Wrong management

on human resources, could cause companies to lose

their employees, especially employees with great

potential. Y generation have several predominate

characteristics in the working field, such as

mastering in technology, proactive, self-confidence,

ambitions, and competitive (Luntungan, Hubeis,

Sunarti, & Maulana, 2014).

In addition, according to some literature,

Generation Y is known as 'Fussy Job Hopper' with

loyalty not limited to one employer, and single-

minded in pursuing career advancement and greater

rights (Amble, 2003; Budd, 2008 in Treuren &

Anderson, 2010). Research conducted by Nindyati

(2017) who did the study about the meaning of

employee’s loyalty in Indonesia within the X and Y

generation shows that X generation has a higher

average on the employee’s loyalty compared to Y

216

Putri, A. and Handoyo, S.

The Impact of Career Growth on Turnover Intention with Employee Engagement as a Mediator Variable: Study among the Generation Y Employees in Indonesia.

DOI: 10.5220/0008587402160223

In Proceedings of the 3rd International Conference on Psychology in Health, Educational, Social, and Organizational Settings (ICP-HESOS 2018) - Improving Mental Health and Harmony in

Global Community, pages 216-223

ISBN: 978-989-758-435-0

generation. Loyalty is meant for constancy to be in

the same organization/company. Another result from

Nindyati (2017) research shows that the X

generation has a higher percentage in the category of

never moving work compared to the Y generation.

Meanwhile, in the category of moving work 1 – 2

times, Y generation has a higher percentage

compared to X generation. While moving 3 or more

than 6 times both generations show the least

distinction.

Zahra’s research (cited in Rony, 2017) shows a

comparison between the number of employees that

were recruited with those who resigned in 2010-

2012. In 2010, there were 226 employees who were

being recruited and 175 were resigned. In 2011,

there were 279 employees that were being recruited

and 209 were resigned. In 2012, there was a

decrease and an increase at the same time in the

number of recruits 228 employees and resigned

respectively are 241 employees. Data shows that

there were 450 employees who resigned at the age

20-25, 147 at the age 26-30, 80 at the age 31-35, 30

at the age 36-40, and 18 the remaining age over 40.

Data also shows that resigning is dominated by

young employees with working time relatively short

and they are Y generation (Rony, 2017).

According to Nindyati (2017) was found the

reason behind switching jobs behavior that was done

by generation Y is due to their desire to have

self/career improvement, in the percentage of 26%,

thereupon due to financial reason or the amount of

salary is 23%, comforts of working environment

18%, corresponding with the passion 12%, because

of a relationship with the boss 11%, and other things

10%. Subsequently, the Society for Human

Resource Management and Aon Consulting

conducted a survey that discovered three major

reasons why employees voluntarily leave the

company. Such as training opportunities and career

growth, compensation package and better grant, and

bad management (Rahman & Nas, 2013). From both

research (Nindyati, 2017; Rahman & Nas, 2013),

some of the major reasons for employee to leave

their job is training opportunities and career growth,

obvious that one of the things that has become a

concern for employees is their career growth.

Career growth is how far a person thinks that

organization that they have been in can create an

environment where the employees are able to meet

the expectations regarding their career and

strengthen their achievement throughout promotion

and compensation (Weng et al., cited in Weng &

McElroy, 2012). Career growth can be used as a tool

to maintain the great quality of employees in the

organization (Karavardar, 2014). Most employees

feel satisfied if they believe in themselves that they

will have a better and brighter future in the company

that they are in, or otherwise employees start to

think of retiring from the company.

Employee engagement has become an important

employee outcome considering a strong competition

and dynamic business environment, entrepreneurs

who have a desire to be advanced to attract, develop,

and keep the employees have to keep up with the

competitiveness. At this point, one critical problem

that arises is about a practice or an environment that

can create engagement. As it was written by Mei,

Gilson, and Harter (cited in Juhdi, Pa’wan, &

Hansaram, 2013), psychological conditions have a

strong impact on creating involving employees.

Those conditions include organizational career

growth. Research conducted by Saks and Rotman

(cited in Witemeyer, 2013) revealed that recognition

and appreciation are a significant employee

engagement antecedent. They pay attention when

employees get appreciation and recognition from

their organizations, and they will be obliged to

respond with a higher engagement level.

Based on the theory of social exchange, Saks

(2006) argues that working relation develops from

time to time becomes a trust, loyalty, and

commitment that provide certain rules, and

employee engagement is one of the ways in which

employees repay their organizations to provide

resources and benefits (Saks, 2006; Cropanzano &

Mitchell, 2005). If the company can maintain this

situation employees tend to be loyal and hold on the

company where they are working at. A great

employee engagement can give a positive impact

such as, low turnover intention. Turnover intention

is meant as thinking process, planning, and an

employee’s desire to leave their jobs (Mobley,

Griffeth, Hand, & Meglino, 1979).

Therefore, this research was done to determine

whether employee engagement can mediate the

impact between career growth with turnover

intention. Therefore, this research can help the

company and organization HRD to keep their

employees, moreover employees that have a good

potential.

1.1 Correlation between Career

Growth with Turnover Intention

Y generation highly appreciate guidance and

training in the organization, because it allows them

to keep improving their new skills and still attractive

in the labor trade. For this generation having a

The Impact of Career Growth on Turnover Intention with Employee Engagement as a Mediator Variable: Study among the Generation Y

Employees in Indonesia

217

qualify job and getting career satisfaction are more

important than a good salary. This research earns a

result that there are correlations between QWL,

employee’s performance, and career growth (De

Hauw & De Vos, 2010).

Weng and Hu developed a career growth

measure with dimension: career goal, progress,

professional ability development, promotion speed,

and remuneration growth. In line with the theory of

social exchange (Blau cited in Nawaz & Pangil,

2016), is assumed that employees who are

encouraged and promoted feel appreciated by the

organizations and most likely will repay the

organization with their commitment and

contribution, and employees will less likely leaving

the organization. It can be concluded that employees

will get rewards and a decent promotion in their

organization will ultimately make employees think

for not leaving their jobs (Nawaz & Pangil, 2016).

Weng and McElory research shows that three

organization career growth factors respectively

negatively related with the turnover intention. This

shows that greater chance given by an organization

for the employees to pursue their career goal

progress, earn professional ability development, and

how organization appreciates it, those make

employees are less likely to think about leaving that

organization. This corresponds to the expected

theory (Porter & Steers cited in Karavardar, 2014)

and psychological contract. Another research that

supports a correlation between career growth with

turnover intention, reveals that career growth and

intention turnover are negatively related (Nouri &

Parker, 2013; Karavardar, 2014).

1.2 Correlation between Career

Growth with Employee

Engagement

For the new generations of employees, they have

grown up in the era of material life, developing

economic trade, and rapid development of

information and technology. They are concerned

with their career growth and enthusiastic to have

more training opportunities to improve and

complement themselves.

According to Theory of Need for Achievement,

when a company builds a certain career growth

space for the new generations of employees and

gives them enough chance to pursue their growth

requirements and their desire to succeed up to a

certain point. This will obviously improve their

vitality and dedication in working, so that they will

focus more on loyalty to work (Bai & Liu, 2018).

Schaufeli and Bakker (2004) found that

engagement is negatively related to turnover

intentions and mediate a relationship between job

resources with turnover intentions. Career growth

also influences organization members (in this case,

engagement) as job resources (such as perceptions of

perceiving organizational support, innovation

support, organizational justice) throughout ability

development, social and economic status changes,

etc. (Bai & Liu, 2018). According to Bakker and

Demerouti (cited in Mohsin, 2015), remuneration

and career opportunity (promotion) can be

considered as job resources provided the

organization and these resources are considered as

an antecedent for working engagement.

This research was done by Liu, He, and Yu

(2017) that examined correlation between career

growth with job engagement among young

employees with mediation of normative commitment

and moderate role from organizational justice,

empirical result shows that career growth has a

positive significant influence on the job engagement.

Other than that, research by Bai and Liu (2018) that

explored an impact from career growth within

organizations on the employee job engagement that

was delivered in particular to the new generation of

employees. They found that there is a positive

significant influence between career growth with

engagement and organizational identification.

1.3 Correlation between Career

Growth with Employee

Engagement

Involvement occurs in the employees when

organizations have given all the things that the

employees need, such as: reward and recognition,

distributional justice and procedural, relation

between supervisor with working fellows, etc. When

a person has already felt involved in their

organization, this can have a positive impact on

themselves and the organization. Moreover,

employees can feel a positive emotion on their job,

they are also more productive, and can help the

organization in chasing the goals.

Working engagement has shown a significant

result that influences the working result and

behavior regarding the job, such as working

satisfaction, turnover intention, and a different

company performance, Harter, Schmidt, and Hayes

(2002) found that engagement significantly relates

with turnover. As well, Schaufeli and Bakker (2004)

who observed four different organizations in the

Netherlands, found that an individual with a great

ICP-HESOS 2018 - International Conference on Psychology in Health, Educational, Social, and Organizational Settings

218

level of engagement is less likely to be involved in

turnover behavior compared to those who have a

low level of engagement. Other than that, an updated

study also reported a similar result, to ensure that

engagement significantly predicts turnover intention

(Juhdi et al. cited in Memon, Salleh, & Baharon,

2014).

1.4 Role of Employee Engagement

Mediation

In their survey, Schaufeli and Bakker (cited in Juhdi,

et al., 2013) found that organizational engagement

mediates relations between job resources with

turnover intention. Job resources refer to giving

feedback on fair performance, supporting

organization perception, organizational justice, and

also includes career growth. This shows that specific

human resources practices can influence the

turnover intention throughout employee engagement

(Juhdi, et al., 2013). This research is focused on the

career growth that the dimensions are divided into

career goal progress, professional ability

improvement, promotion speed, and remuneration

growth.

The implementation of career growth within the

organization is expected to generate positive

working experience. As feedback, employees tend to

feel engaged and attracted with the events in the

organization and devote themselves more to their job

so that employees give an extra workforce. Where in

the end it will reduce employee possibilities for

leaving the organization. It can be concluded that

career growth leads to a low level of turnover

intention, first of all it has to influence employee

engagement. Career growth is expected to create

great satisfaction and perception on the organization

and employees will repay in the form of great

engagement. As feedback, great engagement will

reduce employee possibilities to leave the

organization. Therefore, this research suggests that

employee engagement mediates the relation between

human resources practice with turnover intention.

Therefore, the hypothesis in this research is:

H0: There is no influence of career growth on the

turnover intention over the Y generation employees

in Surabaya with the employee engagement as the

mediator variable.

Ha: There is an influence of career growth on

turnover intentions over Y generation employees in

Surabaya with employee engagement as the

mediator variable.

2 RESEARCH METHOD

2.1 Sample Selection

Data collection was conducted in April 2018. The

selection of samples in this study using non-

probability sampling techniques with accidental

sampling method. After collecting the results of the

questionnaires that have been distributed. Then

obtained as many as 105 respondents. Subject of this

research is employees with a year of birth between

year 1981 – 2000, with years of working more than

6 months and working in various industries.

2.2 Measuring Tools

About the measurement of career growth, this study

used the scale which was worked up by Weng and

Hu (2009), consists of 15 items that are divided into

four dimensions, those are career goal progress,

professional ability development, promotion speed,

and remuneration growth. Was measured using a 5-

point Likert scale (1: strongly disagree, 2: disagree,

3: Neutral, 4: Agree, 5: strongly agree). Reliability

analysis showed that the scale was appropriately

reliable (Cronbach alpha: 0,903).

Furthermore, the instrument that is being used to

measure employee engagement is an instrument by

Saks (2006) with a multi-dimension model that

divides employee engagement into two dimensions,

those are jobs and organizational engagement. There

are 5 items for job engagement and 6 items for

organizational engagement. Measured using a 5-

point Likert scale (1: strongly disagree, 2: disagree,

3: Neutral, 4: Agree, 5: strongly agree). With

reliability scores 0.591 for job engagement and

0.864 for organizational engagement.

Thereupon for the turnover intention variable

employs instrument by Mobley et al., (1979).

Measured using a 5-point Likert scale (1: strongly

disagree, 2: disagree, 3: Neutral, 4: Agree, 5:

strongly agree) containing 3 items. Reliability

analysis showed that the scale was appropriately

reliable (Cronbach alpha: 0,847). This research

employs multiple linier regression analysis to

determine the effect of each variable and examine

employee engagement as a variable mediation using

IBM SPSS Statistic 23 for Mac.

The Impact of Career Growth on Turnover Intention with Employee Engagement as a Mediator Variable: Study among the Generation Y

Employees in Indonesia

219

3 RESULTS

Mean, standard deviation, and correlation coefficient

of the variables in this study are shown in Table 1.

Table 1 shows that career growth and job

engagement have a significant positive correlation,

and the correlation coefficient was 0.595, p < 0.001.

There was a correlation coefficient of 0.577, p <

.001 between career growth and organizational

engagement. In addition, there was a significant

negative correlation coefficient of -0.417 between

career growth and turnover intention, p < 0.001.

There was a correlation coefficient of -0.265

between turnover intention and job engagement, p <

0.01 and a significant correlation between turnover

intention and organizational engagement, the

correlation coefficient was -0,240, p < .05. The

result lay the foundation for the follow-up

intermediary test.

Data from this research has met the assumption

test before signing in the regression test. Some of the

assumption test that being conducted are normality,

linearity, homoscedasticity, and multicollinearity

test. All those assumption tests declared eligible, so

next followed by signing multiple regression test.

On Model 1 alternately regression tests were

done between career growth with job engagement

variables and then with organizational engagement

variables. According to the regression analysis result

career growth variables significantly influence job

engagement. With model regression level of

significance 0.000. On the model 1 table 2 was done

regression between career growth and organizational

engagement with model regression levels of

significance 0.000. This shows that career growth

significantly influences organizational engagement.

Next on Model 2 was done regression tests

between career growth with turnover intentions

variable. Model regression level of significance

0.000 this shows that career growth significantly

influences turnover intention.

Table 2: Regression Test Result.

Model R R

B Sig.

1 CG x JE ,607 ,369 0,186 ,000

1’ CG x OE ,606 ,368 0,241 ,000

2 CG x TI ,362 ,131 -0,124 ,000

3 CG x JE x

,362 ,131 -0,119

(

)

,004

-0,029

(JE)

,833

3’ CG x OE x

,362 ,131 -0,126

(CG)

,002

0,006

(

)

,953

Notes. CG = career growth; JE = job engagement; OE =

organizational engagement; TI = turnover intention. N =

105.

On the last step, researchers employed multiple

regression tests on career growth with job and

organizational engagement variables on turnover

intentions alternately.

The result that was aimed is a level of

significance (p < 0.005) on the career growth

variable. While mediator variable’s level of

significance when controlling independent variable

0.833 that means not significant because it is greater

than 0.05.

Thereupon regression test result with the second

mediator variable that is organizational engagement

shows the level of significance that was aimed from

the independent variable 0.002 by controlling

mediator variable. While mediator variable’s level of

significance 0.953 that means not significant

because greater than 0.05.

Table 1: Correlation Matrix.

Variable Mean SD 1 2 3 4 5 6 7

Career Growth 53.20 9.356

—

0.595*** 0.577*** -0.417*** -0.015 -0.080 -0.122

Job Engagement 17.48 2.795

—

0.581*** -0.265** 0.003 -0.112 -0.104

Organizational

Engagement

21.32 3.906

— -0.240* 0.083

-0.015 0.051

Turnover Intention 8.90 3.221

—

-0.174 -0.124 0.077

Age 1.80 0.777

—

0.690*** -0.127

Workin

Perio

2.99 1.50

—

0.048

Gende

1.42 0.496

—

Note. * p < .05, ** p < .01, *** p < .001

ICP-HESOS 2018 - International Conference on Psychology in Health, Educational, Social, and Organizational Settings

220

This shows that mediation throughout job and

organizational engagement variables are not

significant. Or in other words there is no mediation

effect of the career growth impact on turnover

intentions with engagement employees as mediator

variables. Therefore, research hypothesis reveals that

there is an influence between career growth on the

intention turnover with employee engagement as the

mediator variable for the employees that categorized

as Y generation is not supported (H0 accepted).

4 DISCUSSION

Research that was done by the authors aims to

determine the effect of career growth on the turnover

intention with employee engagement as the mediator

variable for the employees that categorized as Y

generation. Career growth is expected to create a

great satisfaction and perception on the organization

and the employees will repay in the form of great

engagement. As the feedback, great engagement will

reduce employee possibilities to leave the

organization.

Result of the regression test analysis and

mediation that were earned from this research show

that there is a significant direct influence from career

growth on the turnover intention, yet employee

engagement proved unable to mediate the impact of

career growth on the turnover intention. This can be

seen from the p-value on the indirect effect 0.830 for

engagement job and 0.952 for organizational

engagement, where p-value from indirect effect is

greater than 0.005 that means the mediation ability is

not significant.

Until now it has not found any other research

that specifically discusses the impact of career

growth on the turnover intention with employee

engagement as the mediator. Therefore, authors give

several reasons as an explanation why employee

engagement does not mediate those two variables.

First, when the employees still hold on the

organization, it means that employee commits,

engages, has a great loyalty, etc. According to

Luntungan et al. (2014) research loyalty concept

these days is different for Y generation employees.

Loyalty concept of Y generation on the company no

longer means long working in the company, but an

optimal contribution for the company. Optimal

contribution for the company is a characteristic of

engagement, as Hewitt and Associates (cited in

Hughes and Rog, 2008) explains that employees

who are engaged are employees who “stay, say, and

strive”. They stay and commit with the organization,

say positive things about their working place, and

strive to give and get beyond an outstanding work.

While loyalty that wants to be discussed here is a

loyalty in the form of employee loyalty to remain

staying at the company where they are working.

Second, in Kopertynska & Kmiotek (2015) was

known that Y generation has a demanding character.

This response analysis allows to conclude that for

the managers, that kind of attitude means an

exaggerate individualism; only taking care of the

self-needs; having high expectations; being not

realistic (not suitable for this career); unrealistic

expectations such as the amount of remuneration,

working hours; but also, impatience and desire to

have everything immediately, in line with a high

tendency to leave the job behind.

With a low engagement which is owned by the Y

generation employees in this research with an

unrealistic behavior from those who want to have

everything immediately, this can be used as an

explanation of direct relation which is owned by

career growth with turnover intention without

throughout employee engagement. Y generation

looks up into a phenomenon that is called “job

hoping”, the frequency of exchanging job also a

common thing. For the youth this is not a problem,

and it is different with an older generation, they do

not see job prosperity as a value (Kopertynska &

Kmiotek, 2015).

Third, the result of reliability of the mediator

variable is quiet low. Job engagement dimension

shows reliability value 0.5 where the number is

reliable. While a good reliability value should be 

0.7. The effect of a low reliability value may impact

the regression analysis value. According to

Humphreys (1993 cited in Kanyongo, Brooks, Kyei-

Blankson, & Goemen, 2007) low reliability value

can lead to an increasing error of the variance,

subsequently it will decrease the statistics. If the

mediator is measured by a least perfect reliability,

the effect tends to be bias. The effect of the mediator

result (track b) may be underestimated and the effect

of the causal variable result (track c) may be over-

estimated if ab is positive (Kenny, 2018).

Other thing that was earned from this research is

there is a direct influence between career growth

with turnover intention which is significant with the

negative correlation. This result is in line with Weng

& McElroy’s (2012) research that also found if

career growth is negatively related with turnover

intention. Meaning when employee’s career growth

opportunity is fulfilled by the organization, less

likely the employees to think of leaving the

organization.

The Impact of Career Growth on Turnover Intention with Employee Engagement as a Mediator Variable: Study among the Generation Y

Employees in Indonesia

221

Louis (1980 cited in Bedeian, Kemery, and

Pizzolatto, 1991) reveals that individual is constantly

processes information about career opportunity and

if it is blocked or cannot identify new opportunity, it

can reduce dissonance by improving their cognition

of withdrawal and finally they move. By applying

the idea of career transition, voluntary turnover can

be seen as a tool to actualize career goal (Rhodes &

Doering, 1983 cited in Bedeian et al., 1991).

This behavior is in line with a theory that met the

expectations (Porter & Steers cited in Weng &

McElroy, 2012) and psychological contract.

Mechanism that has been used to explain the relation

that focuses on the role of organizational

commitment (Bedeian et al., 1991; Chang, 1991

cited in Weng & McElroy 2012). Meaning,

employees whose expectations are met and for those

who see their psychological contracts fulfilled,

become psychologically attached on their

organization, it makes the employees less likely to

leave.

Y generation is known by their characters such

as, ambitious, self-confidence, and have a great

desire on their career growth. According to Wong et

al., (cited in De Hauw and De Vos, 2010), Y

generation is more ambitious because they tend to be

more active to seek for career opportunity in the

organization. Other characteristic is they do not want

to be in the same and low position for a long time.

Each individual wants to learn how to improve

themselves in the company (Meier & Crocker,

2010). Therefore, career growth proved to be an

important motivation for Y generation.

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