The Effects of Perceived Job Quality and Burnouts on Mediated Intention to Stay with Job Satisfaction: An Analysis of Employees in Small Business Enterprises

Abstract

Turnover is still one of the problems faced by Micro, Small, and Medium Enterprises (MSME) owners. For the last few years, MSME business owners in the lumber industry have experienced the effects of the high turnover intention in their businesses. Some of the factors causing this are poor work quality, and emotional exhaustion experienced by employees. This indirectly affects their job satisfaction. This study aims to identify the effect of perceived job quality, job stress and burnout on the intention to stay employees in companies where the relationship will be mediated by job satisfaction. In addition, the research tries to reveal the relationship between job stress and burnout. To obtain quantitative data, a survey is conducted toward some permanent employees of three big lumber industries in Klaten, Central Java as respondents. Questionnaires were distributed in hardcopy to their employees in the warehouse during recess. Out of 140 respondents, only 125 data were selected based on the sampling and data analysis criteria suggested in PLS-SEM Method. This study indicates that job burnout, and job stress significantly influence the decision of an employee to stay in the company and job satisfaction is confirmed to be a mediator variable that mediates the job burnout and job stress on intention to stay. The result of the finding will enable the owners to take action and create innovative ways to retain the employee in their industries.

Keywords: Lumber Industries (MSMEs), Perceived Job Quality, Burnout, Job Stress, Intention to Stay, Job Satisfaction, Structural Equation Modeling.