Fresh Graduates Training and Employee Turnover in Indonesia University of Indonesia
Article Sidebar
Accepted
12 August 2021
Published
1 July 2021
Keywords:
-
fresh graduates, job turnover, job to non-employment turnove, labor turnove, multinomial logistic regression.
Abstract
Training is considered as one of the determining factors for an individual to make a labor turnover. Fresh graduate workers are often associated with the labor turnover phenomenon. This research aims to study the relationship between the participation of fresh graduate workers in training with the probability of job-to-job and job-to-non-employment turnover in the first year after graduating from their highest education. This research used data from Survei Angkatan Kerja Nasional (Sakernas) - August 2019 with the multinomial logistic regression method to the fresh graduate workers aged 15-24 years old. The descriptive analysis result shows that job-to-job and job-to-non-employment turnover in the first year after graduating is a phenomenon that occurs in Indonesia, where the majority of fresh graduate workers do it voluntarily with the main consideration of the incompatibility of the working environment. The inferential analysis result shows that participation in training is positively correlated to the probability to make a job-to-job and job-to-non-employment turnover in the first year after graduating. Meanwhile, educational qualifications as college graduates and the type of work as white-collar workers reduce the probability to make a job-to-job and job-to-non-employment turnover in the first year after graduating from their highest education.
References
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Becker, G. S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy, 70(5, Part 2), 9–49. https://doi.org/10.1086/258724
Borghans, L., & Golsteyn, B. (2010). Job mobility in Europe, Japan and the US. IZA Discussion Paper, 5386.
Borjas, G. J. (2013). Labor Economics. In The Heart of Teaching Economics (Seventh Ed). https://doi.org/10.4337/9781849808057.00022
Boyan, J. (1979). Job Matching and the Theory of Turnover. Journal of Political Economy, 87(5), 972–990.
Bushardt, S. C., Fretwell, C., & Byrd Cumbest, P. (1994). Continuous Improvement through Employee Training. The Learning Organization, 1(1), 11–16. https://doi.org/10.1108/09696479410053395
Cheng, Y., & Waldenberger, F. (2013). Does Training Affect Individuals’ Turnover Intention? Evidence from China. Journal of Chinese Human Resources Management, 4(1), 16–38. https://doi.org/10.1108/JCHRM-10-2012-0024
Choerudin, A., & Dewi Novita, S. (2016). The Effect of Jobs Stress and Job Satisfaction on Turnover Intention with Organizational Commitment as Moderator. The Transformation of Cultural and Economic in Global Market Access.
Cleveland, M., Laroche, M., & Hallab, R. (2013). Globalization, Culture, Religion, and Values: Comparing Consumption Patterns of Lebanese Muslims and Christians. Journal of Business Research, 66(8), 958–967. https://doi.org/10.1016/j.jbusres.2011.12.018
Costen, W. M., & Salazar, J. (2011). The Impact of Training and Development on Employee Job Satisfaction, Loyalty, and Intent to Stay in the Lodging Industry. Journal of Human Resources in Hospitality and Tourism, 10(3), 273–284. https://doi.org/10.1080/15332845.2011.555734
De Winne, S., Marescaux, E., Sels, L., Van Beveren, I., & Vanormelingen, S. (2019). The Impact of Employee Turnover and Turnover Volatility on Labor Productivity: a Flexible Non-Linear Approach. International Journal of Human Resource Management, 30(21), 3049–3079. https://doi.org/10.1080/09585192.2018.1449129
Dess, G. G., & Shaw, J. D. (2001). Voluntary Turnover, Social Capital, and Organizational Performance. Academy of Management Review, 26(3), 446–456. https://doi.org/10.5465/AMR.2001.4845830
Dewi, N. A. T. M., & Wulanyani, N. M. S. (2018). Pengaruh Kepuasan Kerja Dan Konflik Peran Terhadap Intensi Turnover Pada Karyawan Bank Di Denpasar. Jurnal Psikologi Udayana, 4(02), 399–412. https://doi.org/10.24843/jpu.2017.v04.i02.p15
Djalal, N., & Usman, H. (2002). Penggunaan Teknik Ekonometri, Pendekatan Populer dan Praktis Dilengkapi Teknik Analisis dan Pengolahan Data dengan Menggunakan Paket Program SPSS. Raja Grafindo.
Dustmann, C., & Pereira, S. C. (2008). Wage Growth and Job Mobility in the United Kingdom and Germany. Industrial and Labor Relations Review, 61(3), 374–393. https://doi.org/10.1177/001979390806100306
Eyram, L. (2018). The Effects of High Employee Turnover in Nestle Business Services. http://ir.knust.edu.gh/bitstream/123456789/14361/1/Linda Eyram Afi Agotse.pdf
Fang Chiang, C., Back, K.-J., & Canter D., D. (2008). The Impact of Employee Training on Job Satisfaction and Intention to Stay in the Hotel Industry. Routledge, 99–117. https://doi.org/10.7208/chicago/9780226309477.003.0005
Frian, A., & Mulyani, F. (2018). Millenials Employee Turnover Intention in Indonesia. Innovative Issues and Approach in Social Sciences, 11(3), 90–111. http://www.iiass.com/pdf/IIASS-volume11-number3-2018.pdf#page=90
Gebregziabher, D., Berhanie, E., Berihu, H., Belstie, A., & Teklay, G. (2020). The Relationship between Job Satisfaction and Turnover Intention among Nurses in Axum Comprehensive and Specialized Hospital Tigray, Ethiopia. BMC Nursing, 19(1), 1–8. https://doi.org/10.1186/s12912-020-00468-0
Haines, V. Y., Jalette, P., & Larose, K. (2010). The Influence of Human Resource Management Practices on Employee Voluntary Turnover Rates in the Canadian Non Governmental sector. Industrial and Labor Relations Review, 63(2), 228–246. https://doi.org/10.1177/001979391006300203
Hayes, T. M. (2010). Demographic Characteristics Predicting Employee Turnover Intentions [Walden University]. https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=2537&context=dissertations
Hequet, M. (1993). Can Training Stop Turnover? Training, 30, 82.
Huang, W. R., & Su, C. H. (2016). The Mediating Role of Job Satisfaction in the Relationship between Job Training Satisfaction and Turnover Intentions. Industrial and Commercial Training, 48(1), 42–52. https://doi.org/10.1108/ICT-04-2015-0029
International Labour Organization. (2020). Youth Employment. https://www.ilo.org/youthmakingithappen/intro/02.html
Islam, T., Khan, S. ur R., Ahmad, U. N. U. B., & Ahmed, I. (2013). Organizational Learning Culture and Leader-Member Exchange Quality: The Way to Enhance Organizational Commitment and Reduce Turnover Intentions. Learning Organization, 20(4–5), 322–337. https://doi.org/10.1108/TLO-12-2012-0079
Jackson, D., & Chapman, E. (2012). Empirically Derived Competency Profiles for Australian Business Graduates and Their Implications for Industry and Business Schools. International Journal of Management Education, 10(2), 112–128. https://doi.org/10.1016/j.ijme.2012.04.002
Jannat, T., Omar, N. A., & Nazri, M. A. (2021). Analysing the Mediating Effects of Job Satisfaction and Dissatisfaction on Employee Voluntary Turnover Intention. 59(2020), 53–64.
Jehanzeb, K., Abdul Hamid, A. B., & Rasheed, A. (2015). What Is the Role of Training and Job Satisfaction on Turnover Intentions? International Business Research, 8(3). https://doi.org/10.5539/ibr.v8n3p208
JobsDB. (2013). Fresh Graduate Turnover. https://hk.jobsdb.com/hk/en/staticcontent/hiring-survey/2013/Q2-hiring-index/fresh-graduate-turnover.htm#:~:text=Go to Top-,Common reasons for leaving,and benefits” (29%25).
Ju, B., & Li, J. (2019). Exploring the Impact of Training, Job Tenure, and Education-Job and Skills-Job Matches on Employee Turnover Intention. European Journal of Training and Development, 43(3–4), 214–231. https://doi.org/10.1108/EJTD-05-2018-0045
Kato, T. (1989). Specific and General Training in the Theory of Labor Turnover. 30, 259–262.
Kenneth, H., & Abbassi, S. (2000). Turnover: The Real Bottom Line. Public Personnel Management, 29(3), 333–342. http://sites.jmu.edu/wpcontent/blogs.dir/774/files/2016/10/Public-Personnel-Management-2000-Abbasi-333-42-1.pdf
Lazear, E. P., & McCue, K. (2018). What Causes Labor Turnover to Vary? (Vol. 2). https://www.nber.org/system/files/working_papers/w24873/w24873.pdf
Louis, M. R. (1980). Career Transitions: Varieties and Commonalities. Academy of Management Review, 5(3), 329–340. https://doi.org/10.5465/amr.1980.4288836
Mahto, R. V, Vora, G., Mcdowell, W. C., & Khanin, D. (2020). Family Member Commitment , the Opportunity Costs of Staying , and Turnover Intentions. Journal of Business Research, 108(October 2019), 9–19. https://doi.org/10.1016/j.jbusres.2019.10.013
Nguyen, L. T., & Shao, Y. (2019). The Impact of Training on Turnover Intention: The Role of Growth Need Strength among Vietnamese Female Employees. The South East Asian Journal of Management, 13(1), 1–17. https://doi.org/10.21002/seam.v13i1.9996
Nippon.com. (2019). Sticking To It? A Look at Job Turnover Among Recent Graduates. https://www.nippon.com/en/japan-data/h00590/sticking-to-it-a-look-at-job-turnover-among-recent-graduates.html
Pradana, A., & Salehudin, I. (2015). Work Overload and Turnover Intention of Junior Auditors in Greater Jakarta, Indonesia. The South East Asian Journal of Management, 9(2), 108–124. https://doi.org/10.21002/seam.v9i2.4950
Rahmawati, M., & Wahyuningsih, S. (2018). Pengaruh Komitmen Organisasi , Stress Kerja dan Career Growth terhadapv Intensi Turnover Karyawan. 13(1), 102–121.
Sabbir, M., & Kaium, A. (2020). EMPLOYEE TURNOVER COST AND IMPACTS IN BANKING INDUSTRY OF BANGLADESH : AN EXPLORATORY STUDY. Academia.Edu.
Sieben, I. (2007). Does Training Trigger Turnover - Or not?: The impact of Formal Training on Graduates’ Job Search Behaviour. Work, Employment and Society, 21(3), 397–416. https://doi.org/10.1177/0950017007080004
Sutherland, J. (2002). Job-to-Job Turnover and Job-to-Non-Employment Movement: A Case Study Investigation. Personnel Review, 31(5–6), 710–721. https://doi.org/10.1108/00483480210445980
Topel, R. H., & Ward, M. P. (1992). Job Mobility and the Careers of Young Men. Quarterly Journal of Economics, 107(2), 439–479.
Veum, J. R. (1997). Training and Job Mobility among Young Workers in the United States. Journal of Population Economics, 10(2), 219–233. https://doi.org/10.1007/s001480050039
Walk, M., Zhang, R., & Littlepage, L. (2019). “Don’t you Want to Stay?” The Impact of Training and Recognition as Human Resource Practices on Volunteer Turnover. Nonprofit Management and Leadership, 29(4), 509–527. https://doi.org/10.1002/nml.21344
www.kumparan.com. (2017). Riset Menunjukkan Pekerja Muda Lebih Sering Berpindah Pekerjaan. https://kumparan.com/kumparanstyle/riset-menunjukkan-pekerja-muda-lebih-sering-berpindah-perusahaan/full
Yuliasia, Y., Santoso, I., & Hidayat, A. (2012). Analisis Variabel yang Mempengaruhi Keinginan Berpindah (Turnover Intention) dengan Structural Equation Modeling (SEM) (Studi Kasus PT Wonokoyo Jaya Corporindo, Pasuruan). Jurnal Teknologi Pertanian, 13(1), 61–66.
Asriyati, E. (2014). Perputaran Tenaga Kerja (Labor Turnover) di Indonesia. Universitas Indonesia.
Badan Pusat Statistik. (2019). Berita Resmi Statistik - Keadaan Ketenagakerjaan Agustus 2019.
Becker, G. S. (1962). Investment in Human Capital: A Theoretical Analysis. Journal of Political Economy, 70(5, Part 2), 9–49. https://doi.org/10.1086/258724
Borghans, L., & Golsteyn, B. (2010). Job mobility in Europe, Japan and the US. IZA Discussion Paper, 5386.
Borjas, G. J. (2013). Labor Economics. In The Heart of Teaching Economics (Seventh Ed). https://doi.org/10.4337/9781849808057.00022
Boyan, J. (1979). Job Matching and the Theory of Turnover. Journal of Political Economy, 87(5), 972–990.
Bushardt, S. C., Fretwell, C., & Byrd Cumbest, P. (1994). Continuous Improvement through Employee Training. The Learning Organization, 1(1), 11–16. https://doi.org/10.1108/09696479410053395
Cheng, Y., & Waldenberger, F. (2013). Does Training Affect Individuals’ Turnover Intention? Evidence from China. Journal of Chinese Human Resources Management, 4(1), 16–38. https://doi.org/10.1108/JCHRM-10-2012-0024
Choerudin, A., & Dewi Novita, S. (2016). The Effect of Jobs Stress and Job Satisfaction on Turnover Intention with Organizational Commitment as Moderator. The Transformation of Cultural and Economic in Global Market Access.
Cleveland, M., Laroche, M., & Hallab, R. (2013). Globalization, Culture, Religion, and Values: Comparing Consumption Patterns of Lebanese Muslims and Christians. Journal of Business Research, 66(8), 958–967. https://doi.org/10.1016/j.jbusres.2011.12.018
Costen, W. M., & Salazar, J. (2011). The Impact of Training and Development on Employee Job Satisfaction, Loyalty, and Intent to Stay in the Lodging Industry. Journal of Human Resources in Hospitality and Tourism, 10(3), 273–284. https://doi.org/10.1080/15332845.2011.555734
De Winne, S., Marescaux, E., Sels, L., Van Beveren, I., & Vanormelingen, S. (2019). The Impact of Employee Turnover and Turnover Volatility on Labor Productivity: a Flexible Non-Linear Approach. International Journal of Human Resource Management, 30(21), 3049–3079. https://doi.org/10.1080/09585192.2018.1449129
Dess, G. G., & Shaw, J. D. (2001). Voluntary Turnover, Social Capital, and Organizational Performance. Academy of Management Review, 26(3), 446–456. https://doi.org/10.5465/AMR.2001.4845830
Dewi, N. A. T. M., & Wulanyani, N. M. S. (2018). Pengaruh Kepuasan Kerja Dan Konflik Peran Terhadap Intensi Turnover Pada Karyawan Bank Di Denpasar. Jurnal Psikologi Udayana, 4(02), 399–412. https://doi.org/10.24843/jpu.2017.v04.i02.p15
Djalal, N., & Usman, H. (2002). Penggunaan Teknik Ekonometri, Pendekatan Populer dan Praktis Dilengkapi Teknik Analisis dan Pengolahan Data dengan Menggunakan Paket Program SPSS. Raja Grafindo.
Dustmann, C., & Pereira, S. C. (2008). Wage Growth and Job Mobility in the United Kingdom and Germany. Industrial and Labor Relations Review, 61(3), 374–393. https://doi.org/10.1177/001979390806100306
Eyram, L. (2018). The Effects of High Employee Turnover in Nestle Business Services. http://ir.knust.edu.gh/bitstream/123456789/14361/1/Linda Eyram Afi Agotse.pdf
Fang Chiang, C., Back, K.-J., & Canter D., D. (2008). The Impact of Employee Training on Job Satisfaction and Intention to Stay in the Hotel Industry. Routledge, 99–117. https://doi.org/10.7208/chicago/9780226309477.003.0005
Frian, A., & Mulyani, F. (2018). Millenials Employee Turnover Intention in Indonesia. Innovative Issues and Approach in Social Sciences, 11(3), 90–111. http://www.iiass.com/pdf/IIASS-volume11-number3-2018.pdf#page=90
Gebregziabher, D., Berhanie, E., Berihu, H., Belstie, A., & Teklay, G. (2020). The Relationship between Job Satisfaction and Turnover Intention among Nurses in Axum Comprehensive and Specialized Hospital Tigray, Ethiopia. BMC Nursing, 19(1), 1–8. https://doi.org/10.1186/s12912-020-00468-0
Haines, V. Y., Jalette, P., & Larose, K. (2010). The Influence of Human Resource Management Practices on Employee Voluntary Turnover Rates in the Canadian Non Governmental sector. Industrial and Labor Relations Review, 63(2), 228–246. https://doi.org/10.1177/001979391006300203
Hayes, T. M. (2010). Demographic Characteristics Predicting Employee Turnover Intentions [Walden University]. https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=2537&context=dissertations
Hequet, M. (1993). Can Training Stop Turnover? Training, 30, 82.
Huang, W. R., & Su, C. H. (2016). The Mediating Role of Job Satisfaction in the Relationship between Job Training Satisfaction and Turnover Intentions. Industrial and Commercial Training, 48(1), 42–52. https://doi.org/10.1108/ICT-04-2015-0029
International Labour Organization. (2020). Youth Employment. https://www.ilo.org/youthmakingithappen/intro/02.html
Islam, T., Khan, S. ur R., Ahmad, U. N. U. B., & Ahmed, I. (2013). Organizational Learning Culture and Leader-Member Exchange Quality: The Way to Enhance Organizational Commitment and Reduce Turnover Intentions. Learning Organization, 20(4–5), 322–337. https://doi.org/10.1108/TLO-12-2012-0079
Jackson, D., & Chapman, E. (2012). Empirically Derived Competency Profiles for Australian Business Graduates and Their Implications for Industry and Business Schools. International Journal of Management Education, 10(2), 112–128. https://doi.org/10.1016/j.ijme.2012.04.002
Jannat, T., Omar, N. A., & Nazri, M. A. (2021). Analysing the Mediating Effects of Job Satisfaction and Dissatisfaction on Employee Voluntary Turnover Intention. 59(2020), 53–64.
Jehanzeb, K., Abdul Hamid, A. B., & Rasheed, A. (2015). What Is the Role of Training and Job Satisfaction on Turnover Intentions? International Business Research, 8(3). https://doi.org/10.5539/ibr.v8n3p208
JobsDB. (2013). Fresh Graduate Turnover. https://hk.jobsdb.com/hk/en/staticcontent/hiring-survey/2013/Q2-hiring-index/fresh-graduate-turnover.htm#:~:text=Go to Top-,Common reasons for leaving,and benefits” (29%25).
Ju, B., & Li, J. (2019). Exploring the Impact of Training, Job Tenure, and Education-Job and Skills-Job Matches on Employee Turnover Intention. European Journal of Training and Development, 43(3–4), 214–231. https://doi.org/10.1108/EJTD-05-2018-0045
Kato, T. (1989). Specific and General Training in the Theory of Labor Turnover. 30, 259–262.
Kenneth, H., & Abbassi, S. (2000). Turnover: The Real Bottom Line. Public Personnel Management, 29(3), 333–342. http://sites.jmu.edu/wpcontent/blogs.dir/774/files/2016/10/Public-Personnel-Management-2000-Abbasi-333-42-1.pdf
Lazear, E. P., & McCue, K. (2018). What Causes Labor Turnover to Vary? (Vol. 2). https://www.nber.org/system/files/working_papers/w24873/w24873.pdf
Louis, M. R. (1980). Career Transitions: Varieties and Commonalities. Academy of Management Review, 5(3), 329–340. https://doi.org/10.5465/amr.1980.4288836
Mahto, R. V, Vora, G., Mcdowell, W. C., & Khanin, D. (2020). Family Member Commitment , the Opportunity Costs of Staying , and Turnover Intentions. Journal of Business Research, 108(October 2019), 9–19. https://doi.org/10.1016/j.jbusres.2019.10.013
Nguyen, L. T., & Shao, Y. (2019). The Impact of Training on Turnover Intention: The Role of Growth Need Strength among Vietnamese Female Employees. The South East Asian Journal of Management, 13(1), 1–17. https://doi.org/10.21002/seam.v13i1.9996
Nippon.com. (2019). Sticking To It? A Look at Job Turnover Among Recent Graduates. https://www.nippon.com/en/japan-data/h00590/sticking-to-it-a-look-at-job-turnover-among-recent-graduates.html
Pradana, A., & Salehudin, I. (2015). Work Overload and Turnover Intention of Junior Auditors in Greater Jakarta, Indonesia. The South East Asian Journal of Management, 9(2), 108–124. https://doi.org/10.21002/seam.v9i2.4950
Rahmawati, M., & Wahyuningsih, S. (2018). Pengaruh Komitmen Organisasi , Stress Kerja dan Career Growth terhadapv Intensi Turnover Karyawan. 13(1), 102–121.
Sabbir, M., & Kaium, A. (2020). EMPLOYEE TURNOVER COST AND IMPACTS IN BANKING INDUSTRY OF BANGLADESH : AN EXPLORATORY STUDY. Academia.Edu.
Sieben, I. (2007). Does Training Trigger Turnover - Or not?: The impact of Formal Training on Graduates’ Job Search Behaviour. Work, Employment and Society, 21(3), 397–416. https://doi.org/10.1177/0950017007080004
Sutherland, J. (2002). Job-to-Job Turnover and Job-to-Non-Employment Movement: A Case Study Investigation. Personnel Review, 31(5–6), 710–721. https://doi.org/10.1108/00483480210445980
Topel, R. H., & Ward, M. P. (1992). Job Mobility and the Careers of Young Men. Quarterly Journal of Economics, 107(2), 439–479.
Veum, J. R. (1997). Training and Job Mobility among Young Workers in the United States. Journal of Population Economics, 10(2), 219–233. https://doi.org/10.1007/s001480050039
Walk, M., Zhang, R., & Littlepage, L. (2019). “Don’t you Want to Stay?” The Impact of Training and Recognition as Human Resource Practices on Volunteer Turnover. Nonprofit Management and Leadership, 29(4), 509–527. https://doi.org/10.1002/nml.21344
www.kumparan.com. (2017). Riset Menunjukkan Pekerja Muda Lebih Sering Berpindah Pekerjaan. https://kumparan.com/kumparanstyle/riset-menunjukkan-pekerja-muda-lebih-sering-berpindah-perusahaan/full
Yuliasia, Y., Santoso, I., & Hidayat, A. (2012). Analisis Variabel yang Mempengaruhi Keinginan Berpindah (Turnover Intention) dengan Structural Equation Modeling (SEM) (Studi Kasus PT Wonokoyo Jaya Corporindo, Pasuruan). Jurnal Teknologi Pertanian, 13(1), 61–66.
Authors
RariF. P., & DewaI. D. G. K. W. (2021). Fresh Graduates Training and Employee Turnover in Indonesia: University of Indonesia. JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN, 10(1), 1-19. https://doi.org/10.29244/jekp.10.1.2021.1-19
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