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Green Human Resource Management (GHRM) Practices and

Millennial Employees' Turnover Intentions in Tourism Industry in
Malaysia: Moderating Role of Work Environment

Article  in  Global Business Review · April 2020

DOI: 10.1177/0972150920907000

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Original Article

Green Human Resource Global Business Review

1–21
Management (GHRM) Practices © 2020 IMI
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DOI: 10.1177/0972150920907000
Turnover Intentions in Tourism journals.sagepub.com/home/gbr

Industry in Malaysia: Moderating

Role of Work Environment

Md Asadul Islam1
Amer Hamzah Jantan2
Yusmani Mohd Yusoff3
Choo Wei Chong2
Md Shahadat Hossain2

Abstract
This study examines the role of green human resource management (GHRM) practices, such as green
recruitment and selection, green training, green performance management, green involvement and
green rewards, and pays attention on the turnover intention of the millennial employees working in
the hotels (3-, 4- and 5-star). Moreover, the study examines the moderating role of work environment
on the relationship between those GHRM practices and turnover intention. Researchers collected 162
useful survey questionnaires from 200 distributed questionnaire among the millennial employees, who
work in hotels. Analysis of the data through partial least squares structural equation modelling reveals
that the green involvement and green pay and reward only impact on reducing turnover intention of
millennials while other GHRM practices do not have direct impact on turnover intention of millennials.
Interestingly, this study does not find any moderating effect of work environment on the relationship
between GHRM practices and turnover intention of millennials working in hotels in Malaysia. This study
extends the literature relating to GHRM and work environment and turnover intention of millennials.
Furthermore, this is the first empirical research ever done so far relating to GHRM practices and
turnover intention of millennials in hotel industry literature. Implications of the findings, as well as
research limitations and directions for future scholars, have been discussed.

1
Swinburne University of Technology (Sarawak Campus), Sarawak, Malaysia.
2
Universiti Putra Malaysia, Seri Kembangan, Malaysia.
3
Universiti Utara Malaysia, Changlun, Malaysia.

Corresponding author:
Asadul Islam, School of Business, Faculty of Business, Arts and Design, Swinburne University of Technology (Sarawak Campus), Q5A,
Kuching, Sarawak 93350, Malaysia.
E-mail: mislam@swinburne.edu.my
2 Global Business Review

Keywords
Green human resource management, work environment, turnover intention, millennials, hotel industry,
Malaysia

Introduction
Tourism in different countries has been significant source of national income specially in developed and
emerging countries in the world (World Bank, 2012). In this regard, Malaysian tourism industry is one
of the significant sources of income for the country where tourism revenues increased from RM82,165
million in 2017 to RM84,135.20 million in 2018 (Trading Economics, 2019). With the increasing trend
of tourism arrival in this country, Malaysia’s tourism industry is expected to generate RM192 billion in
revenue in 2020 (New Straits Times, 2019). However, like other countries in the world, employee
turnover remains one of the most challenging issues for the tourism industry in Malaysia (Kenneth,
2016). Annual surveys by Malaysian Employers Federation (2011) reported the annual labour turnover
rates in Malaysia for 2010 and 2011 were extremely high, approximately between 9.6 per cent and 75 per
cent, respectively (as cited in Ariffin & Che Ha, 2014). The survey shows that the turnover rates for
tourism industry are 32.4 per cent (as cited in Ariffin & Che Ha, 2014). Furthermore, Aon Hewitt
Malaysia conducted a survey among tourism organizations in 2015 and reported that the employee
turnover rate is 18 per cent, which is double that of general Malaysian workforce (Kenneth, 2016). In this
regard, The Malaysian Reserve (2017) reported that the high turnover rate in the organizations is mainly
contributed by the millennials, that is, generation Y (Gen Y). This is also supported by Pikri (2017), who
also found the higher turnover intention among the millennial employees in Malaysia. These reports are
also consistent with the academic research results on millennial employees turnover in Malaysia (Othman
et al., 2017; Queiri, Yusoff, & Dwaikat, 2015). The academic studies conducted by Ariffin and Che Ha
(2014); Zainol, Rozali, Nordin, Tazijan, and Rashid (2015) show that employee retention is also found
to be a major concern for the tourism industry.
The tourism industry in Malaysia like other countries consisted of organizations such as resort, hotels,
restaurants, transports, entertainment organizations and so on. However, among these, the hotels have
been selected because it is rapidly growing and recognized as one of the sectors largely increasing the
burden on the environment (Yusoff, Nejati, Kee, & Amran, 2018). At present, there are 585 three-star
hotels, 226 four-star hotels and 142 five-star hotels in Malaysia (MOTAC, 2019). All tourism organizations
are instructed by the government of Malaysia as well as by many other countries’ government to keep
the environment free from pollution and adapt the eco-friendly activities (Ali, 2019; Mbasera, Du Plessis,
Saayman, & Kruger, 2016; Said, 2016). In this regard, both employers and employees in these
organizations can play a significant role to save the environment through different practices. However,
employee turnover in the Malaysian hotel industry has been a serious problem due to high reliance on
human resources while most of them are millennial employees (Abo-Murad & Abdullah, 2019; Albattat
& Som, 2014; Zainol et al., 2015). Furthermore, moral impact and financial losses due to employee
turnover in the hotels cannot be ignored (Albattat & Som, 2013; Hemdi & Rahman, 2010). Furthermore,
employee turnover reduces performance and profitability of organizations because of its association with
financial and other assets in recruiting and developing employees while they are in organizations
(Guilding, Lamminmaki, & Mcmanus, 2014; Loi, Hang-Yue, & Foley, 2006).
Islam et al. 3

To reduce the employee turnover in organizations, different practices are applied especially the HRM
practices; however, these practices have been developed and extended over the period of times.
Conventionally, the HR department of the organization plays a significant role to disseminate and
comprehend strategic visions of higher management to the workers in different levels (Evans, 1986;
Lado & Wilson, 1994). According to Evans (1986), HRM directly contributes to the successful
implementation of strategic vision and organizational effectiveness. HRM is also identified as one of the
main organizational factors that significantly influence employee and employer relationship in
organizations (Lv & Xu, 2016; Restubog, Zagenczyk, Bordia, Bordia, & Chapman, 2015). On the other
hand, HRM practices, for example, training and development, compensation, job security, human
resource planning, employee participation in decision making, recruitment and selection, career
advancement, performance advancement and so on have been playing significant role on employees in
different ways in organizations in different industry and country contexts. Santhanam, Kamalanabhan,
Dyaram, and Ziegler (2017) argued regarding the prerequisites for tourism organizations to retain their
employees in the Indian tourism industry contexts. They found the significant positive role of
organization’s HRM practices such as selection practices, training practices, compensation practices and
career growth opportunity on the employee turnover. Furthermore, the study conducted by Pradhan,
Jena, and Mohapatra (2018) confirmed that abusive supervision, a significant HRM practice is strongly
related to subordinates’ intention to quit. Their study also revealed that women employees intend to quit
organization more often than their men counterpart, when they perceive their supervisors to be abusive.
Ghazali, Nasyuki, Yi, and Ishak (2012) found HRM practices, for example, training, recruitment and
selection, performance appraisal, communication and teamwork play significant role to retain employees
and maximize employee’s intention to stay in the hotels in Kuala Lumpur, Malaysia. On the other hand,
HRM dimensions such as training and development, supervisory support, compensation and benefits and
performance appraisal are found significant and negatively related to employee intention to leave in the
context of a golf and resort organization in Malaysia (Ariffin & Che Ha, 2014). Gadi and Kee (2018)
found a significant influence of HRM practices such as compensation, training and development,
performance appraisal and recruitment and selection on turnover intention of employees. HRM practices
such as training and development, compensation, and organization culture have a significant impact on
employee turnover in the information technology (IT) sector in India (Devi & Krishna, 2016).
Furthermore, there has been significant relationship between extrinsic hygiene, intrinsic motivation and
involvement and employee retention (Othman et al., 2017). It is also found that intrinsic motivation, that
is, reward has the most important influence on millennials employees’ turnover intentions in Malaysia
(Othman et al., 2017).
However, the particular focus of this study is the extended version of human resource management
(HRM) that is green human resource management (GHRM) (Jabbour, Santos, & Nagano, 2010; Renwick,
Redman, & Maguire, 2013; Yusoff et al., 2018) in the tourism industry in Malaysia. It is because green
movement in Malaysia has been accelerated in recent years due to the climate change issue, therefore,
the government of the country has urged every organization should take care of their operations to save
the environment from the pollution that leads to climate change (Yusoff et al., 2018). In this respect,
GHRM activities are most crucial to aware employees about the environmental issues and motivate to
perform activities by keeping the environment free from pollution (Zaid, Jaaron, & Bon, 2018; Zhang,
Luo, Zhang, & Zhao, 2019). The concern regarding environmental impact associated with operational
process in the hotel industry has been developing but slowly among the hotels in Malaysia (Yusof &
Jamaludin, 2014). In this regard, Haddock-Millar, Sanyal, and Müller-Camen (2016) argued GHRM
mainly focusses on the coherence between traditional HRM and environmental objectives of organizations
4 Global Business Review

emphasizing the correlation between green concepts in ecology and human resource management work.
Consistently, GHRM practices are the integration of regulations, policies and functions which include
the interest of green activities by various stakeholders (Gholami, Rezaei, Saman, Sharif, & Zakuan,
2016). There are diversified views on GHRM practices (Tang, Chen, Jiang, Paille, & Jia, 2018). However,
most studies consider that GHRM practices include green recruitment and selection, green training,
green performance management, green pay and green reward systems, and green involvement (e.g.
Jabbour et al., 2010; Jackson, Renwick, Jabbour, & Muller, 2011; Renwick et al., 2013; Zibbaras &
Coan, 2015). Some studies found that GHRM proactive have an influence on employee green behaviour
at the individual level in the workplaces of organizations (Dumont, Shen, & Deng, 2017; Zhang, 2018 as
cited in Zhang et al., 2019).
On the other hand, GHRM has been found effective to the employee commitment to environmental
sustainability and corporate environmental citizenship (Mandip, 2012; Sundin, 2011). Zaid et al. (2018)
found green HRM has a positive effect on sustainable performance of organizations. Margaretha and
Susanti (2013) found that GHRM practices contribute to creating new corporate culture resulting in
greater efficiencies, lower costs and create an atmosphere of better employee engagement, which in turn
helps organizations to operate in environmentally sustainable business practices. This is also supported
by other contemporary studies on GHRM practices (Yong et al., 2019; Yong, Yusliza, Ramayah, &
Fawehinmi, 2019; Yusliza et al., 2019). In this respect, millennials employees (born between 1981 and
1996), are major concern of this study, seek the workplace where work atmosphere challenging and
meaningful (Meister & Willyerd, 2010, p. 50), balanced with employee file (Spiegel, 2013), flexible
(Espinoza, Ukleja, & Rusch, 2010), collaborative and team-oriented (Meister & Willyerd, 2010) and
transparent in terms of communication (Spiegel, 2013) and so on. From this perspective, it is logical to
argue that workplaces with these characteristics could get positive results from the effective
implementation of HRM practices as well as GHRM practices. It is because millennials have propensity
to change jobs (Pew Research Centre, 2010) and the reasons behind this propensity are actually the poor
management and employee relation, which derives from the HR functions of the organizations and lead
the millennials to leave the organizations (Özçelik, 2015; Thompson & Gregory, 2012).
While Thompson (2011) argued employers cannot eliminate employee turnover but can effectively
reduce. Thompson (2011) further argued that millennials desire the same things as any worker would,
but that does not mean that standard best practices will be enough to keep this generation’s turnover
intentions at bay. Thompson (2011) also stressed that proper and updated recruitment and training,
financial incentives, communications, career growth and advancement, workplace culture processes
including diversity, teamwork, leadership opportunities and promotions can be effective processes to
retain millennials in the organizations. If these are not practiced in organizations, the turnover intentions
would be high among employees, that is, millennials, and they may leave. In this regard, Tett and Meyer
(1993) argued turnover intention among employees is a conscious and deliberate willingness to leave an
organization. Here in the case of willingness or leave or turnover intention among millennials, either the
new version of HRM practices, that is, GHRM practices would have a positive or negative impact is not
established in the academic research yet and not even related to tourism industry where turnover is high.
Therefore, to fill this gap and tend to create bridge for further studies in future, this study attempts to
examine the relationship between GHRM practices and turnover intentions among millennial employees
in tourism organizations, specifically in hotels.
Moreover, social exchange theory (SET) (Blau, 1964) also provides a strong foundation for GHRM
practices such as green recruitment and selection, green training, green performance management, green
pay and green reward systems, green involvement and turnover intention of millennial employees. Liao
(2011) argued when employees receive benefits from the organization, they tend to repay the organization
Islam et al. 5

in the form of commitment and staying with it for a longer period of time. Therefore, theoretically, that
is, according to SET, the GHRM practices will lead to reducing the turnover intention of the employees
in the organizations. Thus, it is necessary to examine either the GHRM practices have an impact on
employees turnover intention or not because these are normally done not only for the benefits of
employers but also for employees. Furthermore, this study has been a basis to argue a theoretical
clarification on the part of the work environment in moderating the selected GHRM practices and
employee turnover intentions.

Theoretical Background
We draw upon SET to example relationship between GHRM practices and millennial employee turnover
intentions. This theory establishes those conditions under which individuals, that is, employees obliged
to reciprocate when they personally benefit from others for example organizations or individuals
(Lambert, 2000). SET was developed by Thibaut and Kelley (1959) and it was extensively used as the
theoretical foundation of employee turnover and retention research to comprehend employee and
employer relationships (Coyle-Shapiro & Conway, 2005). With regard to HRM practices, employees
feel obligated to reciprocate by commitment, devotion, positive attitude and behaviour (Mossholder,
Settoon, & Henagan, 2005; Simard, Doucet, & Bernard, 2005). Furthermore, SET describes that
employees perform better when an organization supports and values them (Eisenberger, Armeli,
Rexwinkel, Lynch, & Rhoades, 2001 as cited in Bibi, Ahmad, & Majid, 2018). Moreover, the main
supposition of SET is that a person, that is, employee makes a social relationship based on mutually
beneficial relationship. Thus, employees’ turnover intention would be ups and downs depending on
how they are treated and given benefits in the organizations. This is called a reciprocation of benefits
between employees and employers. Thus, as long as employees are given value and their expectations
are met, their commitment and embeddedness will be developed that in turn decrease their turnover
intention. This study, thus, assumes that the GHRM practices may impact on the turnover intentions of
millennial employees because GHRM practices are already recognized good for employees; therefore,
they should be obliged towards organizations and turnover intention may be reduced.

GHRM Practices and Employee Turnover Intention

Generally, effective human resource management practices improve knowledge, ability and skills of
employees that develop their empowerment and increase motivation (Becker & Gerhart, 1996; Rynes
& Trank, 1996). These, in turn, have implications to develop employees’ satisfaction towards
organizations and reduce their turnover and finally develop the overall organizational performance
(Becker & Gerhart, 1996). Huselid (1995) argued HRM practices specifically, labour management
participating teams, promotions contribute to developing employees as well as their retention that had
a negative relationship with the employee turnover. HRM practices are applied, that is, investment on
employees to improve their capacity through the practices such as training, section, performance
appraisal, reward and participation in decision making (Juhdi, Pa’wan, & Hansaram, 2013). HRM
practices such as training and development, employment security, compensation, appraisals, job
description and participation in decision making have a significant impact on reducing employee
turnover intention (Santhanam et al., 2017; Sinniah & Kamil, 2017). However, in contrast, Nasurdin,
6 Global Business Review

Tan, and Khan (2018, p. 40) reported there is no direct effect of HRM practices specifically compensation,
job security and performance appraisal on the nurses’ turnover intention in the hospitals in Malaysia.
However, they (Nasurdin et al., 2018) also identified only via organizational commitment, performance
appraisal and compensation lead to reduced nurses’ turnover intention in hospitals in Malaysia.
Furthermore, Warner and Zhu (2018) also argued different value systems, beliefs and attitudes among
new generation employees lead to organizations to take different measurements to make them committed
and stayed in the organization for a longer period. In this regard, new technologies or new processes or
innovative processes can be effective for the improved commitment of new generation employees
(Warner & Zhu, 2018).
This study takes the views of GHRM practices argued by Tang et al. (2018) who present GHRM
practices including green recruitment and selection, green training, green performance management,
green remuneration and incentive systems, and green participation. However, they and even other
researchers on GHRM practices did not show any evidence directly, they mentioned including five
practices of GHRM have any direct impact on the employee turnover intentions as well as no evidence
in relation to the tourism industry in Malaysia or other countries. However, in presenting, the summary
(Tang et al., 2018, p. 40) of HR processes involved in green HRM, Renwick, Redman and Maguire
(2013) argued becoming a green employer applying green HR practices to the organizations can increase
staff motivation and/or engagement, reductions in labour turnover. On the other hand, Kothiswari (2018)
also argue that the GHRM practices such as green recruitment and selection, training, rewards, teamwork
and empowerment have significant impact on managing employees for greater benefits which could be
developing employee retention, increasing performance, reducing turnover intention and so on.
Furthermore, the green reward or compensations have also been acknowledged for the greater employee
retention in the previous studies conducted by Shaikh (2010), Sakhawalkar and Thadani (2015) and
Sayed (2016). However, recent GHRM practices have primarily revolved around the impact of GHRM
practices on the organizational performance of bundles (Longoni, Luzzini, & Guerci, 2016; Renwick,
Redman, & Maguire, 2008).
According to SET (Blau, 1964), if the organizations apply something beneficial (e.g. GHRM practices
such as recruitment and selection, training, performance management, pay and reward systems, and
involvement), theoretically employee retention could be enhanced and the employees tend to be obliged
that could be reflected from the reduction of the turnover intention (Juhdi, Pa’wan, & Hansaram, 2013;
Lambert, 2000; Pradhan & Jena, 2016; Raihan, 2012). On the other hand, Johari, Yean, Adnan, Yahya,
and Ahmad (2012) conducted a study on the impact of the HRP practices on the millennials intention to
stay in the manufacturing industry context in Malaysia. They found only compensation and benefits, that
is, pay and reward, have a positive impact on millennials’ intention to stay in the organizations. These
findings are also similar to the argument established by Ertas (2015) on the turnover intentions of the
millennials. However, as it is not established yet either the GHRM practices would be effective for the
reduction of the employee turnover retention, it is reasonable to conduct a study on the basis of the social
exchange theoretical assumption to fill the gap (Kim, Kim, Choi, & Phetvaroon, 2019; Longoni et al.,
2016; Pradhan & Jena, 2016; Renwick et al., 2008; Tulasi Das & Sreedhar Reddy, 2016). Furthermore,
HRM literature, according to criticism from Longoni et al. (2016), has neither less focussed extensively
on individual practices rather than a set of practices. In contrast, this study identifies along with Zainol
et al. (2015) human resources as bundles which have the potential to develop organizational performance
by reducing employee turnover. This is consistent with Renwick’s et al. (2013) study, which called for
more studies on the relationship between GHRM bundle practices and firm outcome. Previous studies on
GHRM focussed largely on the effect of environmental dimensions while exploration of the linkage
Islam et al. 7

between GHRM practices and employee, that is, millennial employee turnover intention and the SET
approach are rare. Therefore, this study aims to examine whether the relationship between the GHRM
practices (green recruitment and selection, green training, green performance management, green
involvement, green pay and reward) and millennial turnover intention in the Malaysian hotel industry is
negative or not.

Work Environment
Work environment is described as the perceived entirety of non-pecuniary elements which create
surroundings for the employees to perform their functions (Chao, 2008). Work environment is called one
of the factors that impact on the employees turnover intentions or decision to stay in the organizations
(Markey, Ravenswood, & Webber, 2012; Qureshi et al., 2013). This is recognized as a vital factor which
impacts on employee retentions in the companies (Bibi, Ahmad, & Majid, 2016; Bibi, Pangil, Johari, &
Ahmad, 2017). There is a positive or negative impact of the work environment on job outcome for
example commitment, involvement and intention to stay (Ollukkaran & Gunaseelan, 2012). In this
regard, a good environment including clean, attractive, inspiring and supportive has a positive impact on
the employee turnover intention, commitment and employee retention (AlBattat & Som, 2014; Mangi,
Soomro, Ghumro, Abidi, & Jalbani, 2011). Accordingly, this study expects to find that the work
environment leads to a positive relationship with the turnover intention reducing it in the organization
among millennials. This is also supported from the SET (Blau, 1964) that HRM practices, that is, GHRM
practices such as recruitment and selection, training, performance management, remuneration and
incentive systems, and participation instituted by an organization must theoretically be able to reduce the
turnover intention of employees, that is, millennials, as individuals, that is, millennial employees enter
into exchange relationships in which a provision of mutual benefits creates obligations to reciprocate.
However, previous research on the effect of HRM practices on employee turnover intention appeared
mixed (Abubakar, Chauhan, & Kura, 2015; Chang, 1999; Chao, 2008; Juhdi et al., 2013). On the basis
of the mixed or contradictory findings of prior studies, the work environment will be incorporated as a
moderator on the relationship between GHRM practices and employee turnover intentions. This is
corroborated with Jaworski’s (1988) statement that adequacy of various control mechanism may be
independent upon internal and external contingency variables. This is also supported by Baron and
Kenny (1986) that when there is an unclear, inconsistent and weak relationship between the predictor
variable and criterion, a moderating variable is suggested to be used. Thus, this recommends the need for
the moderator variable. Therefore, this study suggests that the work environment could moderate the
relationship between GHRM and employees, that is, millennials turnover intention in the tourism
industry in Malaysia. Furthermore, the work environment was used as a moderator on the relationship
between entrepreneurial orientation and organization performance (Aaraki & Kimbugu, 2015). Similarly,
it was tested as the moderator on the relationship between western expatriates’ commitment and also
retention in international projects/assignments (Kim-Soon, Ahmad, & Ahmad, 2014). This was also used
as the moderator in the study conducted by Bibi et al. (2018), who presented that there are moderating
effect on the relationship between the HR practices (compensation, training and development and
performance) and employees’ retention. However, in existing literature, there is no evidence to show
moderating effect in the relationship between the bundle of GHRM practices (green recruitment and
selection, green training, green performance management, green remuneration and incentive systems,
and green participation) and millennial employee turnover intentions. Therefore, to fill this gap, this
8 Global Business Review

study considers the work environment as the moderator to further inquiry the relationship between the
selected GHRM practices and millennial employee retentions. Thus, this study also aims to test the
moderating role of work environment on the relationship between GHRM practices (green recruitment
and selection, green training, green pay and reward, green performance management, green involvement)
and millennial turnover intention in the Malaysian hotel industry.
Based on the literature mentioned in this article and theoretical arguments on the GHRM practices
such as green recruitment and selection, green training, green performance management, green
remuneration and incentive systems, and green participation, the following research framework in
Figure 1 has been prepared:

Methodology
All the participants in the study are mainly millennial employees and working in hotels in Malaysia.
Basic demographic information such as age, gender, education level and marital status was sought
through the survey. The survey questionnaires with 5-point Likert scale were mainly distributed to the
employees working in the hotels in a different level. The survey included measures of green recruitment
and selection, green training, green pay and reward, green performance management, green involvement,

Work environment
(WE)

Green recruitment
and selection (GRS)

Green training (GT)

Green performance Turnover intention

management (GPM) (TI)

Green involvement
(GR)

Green pay and

reward (GPR)

Figure 1. Research Framework

Source: The authors.
Islam et al. 9

work environment and turnover intention. However, we first conduct a pilot study and we took feedback
from some employees of the hotels including HR managers to develop the sentences and delete some
options in the demographic section, for example, position and salary were delated. It is because most of
the participants in the pilot study informed that mentioning salary range and position may create a
negative impression on participants specially who are working in the hotels. The pilot study also helped
us to change our strategy to distribute the survey questionnaire for the collection of the data quickly. For
example, first the survey questionnaires were given to the reception and HR department but when the
researcher went for collecting the survey questionnaires, the responses were very low. Therefore,
according to the suggestions of few HR managers, researchers directly approached the employees who
work in hotels (3-star, 4-star and 5-star hotels) to take part in the survey rather than only coming to the
hotel (Yusoff et al., 2018). It is also significant to mention that the 1-star and 2-star hotels were not
included in this study because of their lack of commitment to green practices or environmental
programmes (Rodríguez-Antón, del Mar Alonso-Almeida, Celemín, & Rubio, 2012). Furthermore, it is
true that employees working in the organizations would not be interested to express their true turnover
intention in the survey conducted in the organization via the managers or HR managers. It is because
they might think they would be in trouble for expressing the right turnover intention answering survey
questionnaire. Therefore, the researchers conducted the survey to the employees, who are actually
working in the target hotels. Thus, the researchers were able to collect 162 completed and useful survey
questionnaires from 200 distributed questionnaire among the millennial employees working hotels in
Malaysia (Zhang et al., 2019). In this respect, researchers strictly controlled filling process to ensure that
the quality was high and in result, we were able to ensure 93 per cent response rate (Zhang et al., 2019).

Instrumentation
Nineteen items from Tang et al. (2018) to measure the GHRM practices, which include green recruitment
and selection (GRS), green training (GT), green performance management (GPM), green pay and reward
(GPR) and green involvement (GI). In this respect, three items are related to GRS, for example, ‘The
organization attract green job environmental awareness, skills and expertise of candidates who use green
criteria to select organizations’, three items are related to GT (My organization develops training
programmes in environment management to increase employees.), four items are related to GPM (We
use green performance indicators in our performance management system and appraisals.), three items
are related to GPR (My organization provides green benefits (transport/travel) available rather than
giving out prepaid cards to purchase green products) and six items are related to GI (e.g. My organization
has a clear developmental vision to guide the employees’ actions in environment management.). Work
environment as a moderator was measured using five items adapted from Edgar and Geare (2005) (e.g.
‘Work environment of the hotel is good.’). Three items adapted from Cohen (1998) used in Hang-Yue,
Foley, and Loi (2005) that were used to measure millennial employees turnover intention (e.g. I think a
lot about leaving my job).
The response format was based on a 5-point Likert scale (1 = strongly disagree to 5 = strongly agree).
The analysis of the study used Partial Lease Squares (PLS) modelling to test the hypotheses. Interpretation
of a PLS model is done in the two stages such as the measurement model and structural model.
Specifically, the quality of the measurement model was mainly estimated by assessing its reliability for
example item reliability and internal consistency. On the other hand, the validity was ensured through the
use of convergent and discriminant validity and also collinearity for variance inflation factor. Followed
by, the structural model mainly focussed on the relationships between the exogenous and endogenous
10 Global Business Review

variables. In this respect, the structural model was appraised on the basis of the significance of the path
coefficients and R2 values.

Results and Analysis

In the current study, Smart PLS version 3.0 was used to analyse the data.

Measurement Model
Convergent Validity
Two-step approaches suggested by Anderson and Gerbing (1998) were assessed in this study to examine
the construct validity. In this regard, convergent reliability was assessed followed by the discriminant
validity and internal consistency reliability as given in Tables 1 and 2, respectively. According to Hair,
William, Barry, and Rolph (2010), for convergent validity, loadings should be greater than 0.5, while
Gefen, Straub, and Boudreau (2000) argued for composite reliability loadings should be greater than 0.7
and Fornell and Larcker (1981) extracted average variance should be greater than 0.5 as stated in Table 1.

Table 1. Measurement Model

Constructs Items Loadings AVE CR

GRS_1 0.908 0.750 0.900
Green recruitment and selection
GRS_2 0.828
(GRS)
GRS_3 0.860
GT_1 0.953 0.939 0.979
Green training (GT) GT_2 0.974
GT_3 0.981
GPM_1 0.746 0.632 0.872
Green performance measurement GPM_2 0.718
(GPM) GPM_3 0.917
GPM_4 0.784
GI_1 0.896 0.833 0.962
GI_3 0.927
Green involvement (GI) GI_4 0.922
GI_5 0.928
GI_6 0.891
GPR_1 0.929 0.886 0.959
Green pay and reward (GPR) GPR_2 0.939
GPR_3 0.956
(Table 1 Continued)
Islam et al. 11

(Table 1 Continued)
Constructs Items Loadings AVE CR
We_1 0.872 0.723 0.928
We_2 0.911
Work environment (We) We_3 0.882
We_4 0.814
We_5 0.765
TI_1 0.900 0.760 0.905
Turnover intention (TI) TI_2 0.894
TI_3 0.818
Source: The authors.
Note: An item of green involvement was deleted.

Discriminant Validity
Discriminant validity denotes the extent to which a specific latent construct is different from other
constructs (Duarte & Raposo, 2010). It was assessed according to suggestion of Fornell and Larcker
(1981). Based on this recommendation, every construct and its measurements should be more than
variance between other constructs. According to Table 2, the correlation of every construct has been
exceeded by square root of AVE that outlines satisfactory discriminant validity of the construct (Hair
et al., 2010; Hair, Hult, Ringle, Sarstedt, & Thiele, 2017).
Furthermore, the study also used the heterotrait-monotrait (HTMT) ratio of correlations for testing the
discriminant validity (Hensler, Ringle, & Sarsdt, 2015). In this respect, researcher compared predefined
threshold to access the discriminant validity using the HTMT. Therefore, if the value of HTMT is higher
than predefined threshold, it can be concluded that there is a non-existence of discriminant validity. In
this respect, this study followed conservative threshold of 0.85 suggested by Kline (2015) that is stated
in Table 3.

Table 2. Fornell and Lacker Criteria

GI GPM GPR GRS GT TI WE

GI 0.897

GPM −0.264 0.795

GPR 0.812 −0.172 0.816

GRS −0.281 0.083 −0.170 0.866

GT 0.182 0.003 0.250 −0.026 0.909

TI 0.798 −0.249 0.826 −0.146 0.139 0.872

WE 0.798 −0.141 0.759 −0.151 0.086 0.711 0.850

Source: The authors.
12 Global Business Review

Table 3. HTMT Results

GI GPM GPR GRS GT TI WE

GI

GPM 0.209

GPR 0.812 0.125

GRS 0.312 0.148 0.183

GT 0.179 0.084 0.251 0.093

TI 0.816 0.185 0.832 0.166 0.136

WE 0.837 0.112 0.759 0.189 0.119 0.780

Source: The authors.

Structural Model
The structural model was analysed in the next step and the results presented in Table 4 and Figure 2.
Based on the green signal from the reliability and validity results through the measurement model and
structural model were analysed. Table 4 shows that only two hypotheses were supported and the rest four
hypotheses were rejected. Green involvement (GI) has a negative relationship with turnover intention of
millennial employees as beta value is 0.456, t-value is 3.539 and p-value is 0.000. At 95 per cent
confidence interval, the p-value is higher than 0.05; therefore, this negative relationship is mainly
statistically significant. Similarly, green pay and reward (GPR) is significantly negatively related with
the turnover intention of employees in the organizations. Here beta value is 0.412, t-value is 3.399 and
p-value is 0.001. The results have been presented beneath:

Table 4. Structural Model

Original Sample Standard Deviation T Statistics

Sample (O) Mean (M) (STDEV) (|O/STDEV|) p-Values Decision

GI → TI 0.456 0.457 0.129 3.539 0.000 Supported

GPM → TI −0.057 −0.063 0.069 0.824 0.410 Non-supported

GPR → TI 0.412 0.397 0.121 3.399 0.001 Supported

GRS → TI 0.062 0.049 0.051 1.208 0.228 Non-supported

GT → TI −0.049 −0.046 0. 051 0.957 0.339 Non-supported

WE → TI 0.040 0.042 0.115 0.348 0.728 Non-supported

Source: The authors.
Islam et al. 13

Figure 2. Structural Model

Source: The authors.

Moderation Effect of Work Environment

This study used a ‘product-indicator approach’ through PLS-SEM for examining the moderating role of
the work environment on the relationship between the GHRM practices and the turnover intention of
employees (Helm, Eggert, & Garnefeld, 2010). Product-indicator approach is most suitable for this study
because the moderating construct is continuous (Rigdon, Schumacker, & Wothke, 1998). This is also
supported by Henseler and Chin (2010), who argued that product-indicator approach is better and
provided appropriate results in the case of continuous variable product-indicator in comparison with the
multi-group approach. However, findings outlined in the Table 5 suggest that there is no moderating
effect or role of work environment on the relationship between GHRM practices, that is, green
involvement, green performance management, green pay and reward, green recruitment and selection
and green training and turnover intention of millennials employees working in the selected hotels in
Malaysia. These results have been depicted beneath in Table 5 and Figure 3.
14 Global Business Review

Table 5. Moderation Effect

Original Sample Standard Deviation T Statistics

Sample (O) Mean (M) (STDEV) (|O/STDEV|) p-Values
GI → TI 0.488 0.486 0.133 3.643 0.000
GI × WE → TI −0.010 0.036 0.192 0.054 0.957
GPM → TI −0.070 −0.092 0.092 0.757 0.450
GPM × WE → TI 0.040 0.079 0.164 0.241 0.810
GPR → TI 0.402 0.400 0.123 3.262 0.001
GPR × WE → TI −0.018 −0.018 0.200 0.088 0.930
GRS → TI 0.114 0.128 0.114 0.968 0.319
GRS × WE → TI −0.141 −0.191 0.211 0.669 0.504
GT → TI −0.067 −0.045 0.070 0.956 0.339
GT × WE → TI 0.097 0.075 0.116 0.835 0.404
WE → TI 0.043 0.102 0.166 0.258 0.796
Source: The authors.

Figure 3. Moderating Effect

Source: The authors.
Islam et al. 15

Discussion and Implications

This study examined the effects of GHRM practices (green recruitment and selection, green training,
green performance management, green involvement and green pay and reward) on the turnover intentions
of the millennial employees in hotels in Malaysia. In addition, work environment was also explored as
the moderator on the relationship between GHRM practices and turnover intention of millennial
employees. Statistical results show mixed findings specially surprisingly some of the expected GHRM
practices have no direct effect on turnover intention of millennials working in hotels (3-, 4- and 5-star)
in Malaysia. Furthermore, our study did not find any moderating effect of work environment on the
relationship between every GHRM practices and turnover intention of the millennial employees. The
surprising finding might be attribute to the characteristics to the millennials working in the hotels, it is
because millennials have been found with lack of commitment to the organizations even if these
organizations use different HRM practices (Azeez, 2017; Johari et al., 2012; Nasurdin et al., 2018;
Warner & Zhu, 2018).
However, this study finds that the green involvement (GI) has direct effect on the turnover intention
of millennials in the hotels in accordance with the prior studies (Meister & Willyerd, 2010; Spiegel,
2013). Moreover, Thompson (2011) argued millennials like to involve in the decision and want to
contribute that make them feel valued and it leads to greater commitment to the organization. Thus, they
tend to retain in the organization for the longer period and thus, their turnover intention is related to the
green involvement process in the organization (Kothiswari, 2018; Renwick et al., 2013; Tulasi Das &
Sreedhar Reddy, 2016). This study also found the green pay and reward has direct impact on turnover
intention of millennial employees in the hotel industry. This is also consistent with the previous studies
(Liao, 2011; Longoni et al., 2016; Othman et al., 2017; Zainol et al., 2015). Green compensation, green
rewards and recognition, that is, green pay and reward as the significant factor to retain the employees in
the organization are found in the previous studies conducted in many other contexts (Liao, 2011;
Sakhawalkar & Thadani, 2015; Sayed, 2016; Shaikh, 2010).
The findings of the present study have implications for theory and practice. Theoretically, the study
has enriched the GHRM, work environment and turnover intention literature. Specifically, the study
provides evidence for the indirect and direct impact of GHRM practices on the turnover intentions of
millennials employees in hotel organizations. Furthermore, our results verify the application of SET
(Blau, 1964) within the context of the hotel industry of Malaysia. From the practical perspectives, it is
evident that there is a strong relationship between two GHRM practices, that is, green involvement and
green pay and reward and turnover intention of millennials working in the hotel industry of Malaysia.
Moreover, from the practical perspective, our findings strongly suggest to the managers or higher authors
of hotels to ensure or arrange green involvement of millennials to reduce their turnover intention. As a
result, the organizations will be able to save them from the higher turnover of the employees, that is,
millennials. This would be effective for the greater accomplishment of the functions that would lead to
organizational success in the long-run process. Furthermore, other GHRM practices should also be
strengthened in the organizations, that is, hotels to reduce the turnover intention of the millennials
because these will lead to the greater commitment of millennials to the organizations.

Limitations and Suggestions for Future Research

Although this study provides some practical contribution to the theory and practice, there are still some
limitations. First, the cross-sectional nature of the study limits the ability in the case of causal inferences.
16 Global Business Review

Therefore, bias could have happened as both exogenous and endogenous variables have been investigated
at the same time. Therefore, the longitudinal approach in future studies can contribute to cross-validate
the present findings. It can also provide a strong argument for the causality of the relationship between
GHRM practices and turnover intention of millennials. Second, we only included millennials working in
the hotels in Malaysia; therefore, findings cannot be generalized. Therefore, for generalisation of the
results, other types of employees should also be included in future studies as well other similar studies
can be conducted in other contexts for example in the manufacturing industry. Furthermore, the study
investigated only five constructs using some previously developed items; therefore, in future research
other constructs of GHRM should be included. Moreover, future studies can also incorporate mediating
variables for example trust in management, technologies, gender and so on that may provide a greater
explanation to the hypothesized relationships.

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of
this article.

Funding
The authors received no financial support for the research, authorship and/or publication of this article.

ORCID iD
Md Asadul Islam https://orcid.org/0000-0002-2420-3705

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