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THE EFFECT OF ORGANISATIONAL STRESS ON EMPLOYEE TURNOVER

INTENTION MEDIATED BY EMPLOYEE JOB DISSATISFACTION AMONG
EMPLOYEES IN MALAYSIA
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International Journal of Accounting and Business Management (Online), Volume XXX, Issue XXX (month, year)
Research Paper
THE EFFECT OF ORGANISATIONAL STRESS ON EMPLOYEE TURNOVER
INTENTION MEDIATED BY EMPLOYEE JOB DISSATISFACTION AMONG
EMPLOYEES IN MALAYSIA
Emmanuel Abiodun Ogundare

FTMS Global College
Cyberjaya
emmanuel@ftms.edu.my
Juliana Olusola Omiwole

FTMS Global College
Cyberjaya
busayoolusola11@gmail.com
Abstract
The paper investigates the mediating effect of employee job dissatisfaction (EJD) on the
relationship between the dimensions of organisational stress and employee turnover intention
(ETI) among employees in Malaysia. Four dimensions of organisational stress namely: work
overload (WO), low compensation and reward (CR), lack of career development (CD) and lack of
decision-making (DM) opportunity were investigated. A primary research was conducted utilising
an online survey questionnaire. There are 229 participants for the study. The data collected were
analysed quantitatively using the SPSS 22.0 software and SPSS PROCESS version 3.5 by Andrew F.
Hayes. Tests conducted include Cronbach’s Alpha, Principal component analysis, Kaiser-Meyer-
Olkin (KMO) and Barlett’s test of sphericity, descriptive statistics, Skewness and Kurtosis,
multicollinearity, Pearson correlation and multiple linear regression analysis. The mediation
analysis was tested using SPSS PROCESS utilising Baron and Kenny (1986) model. The results
confirmed the full mediation effect of employee job dissatisfaction on the relationship between all
four dimensions of organisational stress and employee turnover intention among employees in
Malaysia. Seven out of nine direct hypotheses were also statistically accepted. Two out of four
dimensions of organisational were confirmed to significantly influence employee turnover
intention while all four dimensions significantly influenced employee job dissatisfaction. There was
also a direct significant relationship between employee job dissatisfaction and employee turnover
intention. This study contributed to organisational stress body of research. Future studies should
explore the use of CFA and SEM to test the relationship and mediating effect. AMOS or PLS-SEM
software should be explored.
Key Terms: Key: Work overload (WO), low compensation and reward (CR), lack of career
development (CD) and lack of decision-making (DM), employee job dissatisfaction (EJD),
employee turnover intention (ETI).
1. Introduction
The devastating effects of work and occupational stress on employee performance have been
well documented in research, especially during the last three decades (Newton and Jimmieson,
ISSN: 2289-XXXX Page 1

2009; Siegrist, 1998, Chhabra, 2016). Organisational stress is extensively receiving attention in
the academic literature currently; therefore, it has become a salient issue for organisations
(Smith et al., 2017). Studies show that workplaces that promote good mental health and support
people with mental disorders are more likely to reduce absenteeism, increase productivity and
benefit from associated economic gains. In a study conducted by Chaudhary and Lodhwal
(2016) they found out that there is a negative correlation between Allahabad Bank employees
and job satisfaction and a positive correlation to intention to turnover. Another study by George
and Zakkariya (2015) found out that employees of different sectors of bank had different level
of job satisfaction and job-related stress. Another study Smith et al. (2017) found out that role
stressors, mediated by stress arousal and the individual burnout dimensions, have a negative
influence on job satisfaction. Some of stressors used in research to measure organisational
stress include work-overload, toxic work environment, low compensation, lack of career
development and burnout (Chhabra, 2016).
1.1 Research rationale
No workplace is immune to mental health issues – and their impact in psychological, social, and
economic terms is high (Thye, 2019). According to the Patron of the Malaysian Psychiatric
Association (MPA) 29% of Malaysians had depression and anxiety disorder in a survey
conducted by National Health and Morbidity in 2018 (Thye, 2018). According to the another
study by Malaysia’s healthiest workplace by AIA vitality 2018 special supplement with the edge,
50.2% Malaysian had at least one dimension of work-related stress in 2018 while 54.4%
employees slept than 7 hours a night which resulted in productivity loss of 73.1 days a year (AIA
Vitality, 2018). Workplace stress is on the rise in Malaysia especially in the banking sector. In
2018, the loss of working days increased from an average of 67.2 days in 2017 which translates
into an estimated cost of RM2.27 million lost per organisation per year resulting from
absenteeism and low productivity caused by organisational stress (Thye, 2019). Malaysian
employees have also become increasingly affected by mental issues over the years which led to
staff absences and turnover which in turn negatively impact the productivity and performance
of a company (Murugesan, 2018). There has been a three-fold increase in mental health
problems among the Malaysian population over the past 20 years and the estimated loss for
Malaysia was US$10.6bil (RM43.6trillion) in 2010 which is expected to rise to US$24.3bil
(RM99.9bil) by 2030 (Thye, 2019). This has been attributed to work-place stress. Recent studies
showed that Malaysians work an average of 15 hours more than their contracted hours each
week, surpassing Singapore, Hong Kong, and Australia, but the country has one of the highest
percentages of productivity loss (Econ, 2019).
1.2 Research aim and objectives

The aim of this quantities research is to evaluate the effect of organisational stress on turnover
intention mediated by job satisfaction among employees in Malaysia. Study objectives are
shown below:
1. To investigate the effect work overload (WO) on employee turnover intention (ETI) among
employees in Malaysia.
2. To investigate the effect of low compensation and reward (CR) on employee turnover
intention among employees in Malaysia.

3. To investigate the effect of lack career development (CD) on employee turnover intention
among employees in Malaysia.
4. To investigate the effect of lack decision-making opportunity (DM) on employee turnover

intention among employees in Malaysia.
5. To investigate the relationships between organisational stress dimensions and employee job
dissatisfaction (EJD)
6. To investigate the relationship between employee job dissatisfaction and employee turnover
intention.
7. To investigate the mediating effect of employee job dissatisfaction on the relationship

between organisational stress dimensions and employee turnover intention.
1.3 Research questions
1. Is there any relationship between work overload and employee turnover intention among
employees in Malaysia?
2. Is there any relationship between low compensation and reward and employee turnover
intention among employees in Malaysia?
3. Is there any relationship between lack of career development and employee turnover
intention among employees in Malaysia?
4. Is there any relationship between lack of decision-making opportunity and employee

turnover intention among employees in Malaysia?
5. Is there any relationship between organisational stress dimensions and employee job
dissatisfaction?
6. Is there any relationship between employee job dissatisfaction and employee turnover
intention?
7. Is there any mediating role of employee job dissatisfaction on the relationship between
organisational stress dimensions and employee turnover intention?
2. Literature Review
2.1 Definitions of key terms

Organisational stress
Butts et al. (2009) defined organisational stress about its psychological and physical effects on
individuals. They take stress as physical, mental, or emotional strain at work. Cooper et al.
(2001) suggested that organisational stress occurs when a discrepancy exists between the work
demands and a person’s ability to carry out those demands.
Turnover intention

Turnover intention can be defined as intentions or thoughts about leaving a job (Yousaf et al.,
2019). Organisational stress leads to a decrease in employee job satisfaction and such a
decrease may subsequently results in high turnover intentions (Yousaf et al., 2019).
Job dissatisfaction
Satisfaction is defined as “a state in which a person feels glad, happy, and good or wherein
someone achieves some specified goal or when something occurs which a person wanted to
occur and Job dissatisfaction is the opposite” (Dinham and Scott (1998). Loi and Ngo (2010)
suggested that managing job dissatisfaction is important for employees and employers; they
viewed the strategy of maintaining job satisfaction as important for both parties. Employee job
satisfaction plays an important role in achieving individuals and organisational goals and
objectives (Yousaf et al., 2019).
2.2 Evaluation of relevant theories/models
The effort-reward imbalance model (ERI)
The model focuses on the relationship between stressful experiences at work and individual
health risks (Siegrist, 1996). So it takes into account two sides of the same coin: the extrinsic
efforts individuals make in response to high work demands (e.g. overtime work, work pressure,
interruptions, and inconsistent demands) and the rewards they receive reciprocally in exchange
for these efforts. According to Siegrist et al. (2004) employees put effort into their work as part
of an implicit contract which is based on the norm of social reciprocity. In turn they expect
rewards in the form of compensation, esteem, appreciation, recognition, reputation in the
organisation, promotion prospects, and/or job security (Siegrist, 1996). If this social reciprocity
norm is violated, resulting in an imbalance between (high) effort and (low) reward, individuals
experience recurring negative emotions and sustained stress reactions (Weiß and Süß, 2016).
Conservation of resource (COR) theory
The COR theory (Hobfoll, 1989, 2002) is, arguably, one of the most influential theories
explaining human stress and well-being. The basic tenet of the COR theory is that individuals
strive to obtain, retain, protect, and foster those things that they value, or serve as a means of
obtaining things they value, named “resources”. Resources include object resources (e.g. tools
for work, car), condition resources (e.g. marriage, supportive work relationships), personal
resources (e.g. self-efficacy, self-esteem), and energy resources (e.g. time, knowledge, credit).
Individual difference variables (e.g. hope, personal health) are also included as a component of
the COR theory and are treated as resources (Grandey and Cropanzano, 1999). According to the
COR theory, stress occurs when resources are threatened, lost, or when individuals invest
resources and do not reap the anticipated level of return (Hobfoll, 1989, 2001).
2.3 Critical evaluation of empirical studies
Organisational stress and turnover intention
Organisational stress has been revealed as a strong factor that contributes to negative outcomes
in workplaces for employees and organisations during the past few decades (Falconier et al.,
2015). The outcomes of organisational stress include, but not limited to, reduced work output,

increased accidents, absenteeism, turnover, poor performance and high work–family conflicts
(Armstrong et al., 2015). Literature has shown that role overload will have a negative impact on
employee outcomes. Chhabra, (2016), found out that the work role stressors (work overload)
were negatively related to job satisfaction and positively related to turnover intentions.
Similarly, Boudrias et al. (2020) in Canada found out that role ambiguity and role conflict
(stressors) are positively related to turnover intention. In Malaysia, Tan et al. (2020)
investigating the effect of overwork (OW) and overtime (OT) on turnover intention (TI) found
out that both OW and OT have a direct impact on TI. In Pakistan, similar study by Ali and
Mehreen (2019) investigating the impact of succession planning (career development
dimension) on turnover intentions among banking professionals found out that succession
planning provides job security and creates positive career attitude which in turn mitigate the
turnover intentions among banks employees.
Organisational stress and job satisfaction
Recent research conducted in Ghana by Dartey-Baah et al. (2020) found out that tellers are
more likely to exhibit counterproductive behaviours such as job dissatisfaction due to work-
related stress. Related study in China by Wu (2020) divided job stress into challenge stress and
hindrance stress, the results suggest that hindrance stress is significantly negatively related to
job satisfaction. On the contrary, the relationship between challenge stress and job satisfaction
was not significant. In India, Dhamija et al. (2019) confirmed in their research that the presence
of variance (R2 61.40%) in job satisfaction as explained by the quality of work life constructs
(stressors). The unconducive work environment (stressor) has confirmed negative association
with job satisfaction. Nappi et al. (2020) conducted a study in France and the results showed
that employees experienced greater job stress, less workspace satisfaction, and they felt less
attached to their workspaces. Goswami and Dsilva (2019) in India came up with similar findings
with the results of their research confirming that “work related” factors such as unsafe working
conditions, work load, relationship on the job were the most prominent sources of stress for the
respondents and that the causal relationship between job satisfaction, job stress and stress
impact verified through Smart PLS-SEM turned out to be significant.
Employee job satisfaction and Turnover intention (intention to quit)
Memon et al. (2017) in Malaysia investigated the role of training satisfaction as a predictor of
organisational citizenship behaviour (OCB) and turnover intention using data collected from
409 Malaysian oil and gas (O&G) sector employees. The results highlight the significant negative
impact of training satisfaction on turnover intention. In the USA, the results of Skelton et al.
(2019) research showed a significant relationship between job satisfaction and turnover intent;
and that satisfied and committed employees are less likely to plan to leave their employment.
However, the sample size of 63 could be said to be too low. Based on Comrey and Lee’s (2013)
standard, sample sizes of 300 are considered good and 500 considered exceptionally good. In
china, Zhang et al. (2019) investigated the factors that are influencing nurses’ turnover by
drawing on the conservation of resources theory (COR). 236 nurses were included in the
sample. The findings show that job satisfaction and life satisfaction are the underlying
psychological reasons in the positive relationship between work–family conflict and nurses’
turnover intentions. Another study in China by Huang et al. (2017) found out that Cognitive job

satisfaction has a stronger negative effect on turnover than affective job satisfaction, and both
effects depend on the factors related to ease of movement.
Mediating role of job dissatisfaction
Recent models of turnover intentions have linked perceived job stress with turnover intentions
through various intermediate withdrawal cognitions such as job satisfaction and organisational
commitment. In a study conducted in the People’s Republic of China by Yousaf et al. (2019), they
found out that job satisfaction is a mediating mechanism in the relationships between
occupational stress and job engagement and occupational stress and employee turnover
intentions for front-line hospitality industry workers. In Malaysia, Ahmat et al. (2019) study’s
results reveal that job satisfaction significantly mediated the relationship between employee
compensation satisfaction and employee turnover intention. In Thailand, Dechawatanapaisal
(2018) surveyed 1,028 accountants in various disciplines from one of the largest corporations
in Thailand using a confirmatory factor analysis, multiple regressions, and a bootstrapping
procedure. The results show that the interaction effect shows that the negative relationship
between organisational job embeddedness (job stress included) and quit intention reduces
when job satisfaction is high. Devonish (2018) further confirmed the mediating role of job
satisfaction with study’s results revealed job satisfaction plays only a partial role in mediating
the relationships between effort-reward imbalance and burnout, turnover intentions, and
mental health.
2.4 Conceptual framework

Figure 2.1 below depicts the conceptual framework tested in this study. It shows the
relationships between four dimensions of organisational stress and dependent variable –
employee turnover intention and mediating variable – employee job dissatisfaction. The
framework also shows the direct relationship between dependent variable – employee turnover
intention and mediating variable – employee job dissatisfaction.
Figure 2.1: Conceptual Framework
2.5 Hypotheses

Literature has shown that role overload will have a negative impact on employee outcomes.
Chhabra, (2016), found out that the work role stressors (work overload) were negatively
related to job satisfaction and positively related to turnover intentions. Armstrong et al. (2015)
found out that the outcomes of organisational stress include, but not limited to, reduced work
output, increased accidents, absenteeism, turnover, poor performance and high work–family
conflicts. Similarly, Boudrias et al. (2020) in Canada found out that role ambiguity and role
conflict (stressors) are positively related to turnover intention. In Malaysia, Tan et al. (2020)
investigating the effect of overwork (OW) and overtime (OT) on turnover intention (TI) found
out that both OW and OT have a direct impact on TI. Thus, hypothesis 1 is postulated below:
H1: Work overload had a significant positive effect on turnover intention.
Pandey et al. (2018) in India, found out that “abusive supervision, favouritism, perceived job
image, insufficient pay, work exhaustion, perceived unethical climate, organisation culture
shock, staff shortage and job dissatisfaction are responsible for developing turnover intention
among front-end employees in the Indian retail industry. Thus, hypothesis 2 is postulated
below:
H2: Low compensation had a significant positive effect on turnover intention.
Yang et al. (2019), through a structural equation modelling (SEM) found out that both
organisational and occupational embeddedness mediated the relationships between mentoring
functions (career and psychosocial support) and turnover intention. Specifically, employees
who can receive successful mentoring (career development) can easily embed in their
organisation and occupation. In Pakistan, similar study by Ali and Mehreen (2019) investigating
the impact of succession planning (career development dimension) on turnover intentions
among banking professionals found out that succession planning provides job security and
creates positive career attitude which in turn mitigate the turnover intentions among banks
employees. Thus, these employees are reluctant to leave. Thus, hypothesis 3 is postulated
below:
H3: Lack of career development had a significant positive effect on turnover intention.
A study by Ghosh et al. (2019) in India reveal that a significant direct relationship between
perceived supervisor’s supports and turnover intention. Perceived organisational support and
perceived co-worker support were found to have significant indirect effects on turnover
intention, mediated by affective commitment. Agarwal (2019) results suggest that abusive
supervision is significantly related to intention to quit and perceive stress, and this relationship
is partially mediated by Psychological Capital. Thus, hypothesis 4 is postulated below:
H4: Lack of decision-making opportunity had a significant positive effect on turnover intention.
Recent research conducted in Ghana by Dartey-Baah et al. (2020) found out that tellers are
more likely to exhibit counterproductive behaviours such as job dissatisfaction due to work-
related stress. Related study in China by Wu (2020) divided job stress into challenge stress and
hindrance stress, the results suggest that hindrance stress is significantly negatively related to
job satisfaction. In India, Dhamija et al. (2019) confirmed in their research that the presence of
variance (R2 61.40%) in job satisfaction as explained by the quality of work life constructs

(stressors). The unconducive work environment (stressor) has confirmed negative association
with job satisfaction. Thus, hypotheses 5, 6, 7 and 8 are postulated below:
H5: Work overload had a significant positive effect on employee job dissatisfaction
H6: Low compensation had a significant positive effect on employee job dissatisfaction
H7: Lack of career development had a significant positive effect on employee job dissatisfaction
H8: Lack of decision-making opportunity had a significant positive effect on employee job
dissatisfaction
A research by Ann and Blum (2020) found out that job satisfaction had a significantly negative
effect on turnover intention, while job dissatisfaction had a significantly positive effect on the
variable, which supported Herzberg’s theory. In china, Zhang et al. (2019) study’s results show
that job satisfaction and life satisfaction are the underlying psychological reasons in the positive
relationship between work–family conflict and nurses’ turnover intentions. Huang et al. (2017)
found out that Cognitive job satisfaction has a stronger negative effect on turnover than
affective job satisfaction, and both effects depend on the factors related to ease of movement.
Hammond et al. (2020) in their study found a direct relationship between job satisfaction and
turnover intentions. Thus, hypothesis 9 is postulated below:
H9: Job dissatisfaction has a significant positive effect on turnover intention.
Yousaf et al. (2019), they found out that job satisfaction is a mediating mechanism in the
relationships between occupational stress and job engagement and occupational stress and
employee turnover intentions for front-line hospitality industry workers. Xie et al. (2016) study
demonstrated that hierarchical plateau was positively related to the turnover intention of
employees at the career establishment stage and that job satisfaction played a mediating role in
the relationship. Devonish (2018) further confirmed the mediating role of job satisfaction with
study’s results revealed job satisfaction plays only a partial role in mediating the relationships
between effort-reward imbalance and burnout, turnover intentions, and mental health. Thus,
mediation hypotheses 1- 4 are postulated below:
Mediation hypotheses 1 - 4: Employee job dissatisfaction mediates the relationship between

four dimensions of organisational stress and turnover intention.
3. Research Design and Methodology
3.1 Research paradigm

There are so many paradigms or philosophies that a researcher can adopt including
epistemology, ontology, methodology and axiology (Fadhel, 2002). Another categorization
includes positivist, Interpretivist, or Critical paradigms. The most suitable paradigm of enquiry
for this study is positivist. The positivist paradigm defines a worldview to research, which is
grounded in what is known in research methods as the scientific method of investigation
(Cohen, Manion and Morrison, 2000). It is used to search for cause and effect relationships in
nature. It is chosen as the preferred worldview for research, which tries to interpret

observations in terms of facts or measurable entities. Research located in this paradigm relies
on deductive logic, formulation of hypotheses, testing those hypotheses, offering operational
definitions and mathematical equations, calculations, extrapolations, and expressions, to derive
conclusions (Cohen et al., 2000).
3.2 Research design
Research design can be exploratory, explanatory, causal or descriptive in nature; however, the
most suitable design for this study is explanatory/causal (Bahl and Milne, 2006). Causal
research, also known as explanatory research, is conducted in order to identify the extent and
nature of cause-and-effect relationships (Bahl and Milne, 2006). Causal research can be
conducted in order to assess impacts of specific changes on existing norms, various processes
etc. Causal studies focus on an analysis of a situation or a specific problem to explain the
patterns of relationships between variables (Bryman, 2006). This design is suitable for this
research because the study is conducted to assess the effect of organisational stress on turnover
intention mediated by job satisfaction among employees in Malaysia.
3.3 Research methods
This study adopts a quantitative method via the collection of numerical data using
questionnaire as the instrument of data collection. Quantitative research is the systematic
scientific investigation of quantitative properties and phenomena and their relationships. The
objective of quantitative research is to develop and employ mathematical models, theories
and/or hypotheses pertaining to natural phenomena (Creswell and Plano Clark, 2007). The
process of measurement is central to quantitative research because it provides the fundamental
connection between empirical observation and mathematical expression of quantitative
relationships. Deduction entails moving from the general to the particular, as in starting from a
theory, deriving hypotheses from it, testing those hypotheses, and revising the theory (Locke,
2007; Nola and Sankey, 2007).
3.4 Population size and sampling technique

Recent developments suggest that researchers should determine sample size through power
analysis (Hair et al., 2018). Power analysis determines the minimum sample size by taking into
account the part of a model with the largest number of predictors and requires information
related to power, effect size, and significance level to calculate the minimum required sample
size (Hair et al., 2014; Hair et al., 2018). A value of 80% or more represents an adequate level of
power in social science research (Hair et al., 2017; Uttley, 2019). There are five predictors in
this study (four independent variables and one mediator) and using 95% level of power, the
minimum sample size for this study is calculated as 138. The study utilised a sample size of total
229 respondents.
3.5 Data instrument

S/N Variable/dimensions Sources
1 Work overload Dartey-Baah et al. (2020);
Chhabra, (2016)
2 Reward and compensation Pandey et al. (2018)

3 Career development Ali and Mehreen (2019);

Yang et al. (2019)
4 Decision making opportunity Dartey-Baah et al. (2020);

Chhabra, (2016)
5 Employee job satisfaction Dartey-Baah et al. (2020)
6 Intention to turnover Chhabra, (2016); Boudrias

et al. (2020)
Table 3.1: Variables and sources
3.6 Data analysis plan

The data collected via the survey questionnaire were analysed using the popular Statistical
Package for the Social Sciences (SPSS) and SPSS PROCESS. The version used was SPSS 22.0.
Several tests were conducted including internal validity, reliability, sample adequacy,
multicollinearity, correlation among variables and regression model. Regression model was
used to test direct hypotheses while Baron and Kenny (1986) model was used to test the
mediating effect of job satisfaction on workplace stress on turnover intention. Diverse
procedures for detecting mediating/intervening have been widely used in previous research as
a method of measurement using indirect effect (Hair et al., 2010), and calculations have been
performed using Sobel test (Baron and Kenny, 1986) and Bayesian approach (Enders, 2013).
Sobel’s test (Baron and Kenny, 1986) with Baron and Kenny’s approach is a regular process of
testing the hypothesis regarding the mediation analysis.
Figure 3.1: Mediation analysis
4. Results and Discussion

4.1 Demographic analysis

Table 4.1 below shows the analysis of demographic data of the respondents from six categories
namely: age group, gender, income range per month, current position, length of service and
education qualification.
S/N Demography Breakdown Frequency Percentage Cumulative Percentage
1 Age Group Below 21 years 9 4% 4%
21-30 years old 34 15% 19%
31-40 years old 97 42% 61%
41 years and above 89 39% 100%
Total 229 100%
2 Gender Male 116 51% 51%
Female 113 49% 100%
Total 229 100%
3 Income Range Per Month Below RM3,000 10 4% 4%
RM3,000 to RM5,000 33 14% 19%
RM5,001 to RM 10,000 78 34% 53%
RM10,001 to RM20,000 89 39% 92%
RM20,000 and above 19 8% 100%
Total 229 100%
4 Current Position/Level Entry 16 7% 7%
Intermediate 33 14% 21%
Supervisory 41 18% 39%
Line Managerial 80 35% 74%
Senior managerial 59 26% 100%
Total 229 100%
5 Length of Service Less than 3 years 62 27% 27%
Between 3 and 5 years 42 18% 45%
Between 5 and 10 years 66 29% 74%
10 years and still countin 59 26% 100%
Total 229 100%
6 Education Qualification SPM/Diploma 45 20% 20%
Bachelor degree 112 49% 69%
Master's 63 28% 97%
Doctoral 7 3% 100%
Total 227 100%
Table 4.1: The analysis of demographic data
4.2 Reliability and validity test

Table 4.2 below shows the reliability tests of the seven variables. Some studies classified the
value of Cronbach’s alpha coefficient into six categories as (1) “Excellent” [α>0.9]; (2) “Good”
[α>0.8]; (3)“Acceptable”[α>0.7]; (4) “Questionable” [α>0.6]; (5) Poor [α>0.5] and; (6)
Unacceptable [α<0.5] (Cronbach and Shavelson, 2014; Jain and Angural, 2017). The present
study indicates that the overall Cronbach’s alpha of the 30 items questionnaire as 0.968 in
which the variables that measured the core element of this questionnaire can be rated
“excellent” and is therefore considered reliable. The variable with the lowest Cronbach’s alpha is
low compensation and reward, however, it is still rated as “Acceptable” with coefficient 0.788.
The other variables range between “Excellent” [α>0.9] and “Good” [α>0.8].
S/N Constructs Number of Cronbach’s Alpha Coefficient

items

1 All 30 items 30 0.968

2 Work overload 5 0.864
3 Low compensation and reward 5 0.788
4 Lack of career development 5 0.887
5 Lack of decision-making 5 0.902
opportunity
6 Employee job dissatisfaction 5 0.944
7 Employee turnover intention 5 0.930
Table 4.2: Reliability test
4.3 Sampling adequacy test

Table 4.3 below shows the sampling adequacy tests. In order to decide whether the subscales
were appropriate for factor analysis, the authors applied two statistical tests, namely, Bartlett’s
test of sphericity and Kaiser–Meyer–Olkin (KMO) (KMO Measure of Sampling Adequacy).
Bartlett’s test of sphericity was applied to examine the inter-independence of the subscales of
the questionnaire, which was followed by the KMO criterion (KMO measure of sampling
adequacy) to examine sample sufficiency (Kaiser, 1974). A recent validation study also applied
the same criterion to verify the scale construct validity (Al Kuwaiti and Subbarayalu, 2019).
Kaiser-Meyer-Olkin close to 1 is recommended and Bartlett's Test of Sphericity should be
significant. The suitability of raw data for factor analysis in this study is demonstrated through
the statistical criterion, KMO value which is equal 0.948 (close to 1) and Bartlett’s test of
sphericity (chi-square value = 6292.962, p < 0.05).
Test Coefficient
Kaiser-Meyer-Olkin .948
Approx. Chi-Square 6292.962
Bartlett's Test of Sphericity 435
Sig .000
Table 4.3: Sampling adequacy test
Further, Table 4.4 below shows the common communalities of the variables that made up the
questionnaire. Results indicate that all the variables had an extraction value higher than 0.50,
which indicates that the quality of the measurements is satisfactory (Kamalasanan et al., 2020).
There are four factors with the initial eigenvalues of between 1.122 and 15.950 with 70.026%
as the total variance explained. The application of the latent root criterion on the number of
principal components to be extracted suggests that four components should be extracted as
their respective eigenvalues are >1 (Hair et al., 2010). Thus, the date indicated that it was
appropriate to conduct factor analysis.
S/N Constructs Extraction
1 Work overload
.532
2 Low compensation and reward .704

3 Lack of career development .714

4 Lack of decision-making opportunity .816

5 Employee job dissatisfaction .901
6 Employee turnover intention
.761
Table 4.4: Communalities
4.4 Descriptive statistics
Table 4.5 below shows the descriptive statistics of the variables. Descriptive statistics are used
to present quantitative reports in a manageable form. Likert 5-point scale ranging from 1 to 5
was used in this study and the statistical mean of the six variables range between 2.8943 and
3.3118. However, the mean values of independent variables range between 3.0725 and 3.3118
meaning that majority of the respondents agreed that work overload, lack career development,
lack decision making opportunity and low reward and compensation had impact on their
turnover intention. While work overload had the highest mean, lack of decision-making
opportunity had the lowest among the predictors. The standard deviation statistics of the six
variables range between .94429 and 1.23623. While variable Low compensation and reward
had the lowest, variable Employee turnover intention had the highest. A smaller standard
deviation indicates that more of the data is clustered about the mean. A larger one indicates the
data are more spread out (Pallant, 2013).
S/N Constructs Mean SD
1 Work overload
3.3118 .95664
2 Low compensation and reward 3.2891 .94429

3 Lack of career development 3.0236 1.04006
4 Lack of decision-making opportunity
3.0725 1.03779
5 Employee job dissatisfaction 3.0262 1.15105

6 Employee turnover intention 2.8943 1.23623
Table 4.5: Descriptive statistics
4.5 Normality test
Table 4.6 below shows the statistical values of normality of the variables. Before the data
analysis, the normality of the variables was assessed by examining kurtosis and skewness; two
statistical concepts are critical for analysing a variable’s distribution. Skewness is the tendency
of the data to lean one way or the other; kurtosis is a measure of the peakedness of the data
relative to a normal distribution, whether heavy-tailed with many outliers or light-tailed with a
lack of outliers (Lee and Welliver, 2018). If skewness is positive, the data are positively skewed
or skewed right, meaning that the right tail of the distribution is longer than the left. If skewness
is negative, the data are negatively skewed or skewed left, meaning that the left tail is longer. If
skewness = 0, the data are perfectly symmetrical. But a skewness of exactly zero is quite
unlikely for real-world data. The variables’ kurtosis values ranged from -.343 to -1.169, while

the skewness values ranged from -.045 to .001 which between −0.5 and +0.5, demonstrating
that the distribution is approximately symmetric (Kline, 2016).
S/N Constructs Skewness Kurtosis
1 Work overload
-.090 -.697
2 Low compensation and reward -.202 -.343

3 Lack of career development -.085 -.772
4 Lack of decision-making opportunity
-.045 -.652
5 Employee job dissatisfaction -.117 -.997

6 Employee turnover intention .001 -1.169
Table 4.6: Normality tests
4.6 Correlation analysis
Table 4.7 below shows the correlation among variables. A correlation purely and simply
measures the association between the variables and without any implication as regards the
cause and effect between the pairing. This coefficient varies between −1 and +1 = (-1⩽R⩽+1), in
which r > 0 means the variables vary in the same direction, while r < 0 holds that the variables
vary in the opposite direction (Teixeira and Ferreira, 2019). Independent variable - Work
overload (WO) had moderate positive significant associations with employee job dissatisfaction
(EJD) and employee turnover intention (ETI) at 64.4% and 51.8% respectively. Independent
variable – Low compensation and reward (CR) had strong positive significant association with
employee job dissatisfaction (EJD) and moderate positive significant association with employee
turnover intention (ETI) at 72.2% and 64.8% respectively. Independent variable – Lack of
career development (CD) had strong positive significant association with employee job
dissatisfaction (EJD) and moderate positive significant association with employee turnover
intention (ETI) at 75.6% and 66.4% respectively. Independent variable – Lack of decision-
making opportunity (DM) had strong positive significant associations with employee job
dissatisfaction (EJD) and employee turnover intention (ETI) at 86.1% and 75.0% respectively.
Mediating variable – Employee job dissatisfaction had a strong positive association with
dependent variable - employee turnover intention at 87.5%. All variables had positive
associations and vary in the same direction.
Correlation matrix of the variables

WO CR CD DM EJD ETI
WO 1 .650** .454** .564** .644** .518**
CR .650** 1 .663** .654** .722** .648**
CD .454** .663 ** 1 .787** .756** .664**
DM .564** .654** .787** 1 .861** .750**
EJD .644** .722 ** .756 ** .861** 1 .875**
ETI .518** .648** .664** .750** .875** 1
Table 4.7: Correlation

4.7 Regression – model summaries and ANOVA

Table 4.8 below shows the summaries of the three models in this paper. Model 1 i.e., the four
dimensions of organisational stress (the independent variables) contributed 60% to the
variation in the dependent variable - employee turnover intention while the remaining 40% are
explained by other dimensions/factors that are not tested in this paper such as motivation,
leadership style etc. Model 2 i.e., the four dimensions of organisational stress (the independent
variables) contributed 80% to the variation in the mediating variable - employee dissatisfaction
while the remaining 20% are explained by other dimensions or factors that are not tested in this
paper such as motivation, leadership style etc. Model 3 shows that, employee job dissatisfaction
contributed 76% to the variation in the employee turnover intention while the remaining 24%
are explained by other factors that are not tested in this paper.
S/N R R Square Adjusted R Square Durbin-Watson
1 1.824
.781a .610 .603
2
.896a .804 .800 2.049
3
.875a .765 .764 1.845
Table 4.8: Regression models

Model 1 = Four dimensions of Organisational Stress and Employee Turnover Intention
Model 2 = Four dimensions of Organisational Stress and Employee Job Dissatisfaction
Model 3 = Employee Job Dissatisfaction and Employee Turnover Intention.
Table 4.9 below shows the summaries of the three models ANOVA. The large F-values of all the
three models at 87.666, 229.140, 739.594 respectively demonstrated that the variation among
group means is more than a researcher would expect to see by chance. This can be interpreted
that the null hypotheses should be rejected, and all hypotheses linked to the three models
should be statistically accepted. The three ANOVA are significant (p<0.05). An acceptable range
of Durbin-Watson is 1.50 - 2.50. The Durbin-Watson values of the three models range between
1.824 and 2.049 which met the rule of thumb and indicated positive autocorrelation. Values
from 0 to less than 2 indicate positive autocorrelation.
S/N F-value Significant
Model 1 87.666 000b
Model 2 229.140 .000b
Model 3
739.594 .000b
Table 4.9: ANOVA
4.8 Discussion of results

Direct hypotheses
Table 4.10 below shows the nine direct hypotheses as shown on the conceptual framework. The
Beta, t-value and p-value were used to interpret the hypotheses. When interpreting t-value, the
researcher can reject the null hypothesis (H0: β=0) if the t-value is greater than 1.96 in absolute
value with a level of significance of 0.05 (Hair et al., 2010). Greater magnitude of t-value
demonstrates greater evidence against the null hypothesis. The paper utilised 95% power
(0.05). The p-value for each term tests the null hypothesis that the coefficient is equal to zero
(no effect).
S/N Factors Beta t-value p-value Verdict
1 WO ETI Statistically
.044 .770 .442
rejected
2 CR ETI Statistically
.226 3.433 .001
accepted
3 CD ETI Statistically
.104 1.436 .003
rejected
4 DM ETI Statistically
.496 6.756 .000
accepted
5 WO EJD Statistically
.165 4.055 .000
accepted
6 CR EJD Statistically
.160 3.431 .001
accepted
7 CD EJD Statistically
.139 2.710 .007
accepted
8 DM EJD Statistically
.554 10.630 .000
accepted
9 EJD ETI Statistically
.875 27.195 .000
accepted
Table 4.10: Direct Hypotheses
H1: Work overload had a significant positive effect on turnover intention
The hypothesis is not statistically supported by the regression model. The decision is arrived at
having checked that the t-value and p-value failed to meet the required rules of thumb. The t-
value of 0.770 is significantly lower than 1.96 (95% distribution) and the p-value of 0.442 is
significantly higher than 0.05 even though there is a positive relationship between the variables.
This can be interpreted that the null hypothesis is statistically accepted – no significant
relationship between the two variables. Simply put, organisational stress dimension of work
overload (WO) did not significantly influence employee turnover intention (ETI) among
employees in Malaysia. The findings are not in agreement with other researchers such as
Chhabra, (2016), Boudrias et al. (2020) and Tan et al. (2020) who found significant positive
relationship between the two variables.
H2: Low compensation had a significant positive effect on turnover intention
The hypothesis is statistically supported by the regression model. The decision is arrived at
having checked that the t-value and p-value met the required rules of thumb. The t-value of

3.433 is significantly higher than 1.96 (95% distribution) and the p-value of .001 is significantly
lower than 0.05. This can be interpreted that the null hypothesis is statistically rejected, and this
confirmed that there is a significant relationship between the two variables. Simply put,
organisational stress dimension of compensation and reward (CR) did significantly influence
employee turnover intention (ETI) among employees in Malaysia. The Beta value of 0.226
showed a positive relationship of 22.6% strength between the variables. The findings agree
with other researchers such as Pandey et al. (2018).
H3: Lack of career development had a significant positive effect on turnover intention
The hypothesis is not statistically supported by the regression model. The decision is arrived at
having checked that t-value failed to meet the required rule of thumb. Though the p-value did
meet the rule of thumb, it is a requirement both values must meet the thresholds required. The
t-value of 1.436 is lower than 1.96 threshold (95% distribution) and the p-value of .003 is lower
than 0.05 and there is a positive relationship between the variables. This can be interpreted that
the null hypothesis is statistically accepted – no significant relationship between the two
variables. Simply put, organisational stress dimension of lack of career development (CD) did
not significantly influence employee turnover intention (ETI) among employees in Malaysia.
The Beta value of .104 showed a positive relationship of just a 10.4% strength between the
variables. The findings are not in agreement with other researchers such as Ali and Mehreen
(2019) who found significant positive relationship between the two variables.
H4: Lack of decision-making opportunity had a significant positive effect on turnover
intention
6.756 is significantly higher than 1.96 (95% distribution) and the p-value of 0.000 is
significantly lower than 0.05. This can be interpreted that the null hypothesis is statistically
rejected, and this confirmed that there is a significant relationship between the two variables.
Simply put, organisational stress dimension of decision-making opportunity (DM) did
significantly influence employee turnover intention (ETI) among employees in Malaysia. The
Beta value of 0.496 showed a positive relationship of 49.6% strength between the variables.
H5: Work overload had a significant positive effect on employee job dissatisfaction
Simply put, organisational stress dimension of work overload (WO) did significantly influence
employee job dissatisfaction (EJD) among employees in Malaysia. The Beta value of 0.165
showed a positive relationship of 16.5% strength between the variables. The findings agree
with other researchers such as Dechawatanapaisal (2018).
H6: Low compensation had a significant positive effect on employee job dissatisfaction
Simply put, organisational stress dimension of low compensation and reward (CR) did

significantly influence employee job dissatisfaction (EJD) among employees in Malaysia. The
Beta value of 0.160 showed a positive relationship of 16% strength between the variables. The
findings agree with other researchers such as Ahmat et al. (2019) and Devonish (2018).
H7: Lack of career development had a significant positive effect on employee job
dissatisfaction
2.710 is higher than 1.96 (95% distribution) and the p-value of 0.007 is significantly lower than
0.05. This can be interpreted that the null hypothesis is statistically rejected, and this confirmed
that there is a significant relationship between the two variables. Simply put, organisational
stress dimension of lack career development (CD) did significantly influence employee job
dissatisfaction (EJD) among employees in Malaysia. The Beta value of 0.139 showed a positive
relationship of 13.9% strength between the variables. The findings agree with other researchers
such as Yousaf et al. (2019) and Kalgin et al. (2018).
H8: Lack of decision-making opportunity had a significant positive effect on employee job
dissatisfaction
Simply put, organisational stress dimension of lack decision-making opportunity (DM) did
significantly influence employee job dissatisfaction (EJD) among employees in Malaysia. The
Beta value of 0.554 showed a strong positive relationship of 55.4% strength between the
variables. The findings agree with other researchers such as Suifan et al. (2017).
H9: Employee job dissatisfaction has a significant positive effect on turnover intention
Simply put, mediating variable – employee job dissatisfaction (EJD) did significantly influence
dependent variable - employee turnover intention (ETI) among employees in Malaysia. The Beta
value of 0.875 showed a strong positive relationship of 87.5% strength between the variables.
The findings agree with other researchers such as Skelton et al. (2019) and Zhang et al. (2019).
Indirect/mediation hypotheses

Figure 4.1: Mediating effect of EJD on the relationship between WO and ETI
Figure 4.2: Mediating effect of EJD on the relationship between CR and ETI

Figure 4.3: Mediating effect of EJD on the relationship between CD and ETI
Figure 4.4: Mediating effect of EJD on the relationship between DM and ETI
Table 4.11 below shows the four mediation hypotheses. In a mediation model, the indirect effect
if X on Y = a path multiply by b path and according to the rule of thumb: 1. If the indirect effect is
significant then mediation has occurred. 2. If the indirect effect is significant and the direct effect
remains significant, then partial mediation has occurred. 3. If the indirect effect is significant
and the direct effect is not significant, then full mediation has occurred.

S/N Hypothesis Direct p-value Indirect p-value t-value Verdict
1 WO-EJD-ETI -0.1012 0.0624 0.7699 0.0000 10.9954 Statistically

accepted
2 CR-EJD-ETI 0.0451 0.4594 0.8029 0.0000 11.9001 Statistically
accepted
3 CD-EJD-ETI 0.0076 0.8967 0.7816 0.0000 12.3860 Statistically
accepted
4 DM-EJD-ETI -0.0128 0.8653 0.9066 0.0000 12.2316 Statistically
accepted
Table 4.11: Mediation Hypotheses
Mediation hypotheses 1 - Mediating effect of EJD on the relationship between WO and ETI
The indirect effect is significant as shown on Figure 4.1 above at 0.7699** (p-value = 0.0000). If
the indirect effect is significant and the direct effect is not significant, then full mediation has
occurred. This is the case as (Direct) -0.1012 (p-value = 0.0624) is not significant while the
indirect effect (0.7699) is significant. This method also confirmed that Employee Job
Dissatisfaction (EJD) fully mediates the relationship between Work Overload (WO) and
Employee Turnover Intention (ETI).
Mediation hypotheses 2 - Mediating effect of EJD on the relationship between CR and ETI
occurred. This is the case as (Direct) 0.0451 (p-value = 0.4594) is not significant while the
Dissatisfaction (EJD) fully mediates the relationship between Compensation and Reward (CR)
and Employee Turnover Intention (ETI).
Mediation hypotheses 3 - Mediating effect of EJD on the relationship between CD and ETI
occurred. This is the case as (Direct) 0.0076 (p-value = 0.8967) is not significant while the
Dissatisfaction (EJD) fully mediates the relationship between Career Development (CD) and
Employee Turnover Intention (ETI).
Mediation hypotheses 4 - Mediating effect of EJD on the relationship between DM and ETI
The indirect effect is significant as shown on Figure 4.11d above at 0.9066** (p-value = 0.0000).
If the indirect effect is significant and the direct effect is not significant, then full mediation has
occurred. This is the case as (Direct) -0.0128 (p-value = 0.8653) is not significant while the
indirect effect (0.9066) is significant (p-value = 0.0000). This method also confirmed that
Employee Job Dissatisfaction (EJD) fully mediates the relationship between Decision Making
(DM) and Employee Turnover Intention (ETI).
5. Conclusion

The findings of the study showed that eleven (11) out of the thirteen (13) hypotheses were
statistically supported. Two direct hypotheses relating to the relationships between dimensions
of work overload and employee turnover intention as well lack of career development and
employee turnover intention were statistically rejected as they failed to meet the rule of thumb.
Findings showed that there was no significant relationship between work overload and
employee turnover intention despite positive association. In other words, organisational stress
dimension of work overload (WO) did not significantly influence employee turnover intention
(ETI) among employees in Malaysia. Similarly, findings showed that there was no significant
relationship between lack career development and employee turnover intention despite
positive association. In other words, organisational stress dimension of lack of career
development (CD) did not significantly influence employee turnover intention (ETI) among
employees in Malaysia. Results, however, showed that there was a significant relationship
between compensation and reward and employee turnover intention in a positive direction. In
other words, organisational stress dimension of compensation and reward (CR) did significantly
influence employee turnover intention (ETI) among employees in Malaysia. Similarly, findings
showed that there was a significant relationship between decision-making opportunity and
employee turnover intention in a positive direction. In other words, organisational stress
dimension of lack of decision-making opportunity (DM) did significantly influence employee
turnover intention (ETI) among employees in Malaysia. Direct relationships between the four
dimensions of organisational stress and mediating variable employee job dissatisfaction were
tested and findings showed that all the four dimensions of organisational stress have significant
relationships with employee job dissatisfaction (mediating variable). The results of the test
between employee job dissatisfaction and employee turnover intention showed a significant
positive relationship. In other words, as employee job dissatisfaction (EJD) increases, employee
turnover intention (ETI) is also bound to increase and vice versa among employees in Malaysia.
There are four hypotheses tied to this objective based on the four dimensions of organisational
stress. The findings showed that employee job dissatisfaction (mediator) fully mediated the
relationships between all the four dimensions of organisational stress and Employee Turnover
Intention (ETI).
5.2 Recommendations and future research
It is recommended that companies in Malaysia should pay more attention to the management of
their employees’ work-life to reduce stress and to find a lasting solution to increase level of job
stress among Malaysian employees. Work overload should be reduced, and employees should
feel that they are not being asked to do more than they are expected under their contracts. More
staff should be employed to reduce work overload. Compensation and reward should be based
on market value and changes in inflation should be factored when pay rise is been discussed.
Employees should have the sense that their efforts and rewards are balanced and equal. They
should feel comfortable to discuss their salaries and bonuses with friends and families in other
organisations. Management should make sure that employee’s benefits are paid on time
including pension schemes contribution. This study basically utilised exploratory factor analysis
(EFA) using SPSS 22.0 software and SPSS PROCESS version 3.5 by Andrew F. Hayes. Future
researchers should explore confirmatory factor analysis (CFA) and structural equation
modelling to test the relationships among variable and to conduct mediation analysis. Statistical
software such as AMOS and PLS-SEM can also be explored. CFA has many advantages over EFA.
CFA seeks to determine if the number of factors and the loadings of measured (indicator)
variables on them conform to what is expected based on pre-established theory (Müller et al.,

2018). Indicator variables are selected based on prior theory, and factor analysis is used to see
if they loaded, as predicted, on the expected number of factors (Müller et al., 2018). The basic
difference between EFA and CFA is that in CFA, a researcher’s a priori assumption is that each
factor (the number and labels of which may be specified a priori) is associated with a specified
subset of indicator variables (Müller et al., 2018).
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THE EFFECT OF ORGANISATIONAL STRESS ON EMPLOYEE TURNOVER

Conference Paper · May 2022

Emmanuel Abiodun Ogundare

The user has requested enhancement of the downloaded file.

Emmanuel Abiodun Ogundare

Juliana Olusola Omiwole

ISSN: 2289-XXXX Page 1

1.1 Research rationale

1.2 Research aim and objectives

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4. To investigate the effect of lack decision-making opportunity (DM) on employee turnover

7. To investigate the mediating effect of employee job dissatisfaction on the relationship

1.3 Research questions

4. Is there any relationship between lack of decision-making opportunity and employee

2.1 Definitions of key terms

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2.2 Evaluation of relevant theories/models

The effort-reward imbalance model (ERI)

Conservation of resource (COR) theory

2.3 Critical evaluation of empirical studies

Organisational stress and turnover intention

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Organisational stress and job satisfaction

Employee job satisfaction and Turnover intention (intention to quit)

ISSN: 2289-XXXX Page 5

Mediating role of job dissatisfaction

2.4 Conceptual framework

Figure 2.1: Conceptual Framework

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H1: Work overload had a significant positive effect on turnover intention.

H2: Low compensation had a significant positive effect on turnover intention.

ISSN: 2289-XXXX Page 7

H9: Job dissatisfaction has a significant positive effect on turnover intention.

Mediation hypotheses 1 - 4: Employee job dissatisfaction mediates the relationship between

3. Research Design and Methodology

3.1 Research paradigm

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3.2 Research design

3.3 Research methods

3.4 Population size and sampling technique

3.5 Data instrument

2 Reward and compensation Pandey et al. (2018)

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3 Career development Ali and Mehreen (2019);

4 Decision making opportunity Dartey-Baah et al. (2020);

6 Intention to turnover Chhabra, (2016); Boudrias

Table 3.1: Variables and sources

3.6 Data analysis plan

Figure 3.1: Mediation analysis

4. Results and Discussion

ISSN: 2289-XXXX Page 10

Table 4.1: The analysis of demographic data

4.2 Reliability and validity test

S/N Constructs Number of Cronbach’s Alpha Coefficient

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1 All 30 items 30 0.968

4.3 Sampling adequacy test

S/N Constructs Extraction

2 Low compensation and reward .704

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4 Lack of decision-making opportunity .816

S/N Constructs Mean SD