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THE EFFECT OF TRANSFORMATIONAL LEADERSHIP AND WORK
STRESS ON TURNOVER INTENTION WITH JOB SATISFACTION AS
AN INTERVENING VARIABLE
Lusiana Dwi Wahyuni
1
, Sri Handari
2
, Arni Surwanti
3
Muhammadiyah University of Yogyakarta, Indonesia
1, 2, 3
Email : lusianadwiwahyuni@gmail.com, handari@umy.ac.id, arni_surwanti@umy.ac.id
ARTICLE INFO
ABSTRACT
Date received : 20 July 2022
Revision date : 09 August 2022
Date received : 16 August 2022
This study aims to determine how transformational leadership
and work stress influence turnover intention with job
satisfaction as an intervening variable in contract employees in
the Special Region of Yogyakarta. The respondents in this
study were employees at the Yogyakarta Village Government
Center, Cokroaminoto University Yogyakarta, and PT X
Yogyakarta. The sample used was 125 respondents collected
through the purposive convenience sampling technique. The
research design used a quantitative approach and the
Structural Equation Modeling (SEM) method as a data analysis
technique. The results of this study show that transformational
leadership did not significantly affect job satisfaction; work
stress had a negative and significant effect on job satisfaction.
The study's results also show that transformational leadership
had a negative and significant effect on turnover intention,
work stress does not affect turnover intention, and job
satisfaction has a negative and significant effect on turnover
intention. Another finding in this study is that transformational
leadership did not affect turnover intention through job
satisfaction as an intervening variable. The influence of
transformational leadership on turnover intention was direct.
Work stress affects turnover intention through job satisfaction
as an intervening variable.
Keywords:
Transformational leadership;
job stress; job satisfaction;
turnover intention.
This work is licensed under CC BY-SA 4.0
INTRODUCTION
Human Resources is the main factor in every activity in an organization to run
effectively. Therefore, companies must undoubtedly focus on resource management
which includes providing a competent, professional, and committed workforce in
maintaining quality and controlling labour costs. Employees are an asset of the company,
The Effect of Transformational Leadership and Work Stress on Turnover Intention With
Job Satisfaction As An Intervening Variable
Indonesian Journal of Multidisciplinary Science
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not considered a burden, and aim to create and nurture skilled and highly committed
workers to obtain a competitive advantage (Storey 2009; (Muhyi et al., 2016).
Employee attitude or behaviour is one of the situations that often occur in HR
management in the company, which can indirectly affect company performance. One
form of employee behaviour is
turnover intention
which will impact the employee's desire
to change jobs in the company. Turnover Intention is a condition of an employee with a
tendency or desire to move to another company (Abdullah et al., 2012). The negative
impact that results in employees leaving their company is the quality and ability to find
replacement employees, so it takes time and costs to be re-incurred to recruit new
employees. (Lee & Bruvold, 2003) say that turnover intention is a prediction that underlies
an employee's thinking before the employee decides to leave a company (Yamazakia &
Petchdee, 2015).
Leadership style can influence many factors, one of which can influence the high
turnover rate (Griffeth et al., 2000). Employees will likely continue working at their
company if they feel comfortable with their leader. However, on the contrary, when
employees do not feel comfortable with their leader, then there will be a tendency to
leave the company (Bawdy El, 2014).
One of the critical factors in the life of the organization is leadership. The
organization's success in achieving its goals largely depends on the leadership. So it is
because leadership describes the entire situation in an organization. Citing Escrig's
research (2016), leadership style is one of the most important individual factors in
promoting corporate innovation because leaders can make decisions to introduce new
ideas to the organization, set specific goals, and encourage innovation among their
subordinates (Aragón-Correa et al., 2007). In addition, (Hughes et al., 2012) stated that
transformational leaders have a vision and the ability to interact with employees to
motivate employees to realize the vision and mission of the leader.
Human resources in a company are minimal, so the company should empower to
the maximum. In addition, companies also need to manage and manage resources
appropriately so that workers who contribute high to their company do not experience
excessive stress due to work demands faced by workers in the company. Heavy work
demands are one of the factors causing the emergence of work stress in a company.
Work stress is the feeling of stress an employee faces while working. Work stress can be
seen in the unstable emotions of an employee, uncomfortable feelings, always being
alone, nervous, and anxious about indigestion problems (Mangkunegara, 2017).
Some factors that can cause an employee to experience work stress include
sudden assignments, additional overtime or overtime work hours, work that burdens
employees too much, and others (Uhing, 2015). Meanwhile, (Fahmi, 2013) said that work
stress is pressure on oneself and one's soul beyond the limits of their abilities; if it
The Effect of Transformational Leadership and Work Stress on Turnover Intention With
Job Satisfaction As An Intervening Variable
Indonesian Journal of Multidisciplinary Science
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continues, it will negatively impact employee health. Therefore, it can be concluded that
the stress faced by employees can be caused by the demands of the tasks given by the
company are very heavy and beyond the limits of their abilities; if employees already feel
stressed by the demands of their cumbersome tasks, it will have an impact on the
tendency of employees to move and leave the company (turnover intention).
One way to minimize employee turnover rates is by increasing employee
satisfaction at work; employees will still survive in their company and feel comfortable at
work when they feel met for their needs. Job satisfaction needs to be done as well as
possible to increase employee work productivity, work morale, and level of discipline and
minimize employee turnover rates. Job satisfaction can be seen from an employee's
attitude when working; a positive attitude will be seen when the employee feels satisfied
at work, and vice versa, and a negative attitude will be seen when the employee feels
dissatisfied at work (Robbins & Coulter, 2010).
The results of previous research are still confusing. The first is about previous
research on job stress on job satisfaction. Research conducted by (Singh & Nayak, 2015)
and (K. Dewi & Wibawa, 2016) is in line with research conducted by (Setiadi et al., 2016)
and (Chiu et al., 2005), which proves that work stress has a negative and significant
effect on job satisfaction. However, it is different from research conducted by (Dhini Rama
Dhania, 2010), which shows that work stress has a negative and insignificant effect on
job satisfaction, while (Uhing, 2015) prove that work stress has a significant effect on job
satisfaction. The results of previous research prove that there is still confusion in the
research on work stress on job satisfaction.
The second is about previous research on work stress to turnover intention.
Research conducted by (Manoppo, 2020), (Haji Hasin & Haji Omar, 2007), as well as
(Septiari & Ardana, 2016), showed that work stress has a positive and significant effect
on turnover intention. However, it is different from research conducted by (Wahdaniah
et al., 2016), which proved that work stress negatively affects turnover intention.
Meanwhile, research by (Ida & I Komang, 2017) and (Gunawan & Ulia Ulfa’i, 2018) shows
that work stress has a positive and significant effect on turnover intention. The results of
previous studies prove that there is still confusion in the research on work stress towards
turnover intention.
The third is about previous research on job satisfaction with turnover intention.
For example, the results of research conducted by (Lin & Huang, 2020) as well as (Chen
& Wang, 2019) are in line with the results of research conducted by (Waspodo, Agung
AWS Handayani & Paramitha, 2013), (Paat, 2017) and (Jabeen et al., 2018) which proved
that job satisfaction has a negative and significant effect on turnover intention.
Meanwhile, the research conducted by (Ida & I Komang, 2017) is in line with (Mihelič,
The Effect of Transformational Leadership and Work Stress on Turnover Intention With
Job Satisfaction As An Intervening Variable
Indonesian Journal of Multidisciplinary Science
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2014), which shows that Job satisfaction has a negative and insignificant effect on
turnover intention.
The results of previous research prove that there is still confusion in the research
on job satisfaction with turnover intention, so it is necessary to conduct research again.
In building a model that links transformational leadership and work stress to turnover
intention, researchers add one mediating variable that has the potential to explain the
relationship between these variables, namely job satisfaction.
This study wants to see how transformational leadership and work stress influence
turnover intention with job satisfaction as an intervening variable. In this study, the
samples used are contract employees at the Yogyakarta Village Government Hall,
Cokroaminoto University Yogyakarta, and one of the Outsourcing Companies in
Yogyakarta, namely PT X Yogyakarta.
Research Models And Hypotheses
H1: Transformational leadership has a positive and significant effect on job satisfaction.
H2: Work stress has a negative and significant effect on job satisfaction.
H3: Transformational leadership has a negative and significant effect on turnover
intention.
H4: Work stress has a positive and significant effect on turnover intention.
H5: Job satisfaction has a negative and significant effect on turnover intention.
H6: Transformational leadership of turnover intention through job satisfaction has an
effect as an intervening variable.
H7: Work stress on turnover through job satisfaction has no effect as an intervening
variable.
Transformation
al leadership
Job
Satisfacti
on
Work Stress
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METHOD
Objects and Data Collection
In this study, the population used was contract employees and private employees
who did not have permanent jobs or worked but did not have the status of permanent
employees in Yogyakarta City. The object of the study was in 3 (three) locations, namely
the Yogyakarta Village Government Hall, Cokroaminoto University Yogyakarta, and the
Outsourcing Company PT X Yogyakarta. Researchers research contract employees
because these employees may resign from the company due to various factors, for
example, because there is a better replacement job And being expected to represent
characteristics in the scope or place of work of contract employees. Therefore, the sample
used is a contract employee with a minimum service period of 1 year.
The sampling technique used in this study was to use purposive convenience
sampling. The sampling technique with purposive convenience sampling is carried out by
determining samples based on the ease of obtaining them and according to the availability
of elements and is carried out by determining samples based on specific considerations
and criteria. The respondents selected in this study were male and female contract
employees at the Yogyakarta Village Government Hall, Cokroaminoto University
Yogyakarta, and PT X Yogyakarta with a minimum of 1 year. The data of research
variables are data obtained from the distribution of questionnaires to 125 respondents.
The data collection technique used by researchers is in the form of a questionnaire.
The questionnaire method used in this study was the self-administered method. What is
meant by the self-administered method is the method of distributing questionnaires
directly or through google forms to respondents.
Data Analysis and Hypothesis Testing
Structural Equation Modeling (SEM) is used to analyze research consisting of
several variables, namely independent, moderation and mediation, partially and
simultaneously. More specifically, SEM is used to test hypotheses built in a study.
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RESULT AND DISCUSSION
Hypothesis Testing
The results of hypothesis testing using SEM can be summarized in the table as
follows:
Table 1.
Summary of Hypothesis Testing Results
Ha
Hypothesis
Estimate
S.E.
C.R.
p
H
1
KT KK
0,219
0,113
1,935
0,053
H
2
SK KK
-0,195
0,095
-2,058
0,040
H
3
KT TI
-0,206
0,093
-2,212
0,027
H
4
SK TI
0,144
0,077
1,873
0,061
H
5
KK TI
-0,286
0,086
-3,319
0,000
The results of the direct influence test can be described in the table as follows:
Table 2.
Standardized Direct Effect
SK
KT
KK
TI
KK
-0,204
0,190
0,000
0,000
TI
0,177
-0,210
-0,335
0,000
The results of indirect influence testing can be described in the table as follows:
Table 3.
Standardized Indirect Effect
SK
KT
KK
TI
KK
,000
,000
,000
,000
TI
,068
-,064
,000
,000
Based on tables 4.18, 4.19, and 4.20, hypothesis testing was carried out as
follows:
1. Testing the First Hypothesis
The first hypothesis in this study, namely transformational leadership, has
a positive and significant effect on job satisfaction. Based on table 4.18, the C.R.
value is 1.935, and the p is 0.053. Based on the p-value of > 0.05, the first
hypothesis (H
1
) was rejected, and it was concluded that transformational
leadership had no significant effect on job satisfaction.
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2. Testing the Second Hypothesis
The second hypothesis in this study namely that work stress has a negative
and significant effect on job satisfaction. Based on table 4.18, the C.R. value is -
2.058, and the p is 0.040. Based on the negative C.R. value and p < 0.05, the
second hypothesis (H
2
) is accepted, and it is concluded that work stress has a
negative and significant effect on job satisfaction.
3. Testing the Third Hypothesis
The third hypothesis in this study, namely transformational leadership, has
a negative and significant effect on turnover intention. Based on table 4.18, the
C.R. value is -2.212, and the p is 0.027. Based on negative C.R. values and p <
0.05, the third hypothesis (H
3
) is accepted, and it is concluded that
transformational leadership has a negative and significant effect on turnover
intention.
4. Testing the Fourth Hypothesis
The fourth hypothesis in this study namely that work stress has a positive
and significant effect on turnover intention. Based on table 4.18, a C.R. value of
1.873 and p of 0.061. Based on the value of p > 0.05, then the fourth hypothesis
(H
4
) was obtained. It was rejected and concluded that work stress did not affect
turnover intention.
5. Testing the Fifth Hypothesis
The fifth hypothesis in this study, namely job satisfaction, has a negative
and significant effect on turnover intention. Based on table 4.18, a C.R. value of -
3.319 and a p of 0.000 were obtained. Based on the negative C.R. value and p <
0.05, the fifth hypothesis (H
5
) is accepted, and it is concluded that job satisfaction
has a negative and significant effect on turnover intention.
6. Testing the Sixth Hypothesis
The sixth hypothesis in this study, transformational leadership, affects
turnover intention through job satisfaction as an intervening variable. Based on
table 4.19, the direct influence of transformational leadership on turnover intention
was -0.210, and in table 4.20, an indirect influence of -0.064 was obtained. Based
on the more excellent value of direct influence, the sixth hypothesis (H
6
) was
rejected and concluded that transformational leadership did not affect turnover
intention through job satisfaction as an intervening variable. The influence of
transformational leadership on turnover intention is direct.
7. Testing the Seventh Hypothesis
The seventh hypothesis in this study is that work stress affects turnover
intention through job satisfaction as an intervening variable. Based on table 4.19,
a direct effect of work stress on turnover intention was 0.177, and in table 4.20,
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an indirect effect of 0.068 was obtained. However, the study's direct effect of work
stress on turnover intention is insignificant, so it is concluded that work stress
affects turnover intention through job satisfaction as an intervening variable. It
means that this study's seventh hypothesis (H
7
) is supported.
Discussion
1. The Influence of Transformational Leadership on Job Satisfaction
The results showed that transformational leadership did not significantly
affect job satisfaction. The results of the study contradict the research results of
(N. Dewi & Subudi, 2015), (Ayu & Dewi, 2019), and (Vania, 2019), which show
that transformational leadership has a positive effect on employee job satisfaction.
Transformational leaders are leaders who have extraordinary abilities,
perseverance, and determination so that their behaviour will become ideal role
models and examples for subordinates. The transformational leader will convey his
vision by inspiring his subordinates to take concrete actions to realize the vision.
In addition, transformational leadership also establishes interactions with
subordinates in a reasonable manner. Transformational leaders interact with
subordinates to provide guidance, support, and guidance to subordinates in the
implementation of work, as well as provide intellectual stimulation by providing
challenges to their subordinates to think innovatively and creatively in finding
solutions to various complex problems that occur during the implementation of
work.
The leader's character causes a comfortable squeeze in the employee at
work. Employees feel isolated and motivated at work so that the assessment and
feelings for work will be better so that their job satisfaction increases. If a person
looks at the study's results where a positive C.R. value was obtained, the influence
of transformational leadership on job satisfaction is positive but not significant.
The factor that causes this is the status of the employee still contracting.
The status of contract employees causes the employee's commitment to
the organization to be relatively low. Employees do not yet fully feel belonging to
the organization. Employees will feel that they are second-class employees when
compared to employees who have the status of permanent employees. The
attachment and emotional connection with the leadership is not yet robust, so the
leader's various directions, guidance, and attention cannot increase their job
satisfaction.
2. The Effect of Work Stress on Job Satisfaction
The results showed that work stress negatively and significantly affects job
satisfaction. It means that the higher the employee's work stress level, the lower
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Job Satisfaction As An Intervening Variable
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the job satisfaction. The results of this study support the results of Nayak's
research (2015) (Singh & Nayak, 2015), (K. Dewi & Wibawa, 2016), (Setiadi et al.,
2016), and (Chiu et al., 2005) who proved that work stress has a negative and
significant effect on job satisfaction. However, the study's results contradict the
results of Dhania's research (2010)(Dhini Rama Dhania, 2010), which showed that
work stress has a negative and insignificant effect on job satisfaction.
Work stress is a state or condition of tension that causes an imbalance
physically and psychically in an employee and can affect an employee's emotions
and thinking processes. So it can be concluded that work stress is a negative
response for employees when they are faced with a lot of workload and tasks
beyond their limits so that they feel unable to complete their tasks or work; it will
harm the company because it is difficult to achieve the given targets (Rivai, 2004).
If the readers look at the definition above, the condition of work stress will
affect the emotional condition and thinking process of employees. It will affect the
employees' work, making it difficult to achieve the targets. As a result, employees
will have negative assessments and feelings about their work. Employees tend to
be burdened with their work, so job satisfaction decreases.
3. The Influence of Transformational Leadership on Turnover Intention
The results showed that transformational leadership negatively and
significantly affects turnover intention. It means that the better the
transformational leadership, the lower the turnover intention. The results of this
study support the research results of (Sitorus, 2017) and (N. Dewi & Subudi,
2015), which prove that transformational leadership has a negative and significant
influence on turnover intention. The study's results contradict the research of
(Yani, Ari SoetiYani, A. S., & Putri, 2017), which proves that transformational
leadership has a positive and significant effect on turnover intention. (Ayu & Dewi,
2019) research proves that transformational leadership does not affect turnover
intention.
Employees at work need comfort, both comfort from the work environment
and colleagues and their leaders. One of the leading factors that cause a sense of
comfort in employees is the transformational leadership style applied in the
workplace. The leader with a transformational leadership style will strive so that
his behaviour can become an ideal role model and example for subordinates,
provide motivation and inspiration for the future, provide intellectual consideration
and stimulation for the self-development of employees, as well as pay attention to
the individual needs and personal development of employees.
The leadership's transformational leadership style causes employees to feel
comfortable at work. This feeling of comfort causes employees to feel at home at
The Effect of Transformational Leadership and Work Stress on Turnover Intention With
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work, reducing the turnover rate. It is like the opinion of (Bawdy El, 2014), who
stated that employees are likely to continue working in their company if they feel
comfortable with their leader. However, on the contrary, when employees do not
feel comfortable with their leader, then there will be a tendency to leave the
company.
4. The Effect of Work Stress on Turnover Intention
The results showed that work stress did not affect turnover intention. This
study's results support (Fitria, 2015) research, which proves that work stress has
a positive and insignificant effect on turnover intention. The results of this study
contradict the research results of (Manoppo, 2020), (Haji Hasin & Haji Omar,
2007); (Septiari & Ardana, 2016); (Ida & I Komang, 2017); and (Gunawan & Ulia
Ulfa’i, 2018), who proved that work stress has a positive and significant effect on
turnover intention. (Wahdaniah et al., 2016) proved that work stress negatively
affects turnover intention.
Work stress on employees will cause the workload received by employees
to be felt heavy. In addition, employees will feel uncomfortable carrying out work,
so they will want to change jobs. The study's results showed that work stress had
a positive but insignificant effect on turnover intention, caused because the
employee's work stress level was still in the low category. This condition causes
work stress and does not have much effect on employee work, so it does not have
too much effect on increasing turnover intention.
5. The Effect of Job Satisfaction on Turnover Intention
The results showed that job satisfaction negatively and significantly affected
turnover intention. The better the employee's job satisfaction, the lower the
turnover intention. The results of this study support the research results of (Lin &
Huang, 2020); (Chen & Wang, 2019); in line with the results of (Waspodo, Agung
AWS Handayani & Paramitha, 2013); (Paat, 2017); and (Jabeen et al., 2018) who
proved that job satisfaction has a negative and significant effect on turnover
intention. The results of this study contradict the results of research by (Ida & I
Komang, 2017) and (Mihelič, 2014), which prove that job satisfaction has a
negative and insignificant effect on turnover intention.
Job satisfaction is a positive feeling toward a job arising from the evaluation
results in the scope of work (S. P. Robbins & Judge, 2017). Positive feelings
towards a job will affect the attitude and behaviour of employees at work. Satisfied
employees will work with a positive squeeze to be more productive and have no
intention of resigning from the company.
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6. The Effect of Transformational Leadership on Turnover Intention
Through Job Satisfaction as an Intervening Variable
The results showed that transformational leadership does not affect
turnover intention through job satisfaction as an intervening variable. Instead, the
influence of transformational leadership on turnover intention is direct.
The study's results showed that transformational leadership had a more
significant effect on turnover intention than job satisfaction. It is because
leadership is an essential factor affecting employee comfort at work. If the
leadership style follows employees' expectations and wishes, employees will feel
comfortable and at home to work. However, if the leadership style is not following
their expectations and desires, it will cause employees to feel uncomfortable and
not feel at home working, so it will cause an intention to change jobs.
7. The Effect of Work Stress on Turnover Intention Through Job
Satisfaction as an Intervening Variable
The results showed that work stress affects turnover intention through job
satisfaction as an intervening variable. It means that work stress in employees
does not directly affect turnover intention but will affect the decrease in job
satisfaction and will eventually increase turnover intention.
Work stress can be seen in the unstable emotions of an employee, uncomfortable
feelings, always being alone, nervous, and anxious about indigestion problems
(Mangkunegara, 2017). This condition will affect his view, which tends to be hostile
toward his work, so his job satisfaction decreases. Decreased job satisfaction will give
rise to the employee's intention to leave.
CONCLUSION
Based on the results of research and discussion, the following conclusions can be
drawn: 1) Transformational leadership has no significant effect on job satisfaction. 2)
Work stress has a negative and significant effect on job satisfaction. 3) Transformational
leadership has a negative and significant effect on turnover intention. 4) Work stress does
not affect turnover intention. 5) Job satisfaction has a negative and significant effect on
turnover intention. 6) As an intervening variable, transformational leadership does not
affect turnover intention through job satisfaction. Instead, the influence of
transformational leadership on turnover intention is direct.
Work stress affects turnover intention through job satisfaction as an intervening
variable.
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Job Satisfaction As An Intervening Variable
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