Organisation Justice Towards’ Employees Voluntary Turnover: A Perspective of SMEs in Malaysia

Abstract

Turnover of employees has gained the attention of organisations due to the impact of human resources on organisation performance and competitive advantage. This dilemma leads the management to struggle to find ways and retain employees. To attract, organisations use the "pull factors" to entice employees to perform better in the organisation. This study was conducted to investigate the relationship between the three dimensions of organisational justice: distributive, procedural and interactional justice towards voluntary turnover. This was an explanatory study that used a quantitative research design. Through a survey method, data was collected from a total of 115 respondents. The findings revealed that there was a significant relationship between employee turnover, distributive justice, procedural justice, and interactional justice. However, interactional justice had the strongest impact. This study also unearthed that attractive compensation is not the only method for the management to retain talent in organisations. Organisational justice plays an essential role in the retention of employees. These results will provide a better understanding of supervisors and human resource professionals with additional insights into the impact of organisational justice on employees' turnover. This study indicates that organisations' interactional justice practised is considered a central factor for employee retention. Although prior research has investigated a number of these issues, this study was the first to focus on employees in Small and Medium Enterprises in Malaysia.

You Really Affect Me: The Role of Social Influence in the Relationship between Procedural Justice and Turnover Intention

“…It should be noted that at least two meta-analyses have discovered that procedural justice was negatively related to intentions to quit (e.g., [17,66]). Indeed, when procedural justice [19] is perceived as fair, employees are more engaged and their turnover intentions are lower [20][21][22]. This is shown in our conceptual framework (see Figure 1).…”

“…Our first hypothesis "Procedural justice will be negatively related to turnover intention" was confirmed (β = −0.30, p < 0.01) (see Table 3). Indeed, when procedures [19] are perceived as fair, employees are more committed and their turnover intentions become lower [20][21][22].…”

“…Additionally, it can lead to negative job outcomes, e.g., unethical behavior, social loafing behaviour and low job performance [13][14][15]. Many researchers (e.g., [16][17][18][19][20][21][22]) showed, from the results of their research, that procedural justice is one of the antecedents of intention to leave.…”

The Influences of Procedural Justice on Turnover Intention and Social Loafing Behavior among Hotel Employees

“…Previous studies (Cohen-Charash and Spector 2001;Colquitt et al 2001;Gharbi et al 2022) emphasized a negative relationship between procedural justice and turnover intention. Employee engagement in turnover intention was observed to be less when procedural justice was viewed as being fair (Gim and Desa 2014;Chong et al 2021). Hence, we suggest the following: Hypothesis 1 (H1).…”

“…If employees perceive unequal procedures, they could respond with a negative attitude, such as exhibiting turnover intention and social loafing behavior. In that sense, previous studies (e.g., Aliedan et al 2022;Alyahya et al 2021;Sobaih et al 2019) argued that an intention to leave is usually associated with negative outcomes, such as low job-performance levels, unethical behavior and social loafing, while pervious research results (e.g., Griffeth et al 2000;Chong et al 2021;Gharbi et al 2022) confirmed that procedural justice is a key driver for employee turnover. Additionally, it was argued that procedural justice is more important than distributive justice in determining employees' evaluations of the parties or the institution that enacted the decision (Brockner and Siegel 1996).…”