EFFECTS OF FINANCIAL VERSUS NONFINANCIAL INCENTIVES ON TURNOVER INTENTION: A STUDY OF PUBLIC ACCOUNTING FIRMS IN INDONESIA

• Main Authors: DEVI YANTI, 馮燕蒂
• Other Authors: Ying-Yu Chen
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/rsm563

碩士 === 國立東華大學 === 國際企業學系 === 107 === Employee turnover remains the center of attention in every company so companies are trying to minimize it in order to avoid unnecessary expenses and they need strategies or plan to reduce the turnover. Nowadays, turnover intention in public accounting firms is still an important issue to discuss because it increases every year in Indonesia so that is why this study contributes how to reduce turnover intention through better financial or nonfinancial incentives. This study wants to check the mediating effect of work engagement and organizational commitment can trigger between financial versus nonfinancial incentives and turnover intention. There is also a noticeable difference purpose through financial and nonfinancial incentives which strongly inspires turnover intention from the point of view between men and women (on gender perspective) in public accounting, which nearly has been investigated in any previous research. As the following study, this would like to conduct the research from second-tier public accounting firms in two largest cities (Jakarta and Surabaya) in Indonesia with 300 data sample. Statistical Package for the Social Sciences (SPSS) will be chosen as the statistical technique to test its proposed hypotheses. Research findings showed that the provision of pension plans and conducive working condition will negatively influence on public accountant’s turnover intention. In addition, work engagement has partial mediate effect on the relationship between overtime pay as part of financial incentives versus conducive working condition as part of nonfinancial incentives and turnover intention. On the other hand, organizational commitment has full mediate effect both of the relationship between overtime pay as part of financial incentives versus conducive working condition as part of nonfinancial incentives and turnover intention. Moreover, these findings found that men are stronger influence the negative relationship between overtime pay and pension plans as part of financial incentives and turnover intention than women. Apart from that, the negative relationship between conducive working condition and turnover intention showed that women are stronger influence than men. Furthermore, the managerial implication captures public accounting firms can benefit and pay attention by instituting policies and practices of worthy, equitable, and availability Financial Incentives and Nonfinancial Incentives to foster a sense of Work Engagement and Organizational Commitment from employees also reduces their intention of leaving the organization.