A PLS-SEM APPROACH TO FACTORS AFFECTING VOLUNTARY LABOUR TURNOVER INTENTION

Abstract

This paper examines the attitudes of 122 hotel employees in Mauritius. It relates Herzberg’s motivation-hygiene theory to voluntary labour turnover intention (LTI) along with age, prospects at rival hotels (OFRH), a moderating effect (age*OFRH) and a mediator (employees’ attitudes towards work, ATW). The PLS-SEM approach is used. The model indicates good fit (SRMR<0.08). The predictors of LTI exhibit moderate predictive accuracy (R-squared = 0.42). The reflective construct exhibit high composite reliability (?=0.94), high convergent validity (AVE=0.83) and ensures discriminant validity (HTMT<0.85). Redundancy analyses for the formative constructs yield path coefficients close to 0.8. There is no evidence of multicollinearity. Motivating factors (MF) and hygiene factors (HF) have no significant bearing on LTI. Lack of hygiene factors causes more women than men to resign voluntarily. Age has the greatest influence (?=-0.635) on LTI, followed by attitudes towards work (?=0.428) and offers from rival hotels (?=0.308). ATW acts as a suppressor and considerably reduces employees’ intentions to resign even if rival hotels offer better opportunities. MF, HF and OFRH have significant impacts on ATW with effect sizes ranging from weak (0.10) to medium (0.25). Employers should focus on influencing employees’ attitudes towards work and reduce excessively and unjustified energy-draining tasks so as to retain effective performers.