Open AccessPeople Equity Model as An Effort to Increase Employees’ Intention to Stay
Author(s) -
Tatin Wahyanto,
Stefanus Supriyanto,
Nyoman Anita Damayanti,
Sri Hartini,
Retno Lestari
Publication year - 2020
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.579
H-Index - 13
ISSN - 2279-9028
DOI - 10.4081/jphr.2020.1843
Subject(s) - structural equation modeling , workload , equity (law) , marital status , equity theory , business , return on equity , stratified sampling , psychology , environmental health , medicine , finance , economics , computer science , population , management , machine learning , political science , stock exchange , law , pathology , productivity , macroeconomics
Background The high turnover rate in the healthcare industry needs serious attention since it influences hospital service quality. So, there is a need to develop a new framework known as people equity, that can be used to manage intangible assets and reduce employees’ intention to leave. The purpose of this study therefore was to develop a model of people equity as a strategy for enhancing employees’ intention to stay.Design and methods An analytical cross-sectional design was used to measure the associations between variables. 154 respondents were selected from stratified random sampling technique. Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyze the measurement model.Results The results indicated that people equity was influenced by organizational factors (P=0.210), individual factors (P=0.183), and occupational factors (P=0.141). In addition to this, predictors for employees’ intention to stay were people equity (P=0.432), individual factors (P=0.308), and environmental factors (P=0.117). Conversely, working and marital status, environment, and workload have no significant effect on people equity and intention to stay.Conclusions People equity was influenced by organizational, individual, and occupational factors through the implementation of the Human Resources System. People equity model increased employees’ intention to stay by improving organizational factors.