Original Research

Global challenges of the mining industry: Effect of job insecurity and reward on turnover intention through job satisfaction

Hendra Gunawan, Rukman Pala, Bakhtiar Tijjang, Mashur Razak, Besse Qur’ani
SA Journal of Human Resource Management | Vol 22 | a2555 | DOI: https://doi.org/10.4102/sajhrm.v22i0.2555 | © 2024 Hendra Gunawan, Rukman Pala, Bakhtiar Tijjang, Mashur Razak, Besse Qur’ani | This work is licensed under CC Attribution 4.0
Submitted: 16 February 2024 | Published: 28 June 2024

About the author(s)

Hendra Gunawan, Department of Management, Faculty of Economy and Business, Institut Bisnis dan Keuangan Nitro, Makassar, Indonesia
Rukman Pala, Pusat Riset Masyarakat dan Budaya, Badan Riset dan Inovasi Nasional, Jakarta, Indonesia
Bakhtiar Tijjang, Department of Management, Faculty of Social Science, Institut Ilmu Sosial dan Bisnis Andi Sapada, Parepare, Indonesia
Mashur Razak, Department of Management, Faculty of Economy and Business, Institut Bisnis dan Keuangan Nitro, Makassar, Indonesia
Besse Qur’ani, Jurusan Pendidikan Kesejahteraan Keluarga, Fakultas Teknik, Universitas Negeri Makassar, Makassar, Indonesia

Abstract

Orientation: This research focusses on the dynamics of job insecurity, job satisfaction and employee turnover intentions in the Indonesian mining industry facing significant global and local economic challenges.

Research purpose: This research aims to investigate the influence of job insecurity and rewards on the turnover intentions of employees with job satisfaction as a mediating variable in the mining industry of Indonesia.

Motivation for the study: This research is based on the observation that the mining industry faces high turnover rates, which can be detrimental to company operations and sustainability.

Research approach/design and method: This research uses a quantitative approach by collecting data through surveys distributed to employees in various mining industries. The population in this study were employees of the mining industry in PT Vale Indonesia, totalling 3044 employees, and a sample of 230 respondents was taken at random.

Main findings: The main findings show that job insecurity negatively influences job satisfaction, increasing employee turnover intentions. However, when companies implement a fair and adequate reward system, the negative impact of job insecurity on job satisfaction and turnover intentions can be minimised.

Practical/managerial implications: The practical implication of this research is the importance of the mining industry developing human resource management strategies that not only focus on competitive compensation but also create a stable and satisfying work environment.

Contribution/value-add: This research provides an important contribution to the development of human resource management by highlighting the mediating role of job satisfaction in the relationship between job insecurity and turnover intentions. These findings provide new insights for companies in overcoming employee retention challenges with a holistic approach and good reward system.


Keywords

turnover intention; job satisfaction; job insecurity; reward; mining industry

JEL Codes

D23: Organizational Behavior • Transaction Costs • Property Rights; J28: Safety • Job Satisfaction • Related Public Policy; O15: Human Resources • Human Development • Income Distribution • Migration

Sustainable Development Goal

Goal 9: Industry, innovation and infrastructure

Metrics

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Total article views: 317


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