Effect of Motivation and Hygiene Factors on Expatriates’ Intention to Stay: The Mediating Role of Job Satisfaction

Effect of Motivation and Hygiene Factors on Expatriates’ Intention to Stay: The Mediating Role of Job Satisfaction

Mahum Tariq¹, Nik Ab Halim Nik Abdullah²

¹GhazaliShafie Graduate School of Government, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

²Department of International Business, School of International Studies, Universiti Utara Malaysia, 06010 Sintok, Kedah, Malaysia

DOI: https://dx.doi.org/10.47772/IJRISS.2023.7011061

Received: 07 October 2023; Accepted: 21 November 2023; Published: 08 December 2023

ABSTRACT

The purpose of this study is to study the relationship between motivational factors, hygiene factors, job satisfaction, and intention to stay among expatriates in Pakistan. It also investigates the role of job satisfaction in mediating the relationship between motivational factors, hygiene factors, and expatriates’ intention to stay. The study’s goal is to shed light on the elements that influence expatriates’ intention to remain working at their current organisation in Pakistan. A survey-based technique was used to obtain data from a wide sample of expatriates in Pakistan from various businesses. 303 survey responses were evaluated in order to investigate the correlations between the variables. The data analysis shows that motivational variables, hygiene factors, job satisfaction, have substantial positive relationships with the intention to stay. Furthermore, the study emphasises the mediating role of job satisfaction, which demonstrate that it is critical in increasing the good influence of motivational and hygiene factors into expatriates’ intention to stay. This study adds to the current body of knowledge by giving empirical evidence on the importance of motivational factors, hygiene factors, job satisfaction, and intention to stay within an organisational context. The findings have practical significance for organisations looking to improve their expatriate retention strategies by creating a compelling work environment and give more attention on expatriates’ job satisfaction. Organisations can apply focused interventions and practises to achieve stronger commitment and retention rates by identifying the elements that influence expatriates’ intention to stay. This study emphasises the need of taking into account motivational elements, hygiene factors, and job satisfaction when it comes to boosting employee engagement and long-term organisational success.

Keywords –Motivation factors, Hygiene factors, Job satisfaction, Expatriate, Intent to stay

INTRODUCTION

One of the key aspects of globalization is the increasing number of expatriates working worldwide. Currently, there are approximately 56.8 million expatriates residing all over the world, and this number is projected to grow in the coming years, with a compound annual growth rate of 4.7 percent over the past five years [1]. The term “expatriation” originates from the Latin word “ex-patria,” meaning “out of the country.” It has been used since people first began leaving their home countries to settle elsewhere [2]. Individuals who relocate to another country without any guidance or support from an employer are referred to as “self-initiated” expatriates [3]. These expatriates rely solely on their own resources for their careers and do not have direct organizational support [4]. Some individuals take the initiative to move to a foreign location independently, seeking a better future or a change in lifestyle.

As a developing country, Pakistan heavily depends on expatriates from other countries, particularly developed nations, to contribute to high-value projects and fill critical positions within organizations. To remain competitive on a global scale, Pakistani companies increasingly recognize the value of these skilled human resources, as their contributions directly impact profitability [5]. An important area of study within the field of expatriation is the examination of expatriates’ likelihood to stay and continue working in a foreign country, often referred to as “expatriate intent to stay.” Reference [6] define intention to stay as an expatriate’s intention to continue their long-term employment with their current company, which contrasts the notion of intention to quit or turnover intention. Reference [7] consider intention to remain as an employee’s willingness to continue working for their present organization. Another perspective, provided by [8], describes intention to stay as an employee’s deliberate and thoughtful readiness to persist in their employment with the organization. Understanding the elements that influence expatriates’ intention to stay is critical, and job satisfaction emerges as a key component in this context. Employee views, emotions, and feelings towards their work, as well as its implications for dedication, service, performance, and organisational development, are all included in job satisfaction [9]. High levels of job satisfaction among expatriates are connected with a lower likelihood of turnover, particularly when they believe management values their well-being [10]. Additionally, job satisfaction has a major impact on organisational performance and culture [11]. As a consequence, organisations must get insight into the elements that influence job satisfaction among expatriates, since this knowledge can help them retain top performing personnel and preserve a competitive edge of the firm.

In addition, the motivation of expatriates can influence their intention to stay. According to Herzberg’s two-factor theory, there are two types of elements that influence people’s happiness and motivation: motivational factors and hygiene factors [12]. Promotion, the nature of the work, growth prospects, responsibility, recognition, and achievement are all motivating aspects that contribute to an employee’s job satisfaction [9]. Employees are driven to work more when these characteristics are present, which leads to higher job satisfaction and positive attitudes [13]. Interpersonal interactions, compensation, policies and administration, supervision, and working circumstances, on the other hand, are connected with the avoidance of job unhappiness [12]

While the absence of hygienic considerations may not lead individuals to leave their positions, it might have a negative impact on their performance and productivity. Recognising the importance of investigating the factors that influence expatriates’ intention to stay in a foreign country, the purpose of this study is to investigate the impact of motivational and hygiene factors on job satisfaction, as well as the direct relationship between job satisfaction and intention to stay among self-initiated expatriates (SIEs). Furthermore, the study investigates the impact of job satisfaction as a mediator in the relationship between motivational and hygiene factors and the intention of expatriates to stay. The study intends to provide a greater knowledge of the elements that contribute to expatriates’ intention to stay by exploring these linkages, as well as to develop tactics for maintaining talented persons in foreign work environments.

LITERATURE REVIEW

A. Two-Factor Theory

Motivational and hygiene variables are distinct sets of elements that have unique effects on job satisfaction and discontent according to the Two-factor theory [14]. Dissatisfaction and satisfaction are not related to the same dimension. This idea is based on two sets of factors namely hygiene factors that are linked to emotions of dissatisfaction and motivators that are linked to feelings of satisfaction [15] (Naidu, 2023). The motivators include satisfiers which are the main factors contributing to job satisfaction, and hygiene factors) which have been among the main causes of job dissatisfaction [16].These elements are classified in Table 1. Intrinsic elements related with motivation and job satisfaction include achievement, acknowledgment, the nature of the work, progression prospects, greater responsibility, and professional development. When these requirements are met, employees are more likely to be satisfied with their jobs and perform better. Hygiene factors on the other hand, are associated with extrinsic features of the workplace, such as management style, team dynamics, supervision, office atmosphere, benefits, salary, and career growth chances. These indicators suggest that improving working conditions might boost morale and productivity. It is crucial to remember, however, that even when hygiene factors are present, they do not result in contentment. Rather, they keep unhappiness at bay. As a result, while hygienic considerations can help to reduce job unhappiness, they cannot guarantee actual job contentment.

TABLE 1 Herzberg’s motivation and hygiene factors

B. Intention to stay

Reference [17] define intention to stay as an employee’s strong desire to stay in their current position based on their experiences and views of organisational events and processes. Intention to stay may also be elaborated as personal likeliness or decision of an employee or a person to stay at a specific place or position [18]. This relates to how one perceives the likelihood of continuing to be listed in an organization [15].The term intention to stay is used to describe a person’s commitment to their profession and their intention to continue working in that profession [19]. This idea arises from the realisation that maintaining exceptional employees is critical for businesses. It represents employees’ dedication to their jobs and organisations, which can be either short-term or long-term. In recent years, scholarly study has shifted towards understanding the factors that influence employees’ intentions to stay rather than exclusively on turnover [20]. Reference [21] study on intention emphasised its significance as a motivator that drives actual behaviour. They contend that intention is a powerful predictor of behaviours like staying or quitting, as well as performance outcomes. Reference [22] further emphasize that intention itself plays a crucial role in shaping subsequent behaviours. Understanding employees’ intentions to stay is critical for organisations since it aids in the development of initiatives to increase commitment, engagement, and job retention. Organisations can build focused interventions to improve employee satisfaction, foster a healthy work environment, and promote long-term commitment by investigating the factors that influence intention to stay.

C. Job Satisfaction

Job satisfaction is a general term that refers to a person’s overall attitude towards their job. It refers to people’s favourable emotional states, the positive effects of work-related events on them, and their assessments of their jobs [15]. Job satisfaction is a state in which we can see whether an employee likes or dislikes his or her job. If job satisfaction is high, it may results in positive impact on the performance of an employee and it also leads towards less absenteeism and lower turnover rate [23]. Thus, it relates to employee’s level of comfort or dissatisfaction with their work environment. Positive job satisfaction is related with a variety of positive emotions and attitudes, whilst negative job satisfaction is associated with feelings of unhappiness. Job satisfaction is influenced by a variety of factors, including the nature of the job itself, compensation, prospects for advancement, the level of supervision offered by managers, and interpersonal interactions with co-workers. The determinants of job satisfaction are multifaceted, involving both individual characteristics and external factors. Promotion prospects, supervisory practices, job security, and the overall work climate are among the external factors that influence job satisfaction. According to reference [21], job satisfaction emerges when individuals evaluate and perceive positive features of their job. It is a pleasant emotional state resulting from one’s assessment of their job and their attitude towards it. Job satisfaction is of great importance in organizational psychology and management theory. It is closely related to employee well-being, productivity, and retention [22]. Companies know how important it is to promote job satisfaction among their employees in order to improve the company’s overall performance and create a positive work culture.

HYPOTHESIS DEVELOPMENT AND RESEARCH FRAMEWORK

The study’s first hypothesis is that there is a significant association between motivational factors and the intent to stay among expatriates working in Pakistan. This hypothesis is supported by previous study such as by [24], [25], and [26]. They found a significant link between motivational factors and intention to stay in different organizational backgrounds. Reference [24] investigated the influence of nonfinancial incentives such as work environment, motivation, opportunities for promotion, and manageable workload on nurses’ intention to stay in private hospitals in Malaysia. They found out that these factors positively influenced nurses’ intention to stay. In addition, [25] investigated the influence of extrinsic, intrinsic, and consumer attitude factors on intent to stay in a budget hotel. Their study revealed that consumer behaviour and intrinsic factors had a significant impact on intent to stay, while extrinsic factors did not exhibit any effect. Reference [26] explored the association between total rewards, organizational justice, and intent to stay among employees in private banks in India. The study found significant relationships between total rewards and intent to stay, as well as organizational justice and intent to stay. Based on the collective findings of these studies, it is hypothesized that:

H1: There is a significant relationship between motivational factors and expatriate’s intention to stay.

Based on the studies conducted by [27], [28], and [29], it is assumed that hygiene factors have a significant impact on employees’ intention to stay. Reference [27] examined the relationship between interpersonal relationships among followers and leaders (considered as hygiene factors) and the intention to stay. The study found a strong positive relationship between these factors and employees’ intention to stay, suggesting that positive interpersonal relationships can contribute to higher levels of intent to stay. Reference [28] investigated the association between hygiene factors and intention to stay, and employee motivation among service industry employees in the United States. The study discovers a positive connection between hygiene factors and intention to stay, implying that factors such as work environment, leadership style, and relationships with co-workers’ influence employees’ decision to stay.

Furthermore, reference [29] investigated the effects of motivational and hygiene factors on intention to stay among nurses in the United States. The study discovered significant relationship between motivational and hygiene factors and the intention to remain working at the company. This emphasizes the significance of these dimensions in influencing employees’ willingness to remain working at their current organisations. According to the findings of these studies, hygiene factors are expected to play a significant role in employees’ intention to stay. Positive interpersonal relationships, work environment, leadership style and other hygiene factors can contribute to employees’ commitment and desire to continue working for an organisation. Thus, the second hypothesis is:

H2: There is a significant relationship between hygiene factors and expatriate’s intention to stay.

Previous researchers have extensively studied the association between job satisfaction and intention to stay. Reference [30] for example has found that persons with high job satisfaction may initially develop an emotional attachment to their organisation, which leads to higher level of intention to stay. This advocates that job satisfaction plays a crucial role in employees’ decision to stay and remain working for their current employer. In addition, [31] also found a favourable relationship between job satisfaction and intention to stay. According to their findings, higher levels of job satisfaction among employees greatly indicated their decision to stay with the company. This emphasizes the significance of job satisfaction in influencing employees’ commitment and loyalty to their current job and organisation. Furthermore, [32] did a study to predict workers’ intentions to leave the organisation. According to their findings, job satisfaction was a substantial predictor of employees’ intention to either stay or leave the organisation. This implies that employees’ level of job satisfaction has a significant effect on their intention to stay with the company or seek alternative opportunities in other companies or in other countries. Therefore, the third hypothesis developed for this study is:

H3: There is a significant relationship between job satisfaction and expatriate’s intention to stay.

Previous researchers have shown the mediating role of job satisfaction in the relationship between numerous factors and workers’ intention to stay. Reference [33] investigated the effect of motivational factors such as recognition and career development opportunities on expatriates’ intention to stay. According to the findings, job satisfaction partially mediates the relationship between motivational factors and expatriates’ intention to stay. This finding indicates that when employees have better levels of job satisfaction as a result of motivational factors, they are more likely to develop intentions to stay with the organisation. Similarly, [34] investigated the effects of hygiene factors, including working conditions, supervision and policies, on job satisfaction and intention to stay. Their findings revealed that job satisfaction mediates the relationship between hygiene factors and employees’ intention to stay. This means that employees who perceive favourable hygiene factors leading to higher job satisfaction are more likely to express their intention to stay in the organisation. Additionally, [35] research indicates that employees’ perceptions of good hygiene factors improved when they were more satisfied at work. This, in turn, had a positive impact on their decision to stay with the company. Based on the above findings, the fourth and fifth hypothesis for this study are:

H4: Job satisfaction significantly mediates the relationship between motivational factors with expatriates’ intention to stay.

H5: Job satisfaction significantly mediates the relationship between hygiene factors with expatriates’ intention to stay.

The theoretical framework of this study is presented in figure 1.

Fig. 1 Research Framework

RESEARCH METHODOLOGY

This study utilized a quantitative research design to examine the relationship between variables. Data was collected through a survey questionnaire method, targeting expatriates currently working in Pakistan. The population for this research consists of all expatriates in Pakistan, with a reported number of 1346 expatriates in the year 2020 according to the Ministry of Foreign Affairs (Personal communication, October 6, 2021). The sample size was determined based on Krejcie and Morgan’s table, suggesting a sample size of 297 to 302 for the given population [36]. The target respondents were selected using a simple random sampling technique. The study specifically focused on expatriates employed in the private sector in three major cities of Pakistan: Islamabad, Lahore, and Karachi. These cities were chosen due to their significance as major urban centres hosting numerous multinational organizations. A total of 500 survey questionnaires were distributed using self-administered and email methods. A response rate of 66% was achieved, with 336 completed and returned survey questionnaires.

The survey questionnaire used for this study consists of five sections. The first section consists of questions about the demographic profile of the respondents, while the remaining four sections consist of measurement items that measure motivational factors, hygiene factors, job satisfaction and intention to stay. The survey items for motivational factors, hygiene factors and job satisfaction were adapted from a previous study by [37], while the survey items for expatriate intention to stay were adapted from a previous study by [38]. Items for the independent, dependent and mediating variables were assessed using a seven-point Likert scale ranging from 1=Strongly disagree to 7=Strongly agree. The collected data were analysed using the data analysis technique Partial Least Squares Structural Equation Modelling (PLS-SEM). The Smart PLS 3 software was used for the analysis.

ANALYSIS AND RESULTS

Profile of the Respondents

Table 2 provides an overview of the survey respondents’ demographic profile. Majority of the respondents are male which made up 76.9% of the sample, while female participants are 23.1% of the survey participants. In terms of age categories, 40.6% of the participants were between the ages of 30 and 39, making up the highest share. Participants under the age of 30 made up 22.8% of the sample, while those aged 40 to 49 made up 27.4%.

The data also reveals that 54.1% of the respondents were single, while 45.9% were married, according to their marital status. The majority of participants (44.9%) had a Master’s degree, followed by those with diplomas (26.4%), high school diplomas (20.5%), and doctoral degrees (8.3%), in terms of educational background. The participants’ country of origin revealed that the majority were from Asia (45.5%), followed by Oceania (20.1%), Africa (19.8%), Europe (9.2%), and America (5.3%).

TABLE 2 DEMOGRAPHIC PROFILE OF THE RESPONDENTS

In terms of current job positions, 45.5% of participants held non-managerial roles, 36.6% were in middle management, and 17.8% held senior management positions. The number of countries in which participants had worked as expatriates varied, with the majority (54.5%) having experience in 1 to 2 countries. The smallest percentage (5.3%) represented participants who had worked in 7 to 10 countries. In terms of service length in Pakistan, the highest percentage (48.5%) had served for less than 1 year. Participants with a service length of 1 to 3 years accounted for 29.0%, while 4 to 6 years and 7 to 10 years represented 15.5% and 5.6% of the sample, respectively. The smallest percentage (1.3%) represented participants with a service period exceeding 10 years.

Assessment of Reliability and Validity of the Measurement Model

The PLS-SEM technique is divided into two stages: the first stage involves an analysis of the measurement model, while the second stage focuses on studying the structural model. Both convergent and discriminant validity are assessed during the measurement model verification process. Additionally, methods like rho A and composite reliability values were employed to conduct reliability tests. The outcomes of the PLS analysis can be used to evaluate the hypotheses that guided the research, provided that all indicators within the PLS model have successfully passed the required tests for convergent validity, discriminant validity, and reliability. In order to assess convergent validity, the factor loading and average variance extracted (AVE) values were considered. A factor loading of 0.6 or higher is considered strong enough to validate the latent construct [39]. Additionally, the AVE value of each construct should be greater than 0.5 for satisfactory convergent validity [40].

Upon using Smart PLS 3.0 for analysis, it was found that each indicator used in this study had factor loading values greater than 0.7 (except for 2 items in the job satisfaction construct) and AVE values greater than 0.5. The factor loadings, composite reliability, and average variance explained values are presented in Table 3. These results demonstrate that the research model satisfies all the conditions for convergent validity.

The next stage is the assessment to determine the discriminant validity of the model.  Discriminant validity is a procedure aimed at verifying that each construct linked to a latent variable can be distinguished from the constructs related to other latent variables by means of assessments and comparisons.

TABLE 3 ASSESSMENT OF MEASUREMENT MODEL

The present study employed the HTMT ratio analysis to ascertain the discriminant validity.  It can be inferred that the model exhibits strong discriminant validity provided that the HTMT ratio for each exogenous construct is less than 0.85 [39]. Based on the discriminant validity test results presented in Table 4, it may be inferred that the model has attained discriminant validity.  The results indicate that the HTMT ratio for all constructs is below 0.85, as evidenced by the data presented in the table.

TABLE 4 HTMT ANALYSIS FOR CHECKING DISCRIMINANT VALIDITY

Assessment of the Structural Model

The “inner model test” is the name given to the use of partial least squares (PLS) to evaluate hypotheses. The importance of both direct and indirect impacts is evaluated in this study, as well as the extent to which exogenous variables have an impact on endogenous variables. The study looks at the importance of the direct and indirect impacts in relation to one another. The research is done and analysed using the Smart PLS 3.0 software, and significant testing within the PLS analysis framework are carried out using the t-test. Table 5 presents the results of the bootstrapping approach, which is used to determine the significance test values. All of the postulated hypotheses (H1, H2, H3, H4, and H5) were found to be supported based on the findings.

TABLE 5 HYPOTHESES TESTING

The following stage involves evaluating the coefficient of determination’s (R2) determination. According to [41], the R2 values show how much variance in the endogenous variables is explained by exogenous factors. According to earlier research, a value of 0.26 or above is regarded as substantial 38, although the cut-off for substantial variance explained by R2 may vary [42]. However, a value greater than 0.10 is regarded as suitable in social sciences and business research [43]. Job satisfaction (as a mediator) and desire to stay (the dependent variable) are the two endogenous variables in this study, with R2 values of 0.12 and 0.18, respectively.

DISCUSSIONS AND CONTRIBUTIONS OF THE STUDY

After examining the relationship between the variables in the structural model, the study tested the proposed hypotheses and found that all of them were supported. According to the analysis, job satisfaction was significantly influenced by both motivational and hygiene factors (H1 and H2, respectively). This is consistent with earlier research which demonstrated that the elements of motivational factors such as recognition and career advancement opportunities help boost job satisfaction [44], [45]. Similar to earlier studies by [46] and others, the study discovered that hygiene factors, such as working conditions, job security, and interpersonal interactions, have a substantial impact on job satisfaction. Additionally, the study also discovered that the intention to stay (H3) was significantly influenced by job satisfaction. These results are in line with earlier studies by [47], [48], [49], which hypothesised that a positive working environment and higher job satisfaction have a positive impact on employees’ intention to stay with the company.

This study also looked at the role of job satisfaction as a mediator in the associations between motivational factors and intention to stay (H4) and hygienic factors and intention to stay (H5). According to the findings of this study, job satisfaction considerably mediates both relationships. Given its mediating role in the linkages between motivation and hygiene factors and the intention to stay, increasing job satisfaction might be a critical strategy for firms in order to retain their expatriate employees. These findings are consistent with previous research that has emphasised on the importance of having a supportive work environment and giving opportunities for growth and development in order to improve job satisfaction and retention [45]. The findings highlight the importance of both motivational and hygienic factors in determining employees’ job satisfaction and intention to stay. When expatriates encounter strong motivators, such as advancement prospects, supportive supervisor behaviours, and a nice work environment, their job satisfaction may improves. As a result, their intention to remain with the firm grows. Furthermore, firms should prioritise creating an ethical work environment and addressing hygiene factors in order to increase expatriate’s job satisfaction, thereby enhancing their commitment to the organisation and lowering turnover intention. Organisations can build a positive work environment that encourages expatriates to stay with the company by promoting ethical ideals and fostering a supportive workplace.

The findings of this study contribute significantly to the theoretical and practical understanding of expatriates’ intention to stay and expatriate management in general. The findings are consistent with Herzberg’s two-factor theory, which emphasises the importance of both motivational and hygiene factors for employee job satisfaction. This highlights the importance of considering both sets of characteristics when analysing expatriate job satisfaction. Furthermore, the study contributes to our understanding of the relationship between job satisfaction and employee retention. The study highlights the importance of job satisfaction as a mechanism through which motivational and hygiene factors influence employees’ intention to stay by demonstrating its mediating role. This study has implications for companies, governments and policy makers. The findings provide companies with useful insights into the elements that influence expatriates’ intention to stay. Both companies and relevant government agencies can consciously develop policies and practises that foster a supportive work environment for expatriate employees by understanding the mediating role of job satisfaction and considering both motivational and hygiene factors. Companies can improve employee retention and overall organisational performance by prioritising these characteristics and increasing expatriates’ job satisfaction and intention to stay. These findings can help companies make decisions and develop retention strategies.

These insights can also be useful to government bodies and policymakers. They can use the findings of this study to create laws and regulations that promote good working conditions, increase employee satisfaction, and attract expatriates to stay working in their country. This has broader ramifications in terms of attracting and retaining talented expatriate professionals, supporting economic growth, and strengthening the total workforce. Overall, this study makes important theoretical and practical contributions that can help organisations, government agencies, and policymakers in improving employee retention and efficiently manage expatriate staff.

LIMITATIONS AND DIRECTIONS FOR FUTURE RESEARCH

Despite its insightfulness and contributions, there are some limitations to this study that should be addressed when discussing the results. The information used in this study is cross-sectional and was gathered during a specific time frame. To obtain a more comprehensive understanding of the impact of the selected variables on intention to stay, future studies may benefit from using longitudinal data spanning multiple time periods. However, due to constraints such as cost and time, this study was limited to a cross-sectional design. Secondly, the sample for this study was collected solely from three major cities in Pakistan, focusing on expatriates working in private firms within those cities. To enhance the generalizability of the findings, future research could expand the sample to include other cities or countries. By broadening the scope of the study, a more diverse representation of expatriates and organizational contexts can be captured. Additionally, it is important to note that this study treats motivational and hygiene factors as a single construct, without delving into the specific elements that comprise each factor. Motivational factors and hygiene factors encompass various components that can impact employee satisfaction and intention to stay in distinct ways.

By not examining these elements separately, this study may overlook potential nuances and variations within the motivational and hygiene factors that could have significant implications for expatriates’ intention to stay. A more granular analysis of these factors could provide deeper insights into their individual contributions and shed light on specific areas for organizational improvement. Addressing these limitations can further strengthen the robustness and applicability of the study’s findings, providing a more comprehensive understanding of the factors influencing expatriates’ intention to stay not only from the perspective of one country but also from an international perspective.

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