The effects of pay effectiveness and leadership style on intention to leave among employees at Aseania Resort & Spa, Langkawi

Employee turnover is an inevitable scenario faced by many organizations irrespective of its economic sectors. Uncontrollable turnover is extremely costly for the employer because it involves of efforts, times and costs of rehiring, training, and low productivity effects. Intention to leave is found as the strongest predictor for actual turnover in previous studies. Due to high turnover rate among hotel employees in Malaysia, it demands great concern and some insights on the subject of intention to leave. This research explored the factors that triggering the likelihood of employees' intention to leave their current organization. In this regard, this study attempts to determine the effect of pay effectiveness and leadership styles on intention to leave among local employees in hotel industry. Data were gathered from employees' at Aseania Resort & Spa using questionnaires survey. The findings of this study resulted in acceptance on some of the hypotheses formulated for this study. The research result
indicated that pay effectiveness, transactional leadership style (contingent rewards), and transformational leadership style (idealize influence) were significantly impact and contributed to the intention to leave. Hence, with limited literatures on the topic of pay effectiveness, transactional leadership style, transformational leadership style, and intention to leave in the context of hotel industry in Malaysia, the findings of this study, had to some extent, contributed to the understanding of aspects related to the intention to leave and enrich the knowledges of these aspects, especially in Malaysian employment landscape.