The Impact Of Non-Mandatory Benefits On Organization's Employee Turnover Intention

In recent years,the rate of increase in internationalization of China's enterprises has raised the issue of human resource management in cross cultural context making it more prominent than before.The traditional welfare management practiced by a lot of enterprises typically characterizes of mandatory,rigid and weak incentives known as mandatory benefits;whereas some organizations have actively begun to explore the role of non-mandatory benefits as a welfare package in attracting,retaining and motivating employees in human resource management.With this background,this paper makes use of the social exchange theory to explore the impact of the non-mandatory welfare system of enterprises in China and Malawi on the turnover intention of employees,a concept that has theoretical and practical significance.This paper introduces the relevant literature and seeks to analyze the relationship between nonmandatory benefits and employee turnover intention.Applying the social exchange theory,organizational commitment and organizational justice are assessed as intermediary(mediator)variable and moderator variable respectively,whereas the construct on impact of non-mandatory benefits on employees' turnover intention is assessed as an independent variable.Based on survey data of 505 employees acquired from China and Malawi based organizations,it is verified that the non-mandatory benefits have a positive impact on organizational commitment and a negative impact on employees' turnover intention.Organizational commitment and its three dimensions also result to a negative correlation with employees' turnover intention.The results show that the implementation of non-mandatory employee benefits is an important strategy to attract,retain and motivate employees.According to the social exchange theory,managers' efforts to meet employees' non-mandatory benefits demand will lead to reciprocal behavior,which is conducive on the work environment as employees' work attitude is adjusted,turnover intention level reduced and work performance is enhanced.In addition,different cultural backgrounds,industrial policies and national economic systems could have an impact on the consistency of results but this was not so much the case in this paper.