The Moderating Effect of Earnings on the Relationship between Overtime and Labor Turnover in Manufacturing Industry in Taiwan

Abstract

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The average monthly total working hours among Taiwanese employees were higher than in other countries, especially in manufacturing in Taiwan. In addition, the high labor turnover, as well as wages of the Taiwanese, has been considered as a critical issue to the economy. The main objective of the present study is to investigate the relationships among overtime, labor turnover, and earnings. Moreover, the earnings of the employees worked in manufacturing in Taiwan as a moderator were examined whether labor earnings can alleviate the effect of overtime on labor turnover. This study applied the data collected by the government in Taiwan in 2017 and the quantitative approach was adopted to examine the hypotheses with IBM SPSS 23 to conduct statistical analysis and interpret the findings. The results were divided into two time periods: the first half-year of 2017 and the second half-year. All the records analyzed in this study are based on the organizational level. The research finds that employees no matter males or females those who work in manufacturing in Taiwan are more likely to work overtime in order to obtain additional incomes. The findings reveal the overtime work has significant statistically with overtime pay and labor turnover. Additionally, results show a statistical moderating effect of labor earnings (i.e. overtime pay) on the relationship between overtime and labor turnover. Overall, results present a comprehensive understanding of the factors impacting labor turnover which benefited the manufacturing industry in Taiwan to manage working conditions to support employees fulfill their needs.