Pengaruh work–life balance terhadap retensi karyawan dengan moderasi kompensasi
DOI:
https://doi.org/10.26740/jim.v13n1.p94-105Keywords:
compensation, employee motivation, employee retention, organisational commitment, work-life balanceAbstract
This study aims to analyse the effect of work–life balance on employee retention with the moderation of compensation. This study applied a quantitative approach. The data collection technique used was the saturated sample technique. The total number of respondents was 99, obtained by distributing questionnaires directly. This study uses a Partial Least Square–Structural Equation Model (PLS–SEM) analysis technique. The results found that work–life balance has no significant effect on employee retention. Compensation has a significant positive effect on employee retention. Meanwhile, the moderation test could not be carried out further because the influence of work–life balance on employee retention was proven to have no effect This study suggests that while work–life balance policies are often considered important in employee retention, they may not be the primary determinant. Instead, companies should prioritise other factors, such as compensation, to enhance workforce loyalty effectively. The findings indicate that a well–structured compensation package, such as one encompassing salary, incentives, and benefits, plays a crucial role in reducing turnover. As a result, organissations aiming to improve employee commitment should focus on competitive compensation strategies as a central component of their retention efforts.
References
Abou–Moghli, A. A. (2019). The influence of compensation management strategy on talent retention: exploring the mediating role of structural capital, International Business Research, 12(3), 165–173. https://doi.org/10.5539/ibr.v12n3p165
Al–Suraihi, W. A., Samikon, S. A., Al–Suraihi, A. H. A., & Ibrahim, I. (2021). Employee Turnover: Causes, Importance and Retention Strategies, European Journal of Business and Management Research, 6(3), 1–10. https://doi.org/10.24018/ejbmr.2021.6.3.893
Algazlan, N., Al–Jedai, A., Alamri, A., Alshehri, A. M., Aldaiji, L., & Almogbel, Y. (2022). Association between intention to leave work and quality of work–life of Saudi pharmacists, Saudi Pharmaceutical Journal, 30(2), 103–107. https://doi.org/10.1016/j.jsps.2021.12.022
Alzaid, D. & Dukhaykh, S. (2023). Employer Branding and Employee Retention in the Banking Sector in Saudi Arabia: Mediating Effect of Relational Psychological Contracts, Sustainability (Switzerland), 15(7), 1-14. https://doi.org/10.3390/su15076115
Aman–Ullah, A., Ibrahim, H., Aziz, A., & Mehmood, W. (2024). Balancing is a necessity not leisure: a study on work–life balance witnessing healthcare sector of Pakistan, Asia–Pacific Journal of Business Administration, 16(1), 127–147. https://doi.org/10.1108/APJBA–09–2020–0338
Aman–Ullah, A., Aziz, A., Ibrahim, H., Mehmood, W., & Aman–Ullah, A. (2023). The role of compensation in shaping employee’s behaviour: a mediation study through job satisfaction during the Covid–19 pandemic, Revista de Gestao, 30(2), 221–236. https://doi.org/10.1108/REGE–04–2021–0068
Anxo, D. & Ericson, T. (2023). Senior citizens intrinsic and extrinsic work motivation, International Journal of Manpower, 44(9), 216–236. https://doi.org/10.1108/IJM–12–2022–0578
Asri, D. H. (2021). Analisis Faktor – Faktor Yang Memengaruhi Retensi Karyawan Pada Perusahaan Ekspedisi Di Batam, Journal of Global Business and Management Review, 3(2), 16–30. https://doi.org/10.37253/jgbmr.v3i2.6284
Astuti, R. R., Prabowo, H. & Puspitasari, R. H. U. (2023). The effect of compensation and work–life balance on employee retention through work satisfaction (case study at PT Sandang Asia Maju Abadi Semarang), Stability: Journal of Management and Business, 6(1), 39–62. https://doi.org/10.26877/sta.v6i1.16270
Bhattacharya, S., Neelam, N., & Rajagopal, K. (2020). A perspective on work–life balance and its determinants. International Journal of Human Capital and Information Technology Professionals (IJHCITP), 11(4), 41–59. https://doi.org/10.4018/IJHCITP.2020100103
Bibi, P., Ahmad, A., & Majid, A. H. (2016). The moderating role of work environment on the relationship between compensation, job security, and employees retention. Journal of Economic & Management Perspectives, 10(4), 726–738.
Brough, P. et al. (2020). Work – life balance : definitions , causes , and consequences author handbook of socioeconomic determinants of occupational health downloaded from work – life balance : definitions , causes , and consequences, Handbook of Socioeconomics, 12(2), 473–487. http://dx.doi.org/10.1007/978–3–030–05031–3_20–1
Fanisi. et al. (2023). Effectiveness of employee retention strategies, Industrial Engineering Journal, 4(1), 88–100. https://doi.org/10.37421/2161–5833.2023.13.481
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). The results of PLS–SEM article information, European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR–11–2018–0203
Hanai, A. E. and Pallangyo, W. A. (2020). The contribution of compensation in the employee retention of the Banking Institutions in Dar es salaam, Tanzania’, European Journal of Business and Management Research, 5(4), 1–8. https://doi.org/10.24018/ejbmr.2020.5.4.223
Hassan, A., Donianto, C., Kiolol, T., & Abdullah, T. (2022). Pengaruh talent management dan work life balance terhadap retensi karyawan dengan mediasi dukungan organisasi, Modus, 34(2), 158–183. https://doi.org/10.24002/modus.v34i2.5966
Hayden, B. M. (2022). A qualitative investigation into the Great Resignation in Ireland: The reasons behind employee turnover within the tech industry during the COVID–19 pandemic, (August).
Indrayani, I., Nurhatisyah, N., Damsar, D., & Wibisono, C. (2023). How does millennial employee job satisfaction affect performance, Higher Education, Skills and Work–based Learning, 14(1), 22–40. https://doi.org/10.1108/HESWBL–01–2023–0004
Kamselem, K. M., Nuhu, M. S., Lawal, K. A., Liman, A. M., & Abdullahi, M. S. (2022). Testing the nexus between reward system, job condition and employee retention through intervening role of employee engagement among nursing staff, Arab Gulf Journal of Scientific Research, 40(1), 34–53. https://doi.org/10.1108/AGJSR–05–2022–0061
Khateeb K. F. R. (2020). Work Life Balance–a Review of Theories, Definitions and Policies’, Cross–Cultural Management Journal, 23(1), 27–55.
Khatun, Mahfuja, Rahman, S. N. and Khatun, Munni (2023). impact of development opportunities and compensation on employee retention: A comparative study on Banking industry of Bangladesh, European Journal of Management and Marketing Studies, 8(1), 40–63. https://doi.org/10.46827/ejmms.v8i1.1400
Ladegaard, Y., Skakon, J., Dalgaard, V. L., Ståhl, C., Slot Thomsen, S. T., & Netterstrøm, B. (2023). Employees with mental disorders seeking support from the workers compensation system–experiences from Denmark. Work, 75(4), 1361-1377. https://doi.org/1361–1377. 10.3233/WOR–211315
Lorentzon, J. I., Fotoh, L. E. & Mugwira, T. (2023). Remote auditing and its impacts on auditors’ work and work–life balance: auditors’ perceptions and implications, Accounting Research Journal, 37(1), 1–18. https://doi.org/10.1108/ARJ–06–2023–0158
Manjula, P. V. N., & Rao, D. S. (2020). A study on impact of compensation package on employee retention in organized retail sector. International Journal of Advanced Science and Technology, 29(3), 4395–4403
Panda, A. & Sahoo, C. K. (2021). Work–life balance, retention of professionals and psychological empowerment: an empirical validation, European Journal of Management Studies, 26(2), 103–123. https://doi.org/10.1108/ejms–12–2020–0003
Poongavanam, S., & Divyaranjini, R. (2018). Impact of salary and reward on the achievemt in the pharma companies. Indian Journal of Public Health Research & Development, 9(10), 1136–1138. https://doi.org/10.5958/0976–5506.2018.01292.5
Rani, R. & Desiana, P. M. (2019). The impact of owners’ intrinsic motivation and work–life balance on SMEs’ performance: The mediating effect of affective commitment, International Journal of Business, 24(4), 393–411.
Sarkar, J., Jena, L. K. & Sahoo, K. (2023). Mediating role of need satisfaction on total reward management towards retention: a conceptual framework, Vilakshan – XIMB Journal of Management, 20(2), 210–222. https://doi.org/10.1108/xjm–03–2021–0083
Saufi, A. R., Che Nawi, N. B., Permarupan, P. Y., Zainol, N. R. B., Aidara, S., Kakar, A. S., & Jothi, B. A. P. (2023). Academic Person–Environment Fit towards Sustainable Work–Life Balance and Reduced Turnover Intention Moderated by Job Opportunities, Sustainability, 15(4). https://doi.org/10.3390/su15043397
Shah, M. & Asad, M. (2018). Effect of motivation on employee retention: Mediating role of perceived organizational support. European Online Journal of Natural and Social Sciences, 7(2), 511–520.
Sheehan, L. R., Lane, T. J., & Collie, A. (2020). The impact of income sources on financial stress in workers’ compensation claimants. Journal of Occupational Rehabilitation, 30, 679–688. 10.1007/s10926–020–09883–1
Shockley, K. M., Smith, C. R., & Knudsen, E. A. (2017). The impact of work–life balance on employee retention. The Wiley Blackwell handbook of the psychology of recruitment, selection and employee retention, 7(1), 513–543. https://doi.org/10.1002/9781118972472.ch24
Silaban, H. & Margaretha, M. (2021). The impact work–life balance toward job satisfaction and employee retention: study of millennial employees in Bandung City, Indonesia, International Journal of Innovation and Economic Development, 7(3), 18–26. https://doi.org/10.18775/ijied.1849–7551–7020.2015.73.2002
Sinaga, O. & Sijabat, R. (2022). Analisis pengaruh employee motivation, employee empowerment, work life balance terhadap employee retention dengan job satisfaction sebagai variabel mediasi pada PT XYZ, Jurnal Administrasi Bisnis (JAB), 12(1), 87–96. https://doi.org/10.35797/jab.v12.i1.87–96
Sindhuja, K. & Sekar S. S. (2020). Impact of work–life balance on employee retention– a study on banking sector, Shanlax International Journal of Management, 7(3), 78–81. https://doi.org/10.34293/management.v7i3.1629
Sinha, D., Sinha, S., & Jain, S. (2024). Decoding the Alchemy of Employee Retention: A Case of the Manufacturing Sector of the National Capital Region, India. In Global Practices on Effective Talent Acquisition and Retention. IGI Global 77–95. https://doi.org/10.4018/979–8–3693–1938–3.ch005
Umamaheswari, S., Radhika, S., & Chandrasekar, A. (2020). Retention of nurses in medium size health care units: Role of work–life balance, compensation, and work environment. International Journal of Innovative Technology and Exploring Engineering (IJITEE), 9(3), 510–514. https://doi.org/10.35940/ijitee.l3556.019320
Suryathi, W., Widiantara, I. M., & Siwantara, I. W. (2023). Compensation and work environment on employee retention, World Journal of Advanced Research and Reviews, 19(3), 24–28. https://doi.org/10.30574/wjarr.2023.19.3.1764
Wicaksana, S. A. (2021). Manajemen pengembangan talenta. Dd Publishing.
Wong, K., Chan, A. H. S. & Teh, P. L. (2020). How is work–life balance arrangement associated with organisational performance? A meta–analysis, International Journal of Environmental Research and Public Health, 17(12), 1–19. https://doi.org/10.3390/ijerph17124446
Zainal, N. S. B., Wider, W., Lajuma, S., Ahmad Khadri, M. W. A. B., Taib, N. M., & Joseph, A. (2022). Employee Retention in the Service Industry in Malaysia, Frontiers in Sociology, 7(1), 1–12. https://doi.org/10.3389/fsoc.2022.928951
Zainee, I. A. & Puteh, F. (2020). Corporate social responsibility impact on talent retention among Generation Y, Revista de Gestao, 27(4), 369–392. https://doi.org/10.1108/REGE–06–2019–0070
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract views: 645
,
PDF Downloads: 286
