CAUSAL INFLUENCE ON EMPLOYEE RETENTION AT Y COMPANY: A STUDY OF EMPLOYEE SATISFACTION AS A MEDIATING VARIABLE
Keywords:
Working Conditions, Leadership, Personal Responsibility, Extrinsic Rewards, Employee Satisfaction, Employee RetentionAbstract
The aim of this study is to investigate the working conditions, leadership qualities, personal responsibility and external rewards that influence employee satisfaction and retention at Company Y. In addition, the mediating influence of employee satisfaction on the relationship between working conditions, leadership qualities, personal responsibility and external rewards on employee retention in Company Y will be investigated. The research population comprises the employees of Company Y and data will be collected using a questionnaire distributed to a convenient sample of 360 respondents selected using non-probability sampling with quota sampling method. Data analysis involves the use of frequency distributions, percentages, means, standard deviations and hypothesis testing using a partial least squares structural equation model. The research results show that leadership qualities, personal responsibility and external rewards significantly influence employee satisfaction and retention in Company Y at a statistically significant level between .001 and .05, with a predictive power of 70%. In addition, personal responsibility and employee satisfaction have a direct influence on employee retention with a predictive power of 57%. In addition, leadership qualities, personal responsibility and external rewards have an indirect effect on employee retention through their impact on employee satisfaction, with coefficients of .207, .112, .110 and .030 respectively.
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