Employee Retention Improvement of Pulp and Paper Companies in
Indonesia
RAMLAN LINTANG1, BACHTIAR H. SIMAMORA2
Industrial Engineering Department,
BINUS Graduate Program – Master in Industrial Engineering,
Bina Nusantara University,
27 Kebun Jeruk Street, West Jakarta,
INDONESIA
Abstract: - Indonesia is the largest pulp and paper producer in Southeast Asia. One of the problems faced by the
pulp and paper industry in Indonesia is high employee turnover. This study aims to analyze the factors that
influence employee turnover and propose strategies to reduce turnover or increase employee retention in the
pulp and paper industry. The endogenous variable in this study is turnover intention. Meanwhile, exogenous
variables are work environment, compensation and benefits, training and development, performance appraisal,
employee recognition, and job satisfaction. Research data was obtained through a survey of pulp and paper
employees in Indonesia. The data was then analyzed using the partial least square structural equation model
(PLS-SEM). The study results show that performance appraisal, training and development, work environment,
and employee recognition affect employee turnover negatively and significantly. The strategies proposed to
reduce turnover in the pulp and paper industry in Indonesia include the company providing free training
according to the competencies needed, making bureaucratic rules simple and transparent, arranging gifts and
awards programs for employee achievements, and creating measurable and transparent promotion programs.
Key-Word: - Employee retention, performance appraisal, recognition, environment, training, pulp and paper
Received: February 19, 2023. Revised: August 16, 2023. Accepted: September 8, 2023. Published: September 15, 2023.
1 Introduction
Indonesia ranks eighth as the country that produces
the most pulp in the world and sixth as the country
that produces the most paper in the world, [1].
According to information published by the
Indonesian paper industry association (APKI) in
2022, there are 84 pulp and paper industries in
Indonesia. In 2021 Indonesia can export 6.33
million tons of pulp with a value of USD 3.28
billion and export paper of 5.41 million tons with a
value of USD 4.22 billion, [1].
One of the problems in the pulp and paper
industry is the high employee turnover. The release
of employees from their place of employment is
known as turnover. High employee turnover
indicates low employee retention, [2]. Indonesia's
average industrial turnover is 7%, [3]. The high
turnover has a negative impact on the company's
performance. Losing the best employee will make
productivity decrease due to the adjustments needed
by replacement employees. In addition, companies
will need additional investment to find and develop
new employees, [4]. Reducing turnover can be done
by developing an employee retention strategy at the
company, [5].
The high turnover in the pulp and paper industry
in Indonesia still has not found a solution and has
not been a concern for researchers. This fact can be
seen from the unavailability of international journals
that discuss employee turnover in pulp and paper
companies in Indonesia. Whereas, pulp and paper
companies have a significant contribution to the
Indonesian Economy.
The significant contribution of the pulp and
paper industry to the Indonesian economy and the
paucity of research on employee turnover in the
pulp and paper industry in Indonesia is the impetus
for this important research. This study aims to
identify factors that affect employee turnover in the
pulp and paper industry and propose strategies to
reduce employee turnover or increase employee
retention in the pulp and paper industry. In the end,
this research can contribute to Indonesian pulp and
paper companies and in general to the Indonesian
economy.
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2023.20.171
Ramlan Lintang, Bachtiar H. Simamora
E-ISSN: 2224-2899
1959
Volume 20, 2023
2 Literature Review
2.1 Employee Retention and Turnover
Employee retention is an organization's capacity to
retain its employees, [6]. Employee retention is
inversely related to employee turnover. Reducing
turnover will improve employee retention within an
organization. In contrast, turnover intention
indicates an employee's intent to leave the
organization. The turnover intention of an employee
can be used to predict an organization's turnover
rate. A high turnover expectation is a negative
indicator of the company's health. However, this
information can be used to develop organizational
employee retention strategies, [4]. In this study, the
turnover intention is used as an endogenous
variable. The research framework diagram can be
seen in Figure 1.
2.2 Job Satisfaction
Job satisfaction is a worker's perception of whether
it is pleasant to be in an organization and perform
assigned duties, [7]. The compatibility between an
organization's employees' expectations and their
actual experiences correlates with job satisfaction.
Worker satisfaction can be seen from the behavioral
side as well as from the cognitive side of the
workers. Employee job satisfaction in an
organization can substantially and negatively affect
turnover, [8]. Increasing employee job satisfaction
can reduce employee turnover, [9]. Thus, the
hypothesis can be defined as follows:
H1: Job satisfaction significantly impacts
turnover intention
2.3 Performance Appraisal
According to [4], performance appraisal identifies,
evaluates, and develops employee performance.
This procedure aims to enable employees within the
organization to work efficiently toward achieving
the organization's goals. As a token of appreciation
for the performance provided, this performance
appraisal is accompanied by employee feedback,
recognition, or career development, [4].
Performance appraisal has a significant impact
on the likelihood of employee turnover, [10].
Compared to training and development,
performance appraisal has a greater impact on
employee turnover, [11]. Accordingly, the
hypothesis can be defined as follows:
H2: Performance appraisal significantly
impacts turnover intention
2.4 Training & Development
According to [12], training & development enhance
employees' knowledge and abilities to perform their
organizational functions and responsibilities.
Training and development are crucial for employees
to adapt to changes in science, technology, and
industry competition, [12].
Training and development are significant
turnover factors. Companies can increase employee
retention through effective training and learning
scholarship programs, [13]. Increasing employee
satisfaction with company training programs will
have a negative effect on turnover intention, [14].
The hypothesis can therefore be defined as follows:
H3: Training & development significantly
impact turnover intention
2.5 Compensation and Benefits
Compensation and benefits are the sum of all
rewards employees receive for their contributions to
the organization. This compensation is designed to
motivate employees to give their best effort and
performance to the company. Financial and non-
financial compensation can be distinguished based
on the form of compensation, [7]. Compensation
and benefits have a significant and negative impact
on turnover intention. This compensation may
include salaries, allowances, and bonuses, [15]. In
addition, compensation and benefits impact
employee turnover more significantly than other
HRM strategies. The hypothesis can therefore be
defined as follows:
H4: Compensation and benefits significantly
impact turnover intention
2.6 Work Environment
The Work Environment is everything that surrounds
and interacts with workers as they perform their
duties and responsibilities. This work environment
comprises regulations, policies, culture, work
relations, work locations, and all external factors
that impact employees as they perform their duties
for the organization, [16].
The work environment significantly impacts the
intention to leave among Bank Mandiri employees
in Indonesia. This work environment includes the
availability of supporting facilities, company
administration, the physical environment, and the
implementation of occupational health and safety
(K3) management, [17]. A comfortable and secure
workplace will encourage employee retention, [18].
Increasing employee comfort at work will have a
negative and significantly affect turnover, [19]. The
hypothesis can therefore be defined as follows:
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Ramlan Lintang, Bachtiar H. Simamora
E-ISSN: 2224-2899
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Volume 20, 2023
H5: Work environment significantly impacts
turnover intention
2.7 Employee Recognition
Employee recognition is the recognition of the
behavior, efforts, and achievements of individuals or
teams that support the goals and values of the
organization. Employee recognition can increase
employees' sense of belonging to the organization,
satisfaction and self-esteem, and participation in the
business's success. This condition will strengthen
employee loyalty to the organization. Effective
employee recognition, motivation, and talent
management are some factors that business leaders
must address to increase employee retention, [20].
The hypothesis can therefore be defined as follows:
H6: Employee recognition significantly
impacts turnover intention
Fig. 1: Research Framework Diagram
2.8 Structural Equation Models
A structural equation model (SEM) is a type of
multivariate analysis. Multivariate analysis refers to
the use of several variables then analyzed
simultaneously. SEM is also commonly used in the
social sciences when the variables under study are
latent. SEM analysis is included in the category of
analysis with a confirmatory type. A confirmatory
analysis is a type of analysis whose purpose is to
confirm a hypothesis supported by a robust theory.
Latent variables, on the other hand, are variables
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Ramlan Lintang, Bachtiar H. Simamora
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1961
Volume 20, 2023
that cannot be directly observed but can be
measured using particular indicators.
SEM analysis can be carried out with the
following stages:
1. Create a specification of the line model
2. Create specifications for the measurement
model
3. Perform data collection and screening
4. Perform model estimation
5. Evaluate the results of measurement model
testing
6. Evaluate the results of structural model testing
7. Interpret the results and draw conclusions
Measurement model tests and structural model
tests comprise SEM testing. Tests for measurement
models include loading factor tests, extracted
average variance, Fornell-Lacker criteria, and
composite reliability tests. Tests for structural
models include the Variance inflation factor test, the
R-square test, and the Hypothesis test. In SEM,
model fit tests such as the chi-square test, normed fit
index (NFI), comparative fit index (CFI), root mean
square error of approximation (RMSEA), and
standardized root mean residual (SRMR) can also
be conducted.
There are two methods for testing the Structural
Equation Model: covariance-based structural
equation modeling (CB-SEM) and partial least
square structural equation modeling (PLS-SEM).
CB-SEM estimates using the maximum likelihood
(ML) procedure, whereas PLS-SEM uses the
ordinary least squares (OLS) method. There is no
global goodness-of-fit criterion, and PLS-SEM can
be utilized even with a small sample size. Tests of
the measurement model and structural model are
sufficient for PLS-SEM.
The fit statistic for CB-SEM is derived by
subtracting the empirical covariance matrix from the
theoretical model. PLS-SEM, on the other hand,
focuses on the difference between the observed
value of the dependent variable and the value
predicted by the model in question or seeks to
develop a predictive model. In other words, CB-
SEM is used to validate the model, while PLS-SEM
is used to predict future outcomes. Thus, the
goodness of fit cannot be used in SEM-PLS to
measure model fit. The predictive capability model
(R-Square) is preferable as an alternative, [21].
3 Methodology
This study's population consists of PT. XYZ
workers. PT. XYZ is an Indonesian company that
produces 17 million tonnes of pulp and paper in
2021, it is equivalent to 54 percent of Indonesia's
total pulp & paper output. This study's data were
collected through a survey of company employees.
Statements in the survey are measured on a Likert
scale ranging from 1 to 5. A value of 1 indicates
strong disagreement with the statement, while a
value of 5 indicates strong agreement. The survey
results were then analyzed using the Structural
Equation Model method and SMART-PLS 4.0
software. The analysis's outcomes will determine
which hypotheses are accepted or rejected. Based on
the indicators in each accepted hypothesis, a
strategy to increase employee retention will be
developed. In addition, the suitability of
implementing the strategy in the company will be
evaluated by requesting an assessment from the
company's manager, also known as the Expert
Judgment method, [22]. The survey results will then
be analyzed and ranked by the expert's evaluation of
the proposed strategy. The higher the value of a
strategy, the higher its application priority within the
company.
3.1 Research Variables
Work environment, training and development,
compensation and benefits, performance appraisal,
work engagement, and job satisfaction are the
exogenous variables in this study. The endogenous
variable used is turnover intention.
3.2 Method of Analysis
Two stages of analysis were performed using
SMART-PLS 4.0 software for data analysis. The
first stage of analysis is measurement model
analysis. Analysis of measurement models seeks to
evaluate the validity and reliability of research.
Measurement model analysis consists of the
following:
1. The average variance extracted (AVE). An
indicator is valid if AVE > 0.5, [21].
2. Composite reliability (CR). An indicator is
declared reliable if CR > 0.7, [21].
3. Fornell-Lacker Criterion. An indicator is stated
to meet the discriminant validity criteria if the
square root of the AVE of a construct is higher
than its correlation with other constructs, [21].
The second analysis stage is the structural
model analysis. Structural analysis of the model
aims to determine the level of accuracy of the model
and to test the hypothesis. The structural model
analysis consists of the following:
1. Variance inflation factor (VIF). If the variance
inflation factor (VIF) has a value of < 5, it
indicates that there is no collinearity problem,
[21].
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DOI: 10.37394/23207.2023.20.171
Ramlan Lintang, Bachtiar H. Simamora
E-ISSN: 2224-2899
1962
Volume 20, 2023
2. R2 Values. The R2 value between 0.25-0.5
indicates that the model's prediction has low
accuracy. The R2 value between 0.5-0.75
indicates that the model's prediction has
moderate accuracy. The R2 value is higher than
0.75, indicating that the prediction from the
model has high accuracy, [21].
3. Hypothesis testing. A p-value <0.05 indicates a
significant relationship between the two
variables and vice versa, [21]
4 Result and Discussion
4.1 Respondent Characteristic
In this study, 79 employees participated by
completing the survey. There are 61% male
respondents and 39% female. 70% of respondents
have completed their undergraduate education.
Then, only 43% of employees have been with the
organization for five years or longer. Regarding age,
35% of employees are 30-40 years old, 33% are 25-
30 years old, and the remainder is under 25 years
old.
4.2 Results of Measurement Model
Analysis
1. Average Variance Extracted value > 0.5 (Table
1). For the model to be declared valid
2. Composite Reliability value > 0.7 (Table 2).
(see Table 2). For the model to be deemed
reliable
3. The value of the Fornell-Lacker criterion
(Table 3) shows that the model has good
discriminant validity.
Table 1. Average Variance Extracted (AVE) Value
Variable
AVE
Compensation and Benefit
0.766
Employee Recognition
0.698
Job satisfaction
0.596
Performance Appraisal
0.638
Training and Development
0.621
Turnover Intention
0.858
Work Environment
0.708
Table 2. Composite reliability value
Variable
Compensation and Benefit
Employee Recognition
Job satisfaction
Performance Appraisal
Training and Development
Turnover Intention
Work Environment
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Table 3. Fornell-Larcker Criterion value
Variable
CB
ER
JS
PA
TD
TI
WE
CB
0.875
ER
0.335
0.836
JS
0.511
0.753
0.772
PA
0.401
0.785
0.771
0.799
TD
0.436
0.460
0.617
0.498
0.788
TI
-0.360
-0.621
-0.704
-0.535
-0.748
0.927
WE
0.163
0.573
0.623
0.539
0.336
-0.586
0.842
Table 4. Variance inflation factor value
Indicator
VIF
Indicator
VIF
CB1
1.395
PA5
1.837
CB3
1.395
PA6
1.863
ER1
2.120
TD1
2.748
ER2
1.521
TD2
2.494
ER3
2.528
TD4
1.972
ER4
2.368
TD6
1.603
JS13
1.766
TD7
2.198
JS15
2.036
TI3
2.065
JS5
1.993
TI4
2.065
JS6
1.899
WE4
1.939
JS7
1.931
WE5
2.997
JS9
1.796
WE6
2.851
PA1
1.356
WE7
1.674
PA4
2.018
Table 5. Hypothesis Test
No
Hypothesis
P- values
Decision
1
Job satisfaction significantly impacts turnover intention
0,0660
Reject
2
Performance appraisal significantly impacts turnover
intention
0,0310
Accept
3
Training & development significantly impacts turnover
intention
0,0000
Accept
4
Compensation and benefits significantly impact turnover
intention
0,4220
Reject
5
Work environment significantly impacts turnover intention
0,0040
Accept
6
Employee recognition significantly impacts turnover
intention
0,0120
Accept
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Volume 20, 2023
4.3 Structural Model Analysis Results
1. VIF value < 5 (Table 4). This value shows there
is no collinearity problem in the research
variables, [21].
2. The R2 value is 0.704. This value explains that
Compensation & benefits, training &
development, work environment, employee
recognition, performance appraisal, and job
satisfaction can explain approximately 70.4% of
turnover intention. At the same time, the
remainder is influenced by others. From these
results, the exogenous variables in this study
have a moderate predictive level of turnover
intention, [21].
3. Hypothesis Testing. The error rate used in this
study is 5%, so the hypothesis will be accepted
if the P-Values < 0.05. If the P-Values < 0.05
indicates the effect of exogenous variables on
endogenous variables is significant. If the P-
Values > 0.05 indicates the effect of exogenous
variables on endogenous variables is not
significant, [21]. The hypothesis test result is
shown in Table 5.
Based on Table 5 there are 4 accepted hypotheses,
namely:
1. H2: performance appraisal significantly
impacts turnover intention
2. H3: training & development significantly
impacts turnover intention
3. H5: work environment significantly impacts
turnover intention
4. H6: employee recognition significantly impacts
turnover intention
All these results will discuss in section 4.4
4.4 Discussion
4.4.1 H1: Job Satisfaction Significantly
Impacts Turnover Intention
The P-value for job satisfaction's effect on turnover
intention is>0.05, as shown in Table 5. Therefore,
job satisfaction has no significant impact on
turnover intention, and this hypothesis is rejected.
In contrast to the findings of, [8], "Conceptual
framework on the relationship between human
resource management practices, job satisfaction, and
turnover,". The results of this study indicate that job
satisfaction has a significant and negative effect on
turnover intention. However, job satisfaction is not
the only factor that impacts employee turnover
intention.
According to the findings of this study, job
satisfaction is not a significant factor in employee
turnover intentions. Therefore, decreasing or
increasing job satisfaction will not significantly
impact employee turnover. In other words, the fact
that employees are pleased with their work does not
eliminate their desire to leave the company. Various
factors, including an unsuitable corporate culture,
can cause this condition. Even though employees
are satisfied with their jobs, the incompatibility of
corporate culture with their personalities prompts
them to leave the organization, [23]. In addition, job
security can also contribute to this condition. Even
though employees are satisfied with their work,
there is concern that they will be laid off due to
organizational changes. So that employees will
decide to leave the company, [24]. Also contributing
to this condition is the availability of alternative
employment opportunities. Even if employees are
satisfied with their current jobs, the availability of
better-paying employment opportunities elsewhere
will cause them to leave the company, [25]. There is
a close relationship between the availability of job
opportunities at other companies and the desire of
employees to improve their careers, [26].
4.4.2 H2: Performance Appraisal Significantly
Impacts Turnover Intention
Table 5 shows that the effect of performance
appraisal on turnover intention has a P-value of
0.031 which is less than 0.05. Thus, it is concluded
that performance appraisal significantly influences
turnover intention, and this hypothesis is accepted.
This statement is supported by research
conducted by, [11], where research conducted in
Malaysia shows that performance appraisal
significantly impacts employee turnover intention.
Compared to training and development,
performance appraisal has a greater impact on
employee turnover. Performance appraisal is also a
strong predictor of turnover intention, [10].
Therefore, conducting a fair, balanced, and without
political manipulation performance appraisal will
reduce employee intentions to leave the
organization, [27]. Fair performance appraisal,
objectives, and clear evaluation criteria will give
employees the impression that they can advance
within the organization and foster a positive work
environment. Consequently, turnover intention can
be reduced, [28].
4.4.3 H3: Training and Development Have a
Significant Impact on Turnover Intention
The effect of training and development on turnover
intention has a P-value of 0.000, which is less than
0.05, as shown in Table 5. As a result, it can be
concluded that training and development
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significantly impact turnover intention, and this
hypothesis is accepted.
According to, [8], training and development
are factors that significantly impact employee
turnover. Companies can increase employee
retention through effective training and learning
scholarship programs, [13]. Diverse training
methods, including on-the-job, off-the-job, and
distance training, can enhance employee satisfaction
with training programs, [29]. Increased employee
satisfaction with training programs offered by the
company will have a negative impact on turnover
intention, [14]. However, the presence of other
human resource management strategies, such as
promotions, career paths, and scholarships, will
increase this reduction in turnover intention, [13].
4.4.4 H4: Compensation & Benefits
Significantly Affect Turnover Intention
The effect of compensation and benefits on turnover
intention has a P-value greater than 0.05, as shown
in Table 5. Thus, it can be concluded that
compensation and benefits have no discernible
impact on turnover intention, and this hypothesis is
rejected.
The results of this study are inversely
proportional to the findings of a study, [15], on
telecommunications companies in Indonesia where
compensation and benefits significantly impact
turnover intention. Compensation and benefits are
also the most influential factors in employee
turnover at a clinic in Bekasi, [30].
However, research conducted by [31], shows
that the company's salary only significantly affects
employee commitment to the organization, job
satisfaction, and turnover intention. The components
of the benefits provided by the company have more
influence on employee turnover. Distributive justice
or salary equality between employees will have a
more significant effect on employee turnover than
an employee's salary. So that a standard salary
structure in each position will give employees job
satisfaction and reduce company turnover, [32]. In
addition, providing benefits such as the preparation
of share ownership plans and retirement programs
will be more effective in reducing company
turnover than increasing the salaries of departing
employees, [33].
4.4.5 H5: Work Environment Significantly
Affects Turnover Intention
Table 5 shows that the P-value for the effect of the
work environment on turnover intention is less than
0.05. Thus, the work environment significantly
impacts turnover intention, accept this hypothesis.
According to, [17], the work environment
significantly impacts the turnover intention of Bank
Mandiri employees in Indonesia, which lends
support to the findings of this study. This work
environment includes the availability of supporting
facilities, company management, the physical
setting, and the implementation of occupational
health and safety (K3) management. A comfortable
and safe work environment will make employees
stay with the company. Providing safety equipment,
such as safety shoes and fire extinguishers, can
enhance the safety and comfort of the workplace,
allowing employees to feel secure and remain with
the company, [18]. If employees feel that the
organization is not their home, then the tendency to
leave the company will increase. Employees'
freedom in designing their workplace while
remaining within safe limits and regulations will
increase the comfort of employees working in the
company, [17]. By increasing employee comfort at
work, it will have a significant and negative impact
on turnover, [19].
4.4.6 H6: Employee Recognition Significantly
Impacts Turnover Intention
Table 5 shows the effect of employee recognition on
turnover intention has a P-value greater than 0.05.
As a result, it can be concluded that employee
recognition significantly impacts turnover intention,
and this hypothesis is supported.
The findings of this study are supported by
research conducted by, [20], in multiple Durban-
area organizations. The research shows that
employee recognition can increase employees' sense
of ownership of the organization, satisfaction, and
higher self-esteem and involvement in making the
business successful. As a result, employee
recognition significantly influences turnover
intention. Employee recognition is a highly vital
Human Resource Management practice. Employee
because it can make employees feel valuable to the
organization and important to the organization, [34].
4.5 Strategy to Increase Employee
Retention in Indonesian Pulp and Paper
Companies
According to the research conducted, four factors
have a significant impact on the turnover intention
in the pulp and paper industry. These elements are
Performance Appraisal, Training & Development,
Work Environment, and Employee Recognition.
The value of each variable's Beta / Path Coefficient
reveals the magnitude of influence exerted by each
of these variables (Table 6).
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With a path coefficient of -0.538, training &
development has the greatest impact on turnover
intention. Thus, increasing training & development
will reduce employee turnover. From the survey,
there are indicators of training & development
considered not optimal in the company. The
response value of 2.95 (Moderate) indicates that
“my employer pays for the external training that I
participate in”. Based on these findings, the strategic
policy for companies to reduce turnover intention
through training and development is to provide
external training facilities for employees.
With a path coefficient of -0.257, the work
environment has a negative impact on turnover
intention. Therefore, improving the workplace will
reduce employee turnover. According to the survey,
one indicator of the company's work environment
was deemed subpar. With a response value of 2.99
(Moderate), the indicator indicates that “my efforts
to do a good job are rarely impeded by strict
bureaucracy”. Based on this data, the strategy
suggested to companies to reduce turnover intention
through the work environment is to streamline
bureaucratic organizational processes.
With a path coefficient of -0.257, Employee
Recognition has a negative impact on turnover
intention. Increasing employee recognition will
therefore decrease employee turnover. According to
the survey results, one indicator of employee
recognition in the organization is deemed
suboptimal. “I receive an award for my work”, with
a response value of 3.42 (Moderate), which is the
indicator. Based on this data, the strategy suggested
to companies to reduce turnover intention through
employee recognition is to reward employee
accomplishments such as presenting certificates,
formally congratulating employees, and thanking
them for achieving employee work targets.
With a path coefficient of -0.214, Performance
Appraisal has the smallest negative influence on
turnover intention. Increasing performance appraisal
will therefore reduce employee turnover. According
to the survey, one performance appraisal indicator
was deemed suboptimal for the company. With a
response value of 2.91(Moderate), the indicator was
"I am satisfied with the promotion opportunities
where I work." The strategy proposed to the
company, based on this data, to reduce turnover
intention through performance appraisal is to
promote employees periodically.
The suggested strategy is then submitted to the
Manager to solicit company experts' opinions. Eight
Managers within the organization responded to the
proposed strategy. The survey respondents included
talent development managers, technical training
managers, soft skills training managers, training
support managers, excellent operations managers,
organizational development, culture, and industrial
relations managers. As shown in Table 7, a survey
of managers (expert judgment) resulted in several
concrete steps from the proposed strategy for
increasing company employee retention. The higher
the strategy's value, the greater the priority placed
on its implementation.
Table 6. Factors affecting turnover in pulp and paper companies
Hypothesis
Beta Coefficient
P-values
PA -> TI
-0,214
0,031
TD -> TI
-0,538
0,000
WE -> TI
-0,257
0,004
ER -> TI
-0,245
0,012
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Table 7. Manager's Assessment of Strategies to Increase Employee Retention
Strategy
Activities performed
Result
Provide facilities for
external employee training
Provide external training in accordance with each position's competency
standards.
3,8
Fully fund external training
4,4
Make bureaucratic rules
simple and transparent
Streamline administrative processes
4,4
Using information technology for administrative tasks
4,0
Create an award program
for achieving employee
achievement
Awarded for the accomplishment of employee work objectives.
4,5
Adopt the practice of saying "thank you" directly or indirectly to
employees who achieve their targets.
4,1
creating measurable and
transparent promotion
programs
Create promotion criteria and conditions for employees
4,1
One-on-one feedback on performance appraisal (directly)
4,4
Avoid sending feedback on a performance appraisal via email or in
writing.
3,5
Promotion tests are a combination of competency tests, supervisor
assessments, and panelist assessments.
4,0
5 Conclusion and Suggestion
5.1 Conclusion
The research that has been conducted has led to the
following findings:
1. Work environment, employee recognition,
performance appraisal, and training and
development have a significant and negative
impact on turnover intention.
2. Providing facilities for external employee
training, making bureaucratic rules simple and
clear, compiling reward programs for achieving
employee work goals, and compiling
measurable and clear promotion programs are
strategies that can increase employee retention
at the company.
3. Several priority-based implementation steps for
the proposed strategy are as follows:
a. Giving awards to employees in the form
of gratitude for achieving goals and gifts
or other material for improvements and
innovations.
b. Deliver annual performance appraisal
feedback in person and avoid submission
via email or in writing.
c. Preparing criteria and conditions for
employee promotion and providing
promotions based on a combination of
competency tests, supervisor
assessments, and panelist assessments.
d. Giving awards to employees in the form
of gratitude for achieving goals and gifts
or other material for improvements and
innovations. d. Provision of external
training by the competencies required
and financed by the company
e. Utilization of information technology to
simplify company administrative
procedures
5.2 Suggestion
This study has limitations such as limited use of
variables. Future research suggests conducting by
including variables such as work engagement and
job stress to achieve an R2 close to 1.
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Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
- Ramlan has organized survey, processed and
analyzed data of Section 3 and 4.
- Bachtiar H. Simamora as mentor has gave
guidance and advice to organized survey,
processed data and analyzed data in Section 3 and
4.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflict of interest to declare.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
WSEAS TRANSACTIONS on BUSINESS and ECONOMICS
DOI: 10.37394/23207.2023.20.171
Ramlan Lintang, Bachtiar H. Simamora
E-ISSN: 2224-2899
1970
Volume 20, 2023