The Role Of Compensation In Retaining Employees: A Study Of Mediation Through Job Satisfaction In Generation Z In MSMEs

Azial Immanuelatanti, Achmad Sudjadi, Ade Irma Anggreani, Rizki Anggunani

Abstract


The aim of this research is to analyze the effect of compensation on employee retention and turnover intention with job satisfaction as a mediating variable. This research uses a quantitative approach method. The population in this study were generation Z employees at FnB MSMEs in Purwokerto using a saturated sampling method. The number of respondents used in this research was 74 employees with data collection tools using a questionnaire distributed via Google Form. The data collection technique uses a 1-5 Likert scale. The data analysis method in this research uses SEM-PLS. The research results prove that there is a positive influence of Compensation on Employee Retention, there is a negative influence of Compensation on Turnover Intention, there is a positive influence of Compensation on Job Satisfaction, there is a positive influence of Compensation on Employee Retention through Job Satisfaction, and there is a negative influence of Compensation on Turnover Intention through Job Satisfaction for Generation Z employees at FnB MSMEs in the Purwokerto Area.

Keywords: Compensation, Job Satisfaction, Employee Retention, Turnover Intention, Generation Z Employees at FnB MSMEs in Purwokerto


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