The effect of Job satisfaction on employee loyalty by the existence of employee engagement as mediating variable and organizational commitment as moderating variable : a case study at PT XYZ
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Institusion
Sekolah Tinggi Manajemen Ipmi
Author
Adiyanto, Naufal
Subject
H Social Sciences (General)
Datestamp
2023-04-12 07:57:03
Abstract :
Human resources in an organization have a role which is very important in the survival of the organization. A right setting of the organization standard and commitment is required to retain the existing employees with strategic actions to keep employees motivated and engaged so they elect to remain employed and fully productive for the benefit of the organization. With the advancement of the times and knowledge, employees have changed their employment concepts and began to think about their own future development and satisfaction on their job. To win in the flourishing market competition, the key point is to have a team of highly loyal employees. Thus, there are several factors to be discussed in this study affecting employee loyalty (EL), namely job satisfaction (JS), employee engagement (EE), and organizational commitment (OC) that would be investigated through this research. The sample taken is the employees whose working base are at Jakarta area, using non-probability and purposive sampling, by taking 217 respondents and collected during November to December 2022. The research method is quantitative where the data collected from the survey that were analyzed based on partial least squares modelling using SPSS v25 and smart PLS4. The result indicated all the 6 hypotheses accepted, and the indirect relationship between EE to JS to EL is low compared to other relationship such as the indirect relationship between OC to EE to EL and the direct relationship between JS to EE. So it can be concluded that the role of EE is a partial mediating variable but OC is a significant moderating variable. This mediating and moderating role have never been studied and in the context of FMCG company. The practical implication is the organizational leaders to focus on employee loyalty, job satisfaction, and organizational commitment strategies identified which can improve employee loyalty.
Human resources in an organization have a role which is very important in the survival of the organization. A right setting of the organization standard and commitment is required to retain the existing employees with strategic actions to keep employees motivated and engaged so they elect to remain employed and fully productive for the benefit of the organization. With the advancement of the times and knowledge, employees have changed their employment concepts and began to think about their own future development and satisfaction on their job. To win in the flourishing market competition, the key point is to have a team of highly loyal employees. Thus, there are several factors to be discussed in this study affecting employee loyalty (EL), namely job satisfaction (JS), employee engagement (EE), and organizational commitment (OC) that would be investigated through this research. The sample taken is the employees whose working base are at Jakarta area, using non-probability and purposive sampling, by taking 217 respondents and collected during November to December 2022. The research method is quantitative where the data collected from the survey that were analyzed based on partial least squares modelling using SPSS v25 and smart PLS4. The result indicated all the 6 hypotheses accepted, and the indirect relationship between EE to JS to EL is low compared to other relationship such as the indirect relationship between OC to EE to EL and the direct relationship between JS to EE. So it can be concluded that the role of EE is a partial mediating variable but OC is a significant moderating variable. This mediating and moderating role have never been studied and in the context of FMCG company. The practical implication is the organizational leaders to focus on employee loyalty, job satisfaction, and organizational commitment strategies identified which can improve employee loyalty.
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