Determinants of Turnover Intention: An Empirical Study of the Effect of Job Satisfaction, Compensation, and Career Development

Abstract

The purpose of this study is to discuss the determinants of turnover intention, especially in terms of the effect of job satisfaction, compensation, and career development variables. The research used survey method, descriptive and verification. The population is the employees of the Service Division of PT Hexindo Adiperkasa, Tbk. is company listed on the Indonesian stock exchange. The research sample was taken by purposive sampling method. Collecting data using a questionnaire based on Likert Scale and literature study. Data analysis using Structural Equation Model (SEM) with Lisrel 8.71 software. The results showed that the job satisfaction variable (X1) got an estimated value = 0.0062 with t-value = 0.03, the compensation variable (X2) had an estimated value = -0.078 with a t-value = -0.92, and the career development variable (X3) had a value estimation = -0.46 with t-value = -2.00. Taken together, the effect of job satisfaction, compensation and career development on employee turnover intention is shown in the multiple equation structure: Y = 0.0062X1 - 0.078X2 - 0.46X3, with a coefficient of determination (R²) of 19%

Research decsion seem controversial, perhaps this is an anomaly because the findings conclude that job satisfaction, partially, has no effect on employee turnover intention, as well as compensation for employee turnover intention is stated to have no effect. The only research variable that has an effect on employee turnover intention is career development, which is stated to have a negative effect which can be interpreted as the lower the level of career development, the higher the level of employee turnover intention, and vice versa. The coefficient R² = 19% explains that the variables of job satisfaction (X1), compensation (X2) and career development (X3) together have an influence on employee turnover intention only with a variation of 19%, while the remaining 81% may be influenced by the variable others not investigated.