Kontigensi: Jurnal Ilmu Manajemen Vol 13.
No.
June 2025, pp.
ISSN 2088-4877
ADVANCING EMPLOYEE RETENTION THROUGH COMPENSATION:
MEDIATING ROLES OF BLUE OCEAN LEADERSHIP AND WORK
ENGAGEMENT IN HUMAN CAPITAL VALUE AMONG GEN Z
1*Riadh Alfy, 2Janah Sojanah, 3Alfi Syahrah Siregar, 4Ade Sobandi Faculty of Economics and Business Education.
Universitas Pendidikan Indonesia.
Bandung.
Indonesia E-mail: riadhalfy@upi.
DOI: https://doi.
org/10.
56457/jimk.
Received: April 26, 2025
Accepted: June 05, 2025
Published: June 09, 2025
ABSTRACT
This study examines the relationship between compensation and employee retention, with a focus on the mediating roles of Blue Ocean Leadership and Employee Work Engagement among Generation Z employees in West Java.
Grounded in Social Exchange Theory, the research highlights how compensation influences retention directly and indirectly.
Using Partial Least Squares-Structural Equation Modeling (PLS-SEM), data were collected from 217 respondents representing various industries.
The results reveal that compensation has a significant positive impact on employee retention.
Furthermore.
Blue Ocean Leadership and Employee Work Engagement mediate this relationship, though their effects are relatively limited.
The findings underscore the importance of integrating financial incentives with innovative leadership practices and engagement strategies to improve retention rates.
Practical implications suggest that organizations should enhance compensation frameworks while fostering inclusive leadership and meaningful engagement initiatives.
Future research should explore additional mediators and longitudinal impacts to deepen understanding of these Keywords: Human Resource Management.
Human Capital Management.
Blue Ocean Leadership.
Employee Retention.
Employee Work Engagement
INTRODUCTION
The dynamic changes brought organizationAos strengths, weaknesses, about by globalization have had a opportunities, and threats.
One of the significant impact on the economic key elements in achieving competitive growth of industries worldwide.
Rapid advantage is having a high-quality industrial development has heightened workforce, which serves as the driving competition between local and force behind organizational success.
international companies.
Meylianti and Generation Z, which is increasingly Mulia .
emphasize that this dominating the workforce, presents new challenges for human resource organizations to achieve excellence management practices.
According to through innovation to remain viable in Bencsik et al.
, this generation the globalized era.
To overcome these influences technological development, challenges, strategic reforms are workplace facilities.
However, this Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Employee Work Engagement refers to challenges, such as low organizational the emotional involvement and commitment and difficulties in commitment of employees to their handling work pressures.
If left work, which is recognized as one of the unaddressed, these issues could lower key factors in employee retention (Ali employee retention rates and threaten et al.
, 2.
Jian et al.
the sustainability of organizations.
demonstrated that a combination of At the strategic level, human Blue Ocean Leadership and employee engagement can enhance loyalty, thus through compensation, plays a vital strengthening the relationship between Effective compensation not only compensation and employee retention.
serves as recognition for employee This study aims to examine the contributions but also acts as a mediating roles of Blue Ocean motivator to improve retention.
Leadership and Employee Work survey conducted by IDN Times News Engagement in the relationship .
found that 78% of Gen Z between compensation and employee respondents stated that compensation.
The focus of the research is including salary and benefits, is the on Generation Z employees in West primary factor influencing their Java.
Structural Equation decision to remain with a company.
Modeling (SEM) employed to test the However, previous studies have It is expected that the shown varied results regarding the findings will contribute theoretically to relationship between compensation the development of Social Exchange and employee retention.
Some studies.
Theory such as Gayatri & Muttaqiyathun .
and Lila Maria Kaban & Umi employee retention in the modern era.
METHOD
Kulsum .
, found a significant This research was conducted using positive effect, while others, such as quantitative methods, focusing on Shoaib et al.
, showed no examining the relationships between significant impact.
These differing compensation.
Blue Ocean Leadership, findings highlight the need for employee work engagement, and additional variables that can provide a employee retention.
The study more comprehensive explanation of integrates three latent constructs:
this relationship.
Compensation .
ndependent variabl.
In this context.
Blue Ocean Blue Ocean Leadership and Employee Leadership (BOL) and Employee Work Work Engagement .
ediating Engagement are identified as potential Employee Retention mediating variables.
BOL focuses on .
ependent variabl.
These constructs leadership innovation, creating unique form the core of the conceptual value, and empowering employees framework, which is developed to test through an inclusive and strategic the following hypotheses (Figure .
(Kim Mauborgne, 2.
On the other hand.
Figure 1.
Research Model Source: Created by Authors .
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Hypotheses:
H1 : Compensation has a positive and significant direct effect on Blue Ocean Leadership H2 : Compensation has a positive and significant direct effect on Employee Work Engagement H3 : Compensation has a positive and significant direct effect on Employee Retention H4 : Blue Ocean Leadership has a positive and significant direct effect on Employee Retention H5 : Employee Retention Employee Work Engagement has a positive and significant direct effect on Employee Retention H6 : Blue Ocean Leadership Compensation and Employee Retention H7 : Employee Work Engagement Compensation and Employee Retention The population of this study comprises Generation Z employees working in companies located across West Java Province.
The sampling method employed is purposive sampling, which involves selecting characteristics aligned with the research objectives.
According to Andrade .
, purposive sampling is a non-random sampling technique where researchers deliberately choose participants who possess attributes relevant to the study's aims.
This intentionally select individuals whose qualities align with the research questions, ensuring that the sample reflects the desired characteristics of the target population (Campbell et al.
Unlike random sampling, purposive sampling focuses on individuals who can provide valuable insights into the research topic, resulting in a more targeted and indepth analysis of the phenomenon under investigation.
The specific characteristics of the sample in this study include:
Generation Z employees aged 17Ae 29, representing the working-age Employees working in companies based in West Java Province.
A sample size determined using the minimum requirements for PLSSEM (Partial Least SquaresStructural Equation Modelin.
Kusnendi and Ciptagustia .
, referencing (Hair et al.
, 2.
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exceeding 100 for PLS-SEM.
Furthermore, larger sample sizes consistency of PLS-SEM results.
This sampling approach ensures that the selected respondents are population and capable of providing meaningful data to address the research objectives effectively.
The descriptive findings of the respondents provide valuable insights into their In terms of gender, the sample consisted of 114 women .
and 105 men .
4%).
Regarding age distribution, respondents aged 17Ae19 years accounted for 3 individuals .
4%), those aged 20Ae23 years comprised 31 individuals .
3%),
respondents aged 24Ae26 years formed the majority with 123 individuals .
7%), and those aged 27Ae29 years included 64 individuals .
5%).
terms of marital status, most respondents were single, totaling 187 .
2%),
3%) were married.
The job positions held by the respondents varied, with the majority working as staff members .
individuals, 72.
4%), followed by supervisors .
individuals, 11.
1%),
individuals, 2.
8%), and other roles .
individuals, 14.
7%).
The respondents were also employed in different types of companies: 142 individuals .
4%) worked in private companies, 8 .
7%) in multinational companies, 15 .
9%) in public companies (BUMN), 17 .
8%) in startups, .
non-profit organizations, 16 .
4%) in government companies, and 20 .
2%) in other types of companies.
In terms of monthly salaries, the .
individuals, 54.
5%) earned IDR 3,370,500 or less, followed by 68 individuals .
3%) earning IDR 3,370,501Ae7,000,000, 29 individuals .
4%) earning IDR 7,000,001Ae 11,000,000, and 2 individuals .
earning more than IDR 11,000,000.
Regarding work experience, 22.
1% of respondents had less than one year of experience, while the majority .
had worked for 1Ae5 years.
These findings offer a comprehensive overview of the respondents' profiles, providing a strong foundation for the analysis of this study.
The data collection process was questionnaire distributed through Google Forms.
The respondentsAo perceptions were measured using a 5point Likert scale, which captured varying levels of agreement or The use of the 5-point Likert scale was chosen due to its inclusion of a midpoint, allowing respondents to express neutral opinions and enabling the analysis of moderate responses (De Rezende & De Medeiros, 2.
Each latent variable in this study was measured through multiple items designed to capture its dimensions Compensation was measured through sub-variables such as salary and wages, incentives, allowances, and facilities, adapted from studies by Kaban and Kulsum .
and Firdaus et al.
Blue Ocean Leadership dimensions such as forward-thinking, self-development, effective communication, motivation, and Genba-Kaizen practices, based on indicators by Loh et al.
and Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Pujianto et al.
Employee Work Engagement was measured through elements of personal engagement, job characteristics, and resilience, as proposed by Bora Ly .
Finally.
Employee Retention dimensions such as organizational components, career opportunities, and rewards, referring to constructs by Kaban and Kulsum .
and Ndiango et al.
The data collection process was questionnaire distributed through Google Forms.
The respondentsAo perceptions were measured using a 5point Likert scale, which captured varying levels of agreement or The use of the 5-point Likert scale was chosen due to its inclusion of a midpoint, allowing respondents to express neutral opinions and enabling the analysis of moderate responses (De Rezende & De Medeiros, 2.
Each latent variable in this study was measured through multiple items designed to capture its dimensions Compensation was measured through sub-variables such as salary and wages, incentives, allowances, and facilities, adapted from studies by Kaban and Kulsum .
and Firdaus et al.
Blue Ocean Leadership dimensions such as forward-thinking, self-development, effective communication, motivation, and Genba-Kaizen practices, based on indicators by Loh et al.
and Pujianto et al.
Employee Work Engagement was measured through elements of personal engagement, job characteristics, and resilience, as proposed by Bora Ly .
Finally.
Employee Retention dimensions such as organizational components, career opportunities, and rewards, referring to constructs by Kaban and Kulsum .
and Ndiango et al.
The data analysis for this study will Partial Least SquaresStructural Equation Modeling (PLSSEM), a robust technique suitable for among latent variables in exploratory and predictive research.
The analysis will follow a two-step process: the Measurement Model Evaluation and the Structural Model Evaluation.
The Measurement Model Evaluation involves assessing convergent validity, internal consistency reliability, and discriminant validity.
Convergent validity will be determined through factor loadings (Ou0.
and Average Variance Extracted (AVE Ou0.
Internal consistency reliability will be evaluated using CronbachAos Alpha (Ou0.
and Composite Reliability (CR Ou0.
Discriminant established using the Fornell-Larcker criterion and the Heterotrait-Monotrait Ratio (HTMT), with thresholds set at HTMT <0.
85 or <0.
90 (Hair et al.
, 2.
These criteria ensure that the measurement model is valid and reliable for subsequent analysis (Cho & Kim, 2015.
Hair et al.
, 2019, 2019.
Henseler et al.
, 2.
The Structural Model Evaluation will focus on analyzing path
(RA),
relevance (QA), and effect size .
A).
Path coefficients will be tested for statistical significance using p-values (<0.
and confidence intervals to validate the hypothesized relationships among The RA values will be used to assess the explanatory power of the Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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model, categorized as substantial (AVE) for each construct (Table .
(Ou0.
, moderate (Ou0.
, or weak indicator is considered valid if its factor (Ou0.
Predictive relevance (QA) will loading exceeds 0.
4 or, preferably, 0.
be assessed to determine the model's The findings reveal that all indicators ability to predict outcomes accurately, while the effect size .
A) will measure the relative influence of exogenous validity for the measurement model.
variables on endogenous variables.
Furthermore, the AVE values for all This analytical approach is designed to constructs are above 0.
5, confirming comprehensively evaluate both the that the model demonstrates sufficient direct and indirect effects within the convergent validity across all variables.
research framework, providing the Internal consistency reliability was foundation for hypothesis testing once assessed using CronbachAos Alpha (CA) the data is processed (Hair et al.
, 2019.
and Composite Reliability (CR) values.
Henseler et al.
, 2014.
Lachowicz et al.
with acceptable thresholds of 0.
5 or 0,7 Shmueli et al.
, 2.
The results indicate that all RESULT AND DISCUSSION constructs exhibit CA and CR values PLS SEM-Measurement Model Evaluation This suggests that the Convergent Validity and Internal measurement model possesses a high Consistency Reliability level of internal consistency reliability.
The evaluation of convergent validity was conducted by analyzing consistently measure their respective the factor loadings of each indicator and the Average Variance Extracted Table 1.
Convergent Validity and Internal Consistency Reliability Composi Average Cronbach' Outer
Variance Variable Indicator s Alpha
Loading Reliabilit Extracted (CA) y (CR) (AVE) X1_1 X1_2 Compensation (X) X1_3 X1_4 X1_5 Z1_3 Blue Ocean
Z1_4
Leadership (Z.
Z1_6 Z2_1 0,693 Employee Work
Z2_2
0,662
Engagement (Z.
Z2_6 0,691 Y1_1 0,757 Y1_10 0,742 Employee Retention (Y) Y1_3 0,669 Y1_4 0,785 Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Y1_5
0,712
Y1_6
0,774
Y1_7
0,707
Y1_8
0,685
Source: Modified by Authors Discriminant Validity construct was found to be greater than The discriminant validity of the the correlations between that construct measurement model was evaluated and others, satisfying the Fornellusing two approaches: the Fornelarcker criterion.
This indicates that Larcker criterion and the Heterotraiteach construct is distinct from the Monotrait Ratio (HTMT).
Based on Table 2, the square root of AVE for each discriminant validity.
Table 2.
Fornell-Larcker Criterion Blue Ocean Employee Compensatio Employee Work Leadership Retention n (X) Engagement (Z.
(Z.
(Y) Blue Ocean Leadership (Z.
Compensation (X) Employee Retention (Y) Employee Work Engagement (Z.
Source: Modified by Authors The HTMT values were analyzed HTMT values across all constructs are under two conditions: .
all HTMT 85 or 0.
90, satisfying the values are below 0.
85 or 0.
90, and .
discriminant validity requirements.
the 95% confidence interval (CI) for the This ensures that the constructs are not bootstrapped HTMT values does not overly correlated and measure distinct include 1 (Hair.
Jr et al.
, 2.
The findings (Table .
confirm that the Table 3.
HTMT Analysis Employe Blue Ocean Compensati Employee Work Leadership on (X) Retentio Engagement (Z.
(Z.
n (Y) Blue Ocean Leadership (Z.
Compensation (X) Employee Retention (Y) Employee Work Engagement (Z.
Source: Modified by Authors Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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PLS-SEM
Structural Model The findings reveals, based on Evaluation Table 4 that all VIF values in the Convergent Validity and Internal structural model are below the Consistency Reliability Variance threshold of 5, confirming that the Inflation Factor (VIF) Evaluation model is free from multicollinearity The evaluation of collinearity issues This result strengthens the among the latent variables was robustness of the parameter estimates conducted using the Variance Inflation in this study, ensuring that the Factor (VIF).
Collinearity is a critical relationships among constructs are not consideration in structural model evaluation, as it can compromise the Consequently, the structural model is stability and accuracy of parameter deemed suitable for further analysis of According to Hair et al.
direct and indirect effects, providing a .
VIF values below 5 indicate the reliable foundation for hypothesis absence of significant multicollinearity among the variables.
Table 4.
Variance Inflation Factor (VIF) Evaluation Blue Ocean Employee Employee Work Leadership (Z.
Retention (Y) Engagement (Z.
Blue Ocean Leadership (Z.
Compensation (X) Employee Retention (Y) Employee Work Engagement (Z.
Source: Modified by Author Testing the Hypotheses Ae Direct mediating and dependent variables Effect (Table .
The analysis was conducted The structural model evaluation by assessing the RA.
QA, and fA values, as involved testing the direct effects of the well as the statistical significance .
independent valu.
and confidence intervals (CIBC).
Table 5.
Direct Effect Analysis Path
95%CIBC
pEffect Model Coefficie value 2,50% 97,50% Size f2 Blue Ocean Leadership (Z.
Model Compensation (X) -> Blue Ocean Leadership (Z.
Employee Work Engagement (Z.
Model Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Compensation (X) -> Employee Work Engagement (Z.
Model Employee Retention (Y) Compensation (X) -> Employee Retention (Y) Blue Ocean Leadership (Z.
> Employee Retention (Y) Employee Work Engagement (Z.
-> Employee Retention (Y) Source: Modified by Authors Blue Ocean Leadership Model (H.
The RA value for the Blue Ocean Leadership model is 0.
293, indicating 3% of the variance in Blue Ocean Leadership is explained by the independent variable, while the 7% is attributed to other factors not included in the model.
The QA statistic for this model is 0.
which is greater than 0, demonstrating adequate predictive relevance for the Hypothesis H1 is significant .
< 0.
95% CIBC O .
, and the effect size .
A) is categorized as large, reflecting a substantial impact of the independent variable on Blue Ocean Leadership.
Employee Work Engagement Model (H.
The RA value for the Employee Work Engagement model is 0.
indicating that 13.
4% of the variance in Employee Work Engagement is explained by the independent variable, 6% is due to other unexplained factors.
The QA statistic for this model is 0.
066, which is greater than 0, confirming adequate predictive Hypothesis H2 is significant .
< 0.
95% CIBC O .
, and the effect size .
A) is categorized as medium, indicating a moderate influence of the independent variable on Employee Work Engagement.
Employee Retention Model (H3.
H4.
The RA value for the Employee Retention model is 0.
612, meaning that 2% of the variance in Employee Retention is explained by the independent and mediating variables, with the remaining 38.
8% attributed to other factors.
The QA statistic for this model is 0.
314, which is greater than 0, relevance for the dependent variable.
Hypothesis H3 is significant .
< 0.
95% CIBC O .
, with a medium effect size .
A).
Hypothesis H4 is also significant .
< 0.
95% CIBC O .
and has a large effect size .
A), highlighting the substantial impact of Blue Ocean Leadership on Employee Retention.
Lastly.
Hypothesis H5 is significant .
< 0.
95% CIBC O .
with a medium effect size .
A), indicating a moderate Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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Employee Work Engagement on Employee Retention.
Overall, these results confirm the significant direct effects of the independent and mediating variables on the dependent variables, providing robust support for the proposed Testing the Hypotheses Ae Indirect Effect Model The evaluation of the indirect effects focused on assessing the mediating roles of Blue Ocean Leadership and Employee Work Engagement in the relationship between Compensation and Employee Retention.
The analysis was conducted to determine the extent to which these mediators influence the structural paths within the research model (Table Table 6.
Indirect Effect Analysis Spesifi 95%CIBC Effect
Size
Result
2,50
97,50
Indirec value Upsilo t Effect n .
Compensation (X) -> Blue Ocean Leadership 334 Accepted 0,056 (Z.
-> Employee Retention (Y) Compensation (X) -> Employee Work 173 Accepted 0,010 Engagement (Z.
-> Employee Retention (Y) Source: Modified by Authors Mediating Role of Blue Ocean Retention.
The structural impact of this Leadership (H.
mediation is also categorized as small The results indicate that Blue Ocean or weak.
This indicates that although Leadership mediates the indirect Employee Work Engagement plays a relationship between Compensation role in bridging the influence of and Employee Retention.
However, the Compensation on Employee Retention, structural impact of this mediation is its effect is relatively minor, warranting categorized as small or weak.
This further investigation into other suggests that while Blue Ocean mechanisms that may enhance this Leadership relationship, its influence is limited in Overall, these findings underscore magnitude, highlighting the need for the limited mediating effects of Blue further exploration of other potential Ocean Leadership and Employee Work mediators or additional factors that Engagement, suggesting that the direct could strengthen this pathway.
pathways may have a stronger impact Mediating Role of Employee Work on Employee Retention than the Engagement (H.
indirect mechanisms within this Similarly.
Employee Work Engagement is found to mediate the Goodness of Fit Compensation Employee Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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The evaluation of the Goodness of Fit (GoF) for the model was conducted using statistical measures including the Standardized Root Mean Square Residual (SRMR).
Unweighted Least Squares Discrepancy .
-ULS), and Geodesic Discrepancy .
_G).
According to Henseler et al.
models can be deemed unfit if these statistical values exceed their estimated thresholds at the 95% Confidence Interval (CI).
In this study, the SRMR value was found to be 0.
081, which is below the conservative threshold of 0.
10 as recommended by Hair.
Jr.
et al.
and Henseler .
This indicates that the model avoids misspecification and can be considered a good fit for the While the d-ULS and d_G values exceeded their estimated thresholds, the SRMR result suggests that the research model is generalizable to the The SRMR value also aligns with the criteria proposed by Hu and Bentler .
, further supporting the validity of the model.
PLS Predict The PLS Predict analysis was employed to evaluate the predictive performance of the research model.
The findings reveal that for most measurement items of the endogenous variables, the model demonstrated a QA Predict PLS > QA Predict LM, indicating that the PLS model outperformed the linear regression (LM) benchmark in predictive relevance.
Additionally, the root mean square error (RMSE) and mean absolute error (MAE) values for the PLS model were lower than those for the LM model, specifically RMSE PLS < RMSE LM and MAE PLS < MAE LM.
These results indicate that the predictive power in explaining the influence of the exogenous variables on the endogenous constructs (Shmueli et , 2.
This suggests that the model can reliably predict outcomes and provides valuable insights into the relationships examined within the DISCUSSION The findings of this study strongly align with the principles of Social Exchange Theory (SET), which emphasizes the reciprocal relationship As posited by Homans .
SET suggests that employees evaluate the fairness of their rewards relative to their contributions.
This study's significant findings on the direct effects of Compensation on Blue Ocean Leadership.
Employee Work Engagement, and Employee Retention provide empirical support for the The results demonstrate that when organizations offer fair and meaningful compensation, employees respond positively through increased engagement, innovative leadership practices, and greater retention, validating the fundamental tenets of SET (Ahmad et al.
, 2.
The between Compensation and Blue Ocean Leadership (H.
highlights how employees to adopt forward-thinking behaviors and leadership practices that benefit the organization.
This aligns with SET's notion of distributive justice, where employees reciprocate fair treatment with contributions that enhance organizational innovation.
Compensation serves as a key driver that motivates leaders to foster communication, and creative problem- Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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solving, as suggested by (Al Nsour.
Ellinger et al.
, 2020.
Jian et al.
Kim & Mauborgne, 2.
The findings also demonstrate a Compensation and Employee Work Engagement (H.
According to SET, employees who perceive that they are adequately compensated for their efforts are more likely to experience a sense of obligation and emotional connection to their work.
This emotional investment translates into higher engagement, where employees derive intrinsic satisfaction and meaning from their roles, reinforcing the reciprocal exchange dynamic.
These results are consistent with prior studies (Das & Malik, 2024.
Guest.
Kwon et al.
, 2024.
Ly, 2.
that highlight engagement as a key outcome of perceived fairness in the The strong direct effect of Compensation on Employee Retention (H.
, as well as the significant influence of Blue Ocean Leadership (H.
and Employee Work Engagement (H.
on retention, further supports SET's Employees who receive appropriate rewards and experience positive leadership and engagement are more likely to remain committed to the organization (Ahmad et al.
, 2.
The large effect size observed for Blue Ocean Leadership underscores the importance of leadership practices that foster a supportive and innovative work environment, while the medium effect size for Employee Work Engagement reflects the role of meaningful work experiences in enhancing retention (Ali et al.
, 2.
Interestingly, the weak mediating roles of Blue Ocean Leadership and Employee Work Engagement in the relationship between Compensation and Employee Retention provide nuanced insights into the application of SET.
While compensation has a strong direct effect, the limited indirect influence of these mediators suggests that employees may prioritize tangible rewards over the indirect benefits of leadership and engagement when exchange (Lila Maria Kaban & Umi Kulsum, 2023.
Shoaib et al.
, 2.
This highlights the need for organizations to strengthen the overall exchange framework by integrating both tangible and intangible elements, such as career growth opportunities and supportive workplace culture, to enhance retention outcomes.
Finally, the Goodness of Fit and PLS Predict results confirm the relevance and applicability of the research model in supporting the principles of SET (Henseler et al.
, 2014.
Lachowicz et al.
Shmueli et al.
, 2.
The predictive power of the model demonstrates that the relationships among Compensation.
Blue Ocean Leadership.
Employee Work Engagement, and Employee Retention can be generalized to Generation Z employees, who place significant value on fair treatment and meaningful By validating the reciprocal exchange mechanisms proposed by SET, this study provides both theoretical and practical contributions to understanding employee behavior in dynamic organizational contexts.
These findings bridge the research gap identified in the background and reinforce the relevance of SET in explaining the interplay between rewards, leadership, engagement, and Future research could Kontigensi: Jurnal Ilmiah Manajemen Management Science Doctoral Program.
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expand on these insights by incorporating additional mediators, such as organizational trust or psychological safety, to further enhance the explanatory power of SET in contemporary work environments.
CONCLUSION
This study highlights the pivotal role of compensation in enhancing employee retention among Generation Z workers in West Java.
By integrating Blue Ocean Leadership and Employee Work Engagement as mediating variables, the research provides a nuanced understanding of how The findings validate Social Exchange Theory by demonstrating that equitable compensation fosters intentions, while innovative leadership practices and heightened engagement further strengthen organizational This synthesis underscores the necessity for organizations to adopt comprehensive strategies that integrate financial and non-financial motivators in retaining their workforce.
The implications of this research extend to both theoretical and practical Theoretically, the study enriches the discourse on employee retention by elucidating the mediating roles of leadership and engagement.
REFERENCES