https://dinastipub.
org/DIJEFA Vol.
No.
November 2022 e-ISSN: 2721-303X, p-ISSN: 2721-3021 Received: 30 October 2022.
Revised: 25 November 2022.
Publish: 13 December 2022 DOI: https://doi.
org/10.
38035/dijefa.
https://creativecommons.
org/licenses/by/4.
The Impact of Compensation and Career Development on Turnover Intention with Job Satisfaction as Intervening Variable at PT Wijaya Machinery Perkasa Marida Sinaga1*.
Ahmad Badawy Saluy2.
Novawiguna Kemalasari3.
Abdul Bari4 Universitas Mercubuana.
Jakarta Indonesia, email: badawi_saluy@yahoo.
*Correspondence Author: Marida Sinaga1 Abstract: This research finds out and analyzes the impact of giving compensation and career development to turnover intention with job satisfaction level as an intervening variable at PT.
Wijaya Machinery Perkasa.
A quantitative descriptive method using a causal relationship approach was administered to conduct this research.
The data analysis method used is Structural Equation Model (SEM) with SmartPLS (Partial Least Squar.
The results of this study show.
Job satisfaction has significant effect and increases the trend on compensation, .
Job satisfaction has positif impact on the career development, .
Compensation trend is not significantly effective on turnover intention, .
Job satisfaction as an intervening variable has low effect on compensation on turnover intention, .
Career development has a negative effect on turnover intention, and .
The employee turnover intention at PT.
Wijaya Machinery Perkasa is not significantly effective on job satisfaction.
Keyword: Compensation.
Career Development.
Job Satisfaction.
Turnover Intention
INTRODUCTION
The development of business environment nowadays makes many business leaders increasingly realizing that one critical component to the success of any business is Human Resources (HR).
Good human resource management makes it easy for the company's wheels to turn.
On the other hand, poor human resource management will lead to various problems that will hamper the stability of the company.
A common phenomenon that is increasing the numbers of the intention to change jobs is cuased by the managerial negligence issues in personnel management.
The high turnover rate affects the company's activities.
as a result, the exp erienced employees may leave the company, and they have to recruit other new Recently, a big problem that can be found by some companies is a high employee The employees recruited by the company decide to go to work, and they feel frustrated when they find that there is no hope after the recruitment process has succeeded in attracting qualified employees.
PT.
Wijaya Machinery Perkasa is established in 2003 and has grown to a total of 134 employees.
Certainly, there are struggles in the process of the 551 | P a g e https://dinastipub.
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For this reason, the investigation further can be done to find several employee problems.
Based on observations and interviews at PT.
Wijaya Machinery Perkasa, the problems found as follows.
Employee compensation by company management is still unsatisfactory.
Company management has not clearly regulated the career development of employee.
Employee feel disappointed to management.
Increasing intention to change jobs.
Feeling disappointed at work.
LITERATURE REVIEW
In the previous studies, several researchers used various factors that have turnover, all of which are compensation given, career development management, and job satisfaction.
According to Susilo et.
, compensation gives impact on the level of employee job satisfaction in the company where they work.
The similar study was found in a research conducted by Aziz et.
shows that career development provides new things to employee job satisfaction, but it is different from compensation.
In which does not affect the intention for employees to leave work (Vicky, 2.
This study aims to identify and analyze the effectiveness of additional bonuses on job satisfaction levels, providing career development on employee job satisfaction levels, giving additional bonuses on the turnover intentions of the employee, the career development on employee turnover intentions, giving additional bonuses on turnover intention by mediating the level of job satisfaction, career development on turnover intention by mediating the level of job satisfaction, and job satisfaction on turnover intention at PT.
Wijaya Machinery Perkasa.
Turnover Intention Robbins and Judge in Johan .
stated turnover intention is the termination of employment relationships by employees who are forced or not forced.
Fluctuations can take the form of a letter of resignation, transfer from an agency, and the dissolution or closing of an agency.
According to Hamoto and Johan .
, sales intention refers to the extent or intens desire to leave the company.
From some of the existing studies, turnover intention known as an attitude that arises voluntarily or not voluntarily in individuals who have a desire or action to leave the company to switch to another job.
According to Mobley .
, the parameters that can be used as a measure of sales intention are as follows.
Considering leaving the organization.
The desire to find a new job.
The intention to leave a job.
Compensation In relation to individual employees.
Swasto .
assumed that anything that is received by employees as a symbol of appreciation for services or contributions by the agency is called compensation.
Simamora .
also mentioned that compensation can be financial rewards and other benefits which are received by employees in the context of an employment management.
Shortly, compensation refers to anything that employees get in return for their services and hardworks for the agency.
According to the report, it can be said that all remuneration received by employees from the company is compensation.
According Malayn S.
P Hasibun .
, the parameter of compensation is mentioned below.
Direct compensation C Salary C Comission 552 | P a g e https://dinastipub.
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Production capacity Solvency The ability to pay Offers according to the wishes of employees.
Career Development Sinambela .
said that career development is an agency effort in improving the careers of its employees.
Career management includes career plans, system implementation and employee monitoring.
Meanwhile.
Danang .
defnines career development as a career advancement which exists in career management.
Based on these descriptions, organizations should prioritize their career development as the main business strategy to maintain their high-performing employees in companies.
The three dimensions in career development stated by Busro .
are described Career provisions consisting of indicators such as promotions, opportunities for leaders, and certain positions in an agency.
Self-improvement consisting of indicators such as giving employees to attend training, seminars or discussions, and competency tests.
Improving the quality of work consisting of indicators such as self-discipline, loyalty, and employee motivation that need to be improved.
According to Samsudin .
, there are six factors that affect career development which are mentioned below.
Work achievement Performance beam Strike request Be true to an organization Leadership and support Job Satisfaction The level of job satisfaction is indicated from the employee attitude towards the work It is related with the relationship between work situations, collaboration between employees, additional wages received, and matters relating to physical and Handoko .
stated that the level of job satisfaction is an emotional state in which employees view the field of work.
The theory related to the level of job satisfaction according to Mangkunegara .
is below.
Balance Distinction Make ends meet Social reference Two factors of Herzberg Hope The impacts of performance dissatisfaction according to Wibowo in Syafina .
are Out or leave 553 | P a g e https://dinastipub.
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Kepuasan Kerja (Y.
Pengembangan Karir (X.
Turnover Intention
RESEARCH METHOD
The research was conducted using a quantitative descriptive method with a causal relationship approach.
The objective of this research is to create real examples that exist in the research context.
The objects of this research are all employees of PT.
Wijaya Machinery Perkasa with 134 employees in total.
Data analysis was carried out using descriptive statistical methods with the aim of providing an overall description .
The data includes the lower and upper limit values, the average value, and the deviation from the existing data.
The hypothesis of this study was tested with a structural equation model (SEM) approach with SmartPLS (Partial Least Squar.
PLS as the component-based or variant-based structural equation model.
The data processing includes convergent validation test.
AVE test, discriminant validation test .
ross loadin.
, composite reliability test and Crossbach alpha, tstatistical hypothesis test and p-value.
RESULT AND DISCUSSION
Descriptive Analysis In finding the result of this study, questionnaires hav been distributed to employees of PT.
Wijaya Machinery Perkasa.
North Jakarta.
The four variables used are compensation (X.
, career development (X.
, job satisfaction (X.
, and turnover intention (X.
The result of the questionnaires is drawn below.
VARIABLE
Compensation Career Development Job Satisfaction Turnover Intention Table 1.
Data processing .
MIN MAX
MEAN
3,41
3,48
Based on the table, compensation (X.
variable shows the responses stating strongly disagree, disagree, hesitate, agree and strongly agree reach a percentage of up to 8.
83%, 20.
0%, 32 ,67% and 22%.
The mean value obtained on the remuneration variable 554 | P a g e https://dinastipub.
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44, where the value is included in the "agree" category on the interpretation of the interval.
The results of the data distribution on career development variables (X .
show that respondents strongly disagree, disagree, hesitate, agree and strongly agree reach a percentage of up to 6.
38%, 11.
88%, 22.
88%, 35.
38% and 23.
The average value obtained on the career development variable (X.
41, where the value was included in the "agree" category on the interpretation of the interval.
The results of the distribution of data on the job satisfaction variable (Y.
show data which states that respondents strongly disagree, disagree, hesitate, agree and strongly agree to reach a percentage of up to 10.
78%, 17.
44%, 35% and 23.
The average value obtained on the job satisfaction variable (Y.
41, where the value was included in the "agree" category on the interpretation of the interval.
The results of the distribution of data on the Salen intense variable (Y.
show that respondents strongly disagree, disagree, hesitate, agree and strongly agree reaching a percentage of up to 37%, 39.
33%, 23.
67%, 0, 42% and 0%.
The average value obtained on the Sales Intense variable (Y.
41, where the value is included in "agree" category on the interpretation of the interval.
Smart PLS Analysis Outer Model Analysis The convergent validity test used in this study aims to identify the unobserved variable that can be measured by the construct of the observed variable.
The confirmatory factor analysis (CFA) or commonly known as factor analysis is used to process the data obtained.
The table below shows the results of the variable validity process.
Dimension Salary According to Workload Periodic Bonuses Intensive Achievement Insurance Holiday Allowance (THR) Table 2 Outer Loading Requirement Value 0,381 >0,7 0,847 >0,7 0,82 >0,7 0,852 >0,7 0,853 >0,7 Interpretation Valid Valid Valid Valid Valid 555 | P a g e https://dinastipub.
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Additional Facilities Promotion Transparency Opportunity to Be a Leader
Opportunity in Certain Position Permitted to Continue Education Permitted to Attend Seminars Permitted to Take Competency Test
Increasing Employee Motivation Periodic Leadership
Fair Leader
Promotion Opportunities in Certain Position Fair Promotion Opportunities Get Insurance Get Additional Facilities Have The Honour of Working Appreciated Regulation Transparency Consider about Leaving Work
Interest in Looking for a New
Job
Intention to Leave Job
0,84
0,79
0,773
0,775
0,781
0,778
>0,7
>0,7
>0,7
>0,7
>0,7
>0,7
Valid
Valid
Valid
Valid
Valid
Valid
0,742
>0,7
Valid
0,786
0,859
0,842
>0,7
>0,7
>0,7
Valid
Valid
Valid
0,786
>0,7
Valid
0,853
0,869
0,81
0,827
0,725
0,746
0,849
>0,7
>0,7
>0,7
>0,7
>0,7
>0,7
>0,7
Valid
Valid
Valid
Valid
Valid
Valid
Valid
0,774
>0,7
Valid
0,809
>0,7
Valid Source: Data Processing with SmartPLS 3.
The following step is testing the convergent validity by paying attention to the AVE (Average Variance Extracte.
Ghozali & Lathan .
stated the AVE value can be used if it is more than 0.
The table below shows the results of the AVE value.
Table 3 Variable Job Satisfaction (Y.
Compensation (X.
Career Development (X.
AVE
0,663
0,707
0,594
Source: Data Processing with SmartPLS 3.
The following table describes the results of the composite reliability and Cronbach's alpha valuesAo processing.
Variable Job Satisfaction (Y.
Compensation (X.
Career Development (X.
Turnover Intention (Y.
Composite Reliability 0,946 0,935 0,921 0,852 Table 4
CronbanchAos Alpha
0,936
0,917
0,902
0,743
Requirement Interpretation >0,7 >0,7 >0,7 >0,7 Reliable Reliable Reliable Reliable Source: Data Processing with SmartPLS 3.
The table above shows that the results of the computation of composite reliability, and Cronbach's alpha values has 0.
7 value, so the results of all variables is reliable latent, and the questionnaires can be used to do the research.
Internal Model Analysis The value of R2 describes the level of ability of the independent variable that is assumed in the equation to explain the dependent variable (Hair et al.
, 2.
The following is the result of data processing by R Square.
556 | P a g e https://dinastipub.
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Turnover Intention (Y.
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The explanations of the results of data processing above are as follows.
C Based on the R-squared value of the job satisfaction variable (Y.
which is 0.
550,the percentage of 55% shows the job satisfaction variable (Y.
with the influence of compensation (X.
, career development (X.
, and turnover intention (Y.
The remaining 45 % is influenced by other variables.
C Based on the R-squared value of the Sales Intent (Y.
variable of 0.
335, the 33.
percentage shows that the Sales Intent (Y.
variable is replaced by Job Satisfaction (Y .
Compensation (X.
, and Career Development (X.
variables, while 66.
5% is influenced by other variables.
The Goodness of Fit Index (GoF) aims to find out the results from the performance combination of the measurement and the structural model.
The equation below is the result of GoF.
GoF = OoyaycOya ycu ycI2 = Oo0,656 ycu 0,443 = 0,539 From the computation, it can be concluded that the combined performance of the two models gets results above 0.
ategorized as large in GoF).
Hypothesis Testing Hypothesis Job Satisfaction (Y.
Ie Turnover Intention (Y.
Compensation (X.
Ie Job Satisfaction (Y.
Compensation (X.
Ie Turnover Intention (Y.
Career Development (X.
Ie Job Satisfaction (Y.
Career Development (X.
Ie Turnover Intention (Y.
Compensation (X.
Ie Job Satisfaction (Y.
Ie Turnover Intention (Y.
Career Development (X.
Ie Job Satisfaction (Y.
Ie Turnover Intention (Y.
Table 6
Original Sample (O) T-Statistisc
P-Values Result
-0,387
2,555
0,011
Accepted 0,421 3,331 0,001 Accepted -0,055 0,436 0,663 Not Accepted 0,471 3,727 0,000 Accepted -0,212 2,053 0,041 Accepted -0,163 1,842 0,066 Not Accepted -0,182 2,034 0,043 Accepted .
Job satisfaction on employee turnover intention at the company of PT.
Wijaya Machinery Perkasa has negative effect.
Based on Table 4.
14, it is known that the tstatistic value of 2.
555 indicates a value greater than the t-table value = 1.
985, and the P-values = 0.
011 indicates a value smaller than = 0.
The coefficient value is negative, meaning -0.
387 which means 38.
7% can indicate that job satisfaction has a negative effect on employee turnover intentions with a path coefficient of -0.
Based on the results of processing the hypothesis test, it can be concluded that hypothesis H7 557 | P a g e https://dinastipub.
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Wijaya Machinery PerkasaAy.
PT.
Wijaya Machinery Perkasa shows the reduction level of job satisfaction on the employee turnover.
Based on Table 4.
14, it is known that the t-statistic value of 2.
is greater than the t-table value = 1.
985, and the P-values = 0.
011 indicates a value smaller than = 0.
The coefficient value is negative, meaning -0.
387 which means 7% can indicate that job satisfaction has a negative effect on employee turnover intentions with a path coefficient of -0.
Based on the results of processing the hypothesis test, it can be concluded that hypothesis H7 is accepted in this study which reads: AuThere is a negative effect of job satisfaction on employee turnover intention at PT.
Wijaya Machinery PerkasaAy.
The compensation is decreased in employee turnover intention at PT.
Wijaya Machinery Perkasa.
Based on Table 4.
14, it is known that the t-statistic value of 0.
indicates a value smaller than the t-table value = 1.
985, and P-values = 0.
663 which indicates a value greater than = 0.
Based on the results of the processing of the hypothesis test, it can be concluded that the H3 hypothesis is rejected in this study which reads "There is no negative effect between remuneration on turnover intention at PT.
Wijaya Machinery PerkasaAy.
PT.
Wijaya Machinery Perkasa shows positive results on the career development on performance satisfaction with a T-statistic value of 3.
727 which is greater than the ttable, and a t-value of 1.
985 and 0 .
ess than 0.
The coefficient value increased by 471 or 47.
1% which can be called a good influence of career development on performance satisfaction.
Based on the results of the processing of the hypothesis test, it was found that the H2 hypothesis was accepted with reads: "There is a negative effect of career development on employee turnover intention at PT.
Wijaya Machinery PerkasaAy.
PT.
Wijaya Machinery Perkasa has negative result on career development on turnover intention of with a T-statistic value of 2.
053 which is greater than the t-table, and a tvalue of 1.
985 and 0.
ess than 0.
The coefficient value decreased -0.
212 or 2% which can be called a bad influence of career development on job satisfaction.
Based on the results of the editing of the hypothesis test, it was found that the H4 hypothesis was accepted with the quote: "There is a negative effect of career development on employee turnover intention at PT.
Wijaya Machinery PerkasaAy .
PT.
Wijaya Machinery Perkasa has no effect on job satisfaction in remuneration and turnover intention with a T-statistic value of 1.
842 which is smaller than the t-table, and a t-value of 1.
985 and 0.
ess than 0.
The coefficient value decreases -0.
163 or 3% which can be called a bad influence of compensation on the employee's intention to leave by mediating job satisfaction.
Based on the results of editing the hypothesis test, it was found that the H5 hypothesis was rejected which reads: "There is no negative compensation for employee turnover intention at PT.
Wijaya Machinery Perkasa with job satisfaction mediationAy .
PT.
Wijaya Machinery Perkasa got a negative result in providing job in career development on turnover intention of satisfaction with a T-statistic value of 2.
which was greater than the t-table, and a t-value of 1.
985 and 0.
ess than 0.
The coefficient value decreases -0.
182 or 18.
2% which can be called a bad influence of career development on intention to leave by mediating job satisfaction.
Based on the results of editing the hypothesis test, it was found that the hypothesis H6 was accepted in this study which reads: "There is a negative effect of career development on employee turnover intention at PT.
Wijaya Machinery Perkasa with job satisfaction mediationAy.
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CONCLUSION
Compensation to employees of PT.
Wijaya Machinery Perkasa brings a significant effect on employee job satisfaction.
Providing facilities creates significant impact on career development to employees of PT.
Wijaya Machinery Perkasa on employee performance satisfaction.
Compensation to employees of PT.
Wijaya Machinery Perkasa is not significantly effective on employee job satisfaction.
The intention to change jobs gives negative impact on career development by the employees of PT Wijaya Machinery Perkasa.
PT.
Wijaya Machinery PerkasaAos compensation to employees has significant effect on turnover intention using job satisfaction mediation.
There is a negative effect of career development on employee turnover intention mediated by job satisfaction at PT Wijaya Machinery Perkasa.
Employee job satisfaction of PT.
Wijaya Machinery Perkasa brings negative effect on turnover intention.
Compensation is proved to have significant impact on employee performance Apparently, the companies should notice and maintain the status of employee compensation both directly and indirectly.
The existence of career development is proven to affect employee performance satisfaction.
So, companies should manage their system and regulation in employee career development related to performance.
It will increase the employee job satisfacition and also greater their loyalty to the company.
The negative impact of job satisfaction occurs on turnover intentions.
Coping with this, the employee welfare should be prioritized because it affects the stability of the companies indirectly.
For example, they feel happy and satisfied in a positive work environment.
The limitation of this study is based on the two rejected hypotheses.
They are the negative effect of compensation on intention to leave a job, whether mediated by the job satisfaction or not.
It needs other independent variables to investigate whether the employee remains or leaves the company.
We have recommendation to the next researchers who conduct the similar research to examine the other independent variables, such as work motivation and leadership management, and also expand the research subject environment to get maximum research results.
BIBLIOGRAPHY