THE EFFECTS OF COMPENSATION, WORK ENVIRONMENT AND JOB SATISFACTION ON EMPLOYEE RETENTION A CASE STUDY: BANKING INDUSTRY

Abstract

One of the most challenging problems of service providers is to retain the employee. The employee as an important asset which determines the performance of an organization leads to success since the human resource is the main mover of all organization activities. The way to retain employee is to be recognized through several influential factors, some of them are compensation, work environment, and job satisfaction. The aim of the study is to identify the effects of compensation, work environment, and job satisfaction on the retention of employees in the Banking Industry. The samples of this research were management staffs of the three companies in Bank Jateng Magelang, Bank Mega Magelang, and Bank Mandiri Temanggung. The questionnaires were distributed to 128 respondents and 125 questionnaires were properly filled by the employees. The analytical tool used in this research is multiple linear regression using SPSS version 22.0. The results of this research showed there were positive influence of compensation, work environment, and job satisfaction on employee retention.