Design Strategy for Improving Employee Retention Based on Two-factor Theory

Abstract

One of the most important assets of an organization is its employee. The effect of the employee is more impactful compared to other assets such as technology, information, and finance. The importance of managing strong employee retention for increasing employee performance cannot be overstated. The purpose of the following research is to find Factors that crucially affect employee retention based on Herzberg's Two-Factors Theory and develop solutions based on the findings. Data was gathered by conducting participatory research with company stakeholders and researchers. Hence, the study utilized Analytical Hierarchy Processing as a decision-making tool to identify crucial factors. Hence, based on the findings Salary becomes the crucial part affecting employee retention for this case which was conducted at PT. WASABI. Therefore further development in payment methods that are following the amount of product produced is needed to make sure the payment is enough and fair for production workers to maintain a good retention rate.