Factors influencing employee loyalty among Gen Z: Job satisfaction as intervening

Main Article Content

Angela Adriyanti Yang
Yuli Indah Fajar Dini

Abstract

The presence of Gen Z in the workforce brings its own challenges for organizations. The unique characteristics and preferences of this generation compared to previous generations means that organizations need to consider factors that can influence satisfaction and loyalty of these employees in the workplace. Therefore, this study aims to examine how career development and work environment affects loyalty among Gen Z employees, mediated by job satisfaction. The population of the research consists of Gen Z employees, while the sample was from 389 Gen Z respondents who were working in Batam city, obtained through nonprobability with purposive sampling techniques. Questionnaire indicators were measured using Likert Scale and evaluated by Structural Equation Model (SEM) based on SmartPLS 3.0. Findings revealed that the increasing achievement of career goals and a more conducive work environment for Gen Z employees influenced their tendency to be more loyal to the organization, both directly and indirectly through the mediation of work satisfaction. However, the mediating variable in this study measured to only have a 38.3 percent influence on employee loyalty, indicating that the ability of job satisfaction is still constrained in explaining the dependent variable. Additionally, the object and sample employed only compromised Gen Z workers in Batam city, which means that it has not fully represented the entire Gen Z workforce.

Downloads

Download data is not yet available.

Article Details

How to Cite
Yang, A. A., & Dini, Y. I. F. (2023). Factors influencing employee loyalty among Gen Z: Job satisfaction as intervening. Jurnal Manajemen Maranatha, 23(1), 1–14. https://doi.org/10.28932/jmm.v23i1.7022
Section
Articles

References

Andarsari, N. A., & Setiadi, P. B. (2023). The impact of working environment on employee loyalties with job satisfaction as an intervening variable. Ilomata International Journal of Management, 4(1), 73-84. https://doi.org/10.52728/ijjm.v4i1.619

Berger, C. (2022). Gen Z workers will be 30% of the workforce by 2030: Here what they want from their employers. Fortune. https://fortune.com/2022/05/27/gen-z-workers-want-flexibility-at-work/

BPS. (2020). Sensus penduduk indonesia tahun 2020. https://sensus.bps.go.id/main/index/sp2020

Dhir, S., Dutta, T., & Ghosh, P. (2020). Linking employee loyalty with job satisfaction using PLS–SEM modelling. Personnel Review, 49(8), 1695-1711. https://doi.org/10.1108/PR-03-2019-0107

Dirhamsyah, D., & Suprayitno, E. (2022). The effect of career development and incentives on employee loyalty of PT Aneka Karya Duta Medan. Enrichment: Journal of Management, 12(4), 3256-3264. https://enrichment.iocspublisher.org/index.php/enrichment/article/view/787/632

Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39-50. http://www.jstor.org/stable/3151312

Ghozali, I., & Latan, H. (2015). Partial least squares: Konsep, teknik dan aplikasi menggunakan program SmartPLS 3.0 untuk penelitian empiris. Badan Penerbit Universitas Diponegoro

Giovanni, V. F., & Ie, M. (2022). Pengaruh lingkungan kerja dan kepuasan kerja terhadap loyalitas karyawan di industri kreatif. Jurnal Manajerial dan Kewirausahaan, 4(1), 232-242. https://doi.org/10.2991/assehr.k.210222.044

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate data analysis. Pearson Education

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203

Indriantoro, N., & Supomo, B. (2018). Metodologi penelitian bisnis untuk akuntansi dan manajemen. Penerbit Andi

Kahpi, H. S., Salam, A. F., Riyanto, I., Fathurrohman, F., & Nuryanto, U. W. (2020). The role of organizational culture against employee loyalty in the manufacturing industry of musical instrument assembly. International Review of Management and Marketing, 10(4), 119-124. https://doaj.org/article/008b5dac512442bd8e347ca8503f6125

Karimah, R. P., Abdullah, S., & Setiadi, R. (2021). Analysis of factors affecting employee loyalty of PT X in Jakarta region. Journal of Physics: Conference Series, 1725. https://doi.org/10.1088/1742-6596/1725/1/012091

Kurniawan, I. S. (2019). Faktor-faktor yang mempengaruhi loyalitas karyawan. Kinerja: Jurnal Ekonomi dan Manajemen, 16(1), 85-97. https://journal.feb.unmul.ac.id/index.php/KINERJA/article/view/5299/474

Kusnandar, V. B. (2022). Era Bonus Demografi, 69% Penduduk Indonesia Masuk Kategori Usia Produktif pada Juni 2022. https://databoks.katadata.co.id/datapublish/2022/09/30/era-bonus-demografi-69-penduduk-indonesia-masuk-kategori-usia-produktif-pada-juni-2022

Lehtonen, E. E., Nokelainen, P., Rintala, H., & Puhakka, I. (2022). Thriving or surviving at work: How workplace learning opportunities and subjective career success are connected with job satisfaction and turnover intention? Journal of Workplace Learning, 34(1), 88-109. https://doi.org/10.1108/JWL-12-2020-0184

Lestari, R. P., Sudiarditha, I. K. R., & Handaru, A. W. (2021). The influence of compensation and career development on employee loyalty with job satisfaction as mediator. Economics & Management, 3(93), 135-141. https://doi.org/10.33146/2307-9878-2021-3(93)-135-141

Masram, M., & Mu’ah, M. (2015). Manajemen sumber daya manusia. Zifatama

Nadeak, F., & Simanjorang, E. F. S. (2021). Analisis kepuasan kerja, lingkungan kerja, work-life balance dan budaya kerja terhadap loyalitas pegawai pada badan penanggulangan bencana daerah (BPBD) kabupaten Labuhanbatu. Jurnal Manajemen Akuntansi JUMSI, 1(2), 2774-4221. https://doi.org/10.36987/jumsi.v1i2.2151

Nava-Macali, J., Nava-de Jesus, C., & Almari, E. P. (2019). Effectiveness of career development program on job satisfaction and retention of employees in a private university in the Philippines. Archives of Business Research, 7(7), 301-310. https://doi.org/10.14738/abr.77.6730

Phuong, T. T. K., & Vinh, T. T. (2020). Job satisfaction, employee loyalty and job performance in the hospitality industry: A moderated model. Asian Economic and Financial Review, 10(6), 698-713. https://doi.org/10.18488/journal.aefr.2020.106.698.713

Pulungan, Z. K., & Andika, R. (2022). Effect of compensation, work environment, and teamwork on employee loyalty of PT Agung Berkat Bintatar Abadi. SIASAT, 7(2), 99-112. https://doi.org/10.33258/siasat.v7i2.114

Robianto, F., Masdupi, E., & Syahrizal, S. (2020). The effect of career development, compensation, work environment and job satisfaction on work engagement. 4th Padang International Conference on Education, Economics, Business and Accounting, 737-748. https://doi.org/10.2991/aebmr.k.200305.140

Samat, M. F., Hamid, M. N., Awang Ali, M. A. S., Wan Juahari, W. M. I. F., Ghazali, K. A., & Mat Nawi, F. A. (2020). The relationship between career development, compensation, job security, work environment and employee loyalty. E-Academia Journal, 9(1), 70-78. https://ir.uitm.edu.my/id/eprint/81609/

Santoso, S. (2014). Konsep dasar dan aplikasi SEM dengan AMOS 22. Elex Media Komputindo

Sausan, N. S., Nasution, A. M. U., & Sabrina, H. (2021). Pengaruh kepuasan kerja dan loyalitas karyawan terhadap kinerja karyawan PT Asia Sakti Wahid Foods Manufacture Medan. Economics, Business and Management Science Journal, 1(1), 6-13. https://doi.org/10.34007/ebmsj.v1i1.3

Sharma, J., & Garg, P. K. (2021). A study of employee satisfaction and its effects towards loyalty in hotel industry. Journal of Critical Reviews, 8(3), 554-560. https://doi.org/10.31838/jcr.08.03.70

Tobing, E. (2022). Factors influencing job satisfaction and employee loyalty for the Millennial Generation: Work environment and leadership style. Dinasti International Journal of Digital Business Management, 4(1). https://doi.org/10.31933/dijdbm.v4i1

Winarni, Y., & Kurniawan, I. S. (2022). The effect of work environment, career development, and extrinsic motivation on job satisfaction of Daerah Istimewa Yogyakarta (DIY) transportation service employees. Jurnal Ilmu Manajemen Profitability, 6(2). https://doi.org/10.26618/profitability.v6i2.8479

Wyman, O. (2023). What business needs to know about the generation changing everything. https://www.oliverwymanforum.com/content/dam/oliver-wyman/ow-forum/template-scripts/a-gen-z/pdf/A-Gen-Z-Report.pdf

Yamin, S. (2021). Olah data statistik: SmartPLS 3, Amos & Stata. Dewangga Energi Internasional Publishing

Yuliyanti, Y., Susita, D., Saptono, A., Susono, J., & Rahim, A. (2020). The effect of career development and work environment on employee loyalty with work satisfaction as intervening variables. The International Journal of Social Sciences World, 2(2), 20-31. https://doi.org/10.5281/zenodo.3999430