The Effect of Compensation, Career Development, and Employee Engagement on Turnover Intention
Keywords:
Compensation, Career Development, Employee Engagement, Turnover Intention, Employee RetentionAbstract
Employee turnover intention is an important challenge for organizations because high turnover can disrupt operational continuity, increase recruitment and training costs, and reduce organizational performance. This study aims to examine the effect of compensation, career development, and employee engagement on turnover intention. A quantitative research approach was employed using a survey of 250 employees selected through purposive sampling. Data were collected using a structured questionnaire measured on a five-point Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that compensation has a negative and significant effect on turnover intention (β = -0.231, t = 3.684, p < 0.001). Career development also has a negative and significant effect on turnover intention (β = -0.287, t = 4.527, p < 0.001). Furthermore, employee engagement has a negative and significant effect on turnover intention (β = -0.391, t = 6.214, p < 0.001), representing the strongest predictor in the model. The model explains 61.8% of the variance in turnover intention (R² = 0.618). These findings suggest that organizations can reduce employees’ intentions to leave by implementing fair and competitive compensation systems, providing meaningful career development opportunities, and strengthening employee engagement. The study contributes to human resource management literature by demonstrating the complementary role of economic rewards, career opportunities, and psychological attachment in managing employee turnover intention.
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