p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 10, October 2024 http://jist.publikasiindonesia.id/

Journal Indonesian Sosial Teknologi, Vol. 5, No. 10, October 2024 4036

The Effect of Compensation, and Work/Family Conflict

Through Job Satisfaction on Employee Retention

Rizkie Arianti Putri Noor

1*

, Justine Tanuwijaya

2

, Andreas Wahyu Gunawan

According to (Abdullah et al., 2019), employee retention is the willingness of

employees to work with the same organization for an extended period of service. The

same literature also states that compensation is significant, and shows a real influence on

employee behavior. However, the effect varies from person to person in different

circumstances. (Chang & Hsu, 2016).

In a study conducted by (Breidenthal et al., 2020), job satisfaction is a mediator for

balancing compensation with the employee's intention to end the employment period.

According to (Cortes & Herrmann, 2020), the level of employee job satisfaction is a

reflection of their overall feelings about their job, their workplace, their coworkers, their

Journal Indonesian Sosial Teknologi, Vol. 5, No. 10, October 2024 4037

a study by Eyupoglu, Jabbarova, and Saner from 2010, job satisfaction can be defined as

feeling satisfied with one's job. A person's "positive" efforts may be the "negative" efforts

of others (Zhao et al., 2016).

Every worker has the right to be satisfied at work. Ultimately, however, a person's

level of job satisfaction depends on their own unique set of personal beliefs and social

expectations. When more of a person's expectations at work are met, they report greater

levels of happiness. (Riaz et al., 2019).

The conflict between work and family is one of the important things that will affect

the work results of each individual in organizing and how the individual also performs

his role as a family. Conflicts that occur at work or family can be related to several things

This study seeks to analyze the influence of compensation and work/family conflict,

on employee retention in the health service industry by taking samples at type A hospitals

located in Jakarta. (Welbourne & Sariol, 2017).

The objectives of this investigation are based on previous challenges and are as

follows:

1. To analyze the effect of compensation on job satisfaction

2. To analyze the effect of compensation on employee retention

3. To analyze the effect of compensation on employee retention through job satisfaction

4. To analyze the effect of work/family conflict on job satisfaction

5. To analyze the effect of work/family conflict on employee retention

The research uses surveys obtained from structured questionnaires. The research

was carried out cross-sectionally and data were taken from the staff of type A hospitals

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4038

was used. There are 9 indicators for variable compensation, 6 indicators for W/F conflict,

18 indicators for job satisfaction, and 4 indicators for employee retention.

Hypothesis 1

The main purpose of this study is to investigate the null hypothesis that

remuneration does not affect job satisfaction. The value of the calculation coefficient of

0.137 shows that salary increases cause an increase in job satisfaction and a decrease in

salary leads to a decrease in job satisfaction. It was determined that remuneration had a

higher job satisfaction. It can be concluded that w/f conflict hurts job satisfaction because

the statistical t-value of 3.693 results in a p-value of 0.000 0.05, rejecting Ho and

accepting Ha.

Hypothesis 3

The purpose of the third experiment was to test whether there was a correlation

between gender and employee turnover. The estimated coefficient value of 0.064 shows

that the processing results show that an increase in w/f conflicts will increase employee

retention and a reduction in w/f conflicts will reduce retention. Since the estimation

coefficient is positive, it can be concluded that w/f conflict has a detrimental effect on

employee retention.

was no relationship between organizational commitment and job satisfaction and

accepting the alternative null hypothesis.

Hypothesis 5

The purpose of evaluating this hypothesis is to test the relationship between

organizational commitment and employee retention. The value of the estimation

coefficient of 0.497 shows that the higher the organizational commitment, the better the

employee performance, while the lower the organizational commitment has the opposite

effect. Organizational commitment has a positive effect on employee retention which is

Journal Indonesian Sosial Teknologi, Vol. 5, No. 10, October 2024 4039

Hypothesis 6

The Hypothesis 6 test is designed to test whether workers' satisfaction with their

jobs affects their likelihood of staying at the company. The value of the estimation

coefficient of 0.532 indicates that if the level of job satisfaction of workers increases, the

productivity increases, and if it decreases, the productivity decreases. It can be concluded

that job satisfaction does have a positive influence on employee retention because a

statistical t-value of 6.317 results in a p-value of 0.000 0.05, rejecting Ho and accepting

Ha.

Figure 2. Data test results

chances of retention.

The Effect of Work/Family Conflict on Employee Retention

Conflicts between work and family have a significant negative impact on employee

retention. The greater the conflict that employees experience, the lower the retention rate.

Employees who feel that their work is interfering with family life are more likely to

consider quitting the job.

The Effect of Job Satisfaction on Employee Retention

Job satisfaction has a significant positive influence on employee retention.

Employees who are satisfied with their work, both in terms of work environment, duties,

and interpersonal relationships, tend to be more loyal and stay in the company.

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4040

considered a form of appreciation from the company for their contribution. These results

show that the compensation aspect is one of the key factors that can increase employee

satisfaction and retention.

Work/Family Conflicts and Job Satisfaction

Conflict between work and family is one of the dominant factors in decreasing job

satisfaction. The results of this study show that employees who often face pressure in

managing time between work and family report high levels of stress, which ultimately

decreases their satisfaction with work. This conflict also has an impact on their

commitment to the company, which contributes to an increase in turnover intention

(intention to exit). Companies that do not support the work-life balance of employees tend

conflicts occur, if job satisfaction remains high, employee retention can be maintained.

Multiple Regression Analysis

The multiple regression analysis conducted showed that compensation had a greater

influence on employee retention compared to work/family conflicts. This indicates that

while work/family conflicts have a significant impact, good compensation can serve as a

compensator against the stress that employees are experiencing. However, when

work/family conflicts are too intense, this can drastically reduce job satisfaction, thereby

reducing the effectiveness of compensation in retaining employees.

Sobel Test (Mediation)

The Sobel test conducted to test the mediating role of job satisfaction showed

Journal Indonesian Sosial Teknologi, Vol. 5, No. 10, October 2024 4041

work/family conflicts, so that job satisfaction and employee retention can be improved.

The results of this study are very relevant for companies that want to increase

employee retention rates. These findings underscore the importance of effective

compensation management and work-life balance management strategies. Companies

should consider compensation programs that not only focus on base salary, but also

additional benefits such as flexible hours, family leave, and performance-based bonuses.

This is in line with Herzberg's Two-Factor theory which states that motivational factors

such as rewards, recognition, and responsibility have a strong influence on employee

satisfaction.

This research highlights the importance of company support in reducing

satisfaction. Job satisfaction can serve as an important counterweight in overcoming

conflicts between work and family. If companies are able to create a work environment

that supports employee satisfaction, they will be more likely to retain the best talent.

Managers need to focus more on compensation management and employee work-

life balance. By understanding that job satisfaction can reduce the negative impact of

work/family conflicts, managers can take strategic steps to create more flexible policies.

In addition, recognition of employee contributions through bonuses or personal

appreciation can also increase retention.

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4042