The Effect of Compensation, Career Development, and Work-Life Balance on Employee Loyalty With Job Satisfaction As An Intervening Variable

ABSTRACT


Introduction
Employee loyalty is crucial in the era of globalization, where human resource management is important to obtain an efficient and loyal workforce (Sumaryathi & Dewi, 2020).In Indonesia's rapidly growing hospital industry, the growing number of hospitals increases the need for health workers, while information technology accelerates competition and human resource acquisition.RS Intan Husada Garut, as a private hospital, is committed to providing the best health services with the support of a diverse medical team and health workers (Motto: "We Give the Best").
The Effect of Compensation, Career Development, and Work-Life Balance on Employee Loyalty With Job Satisfaction As An Intervening Variable Indonesian Journal of Social Technology, Vol. 5, No. 3, March, 2024 In carrying out its services to all patients, Intan Husada Hospital experiences problems related to employee loyalty, especially health workers such as nurses, pharmacy staff, nutrition staff, laboratory staff, and radiology staff who are less loyal as shown by a total of 45 employees who have resigned from 2021 to June 2023 as shown in the table below.exchange theory, which emphasizes psychological interaction between individuals, describes social relationships as the process of mutual feedback to achieve balance, harmony, and harmony (Blau & Michaeli, 2018).The social exchange theory approach views relationships as a process of mutual exchange in everyday life.The sustainability of human social relations depends on respect and responsiveness to the care that has been built, involving contributions of thought, energy, and others (Sunyoto & Saksono, 2022).
In the context of employee loyalty, social exchange theory identifies key factors, such as compensation, career development, and work-life balance.Fair and adequate compensation can increase job satisfaction and, directly, affect employee loyalty.Career development is also a driver of job satisfaction and loyalty.Work-life balance also has a significant impact on job satisfaction and employee loyalty.
Within the framework of social exchange theory, job satisfaction acts as an intervening variable, mediating the relationship between factors such as compensation and work-life balance and employee loyalty.A number of studies support the role of job satisfaction as a mediator, showing that companies can increase employee loyalty by understanding and fulfilling these factors, as well as ensuring satisfaction with the rewards given and balance between work and personal life.
Fair and adequate compensation has a key role in increasing employee job satisfaction (Nurcahyanti & Kuswandani, 2021).Increased compensation not only has a financial impact but also positively affects job satisfaction, while a decrease in compensation has the potential to reduce job satisfaction (Mellasanti & Ingsih, 2016).Studies show that a good compensation system not only meets physical needs and safety but also increases overall job satisfaction (Basem et al., 2022).Compensation, such as salaries, incentives, and insurance, has a significant positive impact on job satisfaction, building a positive cycle of motivation and positive contributions from employees (Ayuningtias, Syahputra, & Prasetio, 2017).

H1: Compensation affects job satisfaction
Career development in organizations plays an important role in increasing employee job satisfaction (Siallagan, 2020).This is related to individuals' positive views on career advancement in the workplace that contribute to job satisfaction (Nurcahyanti & Kuswandani, 2021).Providing career development opportunities can create a motivative work climate and more engaged employees (Suryani, 2020).In the context of social exchange theory, career development is not only an organization's investment in employees, but also a mutually beneficial exchange that creates a sustainable work environment (Lisdiani & Ngatno, 2017).

H2: Career development affects job satisfaction
The effect of Work Life Balance on Job Satisfaction has been investigated by several researchers.Work-life balance involves a balance of time, engagement, and satisfaction between work and personal life.Research shows that a good work-life balance can increase job satisfaction and employee loyalty (Basem et al., 2022).Social exchange theory explains that organizational support towards achieving this balance can increase job satisfaction and create a positive work environment (Prasetio & Rismawati, 2018).Within this framework, employees who feel a sense of balance tend to be more satisfied, motivated, and committed to their work (Maharani, Afifah, & Lubis, 2023).

H3: Work-life balance affects job satisfaction
Compensation, which includes earnings and rewards from the organization, has a significant influence on employee loyalty.Studies show that high compensation levels increase loyalty, while low compensation has the potential to reduce employee loyalty (Marhalinda & Supiandini, 2022).Social exchange theory highlights that employees' perceptions of fairness and suitability of compensation can influence the level of commitment and desire to remain in the organization (Harden, Boakye, & Ryan, 2018).The relationship between fair compensation and employee loyalty is explained as a reciprocal relationship, where employee contributions are expected to be balanced with rewards and recognition from the organization (El-Deeb, Ismail, & El Banna, 2023).

H4: Compensation affects employee loyalty
Career development has a positive impact on employee loyalty.Studies show that when organizations provide career development opportunities and support, employees tend to feel attached and loyal (Utami & Dwiatmadja, 2020).Investing in career development can increase employee commitment and loyalty, reinforcing their value to the organization (Harden et al., 2018).In the context of social exchange theory, clear learning, development, and career path opportunities are considered as 'rewards' that can increase employee loyalty.

H5: Career development affects employee loyalty
Work-life balance, as a work-life balance, has a significant impact on employee loyalty.Studies show that employees who feel balanced tend to be more loyal because they feel valued and understood by the organization (Mauludi & Kustini, 2022).Workload imbalances, which are part of work-life balance, can threaten employee commitment and increase the intention to quit work (Harden et al., 2018).Work-life balance was also found to be directly related to loyalty through positive experiences and affective commitment, reinforcing the importance of balance between work and personal life.

H6: Work-life balance affects employee loyalty
Job satisfaction, the evaluation of employees' feelings towards work, has a positive influence on employee loyalty.Research shows that satisfied employees tend to increase their loyalty to achieve company goals (Rizana, 2020).Social exchange theory highlights that employees who feel satisfied with their jobs tend to be more committed and loyal because they feel valued and get rewards equal to or more than they give to the organization.The study of (Abdullahi et al., 2023) corroborates the relationship between job satisfaction and employee loyalty, where rewards and good treatment from organizations can increase job satisfaction and build loyalty, reducing employee turnover.

H7: Job satisfaction affects employee loyalty
Compensation, including remuneration for work, has a positive impact on employee loyalty through job satisfaction mechanisms.Increased compensation contributes to job satisfaction, which then increases the level of loyalty to the organization (Nurcahyanti & Kuswandani, 2021).Types of compensation, such as salary, bonuses, and benefits, play an important role in increasing job satisfaction, creating a strong sense of loyalty among employees (Indranata & Safaria, 2023).

H8: Compensation affects employee loyalty through job satisfaction
Career development, by providing a vision of career opportunities and long-term commitment, increases employee job satisfaction.Success in achieving career goals strengthens employees' emotional bonds and loyalty to the organization.Perception of career path, including recognition, can reduce stress and increase job satisfaction, strengthening employee attachment to the organization (Nurcahyanti & Kuswandani, 2021).

H9: Career development affects employee loyalty through job satisfaction
Work-life balance has great potential to increase employee job satisfaction, as it allows them to live their work and personal life tasks without conflict.High job satisfaction can strengthen employee loyalty to the organization, because they value a work environment that supports work-life balance (Basem et al., 2022).Within the framework of social exchange theory, work-life balance makes employees feel valued by the company, increasing motivation and commitment to work (Maharani et al., 2023).Employees who feel a balance between work and personal life tend to be more satisfied and loyal to the organization, appreciating the company's attention to their needs (Mauludi & Kustini, 2022).

H10: Work-life balance affects employee loyalty through job satisfaction
Based on the hypotheses proposed, the following is the theoretical framework of this study:

Population and Sample
The population in this study was 161 employees of health workers working at Intan Husada Hospital.Determination of the number of samples with the Slovin formula with a margin of error of 5% so that the number of samples obtained with a total of 118 people with simple random sampling.

Data Type, Data Source, Data Collection Method
In this study, the type of data used is primary data, namely data derived from employees of health workers at Intan Husada Garut Hospital which was studied in this study.The data collection method used in this study was through a questionnaire in the form of a Google Form link which was distributed to all research respondents.Data Measurement Scale Data measurement techniques for each respondent's answer by making 4 scales of answer choices, namely Score 4: Strongly Agree, Score 3: Agree, Score 2: Disagree, Score 1: Strongly Disagree.

Variable Operational Definition
In this study there are three types of research variables, namely independent variables, namely compensation, career development, and work-life balance, while the dependent variable is employee loyalty, then the intervening variable in this study is job satisfaction.The following are operational definitions for each variable and their respective indicators according to the table below:

Data Analysis Methods
In this study, data processing used the SMART PLS application version 3.0 for path analysis with intervening variables.PLS analysis was chosen because it is powerful and suitable for weak data or small sample sizes.Proposed by Ghozali (2021), PLS analysis does not require assumptions such as multivariate normal distribution and multicollinarity problems in regression OLS.

Answer Index Analysis
From a total of 118 respondents who have given the answer, researchers made several criteria to produce an index analysis of respondents' answers to the variables in this study are as follows: From table 4 above, it can be seen that the average index score of respondents' answers to compensation variables is 65.04 which is included in the medium category.This shows that according to respondents' answers, the compensation system at RSIH Garut is in the category of quite good.From table 5 above, it can be seen that the average index score of respondents' answers to career development variables is 75.16 which is included in the high category.This shows that according to respondents' answers, the career development system at RSIH Garut is in the good category.From table 6 above, it can be seen that the average index score of respondents' answers to the work life balance variable is 76.43 which is included in the high category.This shows that according to respondents' answers, the work-life balance system at RSIH Garut is in the good category.From table 7 above, it can be seen that the average index score of respondents' answers to job satisfaction variables is 78.02 which is included in the high category.This shows that according to respondents' answers, job satisfaction at RSIH Garut is in the good category.From table 8 above, it can be seen that the average index score of respondents' answers to employee loyalty variables is 81.73 which is included in the high category.This shows that according to respondents' answers, employee loyalty at RSIH Garut is in the good category.

Outer Model
Outer model testing is carried out using the PLS algorithm analysis method on SmartPLS which processes responses from respondents that have been tabulated in CSV file format.An illustration of the model after undergoing the PLS Algorithm analysis test can be found in the following figure: indicators with an outer loading of 0.794 -0.881 which means that all four indicators are valid (more than 0.700) reflecting work life balance.The Job Satisfaction variable is measured by four valid measurement indicators with an outer loading of 0.836 -0.887 which means that all four indicators are valid (more than 0.700) reflecting job satisfaction.The Employee Loyalty variable is measured by four valid measurement indicators with an outer loading of 0.707 -0.877 which means that all four indicators are valid (more than 0.700) reflecting employee loyalty.
From all outer loading tests on all indicators of each variable X1, X2, X3, Z, and Y, it was concluded that the outer loading value was greater than 0.70 which is in accordance with the criteria according to (Joseph F Hair, Harrison, & Risher, 2018)so that it is said to be valid.Based on Table 9 it is known that all variables have Composite Reliability, Cronbach's Alpha, and rho_A values of more than (>) 0.70, while for Average Variance Extracted (AVE) values for all variables the value is more than (>) 0.50 (Joseph .F; Hair et al., 2021).So that all variables in this study are proven to be reliable and valid.

Inner Model
Structural analysis (inner model) in this study is divided into two types of tests, namely direct effect tests and indirect effect tests through mediation or intervening.The significance of the parameters is measured through the output of PLS analysis, including the original sample value, t statistic, and p value.If the original sample value is positive, it indicates a positive direction, while a negative value indicates a negative direction.The t statistic is used to assess significance, with a t value greater than 1.960 and a p value less than 0.050 indicating acceptance of the hypothesis, meaning the influence of exogenous constructs on endogenous constructs.

Figure 3 Inner Model Analysis Results
Data Source: Processed Based on Figure 3 above, it is known that the results of the direct effect test are in accordance with the table below: Based on the results of the direct influence test in Table 10 above, it is known as follows: The effect of compensation on job satisfaction has a positive original sample value of 0.172, t-statistics 1.883 < 1.960 and p value 0.060 > 0.050.These results showed that compensation had a positive but not significant effect on job satisfaction (H1 Denied).
The effect of career development on job satisfaction has a positive original sample value of 0.203, t-statistics 1.871 < 1.960 and p value 0.062 > 0.050.These results showed that career development had a positive but not significant effect on job satisfaction (H2 Rejected).
The effect of work-life balance on job satisfaction has a positive original sample value of 0.248, t-statistics 2.242 > 1.960 and p value 0.025 < 0.050.These results show that work-life balance has a significant positive effect on job satisfaction.This means that the better the employee's work-life balance , the more it will increase job satisfaction.(H3 accepted).
The effect of compensation on employee loyalty has a positive sample original value of 0.135, t-statistic 1.229 < 1.960 and p value 0.220 > 0.050.The results showed that compensation had a positive but not significant effect on employee loyalty (H4 Denied).
The effect of career development on employee loyalty has a positive sample original value of 0.054, t-statistics 0.484 < 1.960 and p value 0.629 > 0.050.These results showed that career development had a positive but not significant effect on employee loyalty (H5 Rejected).
The effect of work-life balance on employee loyalty has a positive sample original value of 0.093, t-statistics 1.109 < 1.960 and p value 0.268 > 0.050.These results showed that work-life balance had a positive but not significant effect on employee loyalty (H6 Rejected).
The effect of job satisfaction on employee loyalty has a positive sample original value of 0.250, t-statistics 2.590 > 1.960 and p value 0.010 < 0.050.These results show that job satisfaction has a significant positive effect on employee loyalty.This means that the better the employee's job satisfaction, the more it will increase their loyalty.(H7 accepted).Based on the results of the direct influence test in Table 10 above, it is known as follows: The effect of compensation on employee loyalty through job satisfaction original sample value positive 0.043, t-statistic 1.555 < 1.960 and p value 0.121 > 0.050.These results suggest that job satisfaction does not mediate the effect of compensation on employee loyalty (H8 Denied).
The effect of career development on employee loyalty through job satisfaction original sample positive value 0.051, t-statistic 1.205 < 1.960 and p value 0.229 > 0.050.These results suggest that job satisfaction does not mediate the effect of career development on employee loyalty (H9 Denied).
The effect of work-life balance on employee loyalty through job satisfaction original sample positive value 0.062, t-statistic 1.673 < 1.960 and p value 0.095 > 0.050.These results suggest that job satisfaction does not mediate the effect of work-life balance on employee loyalty (H10 Denied).

Discussion
The effect of compensation on job satisfaction.
The results of the data analysis showed that although compensation had a positive, not significant effect on job satisfaction, which concluded rejection of the first hypothesis.This is in line with Herzberg's two-factor theory, which highlights the importance of motivational factors and hygiene factors in influencing job satisfaction.Herzberg emphasizes the systematic management of motivational factors to create true job satisfaction.Although some forms of compensation such as bonuses are approved by health workers, other aspects such as salary and health benefits in the form of vouchers do not have an impact on job satisfaction.This finding is in line with other studies that noted the positive but not significant effect of compensation on job satisfaction by researchers such as (Pioh & Tawas, 2016), (Fakri et al., 2023).The effect of career development on job satisfaction.
The results of the data analysis showed that career development had a positive, but not significant, effect on job satisfaction, which led to rejection of the second hypothesis.This finding is in line with Herzberg's two-factor theory, which emphasizes the role of motivational factors and hygiene factors in influencing job satisfaction.Herzberg highlighted the importance of job enrichment and hygiene factor management to prevent dissatisfaction.Although companies provide support in career development, respondents indicated discrepancies such as long-term employees who have not been appointed as permanent employees.This is in line with other studies that note the positive but not significant influence of career development on job satisfaction.

The effect of work-life balance on job satisfaction.
The results of data analysis show that work-life balance has a positive and significant effect on job satisfaction, so this third hypothesis is accepted.The concept of work-life balance, which includes work-life balance, can be analyzed with social exchange theory.In this context, organizational support for achieving that balance can increase job satisfaction and create a positive work environment.These results are consistent with research by (Basem et al., 2022).The effect of compensation on employee loyalty.
The results of the data analysis showed that although compensation had a positive, not significant effect on employee loyalty, so the fourth hypothesis was rejected.These findings support the "equity" theory by J. Stacy Adams which emphasizes perceptions of justice in social exchange and its impact on individual behavior.Adams states that unfairness in social exchange can decrease satisfaction and can affect loyalty.Results also reflect a lack of match between the compensation the company provides and employees' perceptions of fairness.This finding is in line with other studies by (Wardi, 2021) The effect of career development on employee loyalty.
The results of the data analysis showed that although career development had a positive, not significant effect on employee loyalty, so the fifth hypothesis was rejected.The theory of "equity" by J. Stacy Adams that emphasizes the perception of justice in social exchange and its impact on individual behavior supports this finding.Adams emphasizes that unfairness in social exchange can decrease satisfaction and affect loyalty.The findings also reflect a lack of parallels between the career development that companies provide and employees' perceptions of fairness.These results are consistent with other studies by (Lumiu et al., 2019).

The effect of work-life balance on employee loyalty.
The results of the data analysis showed that, although work-life balance had a positive, not significant effect on employee loyalty, so the sixth hypothesis was rejected.The theory of "equity" by J. Stacy Adams supports these findings, highlighting the importance of perceptions of justice in social exchange and its impact on individual behavior.Adams emphasizes that distributive justice has a significant influence on organizational commitment, which can be interpreted as employee loyalty to the organization (Wiwiek & Sondakh, 2015).Answers from health workers at RSIH Garut show that although the majority agree with work-life balance, there are still significant obstacles that can reduce employee loyalty, such as constraints on leave, duties while on leave, unbalanced calculation of working days, and mismatch of overtime pay.This finding is in line with research by (Situru, 2021).The effect of job satisfaction on employee loyalty.
The results of data analysis show that job satisfaction has a positive and significant effect on employee loyalty, so the seventh hypothesis is accepted.In the context of social exchange theory, employees who are satisfied with their work tend to be more committed and loyal to the organization, because they feel they are getting rewards equal to or more than they give.These findings are consistent with research by Abdullahi et. al. (2023) which links job satisfaction with employee loyalty within the framework of social exchange theory.The answers from health workers at RSIH Garut also reflect the high level of job satisfaction, which is in line with the results of research by (Nurcahyanti & Kuswandani, 2021) The effect of compensation on employee loyalty through job satisfaction.
The results of the data analysis showed that compensation had a positive effect on employee loyalty but not significantly through job satisfaction, so the eighth hypothesis was rejected.This finding is reinforced by Herzberg's two-factor theory, which highlights the role of motivational factors and hygiene factors in influencing job satisfaction.Social justice theory by J. Stacy Adams also asserts that perceptions of fairness in social exchange can affect employee loyalty.Answers from health workers at RSIH Garut showed that most were dissatisfied with salaries and agreed with the bonus system, while other forms of compensation were not considered adequate.In conclusion, even if the company provides compensation, if employees do not feel the benefits, it will not have an impact on increasing job satisfaction and loyalty.This finding is in line with previous research by (Yafiz & Gaol, 2023) The influence of career development on employee loyalty through job satisfaction.
The results of the data analysis showed that career development had a positive effect on employee loyalty but not significantly through job satisfaction, so the ninth hypothesis was rejected.This finding is reinforced by Herzberg's two-factor theory, which identifies motivational factors and hygiene factors in influencing job satisfaction.Social justice theory by J. Stacy Adams also highlights the role of perceived justice in social exchange of individual behavior.Answers from health workers at RSIH Garut show that they agree with career development, but there is still dissatisfaction regarding career paths and recognition of achievements.In conclusion, although the company provides career development support, if employees do not feel the benefits, it will not have an impact on increasing employee loyalty.These findings are in line with other research by (Erlina Siregar, 2021).The effect of work-life balance on employee loyalty through job satisfaction.
The results of the data analysis showed that work-life balance had a positive effect on employee loyalty but not significantly through job satisfaction, so the tenth hypothesis was rejected.This finding is supported by Herzberg's two-factor theory, which distinguishes motivational factors and hygiene factors in influencing job satisfaction.Social justice theory by J. Stacy Adams also highlights the role of perceived justice in social exchange of individual behavior.Answers from health workers at RSIH Garut show that they agree with work-life balance, but there are still obstacles that affect employee loyalty.In conclusion, although the company provides work-life balance support, some health workers have not felt significant support, not having an impact on increasing employee loyalty.

Conclusion
The study concluded that compensation and career development had no effect on job satisfaction, while work-life balance had a significant positive effect on job satisfaction.Compensation, career development, and work-life balance have no effect on employee loyalty.Job satisfaction has a significant positive effect on employee loyalty.However, job satisfaction does not mediate the effect of compensation, career development, and work-life balance on employee loyalty.
The managerial implication of the results of this study is to provide advice to the management of RSIH Garut to focus on things that increase job satisfaction and worklife balance, evaluate the current compensation policy, and strengthen effective communication between management and hospital employees.
As for some future research agendas that can be suggested are ensuring that every variable and indicator used in the research is well understood by prospective respondents, a long enough duration of filling out questionnaires can expand the participation of more respondents, and in order to increase the validity, relevance, and scope of research, future research needs to consider other exogenous variables that affect job satisfaction and employee loyalty, including, Work environment, workload, work ethic, job characteristics, organizational culture, organizational commitment, and work motivation.

Figure 1
Figure 1 Theoretical Framework of ThoughtData Source: Processed

Figure 2
Figure 2 Results of Outer Model AnalysisData Source: Processed