International Journal of Recent Technology and Engineering (IJRTE)
ISSN: 2277-3878, Volume-8 Issue-3, September 2019
1382
Published By:
Blue Eyes Intelligence Engineering
& Sciences Publication
Retrieval Number: B3506078219/19©BEIESP
DOI:10.35940/ijrte.B3506.098319
Abstract: To keep best talent to stay in the organization,
managing human capital is an important part to compete with
competitors through its people. The purpose of this study was to
determine the influence of training and development,
compensation, and performance appraisal toward turnover
intention through organizational commitment so that employee
retention improvement can be suggested. Methods of data
collection used in this study is through questionnaires
distributed to 117 office employees. Data analysis method used
in this research is path analysis. The result of this study showed
that training and development, compensation, performance
appraisal, and organizational commitment have significant
influence toward turnover intention simultaneously and
individually. The way to improve employee retention
recommendation are discussed.
Keywords : Training Development, Compensation, Performance
Appraisal, Organizational Commitment, Turnover Intention
I. INTRODUCTION
Today’s business competition is getting more competitive.
Numerous companies are trying to produce valuable products
and services to its customers. Companies should be able to
predict and satisfy its customer requirements and expectation
in a timely manner. People inside the companies are the one
who give ideas and execute the decision. Therefore, it is
important for company to keep its best people to stay in and
fully committed to the organization.
Revised Manuscript Received on September 15, 2019
Noerlina, Information Systems Department, School of Information
Systems, Bina Nusantara University, Jakarta, Indonesia 11480. Email:
nurlina@binus.edu
Bachtiar H. Simamora, Management Department, BINUS Business
School, Undergraduate Program, Bina Nusantara University, Jakarta,
Indonesia 11480. Email: bsimamora@binus.edu
Idris Gautama So, Management Department, BINUS Business School,
Undergraduate Program, Bina Nusantara University, Jakarta, Indonesia
11480. Email : igautama@binus.edu
Tirta Nugraha Mursitama, International Relations Department, Faculty
of Humanities, Bina Nusantara University, Jakarta, Indonesia 11480. Email:
tmursitama@binus.edu
Ferlyn Angelina,International Relations Department, Faculty of
Humanities, Bina Nusantara University, Jakarta, Indonesia 11480. Email:
tmursitama@binus.edu
Jessie Prasetya, International Relations Department, Faculty of
Humanities, Bina Nusantara University, Jakarta, Indonesia 11480. Email:
tmursitama@binus.edu
Joy Stevani, , International Relations Department, Faculty of
Humanities, Bina Nusantara University, Jakarta, Indonesia 11480. Email:
tmursitama@binus.edu
One of the strategies to cope with other competitors is through
people [1]. The idea of competing through people means the
ability of company to achieve its success by managing its
human capital. Human Resource Management is the process
to acquire, train, appraise, and compensate employees, and
other labor issues such as labor relations, health and safety,
and fairness concerns [2]. Each person has talents, skills,
knowledge and experiences that would be lost if an employee
moves to other companies. In that case, it is costly to replace
with new employee because when someone leaves a job, the
productivity will decrease, and company will also have lost all
the investments, from the cost of hiring, training and
development, and so on. Moreover, this issue will increase
company’s turnover rate that will have some negative impact
on employee in the company. Therefore, it is desirable that
retaining employees is essential to achieve company
competitive advantage.
The way to retain employees or increase employees’ intention
to stay in organization is to decrease employees’ turnover
intention. In explaining factors contributing to employees’
turnover intention, company should consider the
organizational commitment each employee has. Enhancing
organizational commitment will result in higher retention,
increases job motivation and performances [3]. This paper
focus is on the problem faced by company on how to retain
employees at E-Commerce Company in Indonesia since data
shows (Table.1) steady increase in employee turnover from
2012 to 2015. The study is conducted to measure the factors
affecting employees’ turnover intention through the
organizational commitment.
Table 1. Turnover Rate Data
Year Turnover Rate
2012 12%
2013 15%
2014 20%
2015 34%
Source: Indonesia-Investment (2016)
Improving Employee Retention using Path
Analysis At E-Commerce Company in Indonesia
Noerlina, Bachtiar H. Simamora, Idris Gautama So, Tirta Nugraha Mursitama,
Ferlyn Angelina, Jessie Prasetya, Joy Stevani