INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 7, ISSUE 4 , APR 2018 ISSN 2277-8616 202 IJSTR©2018 www.ijstr.org Compensation And Turnover Intention In Coal Mining Support Companies In South Kalimantan Daryoto Mulyadi Candra, Sri Wahyu Lely Hana, Deasy Wulandari Abstract: This study aims to determine and to analyze the effect of financial and non-financial compensation on the turnover intention on employees who work in mining company, especially repair and maintenance heavy equipment company, which is located in South Kalimantan. The sample were 60 employees obtained by census sampling technique. The data used was primary data generated from distribution of questionnaires. Hypotheses were tested using multiple linear regression analysis. The results found that financial compensation and non-financial compensation had a negative and significant effect on turnover intention.This study has both theoretical and practical implications. These findings are able to reinforce previous studies on the effects of compensation on turnover intentions. In addition, this research gives input to the management of mining company to maintain financial and nonfinancial aspects in the business of employees as a valuable asset for the company. Index Terms: Financial compensation, nonfinancial compensation, turnover intention, employee, human resource management ——————————  —————————— 1 INTRODUCTION Employee is the most important asset in a company. One of the factors becoming the benchmark for the development of a company is the performance of its employees. The problem which is frequently arises and ultimately hampers the performance of employee is the desire of employees to retire from the company (turnover intention). The high level of turnover intention would be a serious problem for many companies and could even frustrate the company when it became clear that the recruitment process that has obtained qualified staff eventually turned out to be useless because the recruited staff had chosen a job at another company (Toly, 2001). Turnover intention is characterized by various things concerning employee behavior, among others: being lazy at work, increased absenteeism, starting to oppose or protest to superiors, violating the work order, and the lack of seriousness in completing the responsibility (Harnoto, 2002: 2). Some empirical studies have found that dissatisfaction on compensation is a factor that dominates employee turnover intention (Ghafoor et al., 2017; Chen et al., 2014; Cao et al., 2013). Compensation can be interpreted as the overall remuneration received by employees for performing their work, and then the company provides it in the form of money, allowances or awards that aims to motivate employees to participate in the growth and development activities of the company and also build employee commitment (Chen & Hsieh, 2006). The given compensation system should be fair and reasonable for employees. Giving compensation felt by unfair employees hence many things that are not expected by the company will happen, such as increasing the movement of labor (turnover intention). Compensation can be in form of financial and non-financial remuneration. Financial compensation consists of two forms: direct and indirect. Direct financial compensation is payments to employees that can be in the form of wages, salaries, bonuses and commissions. While the indirect financial compensation includes all moneys paid out to an employee that are not included in direct compensation. This form of compensation is often understood as the portion of an employee’s contract that covers items such as temporary leaves of absence, benefits and retirement plans. Non-financial rewards can be in form of team leadership opportunities, praise, self-esteem, and recognition of achievements that employees have made. A good compensation system can motivate employees, thereby reducing the intention of looking for other jobs and turnover (Wanous, 1974; Shi, 1991) Zeffane (1994) argues that dissatisfaction on compensation will lead to negative employee behavior such as absenteeism and lethargy. These indications often grouped in resignation behavior or also referred to as the desire to stop working. However, Chepchumba and Kimutai (2017) found that the basic components of compensation, ie basic salaries and commissions, did not significantly influence turnover intention. This result gap provides an opportunity for researcher to reexamine the effect of financial and nonfinancial compensation but on different observational objects. This study aims to examine the effect of financial and nonfinancial compensation on employee turnover intention partially and simultaneously. The research was conducted in three mining support companies which are engaged in repair and maintenance service of heavy equipment of coal mining in South Kalimantan Province, Indonesia. The average age of companies studied are five years old. Due to their young age and they still in the development stage, they need strategic efforts in treating employees as a valuable human capital for the development of a better company. Therefore, efforts in detecting the presence of turnover intention on employees and whether compensation influences it are needed to be considered. 2 LITERATURE REVIEW The relationship between financial compensation on turnover intention Job dissatisfaction has often been identified as an important reason that causes individuals to leave their jobs. Empirically it can be concluded that job dissatisfaction has a direct influence on the formation of outgoing desire. Dissatisfaction on ___________________________________  Daryoto Mulyadi is a master student at Faculty of Economics and Business Universitas Jember, E-mail: daryoto.candra@solid-unindo.com  Sri Wahyu Lely is a lecturer in Faculty of Economics and Business Universitas Jember, E-mail: lelyhana@gmail.com  Sri Wahyu Lely is a lecturer in Faculty of Economics and Business Universitas Jember, E-mail: deasywulandarifeuj@gmail.com