The Implications of Remuneration, Procedural Justice Principles, and Work Environment Factors on Employee Retention Rate
Keywords:
remuneration, procedural justice, work environment, employee retentionAbstract
Investigating the determinants that shape employee retention based on remuneration, procedural justice, and work environment is the goal of this research. Quantitative research methodology was adopted in this study. The sample size consisted of 120 respondents who were randomly selected from one of the manufacturing companies in the Surabaya area. An online questionnaire survey was used to collect quantitative data. Multiple linear regression is a technique for analyzing data where there is a program that makes it easy to find out the results. The program was SPSS and SPSS 26 was chosen. Finally, our research contributes to a better understanding of company efforts to retain and motivate employees to stay with the organization, thereby reducing turnover and ensuring operational sustainability and better productivity based on remuneration, procedural justice, and work environment. We also conclude that the focus of this research is on the determinants that predict employee retention rather than simply identifying employees who are likely to stay or leave.
References
Adeoye, A. O., & Z. Fields. (2014). Compensation Management and Employee Job Satisfaction: A case of Nigeria. Journal of Social Sciences, 41(3), 345-352.
Ampomah, P., & S.K. Cudjor. (2015). The Effect of Employee Turnover on Organizations (case study of electricity company of Ghana, Cape Coast). Asian journal of Social Sciences and Management studies, 2(1), 21-24.
Anjanarko, T.S. & Jahroni. (2022). The Effect of Workload and Compensation on Employee Productivity, International Journal of Service Science, Management, Engineering, and Technology, 1(2), 51 – 55.
Arifin, S. (2021). The Effect of Employability, and Organizational Climate on Employee Performance, Studi Ilmu Sosial Indonesia, 1(2), 33-42.
Azeez, S. (2017). Human Resource Management Practices and Employee Retention: A review of literature. Journal of Economics, Management and Trade, 18(2), 1-10.
Bangsu, M. & Dahar. (2023). Implementation of Labor Law: Improving Lecturer Performance Through The Role of Leadership and Compensation, International Journal of Service Science, Management, Engineering, and Technology, 3(1), 26–31.
Bhatnagar, A., & A.S. George. (2016). Motivating Health Workers up to a Limit: partial effects of performance-based financing on working environments in Nigeria. Health Policy and Planning, 31(7), 868-877.
Bryant, P. C., & D.G. Allen. (2013). Compensation, Benefits and Employee Turnover: HR strategies for retaining top talent. Compensation & Benefits Review, 45(3), 171-175.
Chênevert, D. (2009). Qu’est-ce que la rémunération stratégique?. Le portail de l’ordre des Conseillers en Ressources Humaines Agréés, 12(5), 1-11.
Dahar, D. (2022). The Influence of Compensation and Work Environment on the Performance of Sub-District Employees, International Journal of Service Science, Management, Engineering, and Technology, 1(1), 28 – 32.
Darmawan, D., et al. (2020). The Quality of Human Resources, Job Performance and Employee Loyalty, International Journal of Psychosocial Rehabilitation, 24(3), 2580-2592.
Djazilan, M. S. & D. Darmawan. (2020). Effect of Compensation, Job Demand, Job Characteristics on Employee Retention, Journal of Science, Technology and Society, 1(2), 1-8.
Earle, H. A. (2003). Building a Workplace of Choice: Using the work environment to attract and retain top talent. Journal of Facilities Management, 2(3), 244-257.
Fatimah, S., A.K. Wahyudi, E. Retnowati, D. Darmawan, R. Mardikaningsih & M. Kemarauwana. (2018). The Importance of Scale in Attention Organizations to Issues, Academy of Management Review, 43(2), 217–241.
Gani, A. (2022). The Influence of Perceptions of Organizational Support and Interpersonal Abilities on Employee Achievement Motivation, International Journal of Service Science, Management, Engineering, and Technology, 2(3), 1 – 4.
Greenberg, J., & T.R. Tyler. (1987). Why Procedural Justice in Organizations?. Social Justice Research, 1, 127-142.
Handayani, S. & M. Khairi. (2022). Study on the Role of Quality of Work Life and Leadership on Employee Performance, International Journal of Service Science, Management, Engineering, and Technology, 1(1), 24 – 27.
Hariani, M. (2023). Unleasing Organizational Commitment: Unravelling the Impact of Contract Worker Competence, Leadership, and Organizational Culture, International Journal of Service Science, Management, Engineering, and Technology, 3(1), 11–16.
Horwitz, F. M., C.T. Heng, & H.A. Quazi. (2003). Finders, keepers? Attracting, motivating and retaining knowledge workers. Human resource management journal, 13(4), 23-44.
Hughes, J. C., & E. Rog. (2008). Talent Management a Strategy to Improving Employee Retention, Recruitment and Engagement. International Journal of Contemporary Hospitality Management, 20(7), 743-757.
Irfan, M. & M. Hariani. (2022). The Effect of Work Environment and Workload on Employee Satisfaction, Studi Ilmu Sosial Indonesia, 2(2), 11-18.
Irshad, M., & F. Afridi. (2007). Factors Affecting Employees Retention: Evidence from literature. Abasyn Journal of Social Sciences, 4(2), 307-339.
Jamaluddin, A., et al. (2013). Human Resource Management Implications of Technology-based Organizational Forms. Academy of Management Journal, 23(2), 83-94.
Kaliyamoorthy, S., A.H. Al-Shibami, M. Nusari, & A. Ghosh. (2018). Effect of Motivation on Employee Retention in Malaysian Hotels. International Journal of Management and Human Science (IJMHS), 2(1), 37-42.
Kim, W., & J. Park. (2017). Examining Structural Relationships Between Work Engagement, Organizational Procedural Justice, Knowledge Sharing, and Innovative Work Behavior for Sustainable Organizations. Sustainability, 9(2), 205.
Lind, E.A, & T. R. Tyler. (1988). The Social Psychology of Procedural Justice. New York: Plenum Press,
Mardikaningsih, R. & D. Darmawan. (2022). The Influence of Working Conditions and Employee Motivation on Job Performance, Studi Ilmu Sosial Indonesia, 2(2), 1-10.
Miller, N., A. Erickson, & B. Yust. (2001). Sense of Place in the Workplace: The relationship between personal objects and job satisfaction and motivation. Journal of Interior Design, 27(1), 35-44.
Murphy, K., & T. R. Tyler. (2008). Procedural Justice and Compliance Behaviour: The mediating role of emotions. European journal of social psychology, 38(4), 652-668.
Naris, N. S., & I.W. Ukpere. (2010). Developing a retention strategy for qualified staff at the Polytechnic of Namibia. African Journal of Business Management, 4(6), 1078-1084.
Putra, A.R. (2022). Improving Employee Performance through the Implementation of Total Quality Management and the Effectiveness of the Remuneration System, International Journal of Service Science, Management, Engineering, and Technology, 2(2), 1 – 5.
Putra, A. R., T. S. Anjanarko, D. Darmawan, J. Jahroni, S. Arifin & M. Munir. (2022). The Role of Remuneration, Leadership Behaviour, and Working Conditions on Job Satisfaction, Studi Ilmu Sosial Indonesia, 2(1), 61-74.
Raikes, L., & J.F. Vernier. (2004). Rewarding and Retaining Key Talent: Are you ready for the recovery. Stamford, Connecticut, United States: Tower Perrin.
Rhule, K. J. (2004). The Effects of the Manager's Behavior on the Retention of High-potential employees from different generations. Duquesne University.
Samuel, M. O., & C. Chipunza. (2009). Employee Retention and Turnover: Using motivational variables as a panacea. African journal of business management, 3(9), 410-415.,
Shakeel, N., & S. But. (2015). Factors Influencing Employee Retention: An integrated perspective. Journal of Resources development and Management, 6(1), 32-49.
Shaw, J. D., & N. Gupta. (2001). Pay Fairness and Employee Outcomes: Exacerbation and attenuation effects of financial need. Journal of Occupational and Organizational Psychology, 74(3), 299-320.
Shoaib, M., A. Noor, S.R. Tirmizi, & S. Bashir. (2009). Determinants of Employee Retention in Telecom Sector of Pakistan. Proceedings of the 2nd CBRC, Lahore, Pakistan, 14(1), 1-18.
Silva, M. R. A., J.C. de Amorim Carvalho, & A.L. Dias. (2019). Determinants of employee retention: A study of reality in Brazil. In Strategy and superior performance of micro and small businesses in volatile economies, 44-56.
Spreitzer, G. M. (1995). Psychological Empowerment in the Workplace: Dimensions, measurement, and validation. Academy of management Journal, 38(5), 1442-1465.
Tadesse, W. M. (2018). Factors Affecting Employee Retention in Ethiopian public organizations. Journal of Strategic Human Resource Management, 7(3), 22-32.
Tanius, E., L.S. Pheng, C.M.M. Kasim, & A. Yulia. (2017). The Relationship Between Communication Satisfaction and Procedural Justice with Employee Retention. 20(29), 30-39.
Wells, M., & L. Thelen. (2002). What Does Your Workspace Say About You? The influence of personality, status, and workspace on personalization. Environment and Behavior, 34(3), 300-321.
Werdati, F., D. Darmawan & N. R. Solihah. (2020). The Role of Remuneration Contribution and Social Support in Organizational Life to Build Work Engagement, Journal of Islamic Economics Perspectives, 1(2), 20-32.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Muhammad Bangsu, Didit Darmawan, Budi Handayani
This work is licensed under a Creative Commons Attribution 4.0 International License.
Most read articles by the same author(s)
- Ella Anastasya Sinambela, Didit Darmawan, Bayar Gardi, Frederika Josephine Malaihollo , Cost Control Through Break Even Point Analysis , International Journal of Service Science, Management, Engineering, and Technology: Vol. 1 No. 3 (2022): International Journal of Service Science, Management, Engineering, and Technology (June)
- Muhammad Sukron Djazilan, Didit Darmawan, Entrepreneurship Education and Family Support: The Determinants That Appear Entrepreneurship Interest for Students , International Journal of Service Science, Management, Engineering, and Technology: Vol. 1 No. 2 (2022): International Journal of Service Science, Management, Engineering, and Technology (April)
- Ella Anastasya Sinambela, Didit Darmawan, Bayar Gardi, Production Cost Calculation Analysis Using Variable Costing Method , International Journal of Service Science, Management, Engineering, and Technology: Vol. 1 No. 2 (2022): International Journal of Service Science, Management, Engineering, and Technology (April)
- Louise Elizabeth Radjawane, Didit Darmawan, Construction Project Worker Satisfaction Reviewing from The Role of The Work Environment and Leadership , International Journal of Service Science, Management, Engineering, and Technology: Vol. 1 No. 3 (2022): International Journal of Service Science, Management, Engineering, and Technology (June)
- Arif Rachman Putra, Didit Darmawan, Competitive Advantage of MSMEs in Terms of Technology Orientation and Entrepreneurship Competence , International Journal of Service Science, Management, Engineering, and Technology: Vol. 2 No. 1 (2022): International Journal of Service Science, Management, Engineering, and Technology (August)
- M. Syaiful Anwar, Arief Setiawan, Mochamad Saleh, Fadllah Fara Diba, Bambang Triono, Didit Darmawan, Fabric Expansion Joint Roller Machine Manufacturing Planning , International Journal of Service Science, Management, Engineering, and Technology: Vol. 1 No. 1 (2022): International Journal of Service Science, Management, Engineering, and Technology (February)
- Rahayu Mardikaningsih, Didit Darmawan, Analysis of Financial Literacy and Risk Tolerance on Student Decisions to Invest , International Journal of Service Science, Management, Engineering, and Technology: Vol. 3 No. 2 (2023): International Journal of Service Science, Management, Engineering, and Technology (April)
- Didit Darmawan, The Effect Of Trust and Saving Experience on Loyalty Through Satisfaction As An Intervening Variable (Case Study of Sharia Bank Customers in Surabaya City) , International Journal of Service Science, Management, Engineering, and Technology: Vol. 2 No. 2 (2022): International Journal of Service Science, Management, Engineering, and Technology (October)
- Rommy Hardyansah, Jahroni Jahroni, Didit Darmawan, Samsul Arifin, Dharma Setiawan Negara , Student Interest in Becoming Customers of Islamic Banks in Terms of Religiosity and Product Knowledge , International Journal of Service Science, Management, Engineering, and Technology: Vol. 4 No. 1 (2023): International Journal of Service Science, Management, Engineering, and Technology (August)
- Abdun Nafi’, Fahmy Riyadin, Didit Darmawan, Experimental Study of 3 KW Generator Damage Types Based on Vibration Signals , International Journal of Service Science, Management, Engineering, and Technology: Vol. 3 No. 2 (2023): International Journal of Service Science, Management, Engineering, and Technology (April)