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Jurnal Bisnis, Ekonomi, Manajemen, dan Kewirausahaan Abnus Publisher

Effect of Compensation and Work Environment on Employee Loyalty via Job Satisfaction in Gondang District

2024-12-31
Published
20-28
Pages
OPEN
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AA
Anggi Amrozi
Universitas Dr. Soetomo, Surabaya
BP
Bambang Raditya Purnomo
Universitas Dr Soetomo, Surabaya
Abstract

Purpose: This study aims to analyze employee loyalty in the Gondang sub-district, Mojokerto City, using compensation and work environment variables as independent variables and job satisfaction as an intervening variable.

Research Methodology: The type of sample used is total sampling with a total population of 70 employees, data collection using questionnaires, and data analysis techniques using Partial Least Square analysis.

Results: Compensation does not significantly affect job satisfaction, but directly influences employee loyalty; work environment affects loyalty indirectly through job satisfaction, while job satisfaction significantly impacts loyalty.

Conclusions: Compensation has a significant effect on employee loyalty, while the work environment influences loyalty only indirectly through job satisfaction. Job satisfaction itself significantly enhances employee loyalty, but neither compensation nor work environment directly affects job satisfaction.

Limitations: This study is limited to 70 employees from a single government office and uses a cross-sectional design, which may restrict generalizability and prevent observing changes over time.

Contributions: The study highlights the mediating role of job satisfaction in translating work environment factors into employee loyalty, offering practical insights for managers to enhance retention and engagement.

Compensation Job Satisfaction Loyalty Partial Least Squares Work Environment
How to Cite
Amrozi, A., & Purnomo, B. R. . (2024). Effect of Compensation and Work Environment on Employee Loyalty via Job Satisfaction in Gondang District. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 4(1), 20-28. https://doi.org/10.52909/jbemk.v4i2.170
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How to Cite

Amrozi, A., & Purnomo, B. R. . (2024). Effect of Compensation and Work Environment on Employee Loyalty via Job Satisfaction in Gondang District. Jurnal Bisnis, Ekonomi, Manajemen, Dan Kewirausahaan , 4(1), 20-28. https://doi.org/10.52909/jbemk.v4i2.170
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