The Effect of Compensation and Work Discipline on Employee Performance with Turnover Intention as Intervening Variable (A Study at it Consulting Management Service Company Employees)


Authors : Atik Rachmawati; Dr. Parwoto, ST. MM

Volume/Issue : Volume 7 - 2022, Issue 2 - February

Google Scholar : http://bitly.ws/gu88

Scribd : https://bit.ly/3LQzw07

DOI : https://doi.org/10.5281/zenodo.6235116

The challenge of the globalization era is that the success of a company in achieving its vision and mission does not only depend on resource facilities such as technology, facilities, and infrastructure, but on the performance of company employees. Employees have a vital role in building and developing the company, so there needs to be an appropriate appreciation given by the company to avoid a desire to leave the company. This type of research is causal quantitative. This study aims to analyze the effect of compensation and work discipline on employee performance mediated by turnover intention in IT Consulting Management Service Company Employees. The number of samples in this study comprises of 100 respondents using a census sample which is part of the non-probability model sampling technique. The data analysis method used is Structural Equation Modeling Partial Least Square (SEM-PLS). The results of the study show that turnover intention partially mediates the indirect effect of compensation and work discipline on employee performance. Turnover Intention has a positive effect on employee performance. Compensation and work discipline have a positive and significant effect on employee performance with a contribution of 77.1%. Compensation is the dominant factor, especially the giving of bonuses that affects employee performance. Compensation and work discipline have a significant effect on turnover intention with a contribution of 73.3%. Direct compensation, especially the provision of bonuses, is the dominant factor that affects turnover intention.

Keywords : Compensation, Work Discipline, Turnover Intention, Employee Performance

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