The Impact of Job Satisfaction and Transformational Leadership on Turnover Intention of Front-End Employees at PT.XYZ

Abstract

In an era of increasingly fierce and dynamic business competition, a strong drive and effort are needed to achieve success to become a winner in business competition. In the process, several factors cannot be separated, there is the human resource factor. Companies must improve the quality of human resources but also maintains the quantity of human resources supply to maintain the stability of company’s performance. One of the obstacles that a company experiences difficulties or obstacles in the process of running its business is the high turnover rate within a company. Therefore, companies need to think about strategies to retain employees who have high-quality of performance and know what factors influence employees' intentions to leave the company. The purpose of this study is to determine the description of Job Satisfaction, description of Transformational Leadership and the description of Turnover Intention in Front End Employees at PT. XYZ, as well as a description of the effect of Job Satisfaction on Turnover Intention and a description of the effect of Transformational Leadership on Turnover Intention in Front End employees at PT. XYZ. in Indonesia. This study employed a quantitative research method with a causal approach, focusing on the population of permanent and contract Front-End employees at PT. XYZ, who had at least three months of service. Data collection was carried out using a questionnaire consisting of 41 questions related to the variables under investigation. The sample size was determined using Slovin's formula, resulting in 178 respondents, and the sample selection was done using a Proportionate Stratified Random Sampling technique. Data analysis was performed using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) method, utilizing SmartPLS software version 3.2.8. The results of hypothesis testing state that Job satisfaction (-0.246) and Transformational Leadership (-0.562) have a significant influence and have a negative effect on Turnover Intention. This highlights the importance of conducting a thorough review of company policies and strategies related to Job Satisfaction and the implementation of Transformational Leadership to reduce Turnover Intention of Front-End employees at PT.XYZ.