�Volume 4, No. 5 Mei 2023
p-ISSN 2722-7782 | e-ISSN 2722-5356
DOI: https://doi.org/
THE EFFECT OF COMPENSATION, LEADERSHIP STYLE,
WORK ENVIRONMENT ON EMPLOYEE LOYALTY OF PT ELDORA ENTERTAINMENT
Putri Aulia Mandhasari, Ahmad Cik, Melati,
Kumba Digdowiseiso*
Faculty of
Economics and Business, National University, Jakarta
Email : [email protected],
[email protected], [email protected], [email protected]*
Abstract:
This study aims to analyze the effect of compensation, leadership style,
and work environment on employee loyalty at PT Eldora Entertainment. In
addition, this study aims to provide information and input to Human Resources
Managers to provide additional insight about the importance of good management
so that it will improve the performance and loyalty of PT Eldora Entertainment
employees. The data analysis technique uses multiple linear regression analysis
and uses the SPSS version 25 program. The data in this study used primary data
in the form of questionnaires distributed to employees of P.T Eldora
Entertainment. The data analysis technique used is a quantitative method where
the results are expressed in numbers. The results obtained that compensation
can really make employees more enthusiastic to work and also increase their
work loyalty. Leadership style has a positive and significant effect on work
loyalty because the work environment has a positive and significant effect on
employee loyalty because a comfortable workplace will make them feel calm while
working.
Keywords: Compensation, Leadership Style, Work Environment, Employee Loyalty.
INTRODUCTION
In simple terms, what is meant by
Human Resources is power sourced from humans. Power sourced from humans can
also be called power or power (energy or power). Power, power, capability, or
steam power, wind power, solar power. If used on humans with the term manpower
in Indonesia, it is interpreted as "labor" not human labor as in the
word Ministry of Manpower, not the Ministry of Human Labor.
Human resource management is a
management function related to recruitment, placement, training and development
of organizational members. Human resource management can be defined as the
process and effort to recruit, develop, motivate and evaluate the overall human
resources needed by the company in achieving its goals. This understanding
includes starting from choosing anyone who has the qualifications and deserves
to occupy a position in the company as required by the company to how this
qualification can be maintained and even improved and developed over time.
HRM (Human Resource Management) is the
science and art of managing the relationship and role of the workforce
efficiently and effectively so as to achieve the common goals of the company,
employees and society. There are several reasons why human resource management
is placed in the organizing section. (1) the activities carried out in HR
management are closely related to the activities of allocating resources owned
by the organization (in this case human resources) into parts of the
organization.
If this is the case, then HR
management is included as part of the organizing function because one of the
essentials of the organizing function is the allocation of all organizational
resources into a certain organizational structure that is formed. (2) The
directing and executing function will only be able to be carried out if the
allocation of human resources has been carried out in the organizing function.
Who is directed and motivated, for example, if in the function of organizing HR
placement (as material of HR management) has not been carried out.
(3) although motivating, directing
activities (which are also another part of HR management) are included in the
leading function, the first key point before HR is directed and motivated is
when HR is determined and placed where decisive and placing activities are more
likely to be within the organizing function. (4) Because social sciences,
especially management sciences cannot be separated from each other and are
interrelated.
Employees (labor) are one of the
production factors that directly or indirectly carry out production activities.
Factors of labor production are also categorized as original factors of
production. Employees are the most important assets that have a huge influence
on the success of a company. Without sophisticated machines, companies can
continue to operate manually, but without employees, companies will not be able
to run at all.
In connection with that, an
organization must be able to motivate its employees so that these employees can
contribute their energy and mind and also form their loyalty in doing work in
totality in order to support the achievement of company goals. Many things
affect employee loyalty, including compensation, leadership style, and work
environment.
Nitisemito
(2004: 135) states that loyalty is an employee mental attitude shown to the
existence of the company so that employees will remain in the company, even
though the company is back and forth. According to Fajar and Heru (2010: 154)
Compensation is all extrinsic rewards obtained by employees in the form of
wages, incentives, and several benefits.
According to Davis, (2005: 134)
leadership style is the overall pattern of action of the leader as perceived by
his employees, leadership is a process to influence others, to understand and
agree with what needs to be done and how the task is done effectively, as well
as a process to facilitate individual and collective efforts to achieve common
goals. According to Sarwoto (2001: 31) the work
environment is a place where an employee who works includes physical and
non-physical environments that can affect morale in carrying out work.
PT Eldora Entertainment is a company
engaged in F&B & B, this company was formed
since 2008. PT Eldora Entertainment has several restaurant branches, namely:
Sleepless Owls Coffee, Smarapura Resto, Albero, the
number of employees of PT Eldora Entertainment as many as 74 employees 47 men
and 27 women. And what will be the object of the author's research is all
employees at PT Eldora Entertainment.
In previous research explaining
compensation for employee loyalty:
1. (Rahmadana
Safitri, 2015) entitled "The Effect of
Compensation on Employee Loyalty of Pt. Putera Lautan
Kumala Lines Samarinda" the results of this
analysis stated that the proposed research hypothesis was accepted because
compensation affects loyalty. Regarding the compensation given to employees, it
is recommended to the company that the measurement of compensation can also be
seen from the achievement of employees, and can also add forms of compensation
such as personal protection in the form of pension funds, payments when not
working such as when attending training and leave, and increasing salaries to
increase employee loyalty.
2. (Agustina
Heryati S.Kom., MM, 2016) entitled "The Effect
of Compensation and Workload on Employee Loyalty in the Operations Department
of PT. Pupuk Sriwidjaja Palembang" The results
of the study and hypothesis show that simultaneously and partially compensation
and workload significantly affect employee performance. The leaders of the
Operations Department, must pay attention to compensation and workload for
optimal results in achieving organizational goals.
3. (Chasyanah
Lukianingtyas, Budi Nurhardjo,
Susanti Prasetyaningtyas, 2015) entitled "The
Influence of Transformational and Transactional Leadership Style on
Administrative Employee Loyalty at Wijaya Kusuma Hospital, Lumajang
Regency" The results showed that transformational leadership style had a
positive and significant effect on the loyalty of administrative employees of
Wijaya Kusuma Lumajang Hospital, transactional
leadership style had a positive effect and significant to the loyalty of
administrative employees of Wijaya Kusuma Lumajang
Hospital.
Based on the description in the
background of the problem, the problem that the author will raise can be
formulated as follows: 1) Does compensation have a positive and significant
effect on the loyalty of PT Eldora Entertainment employees? 2) Does leadership
style have a positive and significant effect on employee loyalty of PT Eldora
Entertainment? 3) Does the work environment have a positive and significant
effect on the loyalty of PT Eldora Entertainment employees?
The purpose of the study was to
analyze the influence of leadership style on employee loyalty of PT Eldora
Entertainment, to analyze the effect of compensation on employee loyalty of PT
Eldora Entertainment, to analyze the influence of the work environment on
employee loyalty of PT Eldora Entertainment.�
For academics, this research is expected to add knowledge and insight
related to the importance of compensation, leadership style, and also the work
environment on employee loyalty.
RESEARCH METHODS
In this
study, the object of research is employee loyalty. The object of research is
selected based on data, samples, and information needed relevant to the subject
matter that is the object of research. This research was conducted at PT ELDORA
ENTERTAIMENT Jl. Tebet Raya No. 58, RT.2/RW.4, Tebet Timur, Tebet District,
South Jakarta City. The source of data to be collected in this study is
quantitative data sourced from PT. Eldora Entertainment.
The method
used to collect data by providing questions to respondents with questionnaire
guidance containing questions related to the influence of compensation,
leadership style, and work environment on employee loyalty. The type of data that
will be used in this study is Primary Data, which is research data obtained
from original sources without intermediaries. Where primary data is collected
by survey method by distributing questionnaires through google form using the
Likert Scale filled out by respondents of PT. Eldora Entertainment.
The
population in this study is the area that the researcher wants to research. As
according to Sugiyono (2008: 80): "Population is
a generalized area consisting of objects or subjects that have certain
qualities and characteristics determined by researchers to be studied and then
drawn conclusions." The population used in this study was employees of PT
Eldora Entertainment which amounted to 74 employees.
Samples are
part of the number and characteristics possessed by the population (Sugiyono, 2008: 73). The sampling technique in this study
uses non-probability sampling or axial sampling. Researchers collected data
from the sampling units encountered. The sample used in this study was
employees of PT Eldora Entertainment.
The data
collection technique in this study is by sending and/or distributing
questionnaires to employees of PT Eldora Entertainment Jl. Tebet Raya No. 58,
RT.2/RW.4, Tebet Timur, Tebet District, South Jakarta City. The questionnaire
is given the contents of a list of questions to be answered by respondents.
Furthermore, respondents will be asked for answers without coercion and in
accordance with respondents' opinions, then the data is processed using the
SPSS application program (software) version 25.
The
measurement scale in this study uses the Likert scale, Sugiyono
(2014: 72) states that the Likert scale is used to measure the attitudes,
opinions, and perceptions of a person or group of people about social
phenomena. This questionnaire is prepared with a 5-level Likert scale
consisting of strongly agree, agree, neutral, disagree, and strongly agree.
RESULTS AND DISCUSSION
A. Complete Results of Research
Estimates
1. Descriptive Analysis Method
The results of
the descriptive statistical test are to determine the average value of the
total mean and the total overall mean for each variable. The independent
variables are Compensation (X1), Leadership Style (X2), and Work Environment
(X3), as well as the dependent variable Employee Loyalty (Y), each of which is
a different question. Data analysis of these variables is obtained from the
results of questionnaires that have been distributed, for more details can be
seen as follows:
Descriptive
Analysis of Compensation (X1). The average value of each indicator in the
Compensation variable (X1). Based on table 4.5, the average result of the total
mean of Compensation (X1) as a whole is 3.715. Which means that some
respondents expressed agreement. The highest average mean value is found in the
facility indicator with a value of 4.27. This is proof that in general
employees of PT. Eldora Entertainment states that facility indicators are
influential. And the lowest mean value is found in the salary indicator with a
value of 3.18.
B. Descriptive Analysis of Leadership
Style (X2)
The average
result of the total mean of leadership style (X2) was obtained as a whole
3.648. Which means that some respondents expressed agreement. The highest
average mean value is found in the trait indicator with a value of 3.91. This
is proof that in general employees of PT. Eldora Entertainment states that
trait indicators are influential. And the lowest mean value is found in the
habit indicator (giving demands) with a value of 3.14.
C. Work Environment Descriptive
Analysis (X3)
The average
result of the total Environmental mean (X3) as a whole was 3.752. Which means
that some respondents expressed agreement. The highest average mean value is
found in the relationship indicator between colleagues with a value of 3.91.
This is proof that in general employees of PT. Eldora Entertainment states that
indicators of relationships between colleagues are influential. And the lowest
mean value is found in the facility indicator with a value of 3.43.
D. Descriptive Analysis of employee
loyalty (Y)
The average
result of the total mean of the Employee Performance Environment (Y) as a whole
was 3.876. Which means that some respondents expressed agreement. The highest
average mean value is found in the employee favorability indicator with a value
of 3.99. This is proof that in general employees of PT. Eldora Entertainment
states that the Cooperation Capability indicator is influential. And the lowest
mean value is found in the responsibility indicator with a value of 3.72.
2. Test Instruments
a. Uji Validitas
Validity tests
are used to test accuracy, measuring devices can reveal whether or not a
questionnaire is valid. The validity test is calculated by comparing the value
of rcalculate (correlated item-total correlation)
with r table, if rcalculate > r table (at a
significant rate of 0.05) then the statement is declared valid All questions
totaling 25 items consist of 7 points for compensation, 7 points for leadership
style, 5 points for Work Environment, and 6 points for employee loyalty. This
is determined using a 5% rcalculation, where n = 74,
then obtained rtable (0.05) = 0.2287 and overall the statement used in this study is rcalculated>rtable. From
calculations using SPSS 25, test data on 74 respondents stated that all
question items 1-25 for the variables Compensation (XI), Motivation (X2), Work
Environment (X3), and Employee loyalty (Y) were valid. This can be seen from
the calculation results with the table above, that r count > r table
(0.2287).
3. Uji Reliability
Reliability tests
are used to determine whether the measuring instrument will get a consistent
precise measurement if the measurement is repeated again. The method used in
this study is Cronbach Alpha. The reliability test is a continuation of the
validity test, where the question items that enter the test are valid items or
questions only. To determine whether an instrument is reliable or not uses the
0.7 Limitation. From table 4.10 above, it can be seen that the Cronbach Alpha
value for the four variables above is 0.7. Because these values are greater
than 0.7, the value of the measuring instrument is reliable or has met the
reliability requirements.
4. Classical Assumption Test
a. Normality Test
One Simple
Kolmogorov-Sminorv test or normality test is used to
determine the distribution of data, whether it follows a normal, passionate, or
uniform distribution. In this case to find out whether the independent variable
and the dependent variable are both normally distributed or not. The
distribution data is said to be normal if the level of significance is >
0.05 and if the opposite is significant <0.05 then it is said to be
abnormal. Based on the results of the normality test referring to table 4.11 it
can be seen that the value of Asymp. Sig (2-Tailed)
of 0.001 is greater than 0.05 (0.001 > 0.05), so it can be concluded that
the data on the above research variables are normally distributed.
b. Multicolonicity
Test
The multicolonierity test is used to determine whether or not
there is a deviation from the classical assumption of multicolonierity,
namely the existence of a linear relationship or variance inflation factor
(VIF) value, if the Tolerance value > 0.10 or VIF < 10, then it can be
said that multicolonicity does not occur in the
processed model. Based on the results of the multicollinearity test referring
to table 4.13, a VIF was obtained for the Compensation variable (X1) of 4.664.
leadership style (X2) 4,476. Working Environment (X3) 2,244. While the
Compensation Tolerance (X1) value is 0.214. Leadership style (X2) 0.223. Work
Environment (X3) of 0.446. Of the three VIF values of the three variables are
less than 10.0 and the Tolerance value is more than 0.1 which means that the
regression model does not occur multiconolinearity.
c. Heteroscedasticity Test
The
heteroscedasticity test is performed to test whether in a regression model,
there is an inequality of variance from residual from one observation to
another. A good regression model is one that does not occur heteroscedasticity.
In this study, it was carried out with glacier tests. If the Glacier Test value
seen from the Sig value is more than 0.05 then there are no symptoms of
heteroscedasticity, and if the Sig number is below 0.05 then symptoms of
heteroscedasticity occur. Based on table 4.13, it can be explained that the
heteroscedasticity test with the glacier method obtained a significant value
greater than 0.05, so it can be concluded that there is no heteroscedasticity
problem in this research test. The heteroscedasticity test with the glacier method
obtained a significant value greater than 0.05, so it can be concluded that
there is no heteroscedasticity problem in this research test.
5. Inferential Analysis
a. Double Linear Regression Analysis
This analysis is
used to determine the influence of the independent variable on the dependent
variable. In this case, the model is to determine how much influence
Compensation (X1), leadership style (X2), and Work Environment (X3), have on
employee loyalty (Y). The multiple linear regression equation is obtained as
follows:
KK = 0,410(K) +
0,207 (GK) + 0,354 (LK)
Information:
Y = Employee
loyalty variable (LK) X1 = Compensation
X2 = Leadership
style X3 = Work Environment (LK)
The regression
equation shows that the constant is 0.091 and it can be explained that the
constant is 0.091, which states that if the Compensation (X1), leadership style
(X2), Work Environment (X3) values are constant (unchanged), then the Employee
loyalty score is 0.091 with a standard error of 1.493.
From the results
of the multiple linear regression equation, each independent variable can be
interpreted as having an effect on employee performance as follows:
(1) The
Compensation variable has a regression coefficient of 0.410 meaning that if the
Compensation increases by one point, then Employee Performance will increase by
0.410 or 41.0% with other independent variables being constant. While at the
sign of a positive number of 0.410, it means that if the compensation is
getting better, then employee loyalty will also increase.
(2) The
leadership style variable has a regression coefficient of 0.207 meaning that if
the leadership style increases by one point, then employee loyalty will
increase by 0.207 or 20.7% with other independent variables being constant.
While at the positive number sign of 0.207, it means that if the leadership
style is getting better, then employee loyalty will also increase.
(3) The Work
Environment variable has a regression coefficient of 0.354 meaning that if the
Work Environment increases by one point, then Employee Performance will
increase by 0.354 or 35.4% with other independent variables the value is
constant. Meanwhile, at the positive number sign of 0.354, it means that if the
Work Environment is getting better, then employee loyalty will also increase.
6. Test Model Eligibility
a. Test F
Test F is used to
test the significance of the influence of independent variables, namely
compensation, leadership style, and work environment on the dependent variable,
namely employee loyalty through the ANOVA test (Test F). Based on the results
of Test F in table 4.15, it can be explained that the value of Fcalculate is 93.748. The value of Ftabel
is obtained from the value of the free degree (df)
Residual (remainder) which is 70 as df denominator
and df Regression (treatment) which is 3 as df numerator with a significant level of 5% so that Ftabel (α = 5%) is obtained which is 2.74. Since the
value of Fcalculate is greater than Ftable (93.748 > 2.69) it can be concluded that Ho is
rejected and Ha is accepted. So together the variables Compensation (X1),
Leadership Style (X2), and Work Environment (X3) are significant explanatory
variables for employee loyalty (Y) at PT. EldoraEntertainment.
So
it can be said, that in this study the model is said to be feasible to predict
the dependent variable. So the model is feasible to
use in this study based on the Sig value obtained, that all independent
variables can explain any changes in the value of the dependent variable
because it has a significant influence.
b. Test Coefficient of Determination
(R2)
The Coefficient
of Determination (R2) is a measure to determine how big the relationship
between variables and how much influence the independent variable studied has
on the dependent variable. The value of the coefficient of determination (R2)
of 0.792 was obtained, which means that the variable level of employee loyalty
is influenced by compensation, leadership style, and work environment by 79.2%,
while the remaining 20.8% is influenced by other factors outside the study.
7. Hypothesis Testing (Test t)
The t test, which
is a partial regression coefficient, is used to determine whether partially
each independent variable has a positive and significant effect on the
dependent variable. To test the effect of the independent variable on the
dependent variable, a significant level of 0.05 was used with the following
criteria:
(1) If the tcount
> ttable and sig < 0.05, then Ho is rejected
and Ha is accepted, meaning that Compensation, leadership style, and Work
Environment have a positive and significant effect on employee loyalty.
(2) If the tcount
< ttable and sig > 0.05 then Ho is accepted,
meaning that Compensation, leadership style, and Work Environment do not have a
positive and significant effect on employee loyalty.
Based on the
results of the t test in table 4.16 above, it can be seen that the calculated
value of the Compensation variable is 3.557 with a significant level of 0.001.
Because tcount > ttable
(3.557 > 1.9944) and its significance value < 0.05 (0.001 < 0.05) then
Ho is rejected and Ha is accepted, meaning that Compensation has a positive and
significant effect on employee loyalty. This means that Compensation (H1) is
proven to be acceptable because it has a positive and significant effect on
employee loyalty.
For a leadership
style count of 2.835 with a significant level of 0.041. Because tcount > ttable (2.835 >
1.9944) and its significance value < 0.05 (0.041 < 0.05) then Ho is
rejected and Ha is accepted, meaning that leadership style has a positive and
significant effect on employee loyalty. This means that the leadership style
(H1) is proven to be acceptable because it has a positive and significant
effect on employee loyalty.
For tcalculate Work Environment of 4.433 with a significant
level of 0.000, Because tcalculate > ttable (4.433 > 1.9944) and its significance value <
0.05 (0.000 < 0.05) then Ho is rejected and Ha is accepted, meaning that the
Work Environment has a positive and significant effect on employee performance.
This means that the Work Environment (H1) is proven to be acceptable because it
has a positive and significant effect on employee performance.
E. The Effect of Compensation on
Employee Loyalty
Based on the
results of research that has been conducted using the SPSS 25 program states
that compensation has a positive and significant effect on the performance of
PT. Eldora Entertainment. Based on the results of the questionnaire
distribution at PT. Eldora Entertainment Most respondents' opinions agree,
which means that compensation has an effect on employee loyalty. The results of
this study also support the results of previous research conducted by Ni Putu
Dian Purnamasari and Desak Ketut Sintaasih
(2019) proving a positive and partially significant influence of compensation
variables on employee loyalty.
This fact shows
that if employee compensation increases, employee loyalty also increases, this
is because salaries and wages, incentives, facilities, benefits can be
fulfilled which will ultimately make employee performance also increase
F. The Influence of Leadership Style
on Employee Loyalty
Based on the
results of research that has been conducted using the SPSS 25 program states
that leadership style has a positive and significant effect on the loyalty of
PT. Eldora Entertainment. The results of this study also support the results of
previous research conducted by Kurnia Tri Jayanti, Lela Nurlaela
Wati (2019) proving the positive and partially significant influence of
leadership style variables on employee loyalty.
This fact shows
that if the leadership style increases for the better, then employee loyalty
also increases, this is because the nature, habits, temperament, disposition,
personality of the leader, can make employees comfortable in the end will make
employee loyalty also increase.
G. Effect of Work Environment Employee
loyalty
Based on the
results of research that has been conducted using the SPSS 25 program states
that the Work Environment has a positive and significant effect on the loyalty
of PT. Eldora Entertainment. Based on the results of the questionnaire
distribution at PT. Eldora Entertainment, Most
respondents' opinions agree which means that the Work Environment affects
employee loyalty.
The results of
this study also support the results of previous research conducted by I Wayan Sentana Putra and 1 Anak Agung Ayu Sriathi
(2019) proving the positive and partially significant influence of Work
Environment variables on employee loyalty. This fact shows that if the employee
work environment runs well, employee loyalty will increase, this is because
equipment and facilities, workplace environment, and atmosphere are fulfilled
which in turn will make employee loyalty also increase.
CONCLUSION
The results of this study show that
compensation has a positive effect on employee loyalty, so it can be concluded
that the first hypothesis (H1) which states that compensation has a positive
effect on employee loyalty is accepted. This shows the better compensation that
occurs at PT. Eldora Entertainment will increase the loyalty of its employees.
There is compensation that runs well at PT. Eldora Entertainment, can increase
employee loyalty and also the organization.
The results of this study show that
Leadership Style has a positive effect on employee loyalty, so it can be
concluded that the second hypothesis (H2) which states that leadership style
has a positive effect on employee loyalty is accepted. The better the
leadership style, the higher the loyalty of PT. Eldora Entertainment
The results of this study show that
the work environment has a positive effect on employee loyalty, so it can be
concluded that the third hypothesis (H3) which states the work environment has
a positive effect on employee loyalty is accepted. This shows that the more
conducive the work environment, the more loyalty will increase the sense of
loyalty of PT. Eldora Entertainment. The existence of a harmonious work
environment or relationship between colleagues and superiors and subordinates
will increase the sense of loyalty for employees and the company.
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