The Effect of Compensation and Work-family conflict (WFC on Employee Retention: Job Satisfaction as a Mediating Variable for Female Employees

Chen Wisan; Mazayatul Mufrihah; Harry Setiawan; Nurul Komari; Sulistiowati

doi:10.61987/jemr.v5i5.3168

Authors

Chen Wisan Universitas Tanjungpura, Indonesia
Mazayatul Mufrihah Universitas Tanjungpura, Indonesia
Harry Setiawan Universitas Tanjungpura, Indonesia
Nurul Komari Universitas Tanjungpura, Indonesia
Sulistiowati Universitas Tanjungpura, Indonesia

DOI:

https://doi.org/10.61987/jemr.v5i5.3168

Keywords:

Compensation, Work-Family Conflict, Job Satisfaction, Employee Retention

Abstract

Employee retention is a critical concern in human resource management because organizations need to retain employees who possess valuable knowledge, experience, and competencies. For female employees, retention may be influenced by compensation, work-family conflict, and job satisfaction, which shape their willingness to remain in an organization. This study aims to analyze the effects of compensation and work-family conflict on employee retention and examine the mediating role of job satisfaction in these relationships. A quantitative approach with a causal research design was employed. Data were collected through Likert-scale questionnaires from 180 female employees selected using purposive sampling. The data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with SmartPLS 4.0. The findings indicate that compensation positively affects job satisfaction and employee retention, whereas work-family conflict negatively affects both outcomes. Job satisfaction positively affects employee retention and mediates the effects of compensation and work-family conflict on employee retention. These findings imply that organizations can strengthen employee retention by providing appropriate compensation, reducing work-family conflict, and fostering job satisfaction among female employees.

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