August 11, 2025Journal of Finance and Business Digital0 citations

The Mediating Role of Job Satisfaction in the Effect of Compensation and Work Environment on Turnover Intention

IAIcha Fitri Nur Aeni ADAkhmad DarmawanUniversitas Gadjah Mada SSSuyoto SuyotoAtma Jaya University Yogyakarta

Key Points

Job satisfaction significantly reduces turnover intention among employees, emphasizing its role as a critical factor.
Compensation and work environment positively impact job satisfaction, enhancing employee retention efforts.
Quantitative analysis employed SEM-PLS to explore relationships and mediating effects among variables.
Results underscore the need for better compensation and work conditions to improve employee satisfaction and retention.

Abstract

This study aims to analyze the influence of compensation and work environment on turnover intention with job satisfaction as a mediating variable among employees of PT Mitra Prasmitha Selaras. This research method uses a quantitative method. With the method of simple random sampling. The population in this study consists of production employees at PT. Mitra Prasmita Selaras, totaling 306 employees, calculated using the Slovin formula. Data analysis used SEM-PLS. The results of this study indicate that compensation and work environment do not have a significant effect on turnover intention. Job satisfaction has a negative and significant effect on turnover intention, compensation and work environment have a positive and significant effect on job satisfaction, and additionally, compensation and work environment have a negative and significant effect on turnover intention with job satisfaction as a mediator.

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