September 12, 2025Open Access

The Effect of Work Experience and Compensation on Loyalty Through Organizational Commitment as an Intervening Variable

Puntos clave

Work experience positively influences loyalty, indicating that more experience can lead to greater employee commitment and retention.
Compensation significantly affects employee loyalty, suggesting that fair pay may enhance dedication to the organization.
Organizational commitment mediates the relationship between work experience and loyalty, highlighting its role in maintaining loyalty.
The results rely on SEM PLS methodology, encouraging further investigation into employee retention strategies.

Resumen

This study aims to evaluate the impact of work experience and compensation on the level of loyalty. In addition, this study also seeks to investigate the influence of a mediating variable, organizational commitment, in the relationship between work experience and compensation with loyalty. The method used in this study was a survey, in which questionnaires were distributed to 40 employees at the Office of the National Unity and Political Agency of Pemalang Regency. Sampling in this study was carried out using the census technique. The research method used SEM PLS. The results showed that: work experience has a positive and significant impact on loyalty; compensation has an impact on the level of loyalty; organizational commitment has a positive and significant effect on loyalty; organizational commitment acts as a positive and significant mediator in the relationship between work experience and loyalty; and organizational commitment also serves as a positive and significant link between compensation and loyalty. Keywords: Work Experience, Compensation, Loyalty, Organizational Commitment

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