analysis of employee retention factors in pt. xyz

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ANALYSIS OF EMPLOYEE RETENTION FACTORS IN PT. XYZ

By

Otniel Dharmawan Dwiki Putera 11303118

BACHELOR’S DEGREE In

BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION AND HUMANITIES

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

July 2017

Revision after the Thesis Defense on July 17^th, 2017

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Otniel Dharmawan Dwiki Putera STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Otniel Dharmawan Dwiki Putera

Student Date

Approved by:

Fiter Abadi, M.B.A.

Thesis Advisor Date

Dr. Nila Krisnawati Hidayat, S.E., M.M.

Dean Date

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Otniel Dharmawan Dwiki Putera ABSTRACT

ANALYSIS OF EMPLOYEE RETENTION PROGRAM IN PT.XYZ

By

Otniel Dharmawan Dwiki Putera Fiter Abadi, BE, MBA, Advisor

SWISS GERMAN UNIVERSITY

Employee Retention is a way of company retain their employees and reduce their employee turnover to an acceptable level. Retaining high skilled employees can boost the productivity and give competitive advantage for the company. The purpose of this research is to analyze the factors that influence employee retention. The author also use the literature for Employee Retention, Working Environment, Financial Compensation, Non-Financial Compensation, Training, Work-Life Balance, and Career Development. The study in the research is a descriptive study and using quantitative method. The primary data of the research gathered through 100 questionnaires. The author also use multiple linear regression analysis to find the relationship from Financial Compensation, Non-Financial Compensation, Training, Work-Life Balance, and Career Development towards Employee Retention. The variables are proven to be significantly influence the Employee Retention. Career Development is the one that the most contributed to the employee retention.

Recommendation for the company is also written at the end of this research.

Keywords: Manufacturing Industry, Footwear Industry, Employee Retention, Working, Environment, Financial Compensation, Non-Financial Compensation, Training, Work-Life Balance, Career Development

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Otniel Dharmawan Dwiki Putera DEDICATION

I dedicate my thesis to my family that always cheering me up to finish my studies.

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Otniel Dharmawan Dwiki Putera ACKNOWLEDGEMENT

First, I would like to thank the God Almighty for letting me finish my thesis without any major problem and accidents.

Then, I would like to express my gratitude to my parents, my brother, and my sister for their immense support for me during the thesis process. And my whole family that have supported me to finish my study.

After that, I want to express my appreciation for Mr. Fiter Abadi for his patience in guiding me for completing my thesis. Without help from Mr. Fiter I would probably have not finish my thesis yet.

For Marsha Priskila Tambunan who has sacrifice many things together for 4 years of ups and downs and being the best support system for me.

For my friends in SGU especially Marsha Priskila Tambunan, Adidharma Kesuma, Finno Murtadho, and Indra Maulana Junaedi for the company and the help while I am doing my thesis. I also want to thank the 4 years of friendship from all SGU futsal team, Student Business Association, Kostan Teduh, IBA department class 2017, and all the seniors and juniors in Swiss German University. Especially, Yohanes Devin, Irfanto Pratama, Rari Ramadhan, Rachmalia Aprisha, Irdam Perdana, Carlo Clanchy, Callista Pranylia, Eldon Marvin, Hanif Putra, Subeki Nugroho, Fabio Maulana, Shin Fukuyama, Naeil Bagis, Ano Prasetyo, Dimas Hakim, Irene Valencia, Glen Evan, Mochammad Reyhan, Hamzah Bahanan. Good luck for all the future endeavors, and I will see you on the other side!

Special thanks to my high school family, Patradhika, especially for FITH brothers;

Kandiyas Tigor Audi Nainggolan, Dewantara Putra Situmorang, Pradirga Grahadiwin, Agus Gunawan Tan, Vino Fradatama, and Andrew Chondro for all the things they have done and for being the brother that you guys always been to me. For Muhammad Irhamsyah for helping me in adapting with the university life in SGU and still being friends from high school through university life

I also would like to thanks to everyone else that I cannot write their name one by one due to the limited space.

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Otniel Dharmawan Dwiki Putera TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ...1

ABSTRACT ...3

DEDICATION...5

ACKNOWLEDGEMENT ...6

LIST OF TABLES ...11

LIST OF FIGURES ...10

Introduction ...13

Background ... 13

Research Problem ... 19

Research Question ... 20

Research Objectives ... 20

Significance of Study ... 21

Thesis Structure ... 21

Literature Review ...22

Human Resource Management ... 22

Human Capital ... 23

Employee Retention ... 24

Compensation ... 24

Training ... 25

Career Development ... 25

Working Environment ... 26

Work-Life Balance... 26

Previous Study ... 27

Study Differences... 27

Hypothesis... 28

Research Model ... 29

Research Methodology ...30

Research Process ... 30

Scope and Limitation ... 31

Type of Study ... 31

Variable Operationalization ... 32

Type of Data ... 34

Data Collection Method ... 35

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Population and Sampling ... 35

Validity and Reliability Test ... 36

Validity ... 36

Reliability ... 37

Pre-Test and Post-Test ... 38

Data Analysis ... 38

Hypothesis Testing... 39

Classical Assumption Test ... 39

Results and Discussions...43

Data Source ... 43

Company Profile ... 43

Respondent Profile ... 45

Respondent Age ... 45

Respondent Gender ... 45

Respondent Position... 46

Respondent Length of Work ... 47

Pre-Test ... 47

Post-Test ... 54

Classical Assumption Test ... 60

Normality Test ... 60

Heteroscedasticity Test ... 63

Multi Collinearity Test ... 64

Descriptive Statistics ... 65

Coefficient Determination ... 66

Cross-Tab Test ... 68

Chi-Square ... 68

Symmetric Measures ... 73

Result and Discussion ... 81

Hypothesis Result ... 81

Multiple Linear Regression Analyssis ... 83

Result Diagram ... 84

CONCLUSION AND RECOMMENDATION...85

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Conclusions ... 85

Descriptive Analysis Conclusion ... 85

Data Analysis Conclusion ... 85

Recommendation ... 87

Recommendation for PT. XYZ ... 87

Recommendation for Future Research ... 90

GLOSSARY...91

References ...92

Appendices ...97

APPENDIX I - English Questionnaire Sample ... 97

APPENDIX II - Bahasa Indonesia Questionnaire ... 99

APPENDIX III – Questionnaire Results... 101

APPENDIX IV - R-Table ... 106

APPENDIX V – Curriculum Vitae ... 107