THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
A STUDY OF HOTEL INDUSTRY IN TANGERANG
By Vanessa 11503018
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION – HOTEL AND TOURISM MANAGEMENT Concentration
FACULTY OF BUSINESS AND COMMUNICATION
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 – Indonesia
[July 2019]
Revision after the Thesis Defense on 9th July 2019
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
A STUDY OF HOTEL INDUSTRY IN TANGERANG Page 2 of 127
Vanessa
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.
Vanessa
Student Date
Approved by:
Munawaroh, SE., MM.
Thesis Advisor Date
Dr. Nila K. Hidayat,SE., MM.
Dean Date
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
A STUDY OF HOTEL INDUSTRY IN TANGERANG Page 3 of 127
Vanessa
ABSTRACT
The Influence of Motivation and Grit on Millennial Employee Retention
By Vanessa
Munawaroh, SE., MM, Advisor
Millennial start to dominating the workplace. However, millennial have a lower level of retention compared to the previous generations. Numerous previous study have stated that motivation and grit give a positive influences on employee retention. This study aims to find out the influence of motivation and grit on millennial employee retention. Questionnaire was developed to obtain data to determine said impact and managed to obtain 102 valid respondent. The collected data then process by SPSS program through heteroscedasticity, multicollinearity, F-test and T-test to determine the proposed hypotheses. The result of the test shown that motivation and grit simultaneously have a positive influence on millennial employee retention by 61.7%. Partially, motivation have 71.6% influence on millennial employee retention. However, grit only have a small influence on the millennial employee retention by 19.6%. The recommendation is delivered for managers in an organization and further researchers.
Keywords: Millennial, Motivation, Grit, Employee retention, Hotel industry
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
A STUDY OF HOTEL INDUSTRY IN TANGERANG Page 4 of 127
Vanessa
© Copyright 2019 by Vanessa All rights reserved
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
A STUDY OF HOTEL INDUSTRY IN TANGERANG Page 5 of 127
Vanessa
DEDICATION
I dedicate this study to Jesus, my parents, my friends, Swiss German University and myself.
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
A STUDY OF HOTEL INDUSTRY IN TANGERANG Page 6 of 127
Vanessa
ACKNOWLEDGEMENT
First and foremost, I would like to express my sincere gratitude to God for His blessings and support throughout the completion of my thesis, for always be there to guide me, strengthen me with faith and hope throughout the completion of my thesis.
Enormous love and lots of thank you to my parents who had been supporting me and for everything they have given to me for granted and also my brothers for their kind words and advices. As I won’t be who I am right now without them all.
I would also like to express my gratuity to everyone around me that support me during the writing of my thesis especially to my thesis advisor, Mrs. Munawaroh that always guide me to finish this dissertation.
To my fantastic friends, Cassandra, Yessie, for always be there to support me and finally we are all able to finish this long journey, and also to my potatoes squad Fransiska, Dian, Elizabeth, Elvina, Eliza thank you for your support and motivation during the ups and downs to complete this study.
Last but not least, I would like to express my appreciation to the respondents who have participated in this study.
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
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Vanessa
TABLE OF CONTENTS
CHAPTER 1 – BACKGROUND ... 12
1.1 Background ... 12
1.2 Research Problems ... 16
1.3 Research Questions ... 17
1.4 Research Objectives ... 17
1.5 Scope and Limitations ... 17
1.6 Significance of Study ... 18
1.7 Thesis Structure ... 18
CHAPTER 2 – LITERATURE REVIEW ... 19
2.1 Framework of Thinking ... 19
2.2 Hotel Industry ... 20
2.3 Motivation ... 22
2.3.1 Definition of Motivation ... 22
2.3.2 Maslow’s Hierarchy of Needs ... 23
2.3.3 Motivation in Hotel Industry ... 24
2.3.4 Motivation toward Retention ... 25
2.4 Grit ... 26
2.4.1 Definition of Grit ... 26
2.4.2 Dimension of Grit ... 26
2.4.3 Grit towards Retention ... 27
2.5 Employee Retention ... 27
2.5.1 Definition of Employee Retention ... 27
2.5.2 Factors of Employee Retention... 28
2.6 Millennial Generation ... 29
2.7 Previous Study ... 30
2.8 Study Differences ... 40
2.9 Hypothesis ... 40
CHAPTER 3 – RESEARCH METHODOLOGY ... 41
3.1 Type of Study ... 41
3.2 Unit Analysis/ Unit Observation ... 41
THE INFLUENCE OF MOTIVATION AND GRIT ON MILLENNIAL EMPLOYEE RETENTION:
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3.3 Population and Sampling ... 42
3.3.1 Population ... 42
3.3.2 Sampling Method ... 42
3.3.3 Sampling Size ... 43
3.4 Timeframe of Study ... 44
3.5 Data Source and Collection ... 45
3.5.1 Type of Data ... 45
3.5.2 Data Collection Method ... 45
3.5.3 Questionnaire Structure ... 46
3.6 Research Model ... 47
3.7 Operationalization Variable... 48
3.8. Data Analysis Technique ... 55
3.8.1. Descriptive and Inferential analysis ... 55
3.8.2. Pre-Test ... 55
3.8.3. Validity and Reliability Test ... 56
3.8.4. Post-Test ... 57
CHAPTER 4 – RESULT AND DISCUSSION ... 60
4.1 Pre-test Validity and Reliability ... 60
4.1.1 Pre-test Validity and Reliability for Motivation (X1) ... 62
4.1.2. Pre-Test Validity and Reliability Grit (X2) ... 63
4.1.3. Pre-Test Validity and Reliability Millennial Employee Retention (Y) 64 4.2 Post-Test ... 66
4.2.1 Respondent’s Profile ... 66
4.2.2 Validity Test and Reliability Test ... 68
4.2.3 Mean Score and Overall Mean Score ... 71
4.2.4 Classical Assumption Test ... 73
4.2.5 Hypothesis Testing ... 75
4.2.6 Chi-Square Test for Each Dimension ... 78
4.3 Discussion ... 85
CHAPTER 5 – CONCLUSION AND RECOMMENDATIONS ... 88
5.1. Conclusion ... 88
5.2 Recommendation ... 89
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5.2.1. Recommendation for Managerial Implication ... 89
5.2.2. Recommendation for Future Researchers ... 90
GLOSSARY ... 92
REFERENCES ... 93
APPENDICES ... 97