Analysis of Factors Influencing Employee Loyalty: Leadership Style, Work Environment, Compensation
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ABSTRACT:-
Background: Employee loyalty is an important asset for organizations in facing global competition. This study is motivated by the importance of understanding the factors that influence employee loyalty, especially at PT Wijaya Karya Tirta Jaya Jatiluhur (PT WTJJ) as one of the BUMNs that plays an important role in sustainable development in Indonesia.
Objective: This study aims to analyze the effect of leadership style, compensation, and work environment on employee loyalty at PT WTJJ.
Method: Data were collected through an online questionnaire from 110 respondents who were employees of PT WTJJ. Data analysis was carried out using the Structural Equation Modeling-Partial Least Square (SEM-PLS) method using SmartPLS software.
Results: The results showed that leadership style, availability, and work environment had a positive and significant effect on employee loyalty at PT WTJJ. Leadership style and work environment had a relatively greater influence compared to compensation.
Conclusion: Authentic leadership and a conducive work environment are dominant factors in increasing employee loyalty at PT WTJJ. Companies are advised to focus on developing authentic leadership and employee empowerment, as well as creating a positive and supportive work environment to increase employee loyalty.
Keywords: compensation, employee loyalty, leadership style, work environment.