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The Importance of Job Satisfaction as A Mediator of Financial Compensation and Turnover Intention

In: Proceedings of the Twelfth International Conference on Entrepreneurship and Business Management 2023 (ICEBM 2023)

Author

Listed:
  • I Komang Oka Permadi

    (Universitas Mahasaraswati Denpasar, Faculty of Economics and Business)

  • J. S. I Putu Wahyu Dwinata

    (Universitas Mahasaraswati Denpasar, Faculty of Economics and Business)

  • Ni Made Indah Mentari

    (Universitas Mahasaraswati Denpasar, Faculty of Economics and Business)

  • Ida Ayu Komang Tiara Pratistha Sari

    (Universitas Mahasaraswati Denpasar, Faculty of Economics and Business)

Abstract

In a competitive business arena, companies often face challenges in keeping qualified and potential employees with them. Many companies face situations where employees have the desire or intention to leave the company, one of the reasons is dissatisfaction with the financial compensation they receive. This study aims to re-investigate the relationship between financial compensation and turnover intention, considering job satisfaction as an intermediary factor. This study used a nonprobability sampling method with a census approach, with 58 respondents representing the entire population. To analyze the data, a Partial Least Squares (PLS) approach was used with the help of SmartPLS software. The results showed the following: 1) There is no significant influence between financial compensation and intention to leave the job, 2) Financial compensation has a positive impact on the level of job satisfaction, 3) Job satisfaction has a positive relationship with intention to leave the job, and 4) Job satisfaction acts as a mediator connecting the effect of financial compensation on intention to leave the job.

Suggested Citation

  • I Komang Oka Permadi & J. S. I Putu Wahyu Dwinata & Ni Made Indah Mentari & Ida Ayu Komang Tiara Pratistha Sari, 2024. "The Importance of Job Satisfaction as A Mediator of Financial Compensation and Turnover Intention," Atlantis Highlights in Economics, Business and Management, in: Keni Keni & Hetty Karunia Tunjungsari & Teoh Ai Ping (ed.), Proceedings of the Twelfth International Conference on Entrepreneurship and Business Management 2023 (ICEBM 2023), pages 240-247, Springer.
    • Handle: RePEc:spr:atlecp:978-94-6463-508-9_20
    DOI: 10.2991/978-94-6463-508-9_20
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