Beyond Pay: How Organizational Support and Job Satisfaction Drive Employee Retention

Miftakhur Rokhmah; Lina Saptaria

doi:10.29407/nusamba.v11i1.27313

Authors

Miftakhur Rokhmah Universitas Islam Kadiri
Lina Saptaria Universitas Islam Kadiri https://orcid.org/0000-0002-3031-9608

DOI:

https://doi.org/10.29407/nusamba.v11i1.27313

Keywords:

Employee Retention, Job Satisfaction, Compensation, Organizational Support

Abstract

Research Aim: This study aims to develop an integrative model by examining the role of job satisfaction as a mediating mechanism in the relationship between compensation, Perceived Organizational Support (POS), and employee retention in travel agencies.

Design/Methods/Approach: This research uses a quantitative descriptive approach. Data were collected from 128 travel agency employees in Kediri, East Java, and analyzed using Structural Equation Modeling with the Partial Least Squares (PLS) method.

Research Findings: The results show that compensation does not have a significant direct effect on employee retention, while POS has a positive and significant effect. Job satisfaction is proven to mediate the relationship between compensation, POS, and employee retention.

Theoretical Contribution / Originality: This study contributes by highlighting job satisfaction as a key mediating variable and strengthening the social exchange theory perspective, emphasizing that perceived organizational support plays a more critical role than financial compensation in influencing employee retention.

Practical/Policy Implications: Organizations should prioritize strengthening POS through supportive policies, fair treatment, and employee welfare. Enhancing job satisfaction should become a strategic focus to improve retention.

Research Limitation: This study is limited to travel agencies in one region with a cross-sectional design, which may restrict generalizability. Future research should include broader sectors and longitudinal approaches.

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