Abstract:
In today's business scenario, retention of employees is seen as the main sustainability challenge
for organizations, especially in highly competitive industries with rapidly moving workforces. The
present study attempts to assess Work-Life Balance, Career Development, Compensation, and
Work Environment on Employee Retention at PT XYZ. A quantitative research approach was
employed, collecting data from as many as 100 respondents selected based on predetermined
criteria. The data were then analyzed through Structural Equation Modeling (SEM), using the
SmartPLS version 4.0. The testing results in the measuring model confirm that all indicators passed
the screening for validity and reliability as reflected in the values of Average Variance Extracted
(AVE), Composite Reliability, Cronbach's Alpha, and Variance Inflation Factor. Moreover, the R-
Square value for Employee Retention stood at 0.637, meaning that a 63.7 percent variance can be
explained by the four independent variables. This shows that the model really explains quite well
the phenomena that were investigated.
From these findings, it is evident that the factors of Work-Life Balance, Career Development,
Compensation, and Work Environment positively impact Employee Retention. Among the factors,
Compensation and Career Development are considered the most prominent. These results signal
to organizations the need for adequate rewarding their employees, providing them with clear career
paths, offering supportive working environment, and maintaining a balance between professional
and personal life so that employee loyalty can be encouraged. This paper adds to the extant
literature by drawing empirical evidence on the strategies that help in retaining employees and
further providing suggestions to organizations that want to fortify their Human Resource
Management.
