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INTERNATIONAL JOURNAL OF SOCIAL

SERVICE AND RESEARCH

THE INFLUENCE OF FLEXIBLE WORKING ARRANGEMENTS ON


TURNOVER INTENTION AND PRODUCTIVITY THROUGH JOB
SATISFACTION ON THE MILLENNIAL GENERATION OF PRIVATE
COMPANIES IN JAKARTA IN 2022

Rifqi Aziz*, Parwoto, M. Ali Iqbal


Universitas Mercu Buana Jakarta, Indonesia
Email: [email protected]*

Abstract
The COVID-19 pandemic has changed the pattern of human life, work, and significant changes
for companies to survive. The most obvious change is in the situation where organizational
activities begin to practice flexible working arrangements or flexible working arrangements. This
study aims to analyze the effect of flexible working arrangements on productivity, job
satisfaction, and turnover intention through a quantitative approach and the use of the Smart-
PLS 3.2.9 application with 100 millennial generation employees in Jakarta. This study shows
that flexible working arrangements significantly positively affect productivity and job
satisfaction. Furthermore, job satisfaction has a positive effect on productivity. However, an
anomaly was found in the effect of flexible working arrangements on turnover intention, which
has a significant positive relationship. This is due to the company's lack of freedom in
completing its work. Job satisfaction has no significant effect on turnover intention. In the
indirect effect test, it is known that job satisfaction can mediate the effect of flexible working
arrangements on productivity. Moreover, job satisfaction cannot mediate between flexible
working arrangements and turnover intention.

Keywords: flexible working arrangement; turnover intention; job satisfaction; productivity;


millennial generation

Received 01 October 2022, Revised 10 October 2022, Accepted 19 October 2022

INTRODUCTION can be applied during the COVID-19 and


In 2019, the world community was post-COVID-19 pandemics.
shocked by the COVID-19 pandemic, which Working Hours Survey recorded the
could infect almost all countries worldwide. responses from nearly 2,400 civil servants
This incident affects countries to lock down. regarding their views on working hours and
This is useful so as not to spread the COVID- conditions and the impact of the COVID-19
19 disease and start limiting people's pandemic on their work lives (FDA, 2021).
activities and only working at home. The survey results show that 62% of
The trend of working from home is employees choose to dress casually 1 day a
starting to stick and is almost used by many week, 60% work remotely, 54% work
large companies. This phenomenon has flexibly. This shows that the trend to work
become a civilizational shift towards office flexibly is the most preferred choice besides
operations. Previously, employees were casual clothes. This research also says that
required to work in the office at a time 83% of HR professionals predict that in the
determined by the company. A flexible next five years, telecommuting will become
working arrangement (FWA) is an option that commonplace for various organizations. As

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864 International Journal of Social, Service and Research, 2(10), 863-880

many as 26% said that productivity increased flexible working hours provided by the
by telecommuting. As much as 5% said there company to employees does not provide good
was an increase in employee attendance. This benefits for the company.
happened before the COVID-19 pandemic Fadhila and Wicaksana (2020)
showed that telecommuting had become an suggested that FWA, if applied in several
option for employees. cases, can be said to be effective with
Flexible work arrangements positively responses from employees who feel happy
affected productivity because they were much because they can freely manage work
more motivated because there was no direct schedules. Several factors need special
attachment from their superiors (Pandiangan, attention, namely, (1) gender factor, namely
2018). Flexibility of working hours for female the workload of female and male employees,
workers has a positive value on productivity, which is still considered burdensome to
which means that if the company applies the women; (2) factors for providing
flexibility of working hours, the productivity infrastructure and technology; (3) leadership
will be even better (Antiqka & Pradhanawati, factors with their relationship as a means of
2017). Flexible work arrangements positively communication, coordination, and work
influence employee performance or patterns; (4) policy factors, where it is
productivity with high and dominating necessary to have applicable rules so that
categories (Gunawan & Franksiska, 2020). employees can achieve their performance;
However, different from Boltz et al. and (5) the factor of the type of work and
(2020), flexibility does not always increase position, where not all can apply FWA. On the
productivity. Part-time workers under a other hand, there are obstacles to the
flexible schedule are statistically less application of FWA. Barriers that arise include
productive than those with a regular full-time (1) availability of workspace, technology
schedule. Rimadias (2019) suggests that work infrastructure, and increased costs of using
flexibility does not affect perceived technology; (2) difficulty in determining the
productivity. Kattenbach et al. (2010) found level of performance and productivity because
that flexible work arrangements had a there are still constraints in terms of real-
negative effect on employee performance. time; (3) the emergence of a cultural shock
The application of Work From Home (WFH) to the use of technology, the responsibility to
faces challenges because apart from not all manage homework that can affect the stress
types of work can be done from home but level of employees, as well as the presence of
also faced with obstacles such as work tools, interference from family members and can
coordination, disturbances from within the reduce concentration (4) the negative effect
home such as housework taking care of of FWA on the mental psychology of
children, problems network and so on employees.
(Waizenegger et al., 2020). Working in a According to Wibisono (2017), the
shared space with other householders causes millennial generation is commonly referred to
distraction and difficulty focusing on work as generation Y, where this generation was
tasks. These challenges pose a problem for born between 1980-2000 or aged between 19
some communities in dealing with these years to 39 years (Wibisono, 2017).
trends. It is also supported by the results of Hidayahtullah in Meilinda, (2019) mentions
the Effect of Salary, Flexible Working Hours, the characteristics of the millennial
and Work Stress on Employee Performance at generation, namely: 1) millennials trust user-
Companies in Batam City. Flexible working generated content (UGC) more than
hours significantly negatively affected unidirectional information, 2) they prefer
employee performance (Fanda & Slamet, smartphones over television, 3) they have
2019). This means that the implementation of social media, 4) they do not like reading

Rifqi Aziz, Parwoto, M. Ali Iqbal


International Journal of Social, Service and Research, 2(10), 863-880 865

conventionally, 5) lack loyalty, but work Carlson defines schedule flexibility as a


effectively 6) conduct cashless transactions, flexible work arrangement which means
7) master or understand technology, 8) can choosing a place and time to work, formal
take advantage of technology and or informal, to facilitate employee policy.
information, 9) tend to be more lazy and 2) Intervening variable
consumptive. The following are the This variable theoretically affects
characteristics and values of work by the the relationship between the independent
millennial generation according to Sukoco et and dependent variables into an indirect
al. (2020), namely: 1) wanting a varied job relationship. This variable becomes an
and there is an opportunity to develop. 2) interrupting variable or is placed between
want strong mentor support. 3) flexible work, the independent and dependent variables.
adequate quality of work environment, and The intervening variable in this study is
work-life balance. 4) have a sense of job satisfaction. Robbins & Judge in (Fadli
optimism, focus on achieving self-confidence, & Oktariani, 2021) 1) define job
believe in moral and social values, respect satisfaction as "Job satisfaction describes a
diversity, work together, and be pragmatic in positive feeling about a job, resulting from
solving problems. an evaluation of its characteristics." which
is the result of the evaluation of its
METHOD characteristics.
The research method used by the 3) Dependent Variable (Y)
researcher is a quantitative method used to This variable is often referred to as
examine the population and sample through the dependent variable influenced or the
research instruments, as well as collect data result of the independent variable. The
and then analyze it statistically. The type of dependent variables of this study are
research used is experimental research to turnover intention and productivity.
explain the causal relationship between one a) According to Elmi (2018), the turnover
variable and another. Furthermore, the causal intention is the exit of employees due
research design was chosen to test the to their desires. Turnover intention can
hypothesis about the effect of one or several be caused by several factors, including
variables (independent variables) on other career opportunities, salary,
variables (dependent variables) (Sugiyono, supervision, geography, and personal
2013). or family reasons.
According to Sugiyono (2013), research b) Productivity, according to Panjaitan
variables are attributes, properties, or values (2017), describes the relationship
of a person, object, or activity that have between the number of goods that can
variations set by researchers to be studied be produced and the sources of labor,
and then drawn conclusions. There are four capital, and others used to produce
variables in this study, including: these results. Productivity measures
1) Independent Variable (X) how productive a process is in
This variable is often referred to as producing a job.
the independent variable that acts as a
stimulus or predictor. The independent The population in this study were all
variable in the study is Flexible working private and non-private employees and the
arrangements Carlson et al. (2010) in millennial generation in Jakarta. This
Wicaksono (2019). Work flexibility is a population is also based on the following
formal policy set by resource management characteristics:
or informal arrangements related to
flexibility in a company. Furthermore,

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


Through Job Satisfaction on The Millennial Generation of Private Companies in Jakarta in 2022
866 International Journal of Social, Service and Research, 2(10), 863-880

Table 1 In the data collection method,


Population researchers use several data sources. More
Characteristics Indicators
Less than 20 years
details will be described as follows:
20-25 years 1) Primary data sources are obtained through
26-30 years questionnaires distributed to millennial
Age
31-35 years employees in Jakarta.
36-40 years
2) Secondary data sources in this study were
More than 40 years
Male obtained indirectly through books,
Sex
Female journals, and surveys conducted by official
Single institutions whose discussions were
Marital status
Married directly related to the variables studied.
Secondary School
Education
Diploma/ Bachelor
Data collection techniques were carried
background out through questionnaires distributed as
Master/ doctoral
Less than 1 year primary data sources. In contrast, this study
1-5 years used literature and document review
6-10 years
Work duration techniques as secondary data sources.
11-15 years
16-20 years 1) Questionnaire
More than 20 years The questionnaire is a data collection
Work from home technique that gives respondents a set of
(WFH)
Work policy written statements to answer (Sugiyono,
Work from office
implementation 2013). Questionnaires are used when
(WFO)
WFH and WFO there are large numbers of respondents
and can reveal confidential matters. The
The sample used in this study using scale used by researchers in preparing the
purposive sampling was chosen because this questionnaire is a Likert. Sugiyono (2013)
technique determines the sample with certain argues that the Likert measures attitudes,
considerations. In contrast, in this study, opinions, and perceptions of a person or
millennial generation employees in Jakarta group of people about social phenomena.
are the considerations used as reference. The answer to each instrument item has a
For the number of samples taken, positive gradation. There are five
because the current population is unknown, weighting categories in the Likert as
the researcher decided to determine the follows:
number of samples using the Lemeshow Table 2
(2013) formula, which is as follows: Likert
n = 0.9604/0.01 Scale Descriptions Positive
arguments
n = 96.04
1 Strongly agree 5
Note: 2 Agree 4
n: Total Sample 3 Uncertain 3
z: Z score at 95% confidence = 1.96 4 Disagree 2
p: maximum estimate = 0.5 5 Strongly disagree 1
Source: Sugiyono (2013)
d: alpha (0.10) or sampling error
2) Documents
10%
In this study, the collection of
supporting data sources through
Based on this formula, it can be
documents related to research variables
determined that the sample is 94 or rounded
and matters related to research is carried
up to 100.
out by reviewing literature books, journals,
the internet, and articles that provide real

Rifqi Aziz, Parwoto, M. Ali Iqbal


International Journal of Social, Service and Research, 2(10), 863-880 867

information regarding the development of model (Harahap, 2020). Furthermore,


Flexible working arrangements (FWA). the outer model with reflective
indicators will be measured through
Data Analysis Method convergent validity and discriminant
1) Descriptive Statistical Analysis validity, which will measure indicators
Descriptive statistical analysis is for forming latent constructs and
statistics used to analyze data by composite reliability and Cronbach
describing or describing data that has alpha.
been collected as it is without intending to 1) Convergent validity: Reflective
make conclusions that apply to the general indicators will be assessed based on
public or generalizations (Sugiyono, 2013). the correlation between item-scored
The statistics used in this study are the component scores and construct
mean, minimum, maximum, sum, scores. Testing the validity of each
standard deviation, and others. The indicator will be high if it correlates
variables of this study include flexible more than 0.70 with the construct
working arrangements, turnover intention, to be measured (Ghazali & Latan,
job satisfaction, and productivity. 2015). Even so, the validity of the
2) Inferential Statistical Analysis numbers 0.5 to 0.6 can still be
The data analysis technique used in considered sufficient. However, if it
this study is a structural equation model is below 0.5, the indicator will be
using the Smart-PLS program. This SEM- removed.
PLS method can carry out three activities 2) Discriminant validity: testing is done
simultaneously, namely checking the by looking at the cross-loading
validity and reliability of the instrument between indicators and constructs.
(confirmatory factor analysis), testing the Another way to be used is to
relationship model between variables compare the square root of the AVE
(path analysis), and getting a suitable (average variance extracted). The
model for prediction (structural model and recommended AVE value is greater
regression analysis) (Harahap, 2020). The than 0.50.
use of PLS is because this program is 3) Composite reliability: This reliability
better able to describe more complex measurement can be done in two
relationships between variables. ways: Cronbach's Alpha and
a) Evaluation of the Measurement Composite Reliability. The construct
Model (outer model) is considered to have good or
The outer model is a model that consistent reliability if all variables in
relates indicators to latent variables, the study have a reliability > 0.7
which is also called a measurement and Cronbach's Alpha > 0.6.

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


Through Job Satisfaction on The Millennial Generation of Private Companies in Jakarta in 2022
Figure 1. Outer Research Model
Source: Outer Model SMART-PLS (2021)

b) Evaluation of Structural Model carried out previously. The GoF


(inner model) calculation is as follows:
A structural model test was i.
conducted to analyze the relationship
between exogenous and endogenous The criteria for the value of
variables. This test consists of two the GoF calculation are 0.10 (GoF
stages: the determinant coefficient test small), 0.25 (GoF medium), and
R Square (R2) and hypothesis testing. 0.36 (GoF large).
1) Coefficient of Determination In addition, there is a Q-
Test (R2) Square predictive relevance to
According to Ghazali and measure how well the value
Latan (2015), The R2 test a generated by the model is. Q-
coefficient that explains how much square value > 0 indicates that the
the dependent variable can be model has predictive relevance. In
explained by the independent contrast, the value of Q-Square 0
variables together. The greater the indicates that the model lacks
value of R2 indicates, the better the predictive relevance. The formula
model can explain the dependent for calculating Q-square is:
variable. A value close to one ii. Q2 = 1 – ( 1 – R12) ( 1 – R22 )
means that the independent ... ( 1- Rp2 )
variables provide almost all the Where: R12, R22 ... Rp2 is the
information needed to predict the R-square variable endogenous in
variation of the dependent variable. the equation model. The magnitude
2) Structural Model Validation of Q2 has a value with a range of 0
with Goodness of Fit (GoF) < Q2 < 1, which means the model is
This test was conducted to getting better if the value is getting
validate the combined performance closer to 1. The quantity of Q2is
of the measurement model and the equivalent to the coefficient of total
structural model that had been determination in path analysis.

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International Journal of Social, Service and Research, 2(10), 863-880 869

In addition, the coefficient of worked flexibly and are domiciled in Jakarta.


determination in each dependent From 117 respondents, researchers got 100
variable is evaluated by looking at respondents according to the desired criteria:
the percentage of variance that has having worked flexibly, domiciled in Jakarta,
been described. If the value of R2 and in the millennial age range. Based on the
is0.25 – 0.50, then the value of the results of distributing questionnaires, 12
coefficient of determination is weak, percent have worked in a compressed
0.50 – 0.75 means moderate, and workweek, have worked flexitime by 23
0.75 and above means substantial. percent, have worked remotely (WFH, WFA),
3) Hypothesis Testing which is 45 percent, has worked part-time by
Hypothesis testing using 7 percent, the rest are 13 percent who work
SmartPLS can be seen from the in combination. Percent. Based on the results
Path Coefficient value, namely the t- of distributing questionnaires to 100
statistic value of the relationship employee respondents who work flexibly, it
between variables in the study. The can be seen that the description of the
t-test using the formula or characteristics of respondents and
SmartPLS is seen from the researchers grouping based on age, gender,
comparison between the t-test marital status, years of service, and last
value and the value in the t table. education of respondents is as follows:
If P-Values > 0.05 or t count <
t table, Ho is accepted, and Ha is Table 3
rejected. However, if P-Values < Number of Respondents Based on
0.05 or t count > t table, Ho is Gender
rejected, and Ha is accepted. Gender Total Percentage
4) Direct Effect Test between Male 42 42%
Variables Female 58 58%
Test the direct influence Total 100 100%
hypothesis can use the T-test. The Source: Primary Data by the researcher 2022
t-test procedure used is
bootstrapping. Based on table 3, it can be seen that
Bootstrapping is used to see the employees surveyed who have worked
if there is a significant relationship flexibly in Jakarta can be classified into 4
between the observed variables. groups because the researcher only uses the
The criteria for accepting or population of the millennial generation,
rejecting the hypothesis are that Ha namely the range of years of birth from 1984
is accepted and Ho is rejected when to 1991. The survey can be classified as the
the t-statistic shows > 1.96, and to age of 20-30 years, which is 66%, 30-41
reject or accept the hypothesis years old, as much as 30%, and 41-50 years
using a probability value, and then old, as much as 4%. Here are the detailed
Ha will be accepted if the p-value data:
<0.05. Table 4
Number of Respondents by Age
RESULTS AND DISCUSSION Age of
This study only focused on millennial Respondents Total Percentage
employees who worked flexibly in Jakarta. 20 - 30 years 66 66%
The total number of respondents was 117 31 - 40 years 34 34%
respondents. However, researchers will focus Total 100 100%
on millennial generation employees who have
Source: Primary Data by researchers 2022

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


Through Job Satisfaction on The Millennial Generation of Private Companies in Jakarta in 2022
870 International Journal of Social, Service and Research, 2(10), 863-880

Based on table 4, it can be seen that Education


the surveyed employees who have worked background Total Percentage
flexibly in Jakarta can be classified into There High School or
are two marital statuses, namely single and equivalent 25 25%
married. The number of respondents whose Total 100 100%
status is single is 58%, and the number of Source: Primary Data obtained by researchers
respondents with married status is 42%. 2022

Table 5 Based on table 6, it can be seen that


Number of Respondents Based on respondents based on length of work can be
Marital Status divided into 4 classifications. Working less
Status Total Percentage than 1 year as many as 16%, working 1-5
Single 58 58% years as much as 61%, 6-10 years as much
Married 42 42% as 14% and more than 10 years as many as
9% of the total respondents.
Total 100 100%
Source: Primary Data obtained by researchers
Table 7
2022
Length of work in the company
Based on table 5, it can be seen that Work duration Total Percentage

the surveyed employees who have worked 1 - 5 years 61 61%


flexibly in Jakarta can be classified into four. 6 - 10 years 14 14%
Namely, the number of Diploma respondents Less than 1 year 16 16%
was 17%, undergraduate respondents were more than 10
53%, master respondents were 5%, and SMA years 9 9%
or equivalent was 25%. Total 100 100%
Source: Primary Data by researchers 2022
Table 6
Number of Respondents Based on Last Validity testing is carried out through
Education two stages, namely testing, convergent
background Total Percentage
validity, and discriminant validity.
Diploma 17 17%
1. Convergent Validity
Master 5 5% The results of the validation test are
Bachelor 53 53% shown in the following figures and tables:

Table 8
Loading Factor Value
Variable Dimension Code Item Outer Loading Terms Description
Value
Time T1 0.866 > 0.7 Valid
Flexibility (T) T2 0.815 > 0.7 Valid
T3 0.849 > 0.7 Valid
Timing TF1 0.812 > 0.7 Valid
Flexible
Flexibility TF2 0.806 > 0.7 Valid
Working
(TF) TF3 0.716 > 0.7 Valid
Arrangement
PF1 0.901 > 0.7 Valid
Place PF2 0.905 > 0.7 Valid
Flexibility
(PF)
Job Salary GJ1 0.919 > 0.7 Valid
Satisfaction GJ2 0.930 > 0.7 Valid
Promotion KP1 0.866 > 0.7 Valid
opportunity KP2 0.844 > 0.7 Valid

Rifqi Aziz, Parwoto, M. Ali Iqbal


International Journal of Social, Service and Research, 2(10), 863-880 871

Variable Dimension Code Item Outer Loading Terms Description


Value
(KP) KP3 0.831 > 0.7 Valid
KP4 0.878 > 0.7 Valid
KP5 0.838 > 0.7 Valid
Leadership KM1 0.771 > 0.7 Valid
(KM) KM2 0.864 > 0.7 Valid
KM3 0.874 > 0.7 Valid
KM4 0.810 > 0.7 Valid
KM5 0.798 > 0.7 Valid
KM6 0.830 > 0.7 Valid
Colleagues RK1 0.924 > 0.7 Valid
(RK) RK2 0.931 > 0.7 Valid
RK3 0.900 > 0.7 Valid
Productivity Job Quality KL1 0.895 > 0.7 Valid
(KL) KL2 0.847 > 0.7 Valid
KL3 0.919 > 0.7 Valid
Work Quality KN1 0.938 > 0.7 Valid
(KN) KN2 0.941 > 0.7 Valid
Turnover Thinking of TIQ1 0.872 > 0.7 Valid
Intention Quitting TIQ2 0.856 > 0.7 Valid
(TIQ)
Intention to IQ1 0.905 > 0.7 Valid
Quit (IQ) IQ2 0.900 > 0.7 Valid
Intention to IS1 0.793 > 0.7 Valid
Search IS2 0.704 > 0.7 Valid
Alternatives IS3 0.760 > 0.7 Valid
(IS)
Source: The results of the analysis using Smart-Pls 3.3.9

Table 9
AVE Value Research Model
Variable Dimension AVE AVE Value
Value
Flexible Working Time Flexibility (T) 0.712 0.507
Arrangement (X) Timing Flexibility (TF) 0.607
Place Flexibility (PF) 0.815
Turnover Intention Thinking of Quitting (TIQ) 0.746 0.555
(Y1) Intention to Quit (IQ) 0.814
Intention to Search 0.568
Alternatives (IS)
Job Satisfaction (Y2) Salary (GJ) 0.854 0.575
Leadership (KM) 0.681
Colleagues (RK) 0.844
Promotion Opportunity 0.725
(KP)
Productivity (Y3) Quality (KL) 0.788 0.783
Quantity (KN) 0.883
Source: Results of analysis using Smart-Pls 3.3.9

Table 10
Value of Composite Reliability and Cronbach's Alpha
Variable Composite Terms Cronbach's Terms Description
Reliability Alpha
Flexible Working 0.891 > 0.7 0.859 > 0.6 Reliable
Arrangement
Turnover Intention 0.896 > 0.7 0.864 > 0.6 Reliable
Job Satisfaction 0.956 > 0.7 0.9950 > 0.6 Reliable

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


Through Job Satisfaction on The Millennial Generation of Private Companies in Jakarta in 2022
872 International Journal of Social, Service and Research, 2(10), 863-880

Variable Composite Terms Cronbach's Terms Description


Reliability Alpha
Productivity 0.948 > 0.7 0.931 > 0.6 Reliable
Source: Results of analysis using Smart-Pls 3.3.9

Table 11 Based on the table above, the GoF


Average Value of AVE value can be calculated as follows:
AVE Description GoF =
GoF =
Flexible Working
Arrangement 0.507 Valid GoF =
GoF = 0.40
Turnover As a result, based on the results of
Intention 0.555 Valid
the GoF calculation above, it can be seen that
Job Satisfaction 0.575 Valid the GoF value > 0.38, so it is included in the
Productivity 0.783 Valid good category, namely 0.4.
testing Goodness of fit can also be
Average AVE 0.605
done by calculating the predictive relevance
value (Q2) with the formula:
Table 12
Average R Square Q2 = 1 – ( 1 – R12) ( 1 – R22 ) ... ( 1- Rp2 )
R Square
Productivity 0.519
.342
Job Satisfaction 0.184
Turnover Intention 0.128
Average R Square 0.277 Figure 2. Significance Test with
SmartPLS 3.3.9

Table 13
Path Coefficient, t-statistics, and P-values
Relationship Original T Statistic P Description
between construct Sample (O) Values
Direct Influence
Flexible Working
Significantly
Arrangement > 0.584 6.609 0.000
positive influence
Productivity
Flexible Working
Significantly
Arrangement > 0.435 4.223 0.000
positive influence
Job Satisfaction
Flexible Working
Arrangement > Significantly
0.255 2.217 0.027
Turnover positive influence
Intention
Job Satisfaction >
No significant
Turnover 0.174 1.614 0.107
positive influence
Intention
Job Satisfaction >
Significantly
Productivity 0.236 2.745 0.006
positive influence
Indirect Influence
Flexible Working
Arrangement > Significantly
0.103 2.386 0.017
Job Satisfaction > positive influence
Productivity

Rifqi Aziz, Parwoto, M. Ali Iqbal


International Journal of Social, Service and Research, 2(10), 863-880 873

Relationship Original T Statistic P Description


between construct Sample (O) Values
Flexible Working
Arrangement >
No significant
Job Satisfaction > 0.075 1.451 0.147
positive influence
Turnover
Intention
Source: The results of the analysis using Smart-Pls 3.3.9

Furthermore, a more detailed 3. Hypothesis 3: Flexible working


discussion of the hypothesis will be described arrangement significantly negatively
in the narrative below: affects turnover intention.
1. Hypothesis 1: Flexible working Based on the hypothesis test results
arrangement has a significant positive shown in table 13, it is known that the
effect on productivity. statistical t-value for the effect of flexible
Based on the hypothesis test results working arrangements on turnover
shown in table 13, it is known that the intention is 2.217, which is greater than
statistical t value of the flexible working the t-table value = 1.67. Likewise, the P-
arrangement has a significant positive values of 0.027, which is greater than =
effect on productivity is 6609, which is 0.05. The coefficient is positive at 0.255,
greater than the value of t table = 1.67. which means that the flexible working
Likewise, the P-values of 0.000, which is arrangement significantly positively affects
smaller than = 0.05. The coefficient is the turnover intention of 25.5%. So it can
positive 0.584, which means that the be said that the hypothesis statement H3,
flexible working arrangement significantly which reads "flexible working arrangement
positively affects the productivity variable has a significant negative effect on
of 58.4%. So it can be said that the turnover intention," is rejected.
hypothesis statement H1, which reads 4. Hypothesis 4: Job satisfaction has a
"flexible working arrangement has a significant positive effect on productivity.
significant positive effect on productivity," Based on the results of the
is accepted. hypothesis test shown in table 13, it is
2. Hypothesis 2: Flexible working known that the statistical t value on the
arrangements significantly positively affect effect of job satisfaction on productivity is
job satisfaction. 2,745, which is greater than the value of t
Based on the hypothesis test results table = 1.67. Likewise, P-values of 0.006,
shown in table 13, it is known that the t- which is greater than = 0.05. The
statistical value of the effect of flexible coefficient is positive at 0.236, which
working arrangement on work is 4.223, means that job satisfaction has a
which is greater than the value of t table significant positive effect on the
= 1.67. Likewise, the P-values of 0.000, productivity variable of 23.6%. So it can
which is smaller than = 0.05. The be said that the hypothesis statement H4,
coefficient is positive at 0.435, which which reads "Job satisfaction has a
means that the flexible working significant negative effect on productivity,"
arrangement significantly positively affects is accepted.
the job satisfaction variable by 43.5%. So 5. Hypothesis 5: Job satisfaction has a
it can be said that the hypothesis significant negative effect on turnover
statement H2, which reads "flexible intention.
working arrangement has a significant Based on the results of the
positive effect on job satisfaction," is hypothesis test shown in table 13, it is
accepted. known that the statistical t value on the

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


Through Job Satisfaction on The Millennial Generation of Private Companies in Jakarta in 2022
874 International Journal of Social, Service and Research, 2(10), 863-880

effect of job satisfaction on turnover negative effect on turnover intention


intention is 1.614, which is smaller than through job satisfaction," is rejected.
the value of t table = 1.67. Likewise, the
P-values of 0.107, which is greater than = Based on the results of hypothesis
0.05. The coefficient is positive at 0.174, testing that have been carried out, it can be
which means that job satisfaction explained as follows:
positively affects the turnover intention of 1. Effect of Flexible Working Arrangement on
17.4%. So it can be said that the Productivity
hypothesis statement H5, which reads "job Hypothesis 1 in this study states
satisfaction has a significant negative that flexible working arrangement (FWA)
effect on turnover intention," is rejected. has a significant positive effect on
6. Hypothesis 6: Flexible working productivity, and this hypothesis is
arrangements significantly positively affect accepted. The acceptance of this
productivity through job satisfaction. hypothesis is in line with the results of
Based on the hypothesis test results previous research conducted by In a
shown in table 13, it is known that the journal (Pandiangan, 2018). It was found
statistical t value of the effect of flexible that a flexible work arrangement positively
working arrangement on productivity affected productivity because they were
through job satisfaction is 2,386, which is much more motivated. After all, there was
greater than the t table value = 1.67. no direct attachment from their superiors.
Likewise, the P-values of 0.017 is smaller Flexibility of working hours for female
than = 0.05. The coefficient is positive at workers has a positive value on
0.103, which means that the flexible productivity, which means that if the
working arrangement significantly company applies the flexibility of working
positively affects productivity through job hours, the productivity will be even better
satisfaction of 10.3%. So it can be said (Antiqka & Pradhanawati, 2017).
that the hypothesis statement H6, which According to (Gunawan & Franksiska,
reads "flexible working arrangement has a 2020), flexible work arrangements
significant positive effect on productivity positively influence the performance of
through job satisfaction," is accepted. employees with high and dominating
7. Hypothesis 7: Flexible working categories.
arrangement significantly negatively Furthermore, this study also states
affects turnover intention through job that having FWA can make employees
satisfaction. work better because they can manage
Based on the hypothesis test results their working hours. In addition, the freer
shown in table 13, it is known that the factor without superiors' orders makes
statistical t value on the effect of job employees free to increase their work
satisfaction on turnover intention through productivity.
productivity is 1,451, which is smaller than 2. Effect of Flexible Working Arrangement on
the value of t table = 1.67. Likewise, the Job Satisfaction
P-values of 0.147, which is greater than = Hypothesis 2 in this study states
0.05. The coefficient is positive at 0.075, that flexible working arrangements
which means that the flexible working significantly positively affect job
arrangement positively affects turnover satisfaction, and this hypothesis is
intention through job satisfaction of 7.5%. accepted. The acceptance of this
So it can be said that the hypothesis hypothesis is in line with the results of the
statement H7, which reads "flexible journal (Aziz-Ur-Rehman & Siddiqui, 2019)
working arrangement has a significant that flexible work arrangements

Rifqi Aziz, Parwoto, M. Ali Iqbal


International Journal of Social, Service and Research, 2(10), 863-880 875

significantly impact the work-life balance a negative relationship between fatigue


and job satisfaction of employees at and stress. This fact explains that
Karachi State University Pakistan. employees are likelier to feel happy if they
Although flexible arrangements have been implement a Work From Home work
associated with other constructs such as system. Besides being able to manage
productivity, organizational commitment, their time easily, it is also closely related
intention to leave work, or job to work productivity compared to working
involvement, it is shown that these effects in an office. So it can be said that, overall,
are strong and have a positive for those who work from home, the results
relationship. Thus, work-life balance is a are mostly positive, with employees and
full mediator between flexible work employers alike finding more or less equal
arrangements and job satisfaction. The productivity than if work was completed in
journal includes flexible work a more traditional setting (Beck &
arrangements, work-life balance, job Hensher, 2020).
satisfaction, and employee loyalty 3. Effect of Flexible Working Arrangement on
(Stefanie et al., 2020). Flexible working Turnover Intention
hours affect job satisfaction because Hypothesis 3 in the study states
respondents have a result orientation and that flexible working arrangement (FWA)
encourage communication with others and has a significant positive effect on
workload variations. Rimadias (2019) say turnover intention, and this hypothesis is
that teleworking is a strategy to overcome rejected. The rejection of this hypothesis
excessive workloads and be free from is not in line with the results of previous
fixed and temporal work schedules, which studies conducted by research Abednego
strengthens other flexible performance et al. (2015) which showed that schedule
outcomes in the company. Work flexibility flexibility had a significant negative effect
is the ability of employees to control the on turnover intention. Is applied schedule
duration and time of work and the work flexibility, the higher the employee
location provided by the company satisfaction and the lower the level of
(Shagvaliyeva & Yazdanifard, 2014). turnover intention. The journal proves that
Generation Y or millennials flexible working arrangements applied to
emphasize the benefits of FWA, such as an organization can reduce the level of
increased work efficiency, stress turnover intention. According to Almer and
reduction, positive health effects, and Kaplan (2002), participants with flexible
positive health impacts. Furthermore, in working hours will have a stronger desire
this study, the freedom factor without to stay in the company than participants
direct orders from superiors influences who work standard working hours, and
their job satisfaction. Nakrošienė et al. the conflict experienced is also lower.
(2019) revealed that working from home However, in this study, an anomaly
can hone employees' time planning skills, occurred in previous studies. This is due to
helping them spend more time being close the place flexibility factor.
to their families. A study by Beauregard The most dominant factor is that
Mallett et al. (2020) shows that 75% of employees feel free because there is no
employees who implement Work From direct order from their superiors. This does
Home believe that their productivity is not satisfy employees because the
higher at home than in the office. A weakest factor is the lack of freedom in
positive relationship between working choosing where to complete their work.
hours at home and work and life This means that the company provides
satisfaction (Mallett et al., 2020). There is freedom of time and duration of work to

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


Through Job Satisfaction on The Millennial Generation of Private Companies in Jakarta in 2022
876 International Journal of Social, Service and Research, 2(10), 863-880

employees in completing their work. that employees given tasks by their


However, the company does not provide superiors can complete tasks according to
freedom in various places to complete the quantity and quality determined by the
their work. This is because, in this study, organization.
many employees were already working in 5. The Effect of Job Satisfaction on Turnover
the office. After all, the pandemic had Intention
subsided. Millennial generation employees Hypothesis 5 in this study states
carry out turnover intention because they that job satisfaction has a positive effect
feel that their needs cannot be met at on turnover intention, and this hypothesis
work, compensation that is not following is rejected. The rejection of this
expectations, bad environment, and hypothesis is not in line with the results of
unsatisfactory any assistance needed to previous research. Evaluation of various
complete the work (Ria et al., 2021). alternative jobs will ultimately result in
4. The Effect of Job Satisfaction on turnover because individuals who choose
Productivity to leave the organization will expect more
Hypothesis 4 in this study states satisfactory results elsewhere (Yuda &
that job satisfaction has a significant Ardana, 2017). Job satisfaction has an
positive effect on productivity, and this insignificant negative effect on turnover
hypothesis is accepted. The acceptance of intention (Witasari, 2009). These results
this hypothesis is in line with previous prove that there are still many millennial
research Narpati et al. (2020) from the employees in Jakarta who are not satisfied
discussion in his journal that job with their work but are not yet willing to
satisfaction has a significant positive effect leave their jobs. These satisfied employees
on work productivity. If there is an never rule out the possibility of leaving
increase in job satisfaction, there will be work and looking for work elsewhere. On
an increase in work productivity. Pratiwi the other hand, employees dissatisfied
and Widiyanto (2018) explains that a with their current job do not immediately
person's high income or wages will make have the intention or desire to leave their
the workforce more productive because jobs.
the workforce is not disappointed with the Furthermore, this study shows that
efforts made to get the appropriate the two variables between job satisfaction
results. Robbins and Judge (2015) explain and turnover intention cannot explain the
that "job satisfaction is a positive feeling relationship between variables. The results
about work, resulting from an evaluation of this study support research findings
of its characteristics." This means that (Ramoo et al., 2013; Tarigan & Ariani,
someone with high job satisfaction has 2015), which state that job satisfaction
positive feelings about work. does not affect the intention to leave. This
In contrast, someone with a low can be seen from the data that some
level has negative feelings. A person with employees claim their job satisfaction has
job satisfaction or a happier worker is been fulfilled. Some other employees feel
more likely to be productive (Robbins & quite comfortable and get enough results
Judge, 2015). Robbins' statement is also to work in the company but still have the
supported by the results of research desire to move from the company. In
conducted by (Adiwinata, 2014), showing addition, according to Amin and Rahmiati
that job satisfaction significantly affects (2018) in (Gayatri & Muttaqiyathun, 2020)
employee productivity. that the millennial generation seeking job
Furthermore, the highest factor is satisfaction can be obtained not only in
that superiors provide clear directions so one company, but personal satisfaction

Rifqi Aziz, Parwoto, M. Ali Iqbal


International Journal of Social, Service and Research, 2(10), 863-880 877

that can be obtained from several their needs at work cannot be fulfilled. There
companies dynamically continues to is no help needed in completing their work.
change so that can accelerate their This is supported by Schaefer's research
personal and career growth rapidly, where (2017) in (Putro et al., 2020) which reveals
they are always looking for opportunities that millennial generation employees carry
to excel and are very concerned about out turnover intention because they feel that
professional development. their needs at work cannot be fulfilled,
6. Effect of Flexible Working Arrangement on compensation that is not in line with
Productivity through Job Satisfaction expectations, and bad environment, and the
Hypothesis 6 in this study states absence of assistance.
that flexible working arrangements
significantly positively affect productivity CONCLUSION
through job satisfaction, and this A flexible working arrangement (FWA)
hypothesis is accepted. This study proves positively affects the employee productivity of
that FWA can partially mediate job millennials in Jakarta. The factor without
satisfaction to productivity. The direct orders from superiors is the most
acceptance of the hypothesis is in line with dominant in productivity. Employees feel free
the journal (Nugroho & Hasanah, 2022). because they can express their current job.
The results of the analysis and discussion Thus, it can bring up ideas, innovations, and
in the journal result that job satisfaction ideas that can increase productivity.
has a positive and significant impact on A flexible working arrangement (FWA)
employee work productivity when working significantly positively affects job satisfaction.
from home. Job satisfaction felt by The most important factor of this influence is
employees can increase their work where the freedom factor in responding to
productivity. The more satisfied employees job satisfaction is the most decisive: working
are, the more productive employees will flexibly can have an effect. Freedom without
be. Furthermore, in this study, the direct orders from superiors is the most
freedom felt by employees when working dominant factor. Employees feel satisfaction
anywhere makes them more satisfied at because there is no strict supervision by their
work and increases employee productivity. superiors.
7. Effect of Flexible Working Arrangement on A flexible working arrangement
Turnover Intention through Job positively influences the turnover intention of
Satisfaction the millennial generation in Jakarta. FWA
Hypothesis 7 states that flexible does not specify employees, reducing them
working arrangement has a positive effect not to leave their current job. The most
on turnover intention through job decisive factor is the freedom to choose the
satisfaction, and this hypothesis is place of work. However, employees are given
rejected. This hypothesis is rejected the freedom to work. However, employees
because there is no evidence of the are already thinking of looking for another job
significance of job satisfaction in mediating despite the office's policy of giving them the
the effect of flexible working freedom to work flexibly.
arrangements on turnover intention. This Job satisfaction has a positive effect on
is possible because the data collected productivity. If there is an increase in job
cannot explain the mediating role of job satisfaction, there will be an increase in work
satisfaction. productivity. It seems that job satisfaction
This is possible because the can have a positive effect on productivity.
respondents chosen by the researchers are Employee happiness will result in productivity,
millennials in Jakarta, where they feel that

The Influence of Flexible Working Arrangements on Turnover Intention and Productivity


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