Abstract: The purpose of this study is to analyze the effect of organizational culture and compensation on turnover intention mediated by employee job satisfaction on the employees of insurance companies in Jakarta. Turnover intention needs to be considered by management because it can interfere with the operation of the company. The higher the turnover, the higher the turnover intention of the employees. Organizational culture is a system of disseminating beliefs and values that develop within an organization and directing the behavior of its members. Compensation is the single largest operating cost that has a direct effect on employees to stay in their current organization. Job satisfaction is the emotional state of employees in looking at their job. The data were analyized using Structural Equation Modeling method. By using the object of research on temporary and permanent employees of insurance companies in Jakarta, there were 194 respondents as research sample. The results showed that organizational culture and compensation had positive effect on job satisfaction, so the high organizational culture and compensation could improve job satisfaction in the organization. Compensation had an effect on turnover intention. As well as job satisfaction could be able to mediate the relationship between organizational culture and compensation on turnover intention, as the higher the level of job satisfaction, the lower the turnover intention of the employees.

Keywords: Organizational Culture, Compensation, Job Satisfaction, and Turnover intention


PDF | DOI: 10.17148/IARJSET.2019.6506

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