THE INFLUENCE OF NON-FINANCIAL COMPENSATION ON TURNOVER INTENTION OF GENERATION Z EMPLOYEES IN THE FOOD & BEVERAGES INDUSTRY WITH JOB SATISFACTION AS A MEDIATING VARIABLE

Suci Indah Syafitri (Universitas Sumatera Utara)
Rahdini Rizki Saragih (Universitas Sumatera Utara)
Naomi Karina Hutagalung (Universitas Sumatera Utara)
Siti Nurrahmawati Novitasari Hasyim (Universitas Sumatera Utara)
Ahmad Kodri Fauzi Hasibuan (Universitas Sumatera Utara)

Multidiciplinary Output Research for Actual and International Issue (Morfai Journal)
Vol. 6 No. 5 (2026): Multidiciplinary Output Research For Actual and International Issue

The high rate of employee turnover in the Food & Beverages industry has become a major challenge for companies in retaining human resources, particularly Generation Z employees who possess distinct work characteristics and expectations compared to previous generations. This study aims to analyze the effect of non-financial compensation on turnover intention among Generation Z employees in the Food & Beverages industry in East Medan District, with job satisfaction serving as a mediating variable. This research employed a quantitative approach using an accidental sampling technique. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS 4 software. The results indicate that non-financial compensation has a negative and significant effect on turnover intention and a positive and significant effect on job satisfaction. Furthermore, job satisfaction has a negative and significant effect on turnover intention. The findings also reveal that job satisfaction mediates the relationship between non-financial compensation and turnover intention. These results suggest that providing adequate non-financial compensation, such as recognition, career development opportunities, supportive work environments, and positive workplace relationships, can enhance job satisfaction and reduce Generation Z employees' intention to leave the organization. The study contributes to the human resource management literature and provides practical implications for companies in developing effective employee retention strategies for Generation Z workers.