Analysis of the Relationship Between Employee Welfare and Employee Retention in Indomaret Fresh Retail Surabaya

D'andra Maydzarin Amadea (Universitas Pembangunan Nasional "Veteran" Jawa Timur)
Hamidah Hendrarini (Universitas Pembangunan Nasional "Veteran" Jawa Timur)
Mirza Andrian Syah (Universitas Pembangunan Nasional "Veteran" Jawa Timur)

Jurnal Riset Bisnis dan Manajemen Tirtayasa
Vol 10, No 1 (2026)

Research Aims: This study aims to examine the impact of employee well-being (encompassing economic well-being and work facilities) on employee retention in the modern fresh retail sector, focusing on Indomaret Fresh outlets in the Surabaya area. It addresses the challenge of high employee turnover rates within dynamic fresh retail operations that threaten operational efficiency, service quality, and the handling of perishable agribusiness products. Design/methodology/approach: Grounded in Maslow’s Hierarchy of Needs Theory and Social Exchange Theory, this study employs a quantitative approach using Partial Least Squares Structural Equation Modeling (SEM-PLS 4.0). A census sampling technique was used, involving 63 active operational employees working shifts across six Indomaret Fresh outlets in Surabaya. Research Findings: Evaluation of the measurement model confirmed high construct reliability (Cronbach’s Alpha = 0.939; Composite Reliability = 0.947) and satisfactory convergent validity (AVE = 0.619 for well-being and 0.610 for retention). However, structural model evaluation demonstrated that employee well-being has a positive but statistically insignificant effect on employee retention (t = 1.130; p = 0.259). This indicates that meeting standard economic needs and providing baseline work facilities alone are insufficient to serve as primary drivers for reducing turnover intentions in shift-based retail environments. Theoretical Contribution/Originality: This study provides empirical insights into the limitations of traditional economic well-being models when applied to the modern fresh retail sector. By applying Maslow’s Hierarchy of Needs and Social Exchange Theory to shift-based operational workers, it highlights that basic hygiene factors (facilities and pay) do not automatically guarantee retention, suggesting that future research and retail management must explore higher-level non-economic needs such as shift-stress management and career progression. Keywords: Retail Management, Economic Welfare, Work Facilities, SEM-PLS.