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Cakrawala Repositori Imwi
Published by Institut Manajemen Wiyata Indonesia
ISSN : 26208490     EISSN : 26208814     DOI : https://doi.org/10.52851/cakrawala.
Core Subject : Economy,
Economics, Econometrics & Finance
Jurnal Cakrawala Repositori IMWI focuses on publishing original research articles, reviewing articles from contributors, and current issues relating to Economics, Business and Management. The main purpose of the journal is to provide a platform for scholars, academics, and researchers to share contemporary thinking in the field. The work should not be published or submitted for publication elsewhere. The official language of the manuscript that will be published in Jurnal Cakrawala Repositori IMWI is Indonesian. For information and registration, contact cakrawala@imwi.ac.id. Jurnal Cakrawala Repositori IMWI is a peer-reviewed journal which is published six times a year. This journal is an open-access that publishes research outcomes with significant contributions to the understanding and improvement of management science. The review process in this journal employs a double-blind peer-review, which means that both the reviewer and author identities are concealed from the reviewers, and vice versa.
Arjuna Subject : Bisnis, Menejemen, dan Akutansi (semua kategori) - Bisnis, Menejemen, dan Akutansi (Lain-Lain)
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The Effect of Employee Background Fit on Employee Retention in the Manufacturing Industry Hisyam Pratama Islam; Muhammad Donal Mon; Agustinus Setyawan
Cakrawala Repositori IMWI 524-539
Publisher : Institut Manajemen Wiyata Indonesia & Asosiasi Peneliti Manajemen Indonesia

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Abstract

Employee retention remains a persistent challenge in the manufacturing sector, where high turnover rates can generate substantial costs and operational inefficiencies that undermine organizational performance. This study aimed to analyze the effect of employee background fit on employee retention while examining the mediating roles of compensation and job satisfaction in this relationship. Data were collected through online questionnaires distributed to 118 employees in technical specialist positions across various manufacturing companies. The proposed model was tested using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4, enabling the analysis of both direct and indirect effects. The findings showed that employee background fit did not have a significant direct effect on employee retention. However, it had a significant indirect effect through compensation, highlighting the important role of equitable remuneration in supporting retention. By contrast, job satisfaction did not significantly mediate the relationship between employee background fit and retention, suggesting that other workplace factors may play a more influential role in this context. These findings challenge the assumption that aligning employees’ expertise and backgrounds with job requirements is sufficient to ensure long-term retention. Instead, they indicate that compensation should be appropriately aligned with employees’ qualifications, expertise, and job demands to strengthen retention, particularly among highly skilled technical employees. The study provides practical implications for human resource practitioners in the manufacturing industry by emphasizing the importance of integrating equitable compensation policies with appropriate job placement to retain a skilled and committed workforce. By clarifying the relationship among employee background fit, compensation, job satisfaction, and retention, this study contributes to the literature on employee retention in industrial settings.

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