The Effect of Job Satisfaction and Reward on Employee Turnover Intention with Organizational Commitment as an Intervening Variable in Sharia Banking

Abstract

The purpose of this study is to analyse the effect of Islamic job satisfaction and rewards on turnover directly and how the influence of Islamic job satisfaction and rewards on turnover indirectly through organizational commitment. This study also examines how the influence of organizational commitment on turnover intention. This study uses a quantitative approach where this research will examine the influence between variables where the variables in this study consist of Islamic job satisfaction and rewards as independent variables, organizational commitment as intervening variables and turnover intention as the dependent variable. The sample of this research is an organic Islamic banking employee in the city of Jakarta consisting of 442 respondents. The analytical method used is SEM. The results of the study show that Islamic job satisfaction and reward do not have a direct negative effect on turnover intention but have a positive effect on organizational commitment. The results of the study also show that Islamic job satisfaction and rewards have a negative indirect effect on turnover intention through organizational commitment. The results of the study also show that there is a direct negative effect of organizational commitment on turnover intention. The implication of the results of this research is that sharia banking needs to make policies that prioritize Islamic values, such as a work ethic according to Islamic values, there is time for congregational prayers and also a working atmosphere with Islamic values. Islamic bank management also needs to consider a faster and more reasonable time span for salary increases to be able to increase the perception of satisfaction related to the rewards received. In addition, there needs to be certain engagement programs where this program will make employees feel more part of the organization and make employees not want to leave the organization. Companies need to be able to increase job satisfaction from employees by trying to meet the needs of employees both inside and outside of work. The salary factor is also considered very important in retaining employees and this needs to be considered to increase the salary received by employees from Islamic banks so that they are close to or equivalent to conventional banks.