Employee retention, job satisfaction, millennial, reward and recognition, structural equation model, partial least square, work life balance.
In the current condition, Millennials have the biggest portion in the workforce composition. In the next ten or fifteen years, they will be in the top management level, replacing the current management. By retaining them in the organisation, such training and recruitment cost could be minimized and bring less efforts to the organisation in recruiting new talents. This research is aimed to examine the impact of reward and recognition, work life balance on employee retention using the job satisfaction as mediating variable. This research is expected to be able to give insights to organisations to develop programs or policies to retain their current demography of the workforce, which consist of Millennials. The samples were collected by non-probability sampling method. The statistical method used was structural equation model using partial least square software, with hypothesis testing using t-test and p value result. For validity and reliability, average variance extracted (AVE) and composite reliability (CR) were used to determine whether the tool that was used is valid and reliable. Result of this research shows that reward and recognition, work life balance and job satisfaction have significant positive effect on the employee retention.
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