THE EFFECT OF JOB SATISFACTION AND EMPLOYEE ENGAGEMENT ON TURNOVER INTENTION ON INDONESIAN SHARIA BANKS
Nurbaeti, Ratri Wahyuningtyas

School of Economics and Business, Telkom University

Abstract

In 2021, three Indonesian sharia banks, i.e., BRI Syariah, BNI Syariah, and Syariah Mandiri, were merged into Bank Syariah Indonesia (BSI). The strict competition, particularly in the banking sector, has demanded companies to optimize available resources to support the merging success, including by optimizing the role of employees. Unfortunately, after merging, BSI experienced an increase in the number of employees left, both voluntarily and involuntarily. The high employee turnover rate indicates fundamental problems leading to instability and uncertainty regarding employee conditions. It also harms the company due to wasted time and costs to select and train new employees. Therefore, the company needs to improve employee management to reduce turnover by improving job satisfaction and employee engagement. Hence, this study aimed to discover the level of job satisfaction, employee engagement, and turnover intention rate of employees post-merging. Data utilized in this study were collected through a questionnaire on 499 BSI employees. Data analysis used the variance-based Structural Equation Modeling with the linear structural relation method. The study resulted that the level of job satisfaction and employee engagement of BSI employees were relatively good. However, the turn intention rate was relatively high. The study results also demonstrated that job satisfaction and employee engagement significantly affected the turnover intention of BSI employees. Thus, the company must improve employees^ job satisfaction and employee engagement to reduce the turnover intention rate. One of which is by considering employee salary since the employee satisfaction rate towards salary is the least compared to other job satisfaction dimensions in this study. Future studies can conduct further analysis on other factors affecting the turnover intention of company employees.

Keywords: job satisfaction, employee engagement, turnover intention

Topic: Digital Talent Management