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Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol. 7. No.

3 (2024)
e-ISSN: 2621-606X Page: 5084-5107

THE INFLUENCE OF TRAINING, CAREER DEVELOPMENT, AND


COMPENSATION ON EMPLOYEE RETENTION AT PT. SEIWA INDONESIA

Selva Yuniana1
Universitas Pelita Bangsa, Bekasi, Indonesia
[email protected]

Fifi Hanafia2
Universitas Pelita Bangsa, Bekasi, Indonesia
[email protected]

Abstract

To achieve success in increasing employee retention, companies must pay attention to


several factors, including providing appropriate training to employees, providing
career development, and providing appropriate compensation so that they feel cared
for by the company and provide their best performance to the company. The purpose
of this research is to determine the effect of training, career development, and
compensation on employee retention at PT Seiwa Indonesia. Data collection was
carried out utilizing observation and questionnaires. The sampling technique was
simple random sampling using the Slovin formula with a sample of 87 people in the
population. This research uses quantitative methods using validity tests, reliability
tests, multicollinearity tests, heteroscedasticity tests, multiple regression tests, t-tests,
and F tests with the help of SPSS statistics. Based on the test results using the t-test, it
shows that compensation partially has a positive and significant effect on employee
retention, while job training and career development have no effect on employee
retention, the test results using the F test show that job training, career development
and compensation simultaneously have a positive effect on employee retention, the
results of testing the coefficient of determination on the Adjusted R Square (R2)
variables of job training, career development, and compensation can explain the
magnitude of the influence of product quality, promotion and price on customer
satisfaction of 61.5% while 38.5% is influenced by other factors.

Keywords: Job Training, Career Development, Compensation, Employee Retention

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INTRODUCTION

In the age of globalization, corporate development is becoming more and more


challenging. To thrive, a firm has to react swiftly to any changes that take place, particularly
in the increasingly cutthroat rivalry among businesses. It is impossible to separate the many
forms of internal and external assistance that a firm needs to grow. One of them originates
from the way a corporation governs its human resource management (Rofifah et al, 2021).
The tasks of human resource management include organizing, managing, and making the
most of the available human resources. Because they enable a firm to perform its operations
and meet its goals, human resources play a critical role in its success. Naturally, a business
cannot function effectively without human resources.

To stay in the competition, businesses or organizations need to keep expanding.


Having excellent human resources is one way that the business might have a competitive
edge that is hard for other businesses to copy. Human resources that possess strong
knowledge, skills, aptitudes, and work dispositions are considered qualified. For any
organization to succeed in accomplishing its goals, it is not only necessary for the company
to have high-quality human resources; these resources also need to be developed and
maintained, especially given how quickly the current environment is changing. Human
resources are the primary and governing component in the management process and attaining
organizational goals, therefore a company's success is mostly dependent on them.

At the moment, Indonesia is making quick advances in some areas, including


commerce, industry, technology, and education. The value of human resources in a firm
remains unaffected by technical advances, even though it is crucial to the growth of a
company since technology cannot function without people. As a result, a lot of businesses
are worried about the competitive job market and the difficulty in attracting and keeping the
best workers.

Employees and human resources are tightly associated throughout the firm. It is
important to uphold the attitudes, circumstances, and working environment of employees to
ensure their continued performance endures and even improves (Manggasa & Tanuwijaya,
2023). Consequently, businesses need to be aware of everything about employee rights.

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When workers feel valued by the organization, they are probably less likely to want to quit
(have a lower turnover intention). If the firm is unable to uphold the rights of its workers,
then those workers may take actions that damage the business and impede the attainment of
its objectives. Manufacturing enterprises are today's most advanced businesses.
Manufacturing businesses transform raw resources into final or semi-finished products. The
activities of manufacturing themselves involve a large amount of work. As a result,
manufacturing businesses work to keep their staff members.

A firm in the automobile manufacturing sector, PT Seiwa Indonesia is a part of the


Mitsuboshi Belting Ltd group of enterprises, which was founded in Kobe, Japan. PT Seiwa
Indonesia was founded on October 18, 1996, and began manufacturing Power Transmission
Belts for 2- and 4-wheeled vehicles, industrial, and electronics in March 1997. a global
corporation in the Bekasi Regency's MM2100 Area Gandamekar Village, West Cikarang
District, and automobile manufacturing sector. Global markets all around the world have
acknowledged PT Seiwa Indonesia's product quality. 680 people work with PT Seiwa
Indonesia in total (info as of October 2023). There are 563 permanent workers, 111 contract
workers, 5 foreign workers, and 1 probationary worker among the total.

The findings obtained indicate that PT Seiwa Indonesia is experiencing issues with
employee turnover. It is getting more and harder to find competent employees these days, let
alone keep the ones you have so there is no employee turnover. The turnover rate at PT Seiwa
Indonesia from 2017 to 2022 provides evidence for this, as does the data collection on new
hires and terminations. Data on corporate turnover can be used to determine employee
retention. Based on information gathered from observations, it is known that PT Seiwa
Indonesia has had a high turnover rate during the previous five years, with an average of
11.35 percent. According to Gillies (1989), a reasonable range for staff turnover is 5–10
percent annually; a turnover rate of more than 10 percent annually is considered excessive.
PT Seiwa Indonesia's high turnover rate from 2017 to 2022 is shown in Table 1.1. The
average staff turnover rate of PT Seiwa Indonesia from 2017 to 2022, which is still more than
10% and falls within the category of above-normal limits, serves as evidence of this. The
company's retention rate will be impacted by this.

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This pattern leads one to believe that issues with the company's human resources are
the cause of the reportedly variable turnover rate. These resource issues can arise from both
internal and external sources, including interactions between coworkers and superiors, as
well as from job satisfaction, performance, and potential, all of which have an impact on
turnover (Sauerman & Isbahi, 2023). This will have an impact on the company's retention
rate. To meet the stated goal in the long run, the company's success will be hampered by a
low staff retention rate. The organization will suffer from low retention as it would have to
incur more expenses for hiring new staff.

One element to reduce turnover and retain employees is employee training. Providing
training is very important for employees, because it can increase knowledge for employees
about work, can improve work performance, and employee motivation (Rakimen, 2024).
Companies that provide training and educational facilities to employees are more committed
and loyal to the organization. Likewise, employees who are given education and training will
be able to increase productivity in the company. In the book (Hadiningrat et al., 2023: 4),
Michael Armstrong states that training is the methodical development of the information,
abilities, and attitudes necessary for an individual to function well in line with the duties and
responsibilities that are allotted to them. Herwina (2021: 4) defines training as a brief
procedure that allows an individual to improve group or individual skills utilized at work to
acquire the capacity to support the achievement of industrial goals. Furthermore, training is
a process of methodically altering employee behavior to meet corporate objectives, according
to Kawiana (2020). To assist people, in acquiring the skills and talents they need to
successfully do their jobs, training is oriented toward both the present and the future. Sunarsi
(2018: 18) claims that training is conducted in an attempt to raise human resource
performance, which is a cycle that has to be continued. Because the company's human
resources must be able to balance the company's development. Employee performance at a
firm needs to be consistently aligned with the company's growth and development in addition
to its business development. PT Seiwa Indonesia is doing this training to enhance workers'
or employees' capacity to perform their tasks. Since many workers perform the same tasks
every day, it is anticipated that this software will assist workers in realizing their potential.

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Based on observational data, it is known that throughout the previous five years, PT
Seiwa Indonesia's average training activities accounted for just 43% of total training, with
57% of training being pushed back from the scheduled yearly training program. The
company's employee training data has never been fully implemented following the annual
training plan because training necessitates a sizable budget, which leads to training that is not
authorized by the business. As a result, many training topics are pushed back from the
planned annual training schedule because of financial constraints. Every employee at PT
Seiwa Indonesia has the opportunity to participate in both public and internal training
programs. Internal and external mentors or instructors are invited to conduct in-house training
for employees of the organization. Public training, on the other hand, is conducted by sending
a chosen group of employees to training sessions led by other organizations, like other
universities. The staff that PT Seiwa Indonesia trained have not been able to do their jobs
effectively and efficiently. This is because there aren't enough training materials available
and the company's training isn't appropriate for helping employees carry out their
responsibilities. Access to suitable training periods can boost output, which in turn influences
worker efficiency and enhances worker performance, ultimately leading to job satisfaction.
Employers may enhance the caliber of their workforce by offering thorough training and
development. As a result, workers may be more productive and have more comfort at work.

In addition to helping workers do their tasks more effectively, PT Seiwa Indonesia


offers training that gives them the chance to advance in their professions. Without corporate
policies and assistance, this career growth cannot proceed on its own. Consequently, firm
executives must be willing and committed to regularly implementing employee career
development. To lower turnover, career development also has a significant impact on
employees' decisions to remain with the organization. One crucial component of human
resource management that shouldn't be overlooked is career development. Opportunities for
training, advancement, and skill development are included in career development to enhance
employees' performance at work. The process of determining an employee's professional
capabilities and obtaining them by using the right models is known as career development.
A person's standing or role at work over their lifetime is referred to as their career. Career
development, according to Siagian in (Lubis et al., 2024: 258), is a personal adjustment a

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person takes to fulfill a career strategy. Career development, according to Horwitz et al.
(Nurmalitasari & Andriyani, 2021: 2), is a means for employers to give staff members
chances to advance both personally and professionally. professional development, according
to Handoko (Afridhamita & Efendi, 2020: 16), is a personal advancement that a person might
undertake to fulfill a predetermined professional objective. According to Ardana et al.
(Afridhamita & Efendi, 2020: 16), career development also entails improvements made by
the people department to a work plan that is in line with the organization's route or level.

The career development program that PT Seiwa Indonesia offers to its workers still
has several issues. For example, the requirements for promotions are frequently not in line
with the established regulations, which can lead to conflicts between new hires and
established staff compromise worker comfort, and decrease commitment to the job.
Employee preparedness, willingness, and pride in the organization are all impacted by this.
Workers lose interest in their jobs, their passion wanes, they lose the will to succeed, they
are unwilling to put in the extra effort or work hard, and they do not instill a sense of pride
in their coworkers. Ultimately, the worker decides to leave his job and join a different
organization.

Compensation, together with career development and training, helps to retain


excellent workers employed and happy, which in turn lowers turnover. Employers may affect
employee motivation in several ways, such as by rewarding staff members who meet
corporate goals and objectives through performance-based pay, which deters employees from
choosing to leave their jobs and join rival businesses. Employers who set pay rates based on
typical means of subsistence will enable their staff to work with maximum enthusiasm.
Compensation is described by Evriliani & Gunawan (2024: 348) as the benefits that are
provided to workers in exchange for their labor, contributions, or services to a business or
organization, both directly and indirectly in the form of tangible and intangible revenue.
Furthermore, as stated by Gani et al. (2022: 586), compensation is a sort of just and
appropriate direct or indirect payment given to workers in exchange for services rendered in
support of organizational objectives. The main objectives of pay are to draw in, keep, and
inspire workers. Compensation and turnover are closely related since an employee's retention
rate is high if the salary they get can match their demands.
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Leaders need to consider a variety of retention tactics, such as staff retention, to lower
employee turnover. Management uses employee retention as a tactic to encourage workers
to remain at the firm for a predetermined amount of time. It is not simple to retain workers
whose abilities align with the demands of the organization; doing so requires a unique
approach. Employers must use a variety of tactics and initiatives to keep people on board,
but the most crucial factor is to ensure that workers are comfortable. A poor employee
retention rate will deteriorate working conditions for its staff, which may lead to a high
employee turnover rate. Employee retention, according to Panca et al. (2024: 139–140), is an
organizational strategy to enhance and preserve workers' emotional, physical, and behavioral
health so that workers are at ease and devoted to their jobs and can eventually accomplish
organizational goals. Disa & Djastuti (2019) define employee retention as a business's
attempt to hold onto workers who show promise in accomplishing the organization's
objectives. Furthermore, as stated by Hafanti in (Suta & Ardana, 2019), the capacity of the
business to keep its finest employees on board is known as employee retention. The program
for maintenance, which aims to improve employees' physical and mental health as well as
their devoted attitude toward their jobs, is intimately linked to employee retention. To
increase employee retention in a firm, the maintenance program may function well if it is
implemented in tandem with the welfare program that employees require and complies with
internal and external consistency guidelines.

A high employee retention rate will impact the effectiveness of the company in
accomplishing its purposes and goals. At PT Seiwa Indonesia, a high turnover rate results in
poor levels of retention. The findings of the observations made on staff retention between
2017 and 2022 indicate that, throughout the previous five years, PT Seiwa Indonesia's
employee retention rate has varied annually. The percentage of employees retained by the
company was only 84.46% in 2017. In 2018, that percentage increased to 87.77% from 2017
to 2018, and to 90.57% from 2018 to 2019. However, in 2020, that percentage fell to 88.73%
from 2019 to 2021, and in 2022, that percentage fell to just 88.84%, ostensibly because the
company had reduced its workforce with less potential. Three factors—training, career
development, and compensation—have an impact on this, which results in a yearly decline

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in the proportion of employee retention. The organization will suffer from low retention as it
would have to incur more expenses for hiring new staff.

Companies need to focus on several things to successfully increase employee


retention, such as giving workers the right training, fostering career development, and paying
them fairly so they feel valued by the organization and give their best work.

REVIEW OF LITERATURE

Training

Walker states in (Millena & Mon, 2022) that training is a crucial component of human
resources as it may help workers become more productive and play a big role in retention
initiatives. Herwina (2021: 4) defines training as a brief procedure that allows an individual
to improve group or individual skills utilized at work to acquire the capacity to support the
achievement of industrial goals. Furthermore, training is a process of methodically altering
employee behavior to meet corporate objectives, according to Kawiana (2020). To assist
people, in acquiring the skills and talents they need to successfully do their jobs, training is
oriented toward both the present and the future. Training is an incentive for someone to
behave and work properly and diligently in line with the responsibilities and duties that have
been assigned to him, and it is a highly significant emotional force for a new job, claim
Baehaki & Faisal (2020: 11). In the meanwhile, Wahyuningsih (2019) claims that training is
a procedure to raise employee competency and may develop workers' aptitudes,
competencies, and knowledge to carry out tasks successfully and efficiently to meet
organizational objectives. Training is a systematic strategy for learning new information or
skills to improve employee productivity and organizational growth, according to Aguinis and
Kraiger in (Al-Sharafi et al., 2018).

Career Development

According to Horwitz et al. in (Nurmalitasari & Andriyani, 2021: 2) career


development is a way for companies to provide opportunities for employees to grow and
develop both personally and professionally. Career development is one of the human resource

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practices that help companies in retaining employees. Career development according to


Andrew J. Fubrin in (Nurmalitasari & Andriyani, 2021: 6) is a staffing activity that helps
employees plan their future careers in the organization so that the organization and the
employees concerned can develop themselves to the maximum. According to Kaswan (2017)
states that development is a process by which employees acquire skills and experience to be
successful in their current jobs and future tasks. Then according to Rivai in (Silen, 2016: 175)
defines career development as follows career development is the process of increasing
individual work abilities achieved to achieve the desired career. Career development is
personal improvements made to achieve a career plan. Career development means that the
organization/company/leadership has made prior plans on how to develop employees' careers
while working (Soetrisno, 2016: 160). Career development is an effort made by the
organization to plan its employees' careers, which is referred to as career management,
including planning, implementing, and supervising careers (Sinambela, 2016: 260).

Compensation

According to Afandi (2018: 73), work compensation is something that an employee


gets for his job and is obtained from his evaluation of his work situation. Compensation is
given for one's work and is done as an expression of gratitude for achieving one of the main
values of the job. Compensation is a form of reciprocity given by the company to employees
in the form of financial or non-financial, either directly or indirectly for the performance
given by employees to the company and employees receive this compensation fairly
according to their duties (Larasati, 2018). According to Priansa (2017: 5) states that
compensation is everything that employees receive in return for their work. Cashmere (2016)
states that compensation is a reward given by the company to its employees, both financial
and non-financial. Another thing with the opinion of Hasibuan (2016) states that
compensation is all income in the form of money, direct or indirect goods received by
employees in exchange for services provided to the company. According to Mondy (2016:
12) compensation is the total of all rewards received by employees instead of the services
they have provided. Total compensation is shown in direct financial compensation and
indirect compensation.

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Employee Retention

According to Panca et al., (2024: 139-140) employee retention is an organizational


way to improve and maintain the mental, physical, and behavioral health of employees so
that employees feel comfortable and loyal to their work and can ultimately achieve
organizational goals. The company must be managed properly with quality resources
because human resources are a very important asset for the company itself. Losing employees
will make things worse, hence the need for employee retention. Employee retention has
become a major issue in many organizations. Therefore, organizations need to recognize that
employee retention is an ongoing human resource concern and a significant responsibility for
managers (L. D. Sumantri & Bahrun, 2022: 12). Employee retention is an effort to maintain
a workforce or employees who have potential and have met the qualifications of a company
(Nurmalitasari & Andriyani, 2021). According to Pratiwi and Sriathi (2017: 1478) state that
employee retention is a company's effort to retain employees who perform well to stay in the
company for a certain period. According to Mathis & Jackson (2016), employee retention is
an effort to retain employees to remain in the organization to achieve the organization's goals.
According to Putra and Rahyuda (2016), employee retention is a method used by
management to retain competent employees to stay in the company for a certain period.

RESEARCH METHOD

In this research, the approach used is quantitative. Quantitative research is a


structured scientific approach to elements, phenomena, and their relationships with number-
based data collection. According to Sugiyono & Lestari (2021: 50) in their book argue that
quantitative methods can be interpreted as research methods based on the philosophy of
positivism, used to research certain populations or samples, data collection using research
instruments, data analysis is quantitative or statistical, to describe and test predetermined
hypotheses. This study uses an approach method with the formulation of associative
problems, the formulation of associative problems aims to find a relationship or influence
between two or more variables, to determine the relationship between the independent

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variable and the dependent variable, and is used to build a theory that serves to explain a
particular phenomenon symptom.

The conceptual framework of this research is presented using a flowchart table


scheme which aims to make it easier to understand the effect of training, career development,
and compensation on employee retention at PT Seiwa Indonesia. By referring to the
literature, previous research articles, and hypotheses, the research design can be organized in
the form of the following description:

Figure 1.
Research Design
Source: Author Processed Data, 2023.
The research was conducted at PT Seiwa Indonesia located in the MM2100 Industrial
Estate, Jl. Lombok l Blok M2 No.2, Gandamekar Village, West Cikarang District, Bekasi

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Regency, West Java 17520 with the research time starting in September 2023 until February
2024. The researcher will take a sample of 87 respondents from the population of employees
at PT Seiwa Indonesia, totaling 680 people, with the consideration that this number is
expected to represent the research sample. The sampling technique used in this study is the
probability sampling approach technique with the type of simple random sampling technique.
According to Sugiyono (2018), probability sampling is a sampling technique that provides
equal opportunities for each element (member) of the population to be selected as a sample
member, and simple random sampling according to Sugiyono (2018), simple random
sampling is the use of sample members from a population that is carried out randomly without
regard to the strata that exist in a population.

In this study, the data collection technique that will be used is the use of a
questionnaire. In this questionnaire, scoring is done using a Likert scale. Respondents will
rate each statement by giving a score from 1 to 5. The method is to measure the Likert scale,
to survey employees at PT Seiwa Indonesia who are sampled, the questionnaire is given in
the form of questions that must be answered by the respondent. This secondary data will be
a valuable source of information to strengthen research findings and broaden insights into
the phenomenon being studied. By combining secondary data with primary data obtained
through questionnaires, this research will have a strong basis for answering research
questions and producing more comprehensive findings. The analysis methods used in this
study are validity test, reliability test, classical assumption test, normality test,
multicollinearity test, heteroscedasticity test, multiple linear regression test, and hypothesis
testing (T-test, F test, and coefficient of determination test).

RESULTS AND DISCUSSION

Validity Test Results

Table 1.
Validity Test
Variable Item Rcount Rtable Information
X1 X1.1 0,666 0,210 Valid
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X1.2 0,687 0,210 Valid


X1.3 0,716 0,210 Valid
X1.4 0,769 0,210 Valid
X1.5 0,696 0,210 Valid
X1.6 0,772 0,210 Valid
X1.7 0,651 0,210 Valid
X1.8 0,652 0,210 Valid
X1.9 0,590 0,210 Valid
X1.10 0,560 0,210 Valid
X2.1 0,592 0,210 Valid
X2.2 0,594 0,210 Valid
X2.3 0,698 0,210 Valid
X2.4 0,639 0,210 Valid
X2.5 0,560 0,210 Valid
X2
X2.6 0,614 0,210 Valid
X2.7 0,741 0,210 Valid
X2.8 0,681 0,210 Valid
X2.9 0,774 0,210 Valid
X2. 10 0,711 0,210 Valid
X3.1 0,733 0,210 Valid
X3.2 0,801 0,210 Valid
X3.3 0,630 0,210 Valid
X3.4 0,785 0,210 Valid
X3.5 0,808 0,210 Valid
X3
X3.6 0,816 0,210 Valid
X3.7 0,802 0,210 Valid
X3.8 0,746 0,210 Valid
X3.9 0,769 0,210 Valid
X3.10 0,769 0,210 Valid
Y.1 0,778 0,210 Valid
Y.2 0,797 0,210 Valid
Y.3 0,845 0,210 Valid
Y.4 0,714 0,210 Valid
Y Y.5 0,800 0,210 Valid
Y.6 0,773 0,210 Valid
Y.7 0,734 0,210 Valid
Y.8 0,795 0,210 Valid
Y.9 0,802 0,210 Valid

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Y. 10 0,769 0,210 Valid


Source: Author Processed Data, 2024
Based on the table above, it is stated that the results of the calculation of r-count> r-
table. So, the obtained r-table value is 0.210 with a significance value < 0.05. This means
that all statement items in the questionnaire are declared valid.

Reliability Test Results

Table 2.
Reliability Test
No Variable r-Alpha r-Critical Description
1 Job Training 0,761 0,60 Reliable
2 Career Development 0,778 0,60 Reliable
3 Compensation 0,780 0,60 Reliable
4 Employee Retention 0,743 0,60 Reliable
Source: Author Processed Data, 2024.
Based on the table above, a reliability assessment is carried out on each question that
is considered valid. A variable is considered reliable or significant if its responses to
questions are consistent. The reliability coefficient of the Job Training instrument is around
rll = 0.761. The Career Development instrument has a coefficient of determination of rll =
0.778. The compensation instrument has a coefficient of determination of rll = 0.780. The
Employee Retention instrument has a coefficient of determination of rll = 0.743. These
results show that the instrument has an "Alpha Cronbach" value higher than 0.70, which
indicates that the instrument is a more reliable or less dependent variable.

Normality Test Results

Table 3.
Normality Test
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 87
a,b
Normal Parameters Mean .0000000
Std. 3.43478461
Deviation
Absolute .081

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Most Extreme Positive .081


Differences Negative -.068
Test Statistic .081
Asymp. Sig. (2-tailed) .200c,d
a. Test distribution is Normal.
b. Calculated from data.
c. Lilliefors Significance Correction.
d. This is a lower bound of the true significance.
Source: Author Processed Data, 2024
Based on the normality test results above, it shows that the significance value or
Asymp. Sig. (2-tailed) is greater than 0.05, namely 0.118 (0.200> 0.05). So it is concluded
that the data tested in this study are normally distributed.

Multicollinearity Test Results

Table 4.
Multicollinearity Test
Coefficientsa
Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Model B Std. Error Beta Tolerance VIF
1 (Constant) 9.065 3.722
X1 .062 .110 .051 .560 1.786
X2 .120 .121 .103 .430 2.325
X3 .618 .085 .680 .526 1.902
a. Dependent Variable: Y
Source: Author Processed Data, 2024
Based on the table above, each variable has a tolerance value above 0.1 and a VIF
value below 10. Thus, it can be concluded that the regression model in this study does not
show multicollinearity between the dependent variables.

Heteroscedasticity Test Results

Table 5.
Heteroscedasticity Test
Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients t Sig.

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B Std. Error Beta


1 (Constant) -.915 1.358 -.674 .503
X1 -.015 .071 -.029 -.215 .830
X2 2.719 1.778 .203 1.530 .131
X3 .024 .426 .007 .056 .956
a. Dependent Variable: ABS_RES
Source: Author Processed Data, 2024
It can be seen that the significance level of each variable is greater than 0.05 based on
the results of the heteroscedasticity test using the Glejser test in Table 4.5. and this indicates
that heteroscedasticity in the regression model in this study does not occur. and the
independent variable does not experience heteroscedasticity.

Autocorrelation Test

Table. 6
Autocorrelation Test
Model Summaryb
Adjusted R Std. Error of Durbin-
Model R R Square Square the Estimate Watson
a
1 .784 .615 .601 3.496 2.532
a. Predictors: (Constant), X3, X1, X2
b. Dependent Variable: Y
Source: Author Processed Data, 2024
Based on the table above, the Durbin Watson value is 2.090, the comparison uses a
significance value of 5%, the number of samples is 87 (n), and the number of independent
variables is 3 (k = 3), then in the Durbin-Watson table a du value of 1.7232 will be obtained.
Because the DW value of 2.532 is greater than the upper limit (du) of 1.7232 and less than 4
- 1.73 (2.27), it can be concluded that there is no autocorrelation.

Multiple Linear Regression Analysis Test Results

Table 7.
Multiple Linear Regression Analysis Test
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 9.065 3.722 2.436 .017

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X1 .062 .110 .051 .564 .574


X2 .120 .121 .103 .989 .326
X3 .618 .085 .680 7.246 .000
a. Dependent Variable: Y
Source: Author Processed Data, 2024
Based on the table above, it shows that the multiple linear regression equation Y' =
9.065 + 0.062 X1 + 0.120 X2 + 0.618X3 + e. The model can be interpreted (1) The constant
(a) of 9.065 means that if the independent variables Job training, Career Development and
compensation are constant, then the magnitude of the dependent variable Employee
Retention is worth 9.065. (2) Job training (X1) has a coefficient value of 0.062. This indicates
that the coefficient of the variable Job Training (X1) has a Positive Effect (unidirectional) on
Retention (Y). If Job training increases by one unit, then Employee Retention will increase
by 0.062 units. This means that the higher the value of Job Training, the higher Employee
Retention. (3) Career Development (X2) has a coefficient value of 0.120. This indicates that
the coefficient of the Career Development variable (X2) has a negative effect on Retention
(Y). If Career Development increases by one unit, then Employee Retention will increase by
0.120 units. This means that the higher the value of Career Development, the higher
Employee Retention. (4) Compensation (X3) has a coefficient value of 0.618. This indicates
that the coefficient of the Career Development variable (X3) has a negative effect on
Retention (Y). If compensation increases by one unit, then Employee Retention will increase
by 0.618 units. This means that the higher the compensation value, the higher the Employee
Retention.

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Hypothesis Test Results

T Test Results

Table 8.
T Test (Partial Significance)
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 9.065 3.722 2.436 .017
X1 .062 .110 .051 .564 .574
X2 .120 .121 .103 .989 .326
X3 .618 .085 .680 7.246 .000
a. Dependent Variable: Y
Source: Author Processed Data, 2024
Based on the table above, it proves that the significant value of Job Training with
Employee Retention is 0.574 > 0.05, therefore Ho is accepted and Ha is rejected, meaning
that there is no influence between Job Training on Employee Retention. Based on the table
above, it proves that the significant value of Career Development with Employee Retention
is 0.326 > 0.05, therefore Ho is accepted and Ha is rejected, meaning that there is no influence
between Career Development on Employee Retention. Based on the table above, it proves
that the significant value of Compensation with Employee Retention is 0.000 < 0.05,
therefore Ho is rejected and Ha is accepted, which means that there is an influence between
Compensation on Employee Retention.

F Test Results

Table 9.
F Test
ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regression 1621.624 3 540.541 44.219 .000b
Residual 1014.606 83 12.224
Total 2636.230 86
a. Dependent Variable: Y

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b. Predictors: (Constant), X3, X1, X2


Source: Author Processed Data, 2024
Based on the table above, it states that the significant value between work motivation,
work discipline, and job training with employee retention is 0.000 <0.05. The conclusion is
that Ho is rejected and Ha is accepted, which means that Job Training as X1, Career
Development as X2, and Compensation as X3 simultaneously affect Employee Retention (Y)
significantly.

Determination Coefficient Test Results

Table 10.
Determination Coefficient Test
Model Summaryb
Adjusted R Std. Error of Durbin-
Model R R Square Square the Estimate Watson
a
1 .784 .615 .601 3.496 1.532
a. Predictors: (Constant), X3, X1, X2
b. Dependent Variable: Y
Source: Author Processed Data, 2024
Based on the table above, states that the R Square value is 0.615 or 61.5%. Stating
that the variables of Job Training, Career Development, and compensation simultaneously
affect the Employee Retention variable by 61.5%, the remaining 38.5% may be influenced
by other variables such as compensation, organizational culture, and others that are not
examined.

The Effect of Job Training on Employee Retention

Based on the table above, it proves that the significant value of job training with
employee retention is 0.574 > 0.05, therefore Ho is accepted and Ha is rejected, meaning that
there is no influence between job training on employee retention. Training is one of the
factors that can affect employee retention in the company. By providing training to
employees, companies can improve employee skills and knowledge so that they are better
prepared and able to face challenges in the workplace. In addition, training can also increase
employee confidence and motivation, which in turn can increase employee retention (Enny,
2019).

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Research conducted by Khristian (2022) found that training has a positive effect on
employee retention. The results showed that companies that provide training to their
employees have a higher employee retention rate than companies that do not provide training.
This shows that training can be used as one of the company's strategies for increasing
employee retention.

The Effect of Career Development on Employee Retention

Based on the table above, it proves that the significant value of Career Development
with Employee Retention is 0.326 > 0.05, therefore Ho is accepted and Ha is rejected,
meaning that there is no influence between Career Development on Employee Retention.

The results of research conducted by Kadek Elsa Osiana Dewi, and I Gede Riana.
(2019). Stating that development has a positive and significant effect on employee retention.
The employees feel that the career development carried out by the company is good so it can
convince the employees to stay in the company. This shows that the better the career
development provided to employees, the higher the employee retention in the company.

The Effect of Compensation on Employee Retention

Based on the table above, it proves that the significant value of Compensation with
Employee Retention is 0.000 < 0.05, therefore Ho is rejected and Ha is accepted, meaning
that there is an influence between Compensation on Employee Retention. Compensation is
one of the factors that can affect employee retention in the company. Fair and adequate
compensation can increase employee motivation and loyalty to the company. Employees who
feel that they are compensated following their contribution to the company, tend to be more
attached to the company and are not easy to move to other companies (Wibowo, 2017).

Research conducted by Chuzaimah (2021) found that compensation has a positive


effect on employee retention. The results showed that companies that provide fair and
adequate compensation to their employees have a higher employee retention rate than
companies that provide low compensation. This shows that good compensation can be used
as one of the company's strategies for increasing employee retention. In addition, research by
Bahrun (2022) shows that compensation also has a positive influence on employee retention.

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CONCLUSION

Based on the results of research that has been carried out, it can be concluded (1) that
there is no influence between Job Training on Employee Retention. (2) Based on the results
of this analysis, it shows that there is no influence between Career Development on Employee
Retention. (3) Based on the results of this analysis, it shows that there is an influence between
Compensation on Employee Retention.

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