Employee Engagement and Compensation on Employee Turnover Intention at a Local Café and Bar in Bali, Indonesia

Abstract

The purpose of this study was to determine the role of employee engagement in mediating the effect of compensation on turnover intention. 80 employees were assigned as samples using the saturated sampling method. Data was collected through interviews, observations, and questionnaires. The analysis technique used is path analysis. Based on the results compensation has a positive and significant effect on employee engagement. Compensation and employee engagement have a negative and significant effect on turnover intention; Employee engagement significantly mediates the relationship between compensation and turnover intention. The implication in this study is that the company should pay more attention to the compensation given to match the district minimum wage so that employees will feel bound to the company and the desire of employees to change jobs will be lower.