Analysis of factors affecting employee loyalty of PT X in Jakarta region

Abstract

Having loyal employees, i.e. those who desire to do their best in their work to achieve the company's target, is important for the company. This study is conducted to identify factors that explain loyalty of employees in PT X, Jakarta. Furthermore, we also aim to generate profiles of the most loyal employees. Questionnaires were used to collect data from the central office and 12 branches of the company, using purposive sampling scheme, giving 467 respondents in total. Data processing was conducted using Partial Least Square (PLS) and Classification and Regression Tree (CART) methods. The results showed that job satisfaction and gender directly influence employees' loyalty. Moreover, physiological needs, safety needs, love needs, and self-actualization needs indirectly influence loyalty of employees through job satisfaction. Highly loyal employees are those with either high job satisfaction and low physiological needs or low job satisfaction and low level of love needs.