Global challenges of the mining industry: Effect of job insecurity and reward on turnover intention through job satisfaction

Abstract

Orientation: This research focusses on the dynamics of job insecurity, job satisfaction and employee turnover intentions in the Indonesian mining industry facing significant global and local economic challenges. Research purpose: This research aims to investigate the influence of job insecurity and rewards on the turnover intentions of employees with job satisfaction as a mediating variable in the mining industry of Indonesia. Motivation for the study: This research is based on the observation that the mining industry faces high turnover rates, which can be detrimental to company operations and sustainability. Research approach/design and method: This research uses a quantitative approach by collecting data through surveys distributed to employees in various mining industries. The population in this study were employees of the mining industry in PT Vale Indonesia, totalling 3044 employees, and a sample of 230 respondents was taken at random. Main findings: The main findings show that job insecurity negatively influences job satisfaction, increasing employee turnover intentions. However, when companies implement a fair and adequate reward system, the negative impact of job insecurity on job satisfaction and turnover intentions can be minimised. Practical/managerial implications: The practical implication of this research is the importance of the mining industry developing human resource management strategies that not only focus on competitive compensation but also create a stable and satisfying work environment. Contribution/value-add: This research provides an important contribution to the development of human resource management by highlighting the mediating role of job satisfaction in the relationship between job insecurity and turnover intentions. These findings provide new insights for companies in overcoming employee retention challenges with a holistic approach and good reward system.