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Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and Intention to Stay in Generation Z Workers

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  • Universitas Pelita Bangsa

Abstract and Figures

Purpose: This study is intended to determine the relationship between talent development and intention to stay among Generation Z workers in the largest industrial center in Southeast Asia. Intention to stay has been delineated as employees’ plan to stay in their current employment with their present employer for a relatively long period. This study is also to test whether job satisfaction and employee engagement can mediate between talent development and intention to stay Theoretical framework: Retention of employees requires utilizing all tools available. If Talent Development increases Job Satisfaction, Employee Engagement and Empowerment and these lead to increased Intention to Stay, the effects of it must be studied. Design/methodology/approach: The 342 samples of Generation Z employees were taken by purposive sampling technique from companies in 15 industries of Bekasi Regency including manufacturing, food industry, service industry, education, electronics, transportation, construction, IT, telecommunication, and real estate. The data was tested with Smart PLS 3.0 software. Findings: The result is that there is a positive and significant influence of talent development on intention to stay, and job satisfaction has a bigger mediating value than employee engagement between talent development and intention to stay. Research, Practical & Social implications: Future studies should have a larger Generation Z sample Originality/value: Research on Generation Z Talent Development is still rarely done, and Generation Z employees are especially important to companies.
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Intern. Journal of Profess. Bus. Review. |Miami, v. 8 | n. 1| p. 01-19 | e0814 | 2023.
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JOB SATISFACTION AND EMPLOYEE ENGAGEMENT AS MEDIATORS OF THE
RELATIONSHIP BETWEEN TALENT DEVELOPMENT AND INTENTION TO STAY IN
GENERATION Z WORKERS
Listian Indriyani Achmad
A
, Noermijati
B
, Rofiaty
C
, Dodi Wirawan Irawanto
D
A
A Doctoral Candidate in Management with a focus on Human Resources at Universitas Brawijaya, Malang,
Indonesia, and a lecturer at Universitas Pelita Bangsa. E-mail: listian.achmad@pelitabangsa.ac.id
Orcid: http://orcid.org/0000-0002-8360-9991
B
A Professor of Management from Universitas Brawijaya, Malang, Indonesia. E-mail: nurmi@ub.ac.id
Orcid: http://orcid.org/0000-0003-3265-612X
C
A Doctor in Management, Lecturer for Universitas Brawijaya, Malang Indonesia. E-mail: rofiaty@ub.ac.id
ORCID: http://orcid.org/0000-0003-0989-9991
D
A Phd in Management, Lecturer for Universitas Brawijaya, Malang Indonesia. E-mail: dodi.wi@ub.ac.id
Orcid: http://orcid.org/0000-0002-0348-4499
ARTICLE INFO
ABSTRACT
Purpose: This study is intended to determine the relationship between talent
development and intention to stay among Generation Z workers in the largest
industrial center in Southeast Asia. Intention to stay has been delineated as
employees’ plan to stay in their current employment with their present employer for
a relatively long period. This study is also to test whether job satisfaction and
employee engagement can mediate between talent development and intention to stay
Theoretical framework: Retention of employees requires utilizing all tools
available. If Talent Development increases Job Satisfaction, Employee Engagement
and Empowerment and these lead to increased Intention to Stay, the effects of it must
be studied.
Design/methodology/approach: The 342 samples of Generation Z employees were
taken by purposive sampling technique from companies in 15 industries of Bekasi
Regency including manufacturing, food industry, service industry, education,
electronics, transportation, construction, IT, telecommunication, and real estate. The
data was tested with Smart PLS 3.0 software.
Findings: The result is that there is a positive and significant influence of talent
development on intention to stay, and job satisfaction has a bigger mediating value
than employee engagement between talent development and intention to stay.
Research, Practical & Social implications: Future studies should have a larger
Generation Z sample
Originality/value: Research on Generation Z Talent Development is still rarely done,
and Generation Z employees are especially important to companies.
Doi: https://doi.org/10.26668/businessreview/2023.v8i1.814
Article history:
Received 14 November 2022
Accepted 16 January 2023
Keywords:
Job Satisfaction;
Employee Engagement;
Intention to Stay;
Talent Development;
Generation Z Workers.
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
SATISFAÇÃO NO TRABALHO E ENGAJAMENTO DOS FUNCIONÁRIOS COMO MEDIADORES
DA RELAÇÃO ENTRE O DESENVOLVIMENTO DE TALENTOS E A INTENÇÃO DE
PERMANECER NA GERAÇÃO Z TRABALHADORES
RESUMO
Objetivo: Este estudo pretende determinar a relação entre o desenvolvimento de talentos e a intenção de
permanência entre os trabalhadores da Geração Z no maior centro industrial do Sudeste Asiático. A intenção de
permanência foi definida como a intenção dos funcionários de permanecer em seu emprego atual com seu
empregador atual em longo prazo. Este estudo também é para testar se a satisfação no trabalho e o envolvimento
dos funcionários podem mediar entre o desenvolvimento de talentos e a intenção de permanecer
Referencial teórico: A retenção de funcionários requer a utilização de todas as ferramentas disponíveis. Se o
Desenvolvimento de Talentos aumenta a Satisfação no Trabalho, o Engajamento dos Funcionários e o
Empoderamento e isso leva ao aumento da Intenção de Permanecer, seus efeitos devem ser estudados.
Desenho/metodologia/abordagem: : As 342 amostras de funcionários da Geração Z foram coletadas por técnica
de amostragem intencional de empresas em 15 indústrias de Bekasi Regency, incluindo manufatura, indústria de
alimentos, indústria de serviços, educação, eletrônica, transporte, construção, TI, telecomunicações e imóveis. Os
dados foram testados com o software Smart PLS 3.0.
Resultados: O resultado é que uma influência positiva e significativa do desenvolvimento de talentos na
intenção de ficar, e a satisfação no trabalho tem um valor mediador maior do que o engajamento dos funcionários
entre o desenvolvimento de talentos e a intenção de ficar.
Pesquisa, implicações práticas e sociais: Estudos futuros devem ter uma amostra maior da Geração Z
Originalidade/valor: A pesquisa sobre o Desenvolvimento de Talentos da Geração Z ainda é raramente feita, e
os funcionários da Geração Z são especialmente importantes para as empresas.
Palavras-chave: Satisfação no Trabalho, Envolvimento dos Funcionários, Intenção de Ficar, Desenvolvimento
de Talento, Trabalhadores da Geração Z.
LA SATISFACCIÓN LABORAL Y EL COMPROMISO DE LOS EMPLEADOS COMO
MEDIADORES DE LA RELACIÓN ENTRE EL DESARROLLO DEL TALENTO Y LA INTENCIÓN
DE PERMANENCIA EN LOS TRABAJADORES DE LA GENERACIÓN Z
RESUMEN
Propósito: Este estudio tiene como objetivo determinar la relación entre el desarrollo del talento y la intención de
permanencia entre los trabajadores de la Generación Z en el centro industrial más grande del sudeste asiático. La
intención de permanecer se ha definido como la intención de los empleados de permanecer en su empleo actual
con su empleador actual a largo plazo. Este estudio también es para probar si la satisfacción laboral y el
compromiso de los empleados pueden mediar entre el desarrollo del talento y la intención de quedarse.
Metodología: Las 342 muestras de empleados de la Generación Z se tomaron mediante una técnica de muestreo
intencional de empresas en 15 industrias de Bekasi Regency, que incluyen manufactura, industria alimentaria,
industria de servicios, educación, electrónica, transporte, construcción, TI, telecomunicaciones y bienes raíces.
bienes. Los datos se probaron con el software Smart PLS 3.0.
Conclusiones: El resultado es que existe una influencia positiva y significativa del desarrollo del talento en la
intención de permanecer, y la satisfacción laboral tiene un mayor valor mediador que el compromiso de los
empleados entre el desarrollo del talento y la intención de permanecer.
Implicaciones de la Investigación: los estudios futuros deberían tener una muestra más grande de la Generación
Z
Palabras clave: Satisfacción laboral, Compromiso de los Empleados, Intención de Quedarse, Desarrollo de
Talento, Trabajadores de la Generación Z.
INTRODUCTION
Companies that aim to develop business usually do not hesitate to invest in their human
resources. Human resource managers understand this. The best companies invest in their
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
employees (Bowman, 2017). Investment in loyal human resources allows companies to reduce
the additional costs of recruiting new workers.
Employee turnover is expensive, often more than expected. In addition to personnel
replacement costs, actual replacement costs involve other hidden costs such as lost productivity,
workplace safety issues, and decreased morale. In 2004, according to conservative estimates by
the U.S. Bureau of Labor Statistics, the replacement cost on average is $13,996 per employee.
Andrew and Sofian (2012) found that when employees are provided with development,
i.e. training, learning and skills, that they are more likely to be more absorbed by and interested
in their jobs and will reciprocate with more and even much more organizational engagement.
Robinson et.al, (2004) stated that company focus on employee development - so that employees
feel that the company believes that they are important for the company's future and provides
the training they need and provides access fair development opportunities - is very important
for employee engagement. Fletcher et al., (2018) found that employee engagement is
significantly associated with intention to stay, and that employee engagement fully mediates
between discerned training and development and employee intention to stay.
An important goal of human resource management practice is to keep talented
individuals in the company (Hiltrop, 1999; Govaerts et al., 2011; Pittino et al., 2016). Retention
of employees requires effort to promote and create an environment that encourages employees
to keep working by setting in place policies and practices that suit their needs. These policies
and practices help prevent employees from leaving and also maximizes the time that employees
spend working for the organization (Kossivi et al., 2016; Cascio, 2019). It is necessary for
companies to be proactive about employee retention because finding, hiring and training new
employees is costly is terms of time and money. Retention maintains and can increase company
productivity and increases employee cohesiveness (Rakhra, 2018). Further, employees who
leave the company take specialized training and knowledge with them away from the company
and often when individuals leave the company, they convince other employees to leave the
organization. A high rate of employee turnover can bring negative results for any company,
especially if the employees who left were high-performing employees (Mattox et al., 2005).
Chami-Malaeb and Garavan (2013) studied the relationship between talent development
and intention to stay and they had affective commitment as a partial mediator between talent
development and intention to stay. But this research was studying job satisfaction and
employee engagement as mediators between talent development and intention to stay. There
are very few academic papers that focus on talent development (Garavan et al. 2012).
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
THEORETICAL BACKGROUND
Resource-based theory expresses the view that the potential to give an organization a
competitive advantage lies in its human resources which are unique, valuable, rare, and
difficult to replace (Becker & Huselid 1998; Bartel, 2004). Research using the resource-
based paradigm shows that HRM practices affect performance through improving employee
behavior.
Understanding Generation-Zers is essential in order to gain an advantage competitively
and essential for business prosperity (Pichler et al., 2021), and there are several reasons why
Generation Z employees are especially important to companies:
1. Because Generation Z employees are more tech-savvy, flexible, tolerant of
different cultures, and are more loyal to the company (Schawbel, 2014).
2. Most of the current Generation Z employees are still at the lowest level of their
career ladder in the company. However, as potential leaders, Generation Z is
extremely focused on achieving goals (Schroth, 2019).
3. With their realistic nature, they can easily decide to leave the company which
will cause additional costs for the company to recruit new employees (taken from an
interview with the HR Manager of PT Panasonic Manufacturing Indonesia).
Intention to Stay
Intention to stay has been delineated as employees’ plan to stay in their current
employment with their present employer for a relatively long period (Shahid, 2018; Johari et
al., 2012). Intention to stay has been defined as an employee’s willingness to remain in his or
her organization (Presbitero & Teng-Calleja, 2020). This is an inverse concept of turnover
intention or intention to quit.
Generation Z
Generation Z is defined as those born approximately between 1995 - 2010 (Francis &
Hoefel 2018), between 1997 -2013 (Schroth, 2019), born after 1995 (Sun et. al., 2021), or born
after 2000 (Titko et al., 2020), is currently the object of many studies as well as the previous
generation, namely the millennial generation (Titko et al., 2020). Scholars explain that
Generation Z children are digital natives (Popescu et al. 2019) who are ambitious because this
generation wants to make a difference (Marron 2015).
Generation Z has unique characteristics. One of the most important concerns facing
human resource management is employee retention. Employee retention is defined as an
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
employee's intention to keep working. Employees’ intention to stay with the company is crucial
for companies’ prosperity because of the expenses caused by disruptions of smooth business
operation when employees leave which can include lower productivity, and the expenses of
finding, interviewing, hiring and training new employees. One of the best ways to increase
retention is to increase employee engagement, because when employees are absorbed by and
interested in their jobs, they will have greater intention to remain with the company (Bryngelson
& Cole, 2021).
Generation Z Talent Development
Benham (1993) states that talent development is a comprehensive development
framework that can transform people from being a mere factor of production into a contributing
force that sustains progress.
Training is the company's commitment to and investment in their employees, and
providing it signifies to the employees that they are considered important to the survival and
prosperity of the organization. This provides incentive for employees to stay with the
organization and incentive for all employees to work at a high level (Takeuchi et al., 2007).
Talent development can be defined as selecting, planning, and setting into place,
strategies that help the development of all employees to make sure that the company has the
talent it needs now and in the future to achieve its strategic goals, as well as to make certain
that the processes for organizational talent management are in line with talent development
activities (Garavan, et al., 2012).
Rezaei and Beyerlein (2018) define talent development as an all-inclusive system that
is tailored and created for individual employees. Talent development is not limited to specific
work-related training, but includes career development and organizational development for the
benefit of employees and the organization.
Job Satisfaction
Job satisfaction as defined by Locke (1976) is a satisfying or favorable emotional state
brought on by an evaluation of one's employment or professional experience. Job satisfaction
has also been defined as a measure of the fulfillment that employees get from their jobs.
Abraham (2012) stated that the more an employee's work tasks and working environment
fulfills the employee’s personal characteristics, needs and values, the higher the level of job
satisfaction.
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
Employee Engagement
Harter et al., (2002) stated that employee engagement refers to satisfaction with,
engagement in, and enthusiasm for one’s job. Anitha (2014) stated that employee engagement
can be defined as the degree of dedication and attachment that an individual has to the company
and to its principles. Engaged employees take responsibility to do their part in reaching
business goals and also motivate their colleagues so that organizational goals can be achieved.
An engaged employee goes beyond just acceptable standards and tries to do above average
and/or excellent work. An engaged employee is intellectually and emotionally attached to his
or her company and feels passionate about the company’s goals and stands by the company’s
values.
The Effect of Talent Development on Job Satisfaction
Rezaei and Beyerlein (2018) found that implementing talent development practices in
organizations influences organizational goals such as productivity, job satisfaction, and
decreased absenteeism. Given the importance of talent development, Robinson et. al., (2004)
suggested that talent management can run more effectively. The results of studies in various
organizations support the relationship between providing training and development
accessibility for employees and increased job satisfaction and increased job commitment by
employees.
The Effect of Talent Development on Employee Engagement
Talent development has a significant effect on employee engagement (Albrecht &
Andreetta, 2011; Baumruk, 2004; Bowen & Lawler, 1995; Karatepe, 2013; Lashley, 1999;
Saks, 2006; Seijts & Crim, 2006).
Antony (2018) found that an effective employee engagement strategy requires career
development opportunities. Analyzes of employee engagement drivers consistently reveal that
career development is an important way to increase employee engagement. This has led many
companies to offer to pay for employee education in their field. It is best that employee
managers encourage employees to take advantage of all educational opportunities in their area
of operation provided by the company. The benefit for the companies and their employees is
that when employees obtain additional certifications and education, employees stay up-to-date
in their field. This will also provide the employees with the technological know-how of the
tools they need to work and excel in their jobs. Companies need to realize that when they offer
education and training programs to employees, that this not only enhances the skills of the
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
employees but also leads to company growth. Employers need to remember that by providing
talent development and education to their employees, they will ultimately help the organization
to grow. In addition, providing mentoring to employees will increase employees' knowledge
of their job tasks. This means that training and development programs ultimately offer a win
for organizations and employees. In addition to increasing the company’s potential, companies
that provide training and development can build a workforce that is engaged and motivated.
This is a long-term value for the company.
The Effect of Job Satisfaction on Intention to Stay
Bellani et.al., (2017) found that when employees are satisfied that their economic and
social emotional needs are being met, that their positive attitudes towards their work and the
organization and their willingness to contribute more, will increase. Job satisfaction is one of
the drivers of the employees’ sense of attachment to the company (Permana et. al., 2015). Job
satisfaction positively and significantly influences organizational commitment (Putra et al.,
2021). Widyani et al., (2019) found that employees’ job satisfaction negatively and
significantly influences turnover intention. Risdayanti and Sandroto (2020) also found that job
satisfaction has a significant, negative effect on intention to leave. Mehreza and Bakria (2019)
found that individuals who are satisfied about their work have high levels of dedication and no
plans to quit their jobs.
The Effect of Employee Engagement on Intention to Stay
Saks (2006) found that “Job and organizational engagement were significantly
positively related to…organizational commitment…and negatively related to intention to quit.”
Fletcher et al., (2018) found that employee engagement is significantly associated with
intention to stay, and that employee engagement fully mediates between discerned training and
development and employee intention to stay.
Park and Johnson (2019) found that engagement was negatively correlated with
intention to quit. This means that employee engagement is positively correlated with intention
to stay.
The Effect of Talent Development on Intention to Stay
Gaertner and Nollen (1989) found that company-provided training and development is
related positively to psychological commitment to the company. Specifically, they found that
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
employees who received training and development from their company were more committed
to the company than employees who did not receive training and development.
Talent development has a significant positive relationship with intention to stay in the
company (Chami-Malaeb & Garavan, 2013; Narayanan, 2017 ).
Figure 1. Relationships among talent development, job satisfaction, employee engagement and intention to stay.
Source: The Authors
Hypotheses Development
The relation between talent development and intention to stay was tested using the
following hypotheses:
H1: There exists a significant association between talent development and Gen-Z
Workers’ intention to stay
H2: There exists a significant association between talent development and Gen-Z
Workers’ Job Satisfaction
H3: There exists a significant association between talent development and Gen-Z
Employee Engagement
H4: There exists a significant association between Job Satisfaction and Gen-Z
Workers’ intention to stay
H5: There exists a significant association between Employee Engagement and Gen-Z
Workers’ intention to stay
H6: Job Satisfaction will mediate the relationship between talent development and Gen-
Z Workers’ intention to stay.
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
H7: Employee Engagement will mediate the relationship between talent development
and Gen-Z Workers’ intention to stay.
RESEARCH METHOD
This research uses a quantitative approach. This research studied 342 workers from 15
different industries in various companies located in the Jababeka Industrial Estate (KIJA) and
its surroundings, which is the largest manufacturing area in Indonesia. Currently, more than
1,500 national and multinational companies from over 35 countries are operating in the
Jababeka industrial area, including companies from the Netherlands, Germany, France, the
United Kingdom, Australia, Japan, China, the United States, Taiwan and South Korea (PT
Jababeka, 2010). Most of the companies that purchased land from PT Jababeka Industrial Estate
for industrial purposes were foreign companies from Europe, Malaysia, Korea and Japan who
wanted to increase their production of automotive, pharmaceutical, electronic, and consumer
goods (Yulisman, 2011).
The number of responses of 342 people is considered sufficient because according to
Kaufmann and Gaeckler (2015) the minimum number of samples using Partial Least Squares
(PLS) is 35 samples. The data collection of this research is divided into 3 parts, namely the
types and sources of data, data collection methods, and the scale and measurement of data.
Measurement of data in this study using a Likert Scale.
Table 1. Industry type and statistical characteristics of the participants (N=342)
Variable
%
Gender
Male
45
Female
55
Age
17 25 Years
94.7
Industry
Manufacture
51.5
Food
10.5
Service
5.8
Education
5
Electronics
4.4
Transportation
2.6
Farmacy
2
Construction
1.5
IT
1.5
Telecommunication
0.9
Property
0.9
Hospitality
0.6
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
Medical
0.6
Entertainment
0.6
Hospital
0.3
Computer Technician
0.3
Others
16.5
Source: The Authors
Figure 2. Bar chart of responses for length of work at the company
Source: The Authors
RESULTS
Tests were carried out on the indicators used for measurement in this study. The
following table shows the results of testing the validity and reliability.
Table 2. Survey’s Result
Variable
Item
Mean
STD
DEV
Cronbach’s
Alpha
Talent Development
(Barney, 1991
Hackman & Oldham,
1975,
Zhou et al., 2019)
4.00
0.91
0.785
4.020
0.92
3.53
0.98
Job Satisfaction
Bellani et.al., (2017)
4.10
0.93
0.896
4.03
0.97
3.98
0.90
Employee
Engagement
Babakus et. al., 2017,
Stairs et. al., 2006;
Seijts and Crim, 2006
4.30
0.83
0.845
4.15
0.84
4.28
0.83
Intention to Stay
Tett and Meyer, 1993,
Presbitero and Teng-
Callejo, 2020
3.48
1.19
0.794
3.15
1.30
4.03
0.9
Source: The Authors
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
Structural Model Evaluation
To see how big the percentage of the effect of exogenous variables on endogenous
variables, we look at the existing values which are analyzed by looking at the R Square value.
Table 3. Cross Loading Value
R Square
R Square Adjusted
Y (ITS)
0.418
0.413
Z1 (EJS)
0.430
0.428
Z2 (EEG)
0.372
0.371
Source: The Authors
The value of R Square for the Y variable is 0.418, which means that the variables X, Z1
and Z2 affect Y by 41.8%. We can state that Talent development, Job Satisfaction and
Employee Engagement affect Intention to Stay by 41.8%.
In table 4, the relationship between the variables can be seen.
Table 4. Path Coefficient Value
X (TDZ)
Y (ITS)
Z1 (EJS)
Z2 (EEG)
X (TDZ)
0.183
0.656
0.610
Y (ITS)
Z1 (EJS)
0.398
Z2 (EEG)
0.150
Source: The Authors
All have a positive relationship because all values are between 0 and 1.
To see the level of significance, the value of T Statistics must be above 1.97.
Table 5. T-Statistic Value
Original..
Sample..
Standard..
T Statistic..
P Values
X1 (TDZ) -> Y (ITS)
0.183
0.185
0.066
2.785
0.006
XI (TDZ) -> Z1 (EJS)
0.656
0.656
0.038
17.320
0.000
X1 (TDZ) -> Z2 (EEG)
0.610
0.611
0.049
12.516
0.000
Z1 (EJS) -> Y (ITS)
0.398
0.396
0.069
5.759
0.000
Z2 (EEG) -> Y (ITS)
0.150
0.153
0.063
2.391
0.017
Source: The Authors
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Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
All T-statistic values are above 1.97.
Predictive relevance is a value that shows how well the observations are made (>0 =
good observation values). Predictive relevance test is carried out using the blindfolding
technique.
Table 5. Predictive Relevance Value
Construct Crossvalidated Redundancy
SSO
SSE
Q2(=1-S..
X1 (TDZ)
1026.000
1026.000
Y (ITS)
1026.000
753.483
0.266
Z1 (EJS)
1026.000
665.695
0.351
Z2 (EEG)
1026.000
740.157
0.279
Source: The Authors
Value above 0 means good observation
Table 6. NFI Value
Model_Fit
Saturated..
Estimated..
SRMR
0.073
0.097
d_ULS
0.420
0.734
D_G
0.200
0.222
Chi-Square
413.679
437.272
NFI
0.825
0.815
Source: The Authors
Normed Fit Index (NFI): a measure of the suitability of the model on a comparative
basis to the base line is considered appropriate.
Figure 3. Structural relationships between talent development, job satisfaction, employee engagement and
intention to stay.
Source: The Authors
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13
Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
Measurement of Indirect Relationship
The table below shows the value of the indirect relationship between the talent
development variable and the intention to stay variable.
Table 7. Indirect Relationship
Origin..
Sample..
Standard..
T Statistic
P Values
X1 (TDZ) -> Z1 (EJS) -> Y (ITS)
0.261
0.257
0.048
5.444
0.000
X1 (TDZ) -> Z2 (EEG) -> Y (ITS)
0.091
0.094
0.038
2.425
0.016
Source: The Authors
Table 8. Direct Relationship
X1 (TDZ) -> Y (ITS)
0.183
0.185
0.062
2.927
0.004
Looking at the values in the two tables above, it can be concluded that job satisfaction
mediates the relationship between talent development and intention to stay at a greater degree
than employee engagement.
DISCUSSION
In our study, when job satisfaction and employee engagement were modelled as
mediators, it was evident that job satisfaction has a higher value than employee engagement.
This research found that talent development had a positive significant effect on job
satisfaction in Generation Z employees. The researchers also found that job satisfaction had a
positive significant effect on intention to stay in Generation Z employees. This is relevant to
Nanncarrow’s reseach on Australian nurses. Job satisfaction was a positive predictor of
intention to stay (Nanncarrow et al., 2007). This does not follow the theory that low rates of job
satisfaction will predict high rates for intention to stay (McCarthy et al., 2007).
This research also found that talent development had a positive significant effect on
employee engagement in Generation Z employees. It was also found that the employee
engagement variable had a positive and significant effect on intention to stay in Generation Z
employees. And finally, this research found that talent development had a positive significant
effect on intention to stay in Generation Z employees.
All hypotheses were proven.
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14
Achmad, L. I., Noermijati., Rofiaty., Irawanto, D. W. (2023)
Job Satisfaction and Employee Engagement as Mediators of the Relationship Between Talent Development and
Intention to Stay in Generation Z Workers
CONCLUSION
This is the first study amongst Gen-Z workers that has demonstrated that job satisfaction
and employee engagement successfully mediate talent development and intention to stay. This
is the first research to compare the indirect and direct effects of job satisfaction and employee
engagement on intention to stay amongst Gen-Z workers, and thereby contributes to the
academic literature on the antecedents of intention to stay.
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... Subsequently, engaged employees are more dedicated to their positions, exhibit increased productivity, and are less inclined to pursue opportunities outside the organizations. Additionally, the relationship between recruitment and selection and employee retention is mediated by employee engagement, which influences job satisfaction and organizational commitment (Achmad et al., 2023). Engaged employees are more likely to experience job satisfaction, as they are motivated to perform at their best and derive fulfillment from their responsibilities. ...
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Employee retention is a critical challenge in the banking sector, with high turnover rates leading to significant costs and operational disruptions. This study investigates the mediating role of employee engagement in the relationship between recruitment and selection practices and employee retention at the National Bank of Bahrain (NBB). A quantitative cross-sectional survey approach was employed, with data collected from a random sample of 257 NBB employees across various departments and hierarchical levels. The study utilized structural equation modeling via SmartPLS to analyze the data. Results indicate that recruitment and selection practices significantly influence employee engagement (β = 0.861, p < 0.000) and employee retention (β = 0.455, p < 0.006). Moreover, employee engagement was found to have a significant positive effect on employee retention (β = 0.406, p < 0.018). Notably, the study reveals a significant indirect effect of recruitment and selection on employee retention through employee engagement (β = 0.35, p < 0.019), confirming the mediating role of employee engagement. These findings emphasize the importance of strategic recruitment and selection practices in fostering employee engagement and enhancing retention rates. The study significantly contributes to the literature on human resource management in the banking sector, providing a deeper understanding of employee engagement’s role in retention and offering practical implications for organizations seeking to improve their talent management strategies and reduce turnover.
... Although development opportunities also significantly impact loyalty, the relationship is slightly weaker than its influence on job satisfaction. This could be due to the fact that while development opportunities enhance employees' commitment to their roles, loyalty may also be influenced by other factors, such as organizational culture and work-life balance [36], [37]. However, the positive relationship between development opportunities and loyalty suggests that when Generation Z employees see potential for long-term career growth, they are more likely to stay with the organization. ...
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This study investigates the influence of job recognition and development opportunities on job satisfaction and loyalty among Generation Z employees in Jakarta’s creative industries. Using a quantitative approach, data was collected from 230 respondents through a Likert-scale questionnaire and analyzed using Structural Equation Modeling (SEM-PLS). The results show that both job recognition and development opportunities have significant positive effects on job satisfaction and loyalty. Development opportunities were found to have a stronger impact on job satisfaction, while job recognition also significantly influenced both outcomes. These findings highlight the importance of tailored human resource strategies that focus on recognizing employee contributions and providing career development pathways. Organizations in Jakarta’s creative industries can enhance retention and satisfaction by investing in these key areas.
... In contrast, those displaying commitment, often linked with job satisfaction, are more likely to go above and beyond their obligations, showcasing loyalty and contributing to superior performance. According to [19], Talent development serves as a comprehensive framework, transforming individuals from mere factors of production into a contributing force that sustains progress. Through training, a company demonstrates its commitment to and investment in employees, signaling their importance to the organization's survival and prosperity. ...
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Chapter
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Employee commitment is influenced by organizational climate and fairness to be able to grow and develop within an organization. The purpose of this study was to analyze and determine the effect of organizational climate and organizational justice on organizational commitment, with job satisfaction as an intervening variable at the Denpasar City Revenue Service. The hypotheses proposed based on existing theoretical studies and the existence of the phenomena summarized in the problem formulation are: organizational commitment is positively affected by organizational climate; organizational justice has an effect on organizational commitment as positively; organizational climate has an effect on job satisfaction as positively; job satisfaction is positively influenced by fairness organization; and organizational commitment is positively effected by job satisfaction. The design of this research system is oriented to the pattern of calculating quantitative data on the existence of questionnaires distributed to 83 respondents. The data used are primary and secondary data both qualitative and quantitative which are then analysed by PLS-based SEM, while the results found are as follows: organizational commitment is positively and significantly affected by organizational climate; organizational justice has an effect on organizational commitment is positively and significantly; job satisfaction is positively and significantly affected by organizational climate; organizational justice has an effect on organizational justice is positively and significantly; and organizational commitment is positively and significantly influenced by job satisfaction.
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Purpose Social media influencers (SMIs) play an increasingly important role in influencing youth and their shopping behaviours in digital marketing. Research has examined various but fragmented SMIs, which cause inconsistency in empirical results. This research seeks to categorise the most popular SMIs in luxury fashion and examine their distinctive effects on Gen Z consumption in China. Design/methodology/approach The authors categorise SMIs into four groups based on two dimensions, i.e. network interactivity vs social connectedness. Drawing on the social network theory, the authors develop the research model. A sample of 400 survey data is collected and analysed using the PLS-SEM technique. Findings The empirical results suggest that among the four popular SMIs groups, the effects of celebrities, opinion leaders and friends and peers on luxury fashion consumption of Gen Z are statistically significant while that of advertisers are insignificant; that friends and peers have the most substantial effect among the others. Originality/value The study contributes to understanding SMIs and consumer behaviour in digital emerging markets. By categorising SMIs, this study reconciles inconsistencies in the concept. This study contributes to a better understanding of SMIs and their roles in the digital marketing of luxury fashion consumption.
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This study offers new perspectives on employees’ intention to stay in organizations by examining the role of calling and perceived supervisor support (PSS). Drawing from work as calling theory (WCT) and utilizing survey data collected in the Philippines (Study 1; n = 338), we found that perceiving a calling is positively and significantly related to intention to stay and that PSS serves as a moderating variable. To further assess the mechanism that links perceiving a calling with intention to stay, we conducted a second study, after 6 months, focusing on the employee’s state of living out the calling. Using another survey data set collected in the Philippines (Study 2; n = 379), we found that living a calling serves as a mediating variable that influences the relationship between perceiving a calling and intention to stay, which is further strengthened by PSS. Theoretical and practical implications are fully discussed.