Articles

The Determinant Factors for Employees to Leave (A Case Study in a Paint Chain Retailer)

High turnover is one of the problems faced by companies, especially small and medium enterprises. PT Fakta Asia Jaya, or Fakta Retail or Fakta Group, is one of the oldest semi-modern paint chain retailers and experiences a high turnover rate, more than the average industry. The company services depended on employee knowledge and support. The higher turnover rate becomes the real problem with the cost of hiring, training, sales, and services, which might affect profitability in the long run. Many factors, such as age (generational differences), gender, length of work, marital status, job satisfaction, compensation satisfaction, and organizational culture, influence employees’ decision to leave the company.

This research uses qualitative methodology through an in-depth interview approach with questions about job satisfaction, compensation satisfaction, and organizational culture conducts information collected. This approach was chosen to understand whether those factors significantly influence their decision. This study proposes a recommendation for the business situation and to retain the current employee, especially the millennial generation.

Based on the result of the study, it was suggested that the factors related to the employee leaving are mainly personal reasons and related to job satisfaction and compensation benefit. The other aspect emphasized by millennials is looking for career advancement and work-life balance between the family. Also, it is found that the higher risk of the job tends to look at a higher salary or to be financially incentivized; the importance of being valued and communicating in every variable makes all generations feel satisfied and fulfilled.