The Influence of Compensation on Employee Retention and Job Satisfaction as Mediating Variables in Generation Z
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Published
Oct 30, 2025
Abstract
This study investigates how salary influences work satisfaction and retention among Generation Z employees in Surabaya, using job satisfaction as a mediator. The study uses an explanatory quantitative method to address high turnover rates, which are connected to wage discontent and limited career advancement. Questionnaires were used to collect data from 80 respondents, which were then analyzed with multiple linear regression, t-tests, and Sobel tests. The results reveal that salary has a favorable and considerable impact on both work satisfaction and retention. Job satisfaction has a favorable influence on retention and serves as a mediator between salary and retention. Finally, greater remuneration increases job happiness, which enhances Generation Z employee retention, emphasizing the need of competitive and equitable pay practices.
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How to Cite
Adiatma, I., Wahyono, G. B., Akbar, M. T. and Kurniawan, M. Y. (2025) “The Influence of Compensation on Employee Retention and Job Satisfaction as Mediating Variables in Generation Z”, Ranah Research : Journal of Multidisciplinary Research and Development, 8(1), pp. 359-368. doi: 10.38035/rrj.v8i1.1887.
References
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Winoto Tj., H., Tecoalu, M., dan Wijaya, S. (2021). The Effect of Compensation and Supervisor Support Mediated by Job Satisfaction on Employee Retention (Case Study at PT Pradu). Primanomics (Jurnal Ekonomi dan Bisnis), 19 (1).
Wirayudha, C. A., & Adnyani, I. G. A. D. (2020). Kompensasi dan Pengembangan Karir Berpengaruh terhadap Kepuasan Kerja dan Retensi Karyawan BPR Lestari. E-Jurnal Manajemen, 9(5), 1676-1695.
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Via Lailatur Rizki, Novy Fitria, F. M. (2024). PENGARUH KEBIJAKAN KOMPENSASI DAN PENGEMBANGAN KARIR TERHADAP RETENSI KARYAWAN GENERASI Z. MOVERE JOURNAL, 6(2), 441–448.
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Darmawan, M. L., & Santoso, W. (2023). Pengaruh Kompensasi dan Faktor lainnya terhadap Retensi Karyawan Karyawan PT. X. E-Jurnal Manajemen Trisakti School of Management (TSM), 3(2), 243–252. https://doi.org/10.34208/ejmtsm.v3i2.2220
Aprilianti, R. U., & Shofiyah, I. (2024). Peran Organizational Citizenship Behaviour (OCB) Dalam Pengaruh Kompensasi Terhadap Retensi Karyawan Lembaga Amil Zakat Infak Sedekah Muhammadiyah (sinta 4). Jurnal Ekonomika Dan Bisnis Islam, 7(1), 190–204.
Bahrun, K., & Yusuf, M. (2022). PENGARUH KOMPENSASI DAN KEPUASAN KERJA TERHADAP RETENSI KARYAWAN (Studi Kasus Pada PT. Interaktif Media Siber). (JEMS) Jurnal Entrepreneur Dan Manajemen Sains, 3(2), 260–271. https://doi.org/10.36085/jems.v3i2.3399
Hassan, Z. (2022). Employee retention through effective human resource management practices in Maldives: mediation effects of compensation and rewards system. Journal of Entrepreneurship, Management and Innovation, 18(2), 137–173. https://doi.org/10.7341/20221825
Silaban, H., & Margaretha, M. (2021). The impact work-life balance toward job satisfaction and employee retention: study of millennial employees in Bandung City, Indonesia. International Journal of Innovation and Economic Development, 7(3), 18–26. https://doi.org/10.18775/ijied.1849-7551-7020.2015.73.2002
Elsafty, A., & Oraby, M. (2022). The impact of training on employee retention: an empirical research on the private sector in Egypt. International Journal of Business and Management, 17(5), 58. https://doi.org/10.5539/ijbm.v17n5p58
Aisyah, N., & Faeni, D. P. (2021). Pengaruh Self-Efficacy, Quality of Work Life dan Kompensasi terhadap Retensi Karyawan PT. Antaran Sukses Express di Kota Tangerang. Studi Akuntansi, Keuangan, dan Manajemen, 1(1), 1-8.
Winoto Tj., H., Tecoalu, M., dan Wijaya, S. (2021). The Effect of Compensation and Supervisor Support Mediated by Job Satisfaction on Employee Retention (Case Study at PT Pradu). Primanomics (Jurnal Ekonomi dan Bisnis), 19 (1).
Wirayudha, C. A., & Adnyani, I. G. A. D. (2020). Kompensasi dan Pengembangan Karir Berpengaruh terhadap Kepuasan Kerja dan Retensi Karyawan BPR Lestari. E-Jurnal Manajemen, 9(5), 1676-1695.
Tamara, N.H. (2019). Perubahan Peta Persaingan Bisnis Retail di Indonesia. https://katadata.co.id/nazmi/analisisdata/5f1279ce2f3bb/perubahan-peta-persaingan-bisnisretail-di-indonesia, pada Rabu 21 April (2021).
Via Lailatur Rizki, Novy Fitria, F. M. (2024). PENGARUH KEBIJAKAN KOMPENSASI DAN PENGEMBANGAN KARIR TERHADAP RETENSI KARYAWAN GENERASI Z. MOVERE JOURNAL, 6(2), 441–448.
Tambak, S. R., Elvina, & Prayoga, Y. (2022). Pengaruh Pengembangan Karir, Kompensasi, Kepuasan Kerja dan Komitmen Organisasi terhadap Retensi Pegawai dan Lingkungan Kerja PT. Marbau Jaya Indah Raya. Jurnal Pendidikan Tambusai, 6(2), 10484–10501.
Nasir, Adam, Rahmawati, Arfin, Mujiati, & Titin, R. (2020). Manajemen Sumber Daya Manusia Pengadaan dan Retensi SDM di Perguruan Tinggi Swasta. In Journal of Chemical Information and Modeling (Vol. 53, Issue 9).
Nabilla Fauziah, Syifa Fitri Fairus, & Agung Surya Dwianto. (2024). Peran Penting Work Life Balance dan Kompensasi dalam Employee Retention: Studi Karyawan Generasi Z di Unit Kantor Cabang BRI Lenteng Agung. El-Mal: Jurnal Kajian Ekonomi & Bisnis Islam, 5(4), 3306–3317. https://doi.org/10.47467/elmal.v5i4.1995
Darmawan, M. L., & Santoso, W. (2023). Pengaruh Kompensasi dan Faktor lainnya terhadap Retensi Karyawan Karyawan PT. X. E-Jurnal Manajemen Trisakti School of Management (TSM), 3(2), 243–252. https://doi.org/10.34208/ejmtsm.v3i2.2220
Aprilianti, R. U., & Shofiyah, I. (2024). Peran Organizational Citizenship Behaviour (OCB) Dalam Pengaruh Kompensasi Terhadap Retensi Karyawan Lembaga Amil Zakat Infak Sedekah Muhammadiyah (sinta 4). Jurnal Ekonomika Dan Bisnis Islam, 7(1), 190–204.
Bahrun, K., & Yusuf, M. (2022). PENGARUH KOMPENSASI DAN KEPUASAN KERJA TERHADAP RETENSI KARYAWAN (Studi Kasus Pada PT. Interaktif Media Siber). (JEMS) Jurnal Entrepreneur Dan Manajemen Sains, 3(2), 260–271. https://doi.org/10.36085/jems.v3i2.3399
Hassan, Z. (2022). Employee retention through effective human resource management practices in Maldives: mediation effects of compensation and rewards system. Journal of Entrepreneurship, Management and Innovation, 18(2), 137–173. https://doi.org/10.7341/20221825
Silaban, H., & Margaretha, M. (2021). The impact work-life balance toward job satisfaction and employee retention: study of millennial employees in Bandung City, Indonesia. International Journal of Innovation and Economic Development, 7(3), 18–26. https://doi.org/10.18775/ijied.1849-7551-7020.2015.73.2002
Elsafty, A., & Oraby, M. (2022). The impact of training on employee retention: an empirical research on the private sector in Egypt. International Journal of Business and Management, 17(5), 58. https://doi.org/10.5539/ijbm.v17n5p58