The Determinants of Employee Retention at the Ministry of Finance of the Republic of Indonesia
Endang Saefuddin Mubarok *
Management Magister Program, Islamic University of Jakarta, Jakarta, Indonesia.
Hastomo Arbi
Management Magister Program, Islamic University of Jakarta, Jakarta, Indonesia.
Rina Uswatun Hasana
Management Magister Program, Islamic University of Jakarta, Jakarta, Indonesia.
Lalang Saksomo
Management Magister Program, Islamic University of Jakarta, Jakarta, Indonesia.
Rudi Salam
Statistics Diploma Program, STIS Statistics Polytechnic, Jakarta, Indonesia.
Krismayadi
Binawan University, Jakarta, Indonesia.
*Author to whom correspondence should be addressed.
Abstract
This study investigates the impact of leadership, compensation, and career development on employee retention within Indonesia's Ministry of Finance. Addressing a gap in the literature on public sector employee retention, the research employs a quantitative approach, surveying 224 employees from the Directorate General of Customs and Excise. Using Partial Least Squares Structural Equation Modelling (PLS-SEM), the study finds that all three factors significantly influence employee retention. These results provide actionable insights for policymakers and management to enhance workforce stability in government organizations.
Keywords: Leadership, compensation, career development and employee retention