Exploring factors affecting employee loyalty at PT. Panca Tehnik Banjar Regency
Keywords:
Compensation, Employee Loyalty, Work Commitment, Work CommunicationAbstract
Understanding the key elements that contribute to employee commitment will enable the company to identify the most influential aspects in fostering long-term organizational loyalty. Thus, this study aims to explore the factors influencing employee loyalty at PT Panca Tehnik, Banjar Regency, with a focus on compensation, work commitment, and work communication. Employee loyalty is a critical aspect of organizational success, particularly in industries characterized by rapid change and high competition. PT Panca Tehnik, a company operating in the service and production sectors, has demonstrated a notable level of employee retention, suggesting the presence of internal factors that foster long-term commitment. Through a quantitative approach, this research examines the extent to which compensation, work commitment, and work communication contribute to employee loyalty. Data for this study were collected through the distribution of questionnaires to a sample of 73 respondents, determined using the Slovin formula. The findings reveal that all three variables have a positive effect on employee loyalty, either partially or simultaneously. However, the analysis indicates that the influence of work commitment and work communication on employee loyalty is not statistically significant. Competitive compensation enhances employees' sense of value and satisfaction, strong work commitment reflects emotional attachment and responsibility toward the company, and effective work communication fosters trust, transparency, and collaboration. This study not only provides strategic insights for PT Panca Tehnik in strengthening employee retention policies but also contributes to the broader literature on human resource management by highlighting key drivers of employee loyalty in the industrial services sector.
References
Abd-El-Salam, E. M. (2023). Exploring factors affecting Employee Loyalty through the relationship between Service Quality and Management Commitment a case study analysis in the iron and steel industry Al Ezz Dekheila Steel Company in Egypt. Cogent Business and Management, 10(2). https://doi.org/10.1080/23311975.2023.2212492
Albtoosh, Q., Ngah, A. H., & Yusoff, Y. M. (2022). Training satisfaction relative to turnover intention: the mediating role of employee loyalty. Industrial and Commercial Training, 54(4).
Ateeq, A., Alzoraiki, M., Milhem, M., & Al-Absy, M. (2023). Impact of employee loyalty on job performance: Mediating role of job satisfaction on the example of Zain company, Bahrain. Problems and Perspectives in Management, 21(2), 470–481. https://doi.org/10.21511/ppm.21(2).2023.44
Cachón-RodrÃÂÂÂÂÂguez, G., Blanco-González, A., Prado-Román, C., & Del-Castillo-Feito, C. (2022). How sustainable human resources management helps in the evaluation and planning of employee loyalty and retention: Can social capital make a difference? Evaluation and Program Planning, 95(May). https://doi.org/10.1016/j.evalprogplan.2022.102171
Egenius, S., Triatmanto, B., & Natsir, M. (2020). The Effect of Job Satisfaction on Employee Performance Through Loyalty at Credit Union (CU) Corporation of East Kutai District, East Kalimantan. International Journal of Multicultural and Multireligious Understanding, 7(10), 480. https://doi.org/10.18415/ijmmu.v7i10.1891
Idris, Adi, K. R., Soetjipto, B. E., & Supriyanto, A. Y. (2020). The mediating role of job satisfaction on compensation, work environment, and employee performance: Evidence from Indonesia. 8(2), 735–750.
Lukito, D., Susanti, M., Susanto, Y., Judijanto, L., Ali, M., Hartono, & Mahardhani, A. J. (2025). Determinants of sustainable employee performance: A study of family businesses in Indonesia. Asia Pacific Management Review, 30(2), 100340. https://doi.org/10.1016/j.apmrv.2024.12.004
Meyer, J. P., & Herscovitch, L. (2001). Commitment in the Workplace: Toward a General Model. Human Resource Management Review, 11(3), 299–326.
Nadeak, B., & Naibaho, L. (2020). Motivation and hrm factors relation to the employee loyalty. Polish Journal of Management Studies, 22(2), 261–276. https://doi.org/10.17512/pjms.2020.22.2.18
Naibaho, T., & Naibaho, W. (2024). The Influence of Interpersonal Communication, Work Environment, and Job Satisfaction on Job Loyalty Employees of PT. Tamtama Mulia Abadi. International Journal on Social Science, Economics and Art, 14(1), 98–104.
Nguyen, C. M. A., & Ha, M. T. (2023). The interplay between internal communication, employee engagement, job satisfaction, and employee loyalty in higher education institutions in Vietnam. Humanities and Social Sciences Communications, 10(1), 1–13. https://doi.org/10.1057/s41599-023-01806-8
Patiar, A., & Wang, Y. (2020). Managers’ leadership, compensation and benefits, and departments’ performance: Evidence from upscale hotels in Australia: Leadership, compensation and performance. Journal of Hospitality and Tourism Management, 42(September 2019), 29–39. https://doi.org/10.1016/j.jhtm.2019.11.005
Peramatzis, G., & Galanakis, M. (2022). Herzberg’s Motivation Theory in Workplace. Journal of Psychology Research, 12(12), 971–978. https://doi.org/10.17265/2159-5542/2022.12.009
Phuong, T. T. K., & Vinh, T. T. (2020). Job satisfaction, employee loyalty and job performance in the hospitality industry: A moderated model. Asian Economic and Financial Review, 10(6), 698–713. https://doi.org/10.18488/journal.aefr.2020.106.698.713
Ramli, A. H. (2018). Compensation, Job Satisfaction and Employee Performance in Health Services. Business and Entrepreneurial Review, 18(2), 177–186. https://doi.org/10.25105/ber.v18i2.5335
Rukmana, D. A., Prasetyo, D. E., Ginting, H. N., Hasby, P. R. M., Wibisono, S., & Sofyandi, H. (2022). The effect of compensation and work motivation on employee loyalty. Technium Social Sciences Journal, 32(June), 548–557.
Saghier, N. El, Wahba, L., & Aziz, R. A. (2015). The Effect of Human Resources Management Practices on Employees’ Loyalty. International Journal of Humanities Social Sciences and Education (IJHSSE), 2(4), 66–75. www.arcjournals.org
Saleem, Z., Shenbei, Z., & Hanif, A. M. (2020). Workplace Violence and Employee Engagement: The Mediating Role of Work Environment and Organizational Culture. SAGE Open, 10(2). https://doi.org/10.1177/2158244020935885
Stojanovic, A., Milosevic, I., Arsic, S., Urosevic, S., & Mihajlovic, I. (2020). Corporate social responsibility as a determinant of employee loyalty and business performance. Journal of Competitiveness, 12(2), 149–166. https://doi.org/10.7441/joc.2020.02.09
Suhartati, A., Mauludin, H., & Liana, Y. (2022). The Effect of Compensation on Loyalty, Work Ethics, and Productivity of Contract Labour (Case Study on Polinema). International Journal of Economics, Business and Management Research, 06(10), 196–210. https://doi.org/10.51505/ijebmr.2022.61014
Urbancová, H., Vrabcová, P., & Pacáková, Z. (2024). Communication from below: Feedback from employees as a tool for their stabilisation. Heliyon, 10(7). https://doi.org/10.1016/j.heliyon.2024.e28287
Wulandari, N., Arifin, A., Khoiriyah, M., Pujiningtiyas, R. A. I., & Arifin, M. (2021). Effect of Empowerment and Compensation on Employee Loyalty. Himbep 2020, 259–263. https://doi.org/10.5220/0010330902590263
Yao, T., Qiu, Q., & Wei, Y. (2019). Retaining hotel employees as internal customers: Effect of organizational commitment on attitudinal and behavioral loyalty of employees. International Journal of Hospitality Management, 76(March 2018), 1–8. https://doi.org/10.1016/j.ijhm.2018.03.018
Yuditio, Y. P., Nastiti, R., Maladi, M., & Daud, I. (2024). Pengaruh Komunikasi Dan Kerjasama Tim Terhadap Kinerja Pegawai Di Sekretariat Daerah Kabupaten Barito Timur. Manajemen: Jurnal Ekonomi, 6(1), 143–151. https://doi.org/10.36985/rpnx1454
Albtoosh, Q., Ngah, A. H., & Yusoff, Y. M. (2022). Training satisfaction relative to turnover intention: the mediating role of employee loyalty. Industrial and Commercial Training, 54(4).
Ateeq, A., Alzoraiki, M., Milhem, M., & Al-Absy, M. (2023). Impact of employee loyalty on job performance: Mediating role of job satisfaction on the example of Zain company, Bahrain. Problems and Perspectives in Management, 21(2), 470–481. https://doi.org/10.21511/ppm.21(2).2023.44
Cachón-RodrÃÂÂÂÂÂguez, G., Blanco-González, A., Prado-Román, C., & Del-Castillo-Feito, C. (2022). How sustainable human resources management helps in the evaluation and planning of employee loyalty and retention: Can social capital make a difference? Evaluation and Program Planning, 95(May). https://doi.org/10.1016/j.evalprogplan.2022.102171
Egenius, S., Triatmanto, B., & Natsir, M. (2020). The Effect of Job Satisfaction on Employee Performance Through Loyalty at Credit Union (CU) Corporation of East Kutai District, East Kalimantan. International Journal of Multicultural and Multireligious Understanding, 7(10), 480. https://doi.org/10.18415/ijmmu.v7i10.1891
Idris, Adi, K. R., Soetjipto, B. E., & Supriyanto, A. Y. (2020). The mediating role of job satisfaction on compensation, work environment, and employee performance: Evidence from Indonesia. 8(2), 735–750.
Lukito, D., Susanti, M., Susanto, Y., Judijanto, L., Ali, M., Hartono, & Mahardhani, A. J. (2025). Determinants of sustainable employee performance: A study of family businesses in Indonesia. Asia Pacific Management Review, 30(2), 100340. https://doi.org/10.1016/j.apmrv.2024.12.004
Meyer, J. P., & Herscovitch, L. (2001). Commitment in the Workplace: Toward a General Model. Human Resource Management Review, 11(3), 299–326.
Nadeak, B., & Naibaho, L. (2020). Motivation and hrm factors relation to the employee loyalty. Polish Journal of Management Studies, 22(2), 261–276. https://doi.org/10.17512/pjms.2020.22.2.18
Naibaho, T., & Naibaho, W. (2024). The Influence of Interpersonal Communication, Work Environment, and Job Satisfaction on Job Loyalty Employees of PT. Tamtama Mulia Abadi. International Journal on Social Science, Economics and Art, 14(1), 98–104.
Nguyen, C. M. A., & Ha, M. T. (2023). The interplay between internal communication, employee engagement, job satisfaction, and employee loyalty in higher education institutions in Vietnam. Humanities and Social Sciences Communications, 10(1), 1–13. https://doi.org/10.1057/s41599-023-01806-8
Patiar, A., & Wang, Y. (2020). Managers’ leadership, compensation and benefits, and departments’ performance: Evidence from upscale hotels in Australia: Leadership, compensation and performance. Journal of Hospitality and Tourism Management, 42(September 2019), 29–39. https://doi.org/10.1016/j.jhtm.2019.11.005
Peramatzis, G., & Galanakis, M. (2022). Herzberg’s Motivation Theory in Workplace. Journal of Psychology Research, 12(12), 971–978. https://doi.org/10.17265/2159-5542/2022.12.009
Phuong, T. T. K., & Vinh, T. T. (2020). Job satisfaction, employee loyalty and job performance in the hospitality industry: A moderated model. Asian Economic and Financial Review, 10(6), 698–713. https://doi.org/10.18488/journal.aefr.2020.106.698.713
Ramli, A. H. (2018). Compensation, Job Satisfaction and Employee Performance in Health Services. Business and Entrepreneurial Review, 18(2), 177–186. https://doi.org/10.25105/ber.v18i2.5335
Rukmana, D. A., Prasetyo, D. E., Ginting, H. N., Hasby, P. R. M., Wibisono, S., & Sofyandi, H. (2022). The effect of compensation and work motivation on employee loyalty. Technium Social Sciences Journal, 32(June), 548–557.
Saghier, N. El, Wahba, L., & Aziz, R. A. (2015). The Effect of Human Resources Management Practices on Employees’ Loyalty. International Journal of Humanities Social Sciences and Education (IJHSSE), 2(4), 66–75. www.arcjournals.org
Saleem, Z., Shenbei, Z., & Hanif, A. M. (2020). Workplace Violence and Employee Engagement: The Mediating Role of Work Environment and Organizational Culture. SAGE Open, 10(2). https://doi.org/10.1177/2158244020935885
Stojanovic, A., Milosevic, I., Arsic, S., Urosevic, S., & Mihajlovic, I. (2020). Corporate social responsibility as a determinant of employee loyalty and business performance. Journal of Competitiveness, 12(2), 149–166. https://doi.org/10.7441/joc.2020.02.09
Suhartati, A., Mauludin, H., & Liana, Y. (2022). The Effect of Compensation on Loyalty, Work Ethics, and Productivity of Contract Labour (Case Study on Polinema). International Journal of Economics, Business and Management Research, 06(10), 196–210. https://doi.org/10.51505/ijebmr.2022.61014
Urbancová, H., Vrabcová, P., & Pacáková, Z. (2024). Communication from below: Feedback from employees as a tool for their stabilisation. Heliyon, 10(7). https://doi.org/10.1016/j.heliyon.2024.e28287
Wulandari, N., Arifin, A., Khoiriyah, M., Pujiningtiyas, R. A. I., & Arifin, M. (2021). Effect of Empowerment and Compensation on Employee Loyalty. Himbep 2020, 259–263. https://doi.org/10.5220/0010330902590263
Yao, T., Qiu, Q., & Wei, Y. (2019). Retaining hotel employees as internal customers: Effect of organizational commitment on attitudinal and behavioral loyalty of employees. International Journal of Hospitality Management, 76(March 2018), 1–8. https://doi.org/10.1016/j.ijhm.2018.03.018
Yuditio, Y. P., Nastiti, R., Maladi, M., & Daud, I. (2024). Pengaruh Komunikasi Dan Kerjasama Tim Terhadap Kinerja Pegawai Di Sekretariat Daerah Kabupaten Barito Timur. Manajemen: Jurnal Ekonomi, 6(1), 143–151. https://doi.org/10.36985/rpnx1454
Downloads
Published
2025-07-28
How to Cite
Agustina, D. A. ., Nastiti, R. ., Wahdah, R. ., & Daud, I. . (2025). Exploring factors affecting employee loyalty at PT. Panca Tehnik Banjar Regency . Journal of Management Science (JMAS), 8(3), 560–568. Retrieved from https://exsys.iocspublisher.org/index.php/JMAS/article/view/697
Issue
Section
Articles
