The Determinants of Retention among BPO Contract Employees in Indonesia
DOI:
https://doi.org/10.54099/ijibr.v5i2.1915Keywords:
Career Growth, Pay Satisfaction, Perceived Organizational Support, Turnover Intention,, BPO IndustryAbstract
ABSTRACT
Purpose - This study investigates the turnover phenomenon within the Business Process Outsourcing (BPO) sector, specifically addressing the high attrition rate among temporary contract workers. The primary objective is to evaluate how Organizational Career Growth (OCG) and Pay and Benefit Satisfaction (PBS) influence Turnover Intention (TI), with Perceived Organizational Support (POS) functioning as a mediating mechanism.
Methodology/approach - Employing a quantitative research framework, empirical data were gathered from 451 temporary employees at PT X, a leading BPO company in Indonesia. A proportional random sampling technique was utilized, and the formulated hypotheses were tested using Structural Equation Modelling-Partial Least Squares (SEM-PLS).
Findings - The structural evaluation demonstrates that OCG significantly mitigates TI. Conversely, PBS reveals a paradoxical positive effect on TI, driven by the intense pressure of performance-based targets. Importantly, POS serves as a critical mediator that effectively neutralizes the adverse psychological impacts associated with such compensation structures.
Novelty/value - This research contributes a unique empirical standpoint on the "compensation paradox" within high-stress work settings. It highlights that monetary rewards linked to rigorous key performance indicators can unintentionally elevate turnover intentions, while emphasizing the indispensable role of robust emotional support systems in counterbalancing this pressure.
ABSTRAK
Tujuan - Penelitian ini menginvestigasi fenomena turnover di sektor Business Process Outsourcing (BPO), khususnya membahas tingginya tingkat atrisi di antara karyawan kontrak sementara. Tujuan utamanya adalah untuk mengevaluasi bagaimana Organizational Career Growth (OCG) dan Pay and Benefit Satisfaction (PBS) memengaruhi Turnover Intention (TI), dengan Perceived Organizational Support (POS) berfungsi sebagai mekanisme mediasi.
Metodologi/pendekatan - Menggunakan kerangka penelitian kuantitatif, data empiris dikumpulkan dari 451 karyawan kontrak sementara di PT X, sebuah perusahaan BPO terkemuka di Indonesia. Teknik proportional random sampling digunakan, dan hipotesis yang dirumuskan diuji menggunakan Structural Equation Modelling-Partial Least Squares (SEM-PLS).
Temuan - Evaluasi struktural menunjukkan bahwa OCG secara signifikan memitigasi TI. Sebaliknya, PBS menunjukkan efek positif yang paradoks terhadap TI, didorong oleh tekanan intens dari target berbasis kinerja. Yang terpenting, POS berfungsi sebagai mediator krusial yang secara efektif menetralkan dampak psikologis merugikan yang terkait dengan struktur kompensasi tersebut.
Kebaruan/nilai - Penelitian ini menyumbangkan sudut pandang empiris yang unik mengenai "paradoks kompensasi" dalam lingkungan kerja bertekanan tinggi. Penelitian ini menyoroti bahwa imbalan finansial yang dikaitkan dengan indikator kinerja utama yang ketat dapat secara tidak sengaja meningkatkan turnover intention, sekaligus menekankan peran tak tergantikan dari sistem dukungan emosional yang kuat dalam menyeimbangkan tekanan tersebut.
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