The Effect of Organizational Support and Empowerment on Job Satisfaction and Employee Retention

Abstract

Companies that engaged in the hospitality industry, where the performance of the company is determined by the ability of management in retaining potential employees. Hotel Puri Wulandari Ubud had a significant decrease of employee turnover rate, from 6 percent in 2012 to 3 percent in 2016, so it is necessary to be studied. This study aims to explain the effect of organizational support and empowerment of employee retention through job satisfaction.144 employees of Hotel Puri Wulandari Ubud are used as sample with Slovin sampling technique. The data obtained were analyzed by descriptive analysis and Partial Least Squares (PLS).The results found that organizational support, empowerment, and job satisfaction have a positive and significant effect on employee retention. Organizational support and empowerment have a positive and significant impact on job satisfaction. This study implies that empowerment has a greater contribution to influence than organizational support, as well company needs to empower more the employees through the provision of work in accordance with their competence. Furthermore, the management need to be focus on improving job satisfaction through organizational support and empowerment, because job satisfaction will lead to persistence of employees to continue to be loyal to work in the company.