The Effect of Employer Branding, Organizational Culture, and Transformational Leadership on the Retention of Millennial Employees at Suzuki Indosarana Cirebon
Keywords:
retention, employer branding, organizational culture, transformational leadershipAbstract
Employee retention remains a critical challenge in contemporary human resource management, particularly in managing millennial employees who are characterized by higher job mobility, strong career expectations, and a preference for meaningful work environments. Although prior studies have examined various determinants of employee retention, limited research has simultaneously investigated the roles of employer branding, organizational culture, and transformational leadership within an integrated model, especially in the automotive industry context. Addressing this gap, the present study examines the effects of employer branding, organizational culture, and transformational leadership on millennial employee retention at Suzuki Indosarana Cirebon. This study adopts a quantitative approach using structured questionnaires administered to 60 millennial employees. The data were analyzed using multiple linear regression to evaluate both individual and simultaneous effects of the independent variables on employee retention. The findings reveal that employer branding and transformational leadership exert positive and statistically significant effects on employee retention. Conversely, organizational culture does not demonstrate a significant individual effect. This result may indicate that millennial employees prioritize leadership quality, career development opportunities, and organizational reputation over shared organizational values when making decisions about staying in an organization. Furthermore, the simultaneous test indicates that employer branding, organizational culture, and transformational leadership collectively have a significant effect on employee retention (F = 37.608; p < 0.001), with the model explaining a substantial proportion of variance (Adjusted R² = 0.651). These findings underscore the strategic importance of strengthening employer branding and transformational leadership practices to enhance millennial employee retention, particularly in the automotive industry. The study contributes to the employee retention literature by providing an integrated framework that highlights the relative importance of reputational and leadership-related factors in retaining millennial employees.
References
S. Park and H. Min, “Turning over without turning away: The relationship between employee retention and organizational performance,” Journal of Business Research, vol. 120, pp. 341–350, 2020.
Y. Li, J. Zhang, and M. Tian, “Employee retention and sustainable competitive advantage: The moderating role of organizational support,” Sustainability, vol. 13, no. 5, pp. 1–15, 2021.
S. Dechawatanapaisal, “The mediating role of organizational commitment in the relationship between employer branding and employee retention,” Management Research Review, vol. 44, no. 6, pp. 847–867, 2021.
O. M. Karatepe and O. A. Olugbade, “The mediating role of work engagement in the relationship between high-performance work practices and employee retention,” Journal of Hospitality Marketing & Management, vol. 28, no. 6, pp. 707–728, 2019.
P. W. Hom, T. W. Lee, J. D. Shaw, and J. P. Hausknecht, “One hundred years of employee turnover theory and research: A systematic review,” Journal of Applied Psychology, vol. 105, no. 3, pp. 1–30, 2020.
H. Nguyen, T. N. Nguyen, and T. H. Nguyen, “Organizational culture and employee retention: The mediating role of job satisfaction,” Heliyon, vol. 6, no. 7, pp. 1–10, 2020.
C. G. Rudolph, I. M. Rauvola, and H. Zacher, “Generational differences and similarities in work values: A review and meta-analysis,” Journal of Business and Psychology, vol. 36, no. 3, pp. 1–21, 2021.
S. G. Kim and B. H. Kim, “The effects of organizational culture on employee engagement and retention,” International Journal of Human Resource Management, vol. 32, no. 8, pp. 1751–1773, 2021.
A. Marbawi and D. M. Siddiq, “The effect of occupational health and safety, organizational culture, and employee loyalty on employee productivity,” Journal of Business and Management Studies, vol. XX, no. X, pp. XX–XX, 2024.
D. M. Siddiq, A. Marbawi, and A. R. Nugraha, “Organizational culture and leadership as determinants of employee performance in manufacturing companies,” Proceedings of the International Conference on Management and Economics, pp. XX–XX, 2023.
A. Alshathry, A. Clarke, and A. Goodman, “The role of employer branding in employee retention,” Journal of Business Research, vol. 134, pp. 319–328, 2021.
K. Tanwar and A. Prasad, “Employer brand scale development and validation: A second-order factor approach,” Journal of Business Research, vol. 109, pp. 379–390, 2020.
C. P. Theurer, A. Tumasjan, I. M. Welpe, and F. Lievens, “Employer branding: A brand equity-based literature review and research agenda,” International Journal of Management Reviews, vol. 22, no. 1, pp. 155–179, 2020.
P. Vrontis, A. Thrassou, M. Santoro, and G. Papa, “Employer branding and employee retention: The mediating role of organizational identification,” Journal of Business Research, vol. 142, pp. 1–12, 2022.
S. Azeem, M. H. Mataruna-Dos-Santos, and S. Ahmad, “The impact of organizational culture on employee commitment and retention,” Sustainability, vol. 13, no. 3, pp. 1–15, 2021.
H. Sürücü and F. Yeşilada, “Transformational leadership, organizational commitment and turnover intention,” Leadership & Organization Development Journal, vol. 41, no. 2, pp. 1–15, 2020.
G. Wang, I. Oh, S. Courtright, and A. Colbert, “Transformational leadership and performance: A meta-analytic review,” Journal of Applied Psychology, vol. 106, no. 3, pp. 1–25, 2021.
N. A. Khan, M. A. Khan, and M. Soomro, “Impact of transformational leadership on employee retention: The mediating role of job satisfaction,” Cogent Business & Management, vol. 7, no. 1, pp. 1–15, 2020.
M. Bibi, A. Ahmad, and R. Majid, “The impact of training and development and supervisor support on employee retention,” Human Resource Development International, vol. 23, no. 3, pp. 1–19, 2020.
A. A. Al Mamun and M. N. Hasan, “Factors affecting employee retention in organizations,” Journal of Asian Finance, Economics and Business, vol. 7, no. 8, pp. 1–10, 2020.
K. Tanwar and A. Kumar, “Employer branding and employee retention: Evidence from IT sector,” Journal of Organizational Effectiveness, vol. 6, no. 2, pp. 1–18, 2019.
A. Puni, E. Mohammed, and S. Asamoah, “Transformational leadership and employee performance,” Leadership & Organization Development Journal, vol. 41, no. 1, pp. 1–14, 2020.
A. Budur and A. Demir, “The relationship between transformational leadership and employee performance,” International Journal of Organizational Leadership, vol. 10, no. 1, pp. 1–12, 2021.