The Impact of Ethical Leadership and Compensation on Turnover Intention: The Mediating Role of Job Satisfaction

Yohana Gloria; Juniwati; Pramana Saputra; Ilzar Daud; Hasanudin

doi:10.61987/jemr.v5i5.3263

Authors

Yohana Gloria Universitas Tanjungpura, Indonesia
Juniwati Universitas Tanjungpura, Indonesia
Pramana Saputra Universitas Tanjungpura, Indonesia
Ilzar Daud Universitas Tanjungpura, Indonesia
Hasanudin Universitas Tanjungpura, Indonesia

DOI:

https://doi.org/10.61987/jemr.v5i5.3263

Keywords:

Ethical Leadership, Compensation, Job Satisfaction, Turnover Intention

Abstract

The palm oil industry plays a significant role in the national economy. However, human resource management in this sector continues to face challenges, particularly employee turnover intention, which can affect organizational stability and performance. Ethical leadership, compensation, and job satisfaction are important factors that may influence employees’ intentions to leave an organization. This study aims to examine the effects of ethical leadership and compensation on turnover intention, with job satisfaction serving as a mediating variable. This study employed a quantitative research design involving 235 respondents selected through simple random sampling. Data were collected using a five-point Likert scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS software. The findings indicate that ethical leadership and compensation have significant positive effects on job satisfaction. Ethical leadership does not significantly affect turnover intention, whereas compensation and job satisfaction significantly reduce turnover intention. Furthermore, job satisfaction mediates the relationships between ethical leadership and turnover intention, as well as between compensation and turnover intention. These findings suggest that organizations should strengthen ethical leadership practices, establish fair and competitive compensation systems, and improve job satisfaction to reduce employees’ intentions to leave and support workforce retention.

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