The Influence of Working Conditions on Employee Performance Through Employee Retention

Abstract

This research aims to find out how working conditions influence employee performance through employee retention. The population of this study consisted of all permanent employees of PT Socfindo Labuhanbatu Utara Perkebunan Aek Natas, the sample was determined using Non Probability Sampling with the Slovin method. Data was collected from 400 respondents with the criteria of PT Socfindo employees who had worked 10-15 years and then analyzed using SEM PLS. The results of this study found that working conditions have a significant and positive influence on employee performance, working conditions have a significant and positive influence on employee retention, employee retention has a significant and positive influence on employee performance and employee retention mediates the relationship between working conditions and performance. employee. The findings of this research have several important implications for practitioners and academics. For practitioners, companies need to create positive working conditions to improve employee performance and employee retention. For academics, it is necessary to conduct further research on the role of other factors that can influence employee retention, such as leadership, organizational culture, and work-life balance.