The Effect of Job Satisfaction and Employee Engagement on Employee Loyalty through Managerial Trustworthiness: A Study at PT. Additon Karya Sembada in Surabaya
Keywords:
Job Satisfaction, Employee Engagement, Managerial Trustworthiness, Employee LoyaltyAbstract
Introduction/Main Objectives: This study aims to determine and analyze: 1) the effect of job satisfaction on employee loyalty, 2) the effect of job satisfaction on managerial trustworthiness, 3) the effect of employee engagement on employee loyalty, 4) the effect of employee engagement on managerial trustworthiness, 5) the effect of managerial trustworthiness on employee loyalty, 6) the mediating role of managerial trustworthiness in the relationship between job satisfaction and employee loyalty, and 7) the mediating role of managerial trustworthiness in the relationship between employee engagement and employee loyalty at PT Additon Karya Sembada.
Background Problems: The dynamics of business competition often lead companies to adopt policies that are not well-received by their employees, which in turn negatively impacts employee loyalty—a key factor in organizational sustainability and growth.
Research Methods: The study employed a saturated (census) sampling method, using all 105 employees of PT Additon Karya Sembada as the sample. Data analysis examined both direct and indirect (mediating) effects among the variables.
Finding/Results: 1) Job satisfaction has a positive but non-significant direct effect on employee loyalty, 2) Job satisfaction has a positive and significant effect on managerial trustworthiness (the strongest effect), 3) Employee engagement has a positive but non-significant direct effect on employee loyalty, 4) Employee engagement has a positive and significant effect on managerial trustworthiness , 5) Managerial trustworthiness has a positive and very significant direct effect on employee loyalty, 6) Managerial trustworthiness fully mediates the relationship between job satisfaction and employee loyalty and 7) Managerial trustworthiness fully mediates the relationship between employee engagement and employee loyalty.
Conclusion: Managerial trustworthiness plays a crucial full mediating role. While job satisfaction and employee engagement do not directly drive loyalty, they significantly enhance loyalty when they first build trust in management. Therefore, fostering managerial trustworthiness is essential for translating positive employee attitudes into lasting loyalty.
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