FACTORS INFLUENCING EMPLOYEE RETENTION OF GENERATION Y IN THE IT INDUSTRY IN INDONESIA

• Main Author: As-Sawsan N R, Salsabiyl
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/60007
• Institution: Institut Teknologi Bandung

Generation Y is known to switch jobs when they feel that their standards and aspirations are not being met at work. This affirms the current condition in which Generation Y has the highest unemployment and underemployment rates, and only a tiny percentage of Generation Y employees are engaged at work in comparison to the former working generations. Especially in the IT industry, where the number of digital workers and its retention rate keeps decreasing. This study focuses on the factors affecting generation Y employee retention in the IT industry in Indonesia. It encompasses the factors that an organization can focus on to increase its employee retention. The purpose is to identify various factors and examine their impact on retention. This study is based on primary quantitative data. The data were collected through a well-structured questionnaire, and a total of 400 Generation Y employees in the IT industry in Indonesia answered the questionnaire. Research hypotheses were tested and analyzed using the multiple linear regression method. From the results, it can be seen that Challenging work, Interpersonal relationship with coworkers, Opportunity for self-development, Recognition for doing a good job, Sense of achievement, and Working with people are the significant factors that influence employee retention of generation Y employees in the IT industry in Indonesia. However, there are some factors like – Challenging work, Recognition for doing a good job, and Working with people that generation Y employees perceive as important since they are positively influence employee retention, therefore, need to be addressed by both public and companies who works in the IT industry. The management of IT companies as well as other organizations and academia can benefit from the results and take appropriate measures to make existing factors more effective with the aim to reduce the turnover intention of employees.