Factors Analysis of Employees’ Intention to Stay in Chemical Manufacturing


Turnover is an organizational problem that should be kept low by the company, as hiring the employees is costly and time-consuming. There are many available strategies which organizatns can use to retain employees. The manufacturing industry in particular has trouble with employee retention, and has developed a number of standard operating procedures to address this issue. This study is focusing on ascertaining three things. First, what factors can lead employees to stay in the manufacturing industry? Second, what is the dominant factor lead employees to stay in the manufacturing industry? Data was taken by questionnaire from 104 respondents out of a total of 146 employees of PT Pamolite Adhesive Industry. The data was then analysed using confirmatory factor analysis with the Partial Least Square (PLS) technique. The results show that there are thirteen factors that contribute to manufacturing employees staying in their jobs, namely: recognition and appreciation factors; financial compensation; relationships with colleagues; relationship with supervisor; initial training; career development; work challenges; working hours; work conditions; workload; safety; health facilities; and job security. Additionally, the descriptive analysis shows that respondents' perceptions of those factors are relatively in good condition, however career development is the dominant factor in shaping the intention to stay amongst manufacturing employees. This study confirms a result study conducted in India which suggested that the intention to stay is determined by a cluster of factors not only by a single factor. 

Keywords: Intention to Stay, Confirmatory Factors Analysis, Partial Least Square

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