Employee Retention in Job Stress and Leadership Style Perspective Mediated by Job Satisfaction

Abstract

This study aims to investifate the effect of job stress and leadership style (transformational and toxic) on job satisfaction and its impact on employee retention. The research design uses hypothesis testing. The population were employees of the Faculty of Economics and Business, Universitas Trisakti. The number of samples is 154 respondents. The analytical method is the Structural Equation Model (SEM). The research findings showed that even though job stress produces a negative influence on job satisfaction, it is not statistically significant. Leadership styles have a positive effect on job satisfaction, where transformational leadership is more dominant than toxic leadership. The results also showed that job satisfaction has a positive impact on employee retention. The indirect test results showed that job satisfaction mediated for job stress but not mediated for leadership style where the effect of transformational leadership is stronger than toxic leadership.