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The influence of green quality of work life, green employee engagement, and green rewards on green employee retention in SME employees

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Abstract

One of the biggest challenges for employers is retaining employees, who are crucial for enhancing company performance, especially in SMEs. This research aims to determine the influence of Green Quality of Work Life, Green Employee Engagement, and Green Rewards on Green Employee Retention. The study employs a quantitative approach, sampling 204 SME employees in Indonesia, determined using the Slovin formula with a 7% margin of error. Quota sampling techniques and questionnaires distributed via Google Forms were used for data collection. The analytical tool used is SEM PLS version 4, incorporating validity and reliability testing, Fornell-Larcker Criterion, Heterotrait-Monotrait Ratio, and hypothesis testing, with responses measured on a 5-point Likert scale. The results indicate that Green Quality of Work Life does not significantly affect Green Employee Retention. However, Green Employee Engagement and Green Rewards have a significant impact on Green Employee Retention. The theoretical contribution of this research lies in the application of financial motivation theory, particularly regarding the lowest mean of the first indicator. This theory could be valuable as a moderator in future research models. Practically, the study suggests that increasing salaries and providing knowledge and training as forms of additional expertise can enhance employee retention.

Suggested Citation

  • Wicaksari, Putri & Permana Saputra, Asep Rokhyadi & Nur Rahmah, Aminah, 2024. "The influence of green quality of work life, green employee engagement, and green rewards on green employee retention in SME employees," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 8(1), pages 627-627, June.
    • Handle: RePEc:aaz:sbir01:v:8:y:2024:i:1:p:e627
    DOI: 10.26784/sbir.v8i1.627
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    References listed on IDEAS

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    1. Ayman Alhmoud & Husam Rjoub, 2020. "Does Generation Moderate the Effect of Total Rewards on Employee Retention? Evidence From Jordan," SAGE Open, , vol. 10(3), pages 21582440209, September.
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    More about this item

    Keywords

    green quality of work life; green employee engagement; green rewards; green employee retention;
    All these keywords.

    JEL classification:

    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • P21 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Planning, Coordination, and Reform

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