Examining the Effect of Leadership, Communication and Compensation on Employee Loyalty: A Case Study of Indonesia Civil Servant

Aisyah Siregar; Sri Winda Hardiyanti Damanik; Rakhmawati Purba; Kumala Vera Dewi; Rico Nur Ilham

doi:10.62157/ijsdfs.v1i2.43

Authors

Aisyah Siregar Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi, Padang Hulu, Tebing Tinggi, 20631 Sumatera Utara, Indonesia
Sri Winda Hardiyanti Damanik Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi, Padang Hulu, Tebing Tinggi, 20631 Sumatera Utara, Indonesia
Rakhmawati Purba Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi, Padang Hulu, Tebing Tinggi, 20631 Sumatera Utara, Indonesia
Kumala Vera Dewi Sekolah Tinggi Ilmu Ekonomi Bina Karya Tebing Tinggi, Padang Hulu, Tebing Tinggi, 20631 Sumatera Utara, Indonesia
Rico Nur Ilham Department of Management, Faculty of Economics and Business, Malikussaleh University, Blang Pulo, Muara Satu, North Aceh, 24355 Aceh, Indonesia

DOI:

https://doi.org/10.62157/ijsdfs.v1i2.43

Keywords:

Leadership, Communication, Compensation, Employee loyalty

Abstract

The contemporary business environment has become increasingly sophisticated, partly driven by advancements in science and technology. These developments foster innovation, leading to discoveries and solutions that streamline and enhance business operations. Integrating cutting-edge technologies and scientific knowledge enables companies to improve efficiency, optimise processes, and respond more effectively to dynamic market demands. Thus, this study examines the effect of leadership, communication and compensation on employee loyalty among Indonesian civil servants. This cross-sectional study is carried out using questionnaires. A total of 389 Indonesian civil servants participated in this study, and the data analyses were done using multiple linear regression by assisting SPSS-23. This study found that leadership and compensation do not significantly affect employee loyalty, while communication significantly affects employee loyalty. This study concludes that communication is critical and has important policy implications for organisations that foster loyalty and retain talent.

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