The Effect Of Employee Exploitation On Company Profits And Employee Retention
DOI:
https://doi.org/10.21009/ISC-BEAM.013.189Keywords:
Human Resource Management; Standard Operating Procedures; Employee PlacementAbstract
This research aims to analyze the effect of employee exploitation on company profits and employee retention with job satisfaction as a mediating variable. Employee exploitation is an important issue in the modern business world because it can affect the financial aspects and sustainability of an organization. Research data was collected through a questionnaire involving 100 respondents from various industrial sectors. Analysis was carried out using the Partial Least Squares (PLS) method. The research results show that employee exploitation has a significant negative influence on job satisfaction and employee retention. In addition, employee exploitation does not directly affect company profits. Job satisfaction is proven to have a significant positive influence on employee retention and acts as a mediator in the relationship between employee exploitation and employee retention. This research provides theoretical implications that confirm the importance of ethical human resource management in creating job satisfaction and employee loyalty. The practical implication is that companies are advised to reduce exploitative practices and focus on developing a healthy work environment to support organizational sustainability
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