Organizational Factors Affecting Employee Loyalty
Keywords:
Leadership Style, Work Environment, Job Satisfaction, Employee Loyalty.Abstract
This study aims to analyze the effect of leadership style and work environment on employee loyalty through job satisfaction at PT PLN (Persero) UP2D North Sumatra. This research employs a quantitative approach using a survey method. Data were collected through questionnaires distributed to employees and analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM). The results show that leadership style and work environment have a positive and significant effect on job satisfaction. Job satisfaction and work environment also have a positive and significant effect on employee loyalty. However, leadership style does not have a significant direct effect on employee loyalty. Furthermore, the indirect effect analysis indicates that job satisfaction mediates the relationship between leadership style and work environment on employee loyalty. Based on these findings, it can be concluded that job satisfaction plays a crucial role in enhancing employee loyalty. Therefore, PT PLN (Persero) UP2D North Sumatra is encouraged to improve leadership quality and create a supportive work environment to increase employee satisfaction and loyalty.
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