The Role of Employee Retention in Strengthening Leadership and Performance Relationships in the Port Industry
Keywords:
Leadership, Employee Retention, Employee Performance.Abstract
The port industry has a strategic role in supporting national logistics and trade activities, so that employee performance is the main factor in ensuring operational efficiency and sustainability. However, the high rate of labor turnover in this sector often hinders the stability of organizational performance. This study aims to analyze the influence of leadership on employee performance and the role of employee retention in strengthening these relationships within PT Pelabuhan Indonesia (Persero) Regional I Dumai Branch. The research uses an explanatory quantitative approach with a survey method. Data is collected through a Likert scale questionnaire, then data processing is carried out with SmartPLS to test the measurement model (outer model) and structural model (inner model). The results of the study show that leadership has a positive and significant effect on employee performance and retention, which means that the better the leadership style, the higher the performance and retention rate of employees. However, employee retention has no significant effect on performance, which indicates that the length of time employees stay with the company does not necessarily have an impact on their performance improvement. The R-Square value shows that the leadership variable is able to explain 66.2% of the variation in employee retention and 21% variation in performance. These findings confirm the importance of effective leadership roles in creating a productive work environment and employee loyalty at PT Pelindo Regional I Dumai Branch.
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