Employee Loyalty and Its Impact on Job Satisfaction: A Study at the Camat Office of Sidikalang, Dairi Regency

Abstract

This study aims to examine the effect of Employee Loyalty on Job Satisfaction at the Department of Employment, Cooperatives, and Small–Medium Enterprises in Serdang Bedagai Regency. A quantitative explanatory approach was applied, with the entire population of 47 employees serving as respondents through a saturated sampling technique. Data were collected using a structured questionnaire based on theoretical indicators and measured on a Likert scale. The data were analyzed using SPSS version 26.0, which included validity and reliability tests, descriptive statistics, regression analysis, the coefficient of determination (R²), and hypothesis testing through a t-test. The results of the descriptive analysis show that both Employee Loyalty and Job Satisfaction are rated positively, with high mean values and low standard deviations, indicating consistent perceptions among employees. Validity and reliability tests confirmed that all items are valid and reliable, with Cronbach’s Alpha values above 0.90, reflecting excellent internal consistency. Regression analysis reveals that Employee Loyalty has a positive and significant influence on Job Satisfaction, with a regression coefficient (B = 1.009) and a significance value of p = 0.026 (< 0.05). The coefficient of determination (R² = 0.179) indicates that 17.9% of Job Satisfaction is explained by Employee Loyalty, while the remaining 82.1% is influenced by other factors outside the model. The t-test further supports these findings, confirming a significant effect of Employee Loyalty on Job Satisfaction. In conclusion, the study demonstrates that Employee Loyalty plays a critical role in shaping Job Satisfaction. These findings suggest that organizations should foster employee loyalty through recognition, fair treatment, and career development programs, as such efforts can enhance satisfaction and contribute to improved organizational performance.