The Effect of Compensation and Workload on Turnover Intention among Generation Z Employees in Jakarta City

Chaesa Maheswara; Didin Kristinawati

doi:10.59261/jbt.v7i3.680

Authors

Chaesa Maheswara Universitas Telkom
Didin Kristinawati Universitas Telkom

DOI:

https://doi.org/10.59261/jbt.v7i3.680

Keywords:

Compensation, Generation Z, Intention to Leave, Jakarta, Work-Change Intentions, Workload

Abstract

Background: The high turnover rate among Generation Z employees poses a major challenge for companies because it affects recruitment, training, and performance costs. In Jakarta, this phenomenon is often associated with dissatisfaction with compensation and workload pressure.

Objective: This study aims to describe the conditions of compensation, workload, and turnover intention among Generation Z employees in Jakarta, as well as to analyze the impact of compensation and workload on turnover intention.

Methods: This study was conducted with 150 respondents using a cross-sectional quantitative approach, a Likert-scale questionnaire, and purposive sampling. The data were analyzed using descriptive statistics and partial least squares structural equation modeling (PLS-SEM) to verify causal relationships.

Results: Compensation and workload simultaneously had a significant positive effect on turnover intention, with R² = 0.878. Compensation was more dominant than workload, as indicated by its higher effect size (F² = 0.222) compared with workload (F² = 0.127). Workload and compensation each had a significant partial effect on turnover intention (t > 1.96; p < 0.05). The high R² value (0.878) is contextually justified, considering that both predictors are central structural determinants of turnover behavior among Generation Z employees, who are sensitive to compensation conditions and workload demands in the Jakarta labor market. The positive direction of the compensation effect (β = +0.540) reflects the reward–aspiration gap, in which higher compensation may increase market expectations and perceived professional recognition, thereby sustaining rather than suppressing exit intentions.

Conclusion: Retention strategies for Generation Z employees should focus on improving fair and transparent compensation systems and ensuring proportionate workload management. The practical implications include evaluating compensation structures, task allocation, and working-time management to reduce employees’ intention to leave.

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