THE INFLUENCE OF COMPENSATION AND LEADERSHIP ON EMPLOYEE TURNOVER

Abstract

It is necessary to do this research because of the high employee turnover in the last several years. The aim of this research is to analyze the influence of compensation and leadership on employee turnover. The analysis unit of this research is the employees who have not worked in a company anymore. The population consists of 76 employees with 44 samples obtained from the use of slovin sampling technique and questionnaire as the research instrument. The method of quantitative analysis is used in this research with the tool of Multilinear Regression analysis, followed by determination analysis (R Square), partial hypothetical test (t test) and simultaneous hypothetical test (F test), alpha (error tolerance) five percents. Before spreading questionnaire, validity and reliability tests are carried out until all the questionnaires are said to be valid and reliable. To fulfill the criteria and requirements of Multilinear Regression analysis, classical assumption analysis such as normality test, homogenity test, multicollinearity test, heterocedasticity test are done first. The tool aid for data processing is SPSS version 21.0. The result of this research is that the variable of compensation in partial has a significant influence on employee turnover, whereas the variable of leadership insignificantly influences employee turnover.