Year
2025
Abstract
This study investigates the mechanism through which financial compensation influences turnover intention within Indonesia's Fast-Moving Consumer Goods (FMCG) sector, with a specific focus on the potential mediating roles of supervisor support, career adaptability, and flexible work arrangements. A quantitative methodology was employed, utilizing a structured questionnaire administered to a random sample of 271 staff-level employees from FMCG companies operating in the Greater Jakarta (Jabodetabek) region. The collected data were analyzed using Structural Equation Modeling (SEM) with partial least squares (PLS) to test the proposed hypotheses. The results demonstrate that financial compensation exerts a significant negative effect on turnover intention. Furthermore, the analysis confirms that both supervisor support and career adaptability act as significant mediating variables in this relationship. Conversely, flexible work arrangements were not found to be a statistically significant mediator. These findings underscore the multifaceted nature of retention strategies, revealing that while financial compensation is a critical direct factor, its efficacy is substantially enhanced by supportive leadership and opportunities for career development.
Keywords:
Financial Compensation, supervisor support, Career Adaptability, Flexible Working Arrangement, Turnover Intension
Recommended Citation
Sudarmono, Sudarmono; Setiawan, Margono; Irawanto, Dodi Wirawan; and Rofiq, Ainur, "Does Pay Really Matter? How Financial Compensation Affects Turnover Intention Through Supervisor support, Career Adaptability, and Flexible Work Policies (A Case Study of Greater Jakarta-Indonesia’s Food & Beverage Industry)" (2026). International Conference on Business and Management Research (ICBMR). 10.
https://scholarhub.ui.ac.id/icbmr/2025/1/10
Included in
Benefits and Compensation Commons, Diversity, Equity, and Inclusion Commons, Training and Development Commons
Does Pay Really Matter? How Financial Compensation Affects Turnover Intention Through Supervisor support, Career Adaptability, and Flexible Work Policies (A Case Study of Greater Jakarta-Indonesia’s Food & Beverage Industry)
This study investigates the mechanism through which financial compensation influences turnover intention within Indonesia's Fast-Moving Consumer Goods (FMCG) sector, with a specific focus on the potential mediating roles of supervisor support, career adaptability, and flexible work arrangements. A quantitative methodology was employed, utilizing a structured questionnaire administered to a random sample of 271 staff-level employees from FMCG companies operating in the Greater Jakarta (Jabodetabek) region. The collected data were analyzed using Structural Equation Modeling (SEM) with partial least squares (PLS) to test the proposed hypotheses. The results demonstrate that financial compensation exerts a significant negative effect on turnover intention. Furthermore, the analysis confirms that both supervisor support and career adaptability act as significant mediating variables in this relationship. Conversely, flexible work arrangements were not found to be a statistically significant mediator. These findings underscore the multifaceted nature of retention strategies, revealing that while financial compensation is a critical direct factor, its efficacy is substantially enhanced by supportive leadership and opportunities for career development.