Year
2025
Abstract
High turnover remains a persistent challenge in labor-intensive industries, particularly among blue- collar workers in developing countries. This study investigates the role of Decent Work in reducing Turnover Intention through the mediating effect of Job Satisfaction, focusing on employees in the false eyelash manufacturing sector in Central Java, Indonesia. Guided by the Psychology of Working Theory (PWT), Self-Determination Theory (SDT), and the Job Demands–Resources (JD-R) framework, the study aims to provide theoretical and practical insights into employee retention strategies.
Data were collected through a survey of 578 production employees across five major eyelash manufacturing companies. Covariance-based structural equation modeling (CB-SEM) was applied through SmartPLS 4, whereby the measurement model was assessed and the hypothesized relationships were subsequently evaluated.The results indicate that Decent Work has a positive and significant effect on Job Satisfaction (β = 0.713, p < 0.001), while Job Satisfaction negatively influences Turnover Intention (β = –0.602, p < 0.001). Decent Work also directly reduces Turnover Intention (β = –0.190, p < 0.001). Mediation analysis further confirmed that Job Satisfaction partially mediates the relationship between Decent Work and Turnover Intention (β = –0.429, p < 0.001).
These findings contribute to the growing literature on Decent Work by extending its application to blue-collar employees in a developing country context. From a practical standpoint, the study highlights that ensuring fair wages, safe working conditions, and supportive organizational policies not only improves satisfaction but also serves as an effective retention strategy. Overall, the study underscores the importance of translating Decent Work principles into tangible employee experiences to reduce turnover and foster sustainable employment.
Keywords:
Decent Work; Job Satisfaction; Turnover Intention; Blue-Collar Workers; Manufacturing Industry
Recommended Citation
Setiani, Dewi and Pusparini, Elok Savitri, "When Work Becomes Decent: Linking Decent Work to Turnover Intention through Direct and Indirect Pathways in Indonesia’s Blue-Collar Sector" (2026). International Conference on Business and Management Research (ICBMR). 11.
https://scholarhub.ui.ac.id/icbmr/2025/1/11
Included in
When Work Becomes Decent: Linking Decent Work to Turnover Intention through Direct and Indirect Pathways in Indonesia’s Blue-Collar Sector
High turnover remains a persistent challenge in labor-intensive industries, particularly among blue- collar workers in developing countries. This study investigates the role of Decent Work in reducing Turnover Intention through the mediating effect of Job Satisfaction, focusing on employees in the false eyelash manufacturing sector in Central Java, Indonesia. Guided by the Psychology of Working Theory (PWT), Self-Determination Theory (SDT), and the Job Demands–Resources (JD-R) framework, the study aims to provide theoretical and practical insights into employee retention strategies.
Data were collected through a survey of 578 production employees across five major eyelash manufacturing companies. Covariance-based structural equation modeling (CB-SEM) was applied through SmartPLS 4, whereby the measurement model was assessed and the hypothesized relationships were subsequently evaluated.The results indicate that Decent Work has a positive and significant effect on Job Satisfaction (β = 0.713, p < 0.001), while Job Satisfaction negatively influences Turnover Intention (β = –0.602, p < 0.001). Decent Work also directly reduces Turnover Intention (β = –0.190, p < 0.001). Mediation analysis further confirmed that Job Satisfaction partially mediates the relationship between Decent Work and Turnover Intention (β = –0.429, p < 0.001).
These findings contribute to the growing literature on Decent Work by extending its application to blue-collar employees in a developing country context. From a practical standpoint, the study highlights that ensuring fair wages, safe working conditions, and supportive organizational policies not only improves satisfaction but also serves as an effective retention strategy. Overall, the study underscores the importance of translating Decent Work principles into tangible employee experiences to reduce turnover and foster sustainable employment.