Deanysa Buggy Asih1, Yudit Oktaria Kristiani Pardede2
Gunadarma University, Faculty of Psychology, Jl. TB Simatupang Pasar Minggu, Jakarta Selatan, Indonesia
ABSTRACT
Employees who work in a company are expected to know well the core values, culture and goals of the organization, so that employees can get to know the company where they work well. However, outsourcing employees who basically come from service providers outside the company do not know about this. Therefore it is difficult for outsourcing employees to grow their work loyalty to the company where they work. Meanwhile, loyal employees are related to the goals, objectives, culture and values of the organization. Employee loyalty can go up and down, one of which is due to job satisfaction factors. Job satisfaction felt by employees can increase employee work loyalty. Therefore, we need a motivator in the form of meeting physical and non-physical needs. This need is an encouragement or motivation for employees to work in a company. This study aims to determine the effect of job satisfaction and work motivation on work loyalty of outsourcing employees. This study uses a quantitative approach with research participants totaling 100 outsourcing employees obtained through sampling techniques. The analysis method used is simple and multiple regression. Based on the data analysis that has been done, it is known that there is an effect of job satisfaction on work loyalty of outsourcing employees by 54.3%, there is an effect of work motivation on work loyalty of outsourcing employees by 47.1% and there is an effect of job satisfaction and work motivation which together affect work loyalty of outsourcing employees by 25.7%, the remaining is influenced by other factors outside the research.
Keywords: Job Satisfaction, Work Motivation, Work Loyalty, Outsourcing
INTRODUCTION
Products and services that have quality will certainly be able to compete globally to improve their competitive position in the increasingly global market. Companies can save costs and maintain quality by relying more on external service providers for activities that are seen as complementary to their core business. This is related to outsourcing which functions as a partnership to improve the company’s business (Elmuti., Grunewald., & Abebe, 2010).
One of the complementary activities to improve the company’s business is recruitment. Every prospective employee who is accepted feels unclear about their employment status, namely outsourcing employees or permanent employees. Employee status is a condition that distinguishes one employee from another in the company. Employment status is a person’s position in doing work, namely whether the person’s position is as a laborer or employee. The status of outsourcing employees is included in non-permanent employees and their employment status is included in outsourcing employees (Barthos, 2001).
Outsourcing is the delegation of daily operations and management of a business process to an external party (an outsourcing service provider). Through delegation, management is no longer carried out by the company, but is delegated to the outsourcing service company (Soewondo, 2004). In addition, according to Wahyuningtyas & Utami (2018) Outsourcing is an effort to obtain skilled workers and reduce the burden and costs of the company in improving the company’s performance so that it can continue to be competitive in facing global economic and technological developments by handing over the company’s activities to other parties.
The handover of HR activities to outsourcing services is widely used by organizations around the world, because it is considered profitable. As is the case in the telecommunications industry of Pakistan. In the telecommunications sector of Pakistan, external recruitment companies or so-called outsourcing are known to have high work loyalty. Although they do not know the core values, culture, and goals of the organization well, employees are still able to grow their work loyalty. Employees can quickly adapt to their work environment because a comfortable work environment is created so that employees feel at home and are willing to stay in the company as long as they are still needed by the company. Work loyalty is related to the goals, objectives, culture, and values of the organization. Employees are able to know and adapt to this after they have been in an organization for a long time (Jamil & Naeem, 2013).
According to Flippo (2013) Work loyalty itself is the determination and ability to obey, carry out and practice something that is obeyed with full awareness and responsibility. Robbins (2006) defines loyalty as the willingness to protect and save oneself. While Hasibuan (2002) describes loyalty as loyalty reflected by the willingness of employees to maintain and defend the organization inside and outside of work.
Work loyalty is fundamental to the industry because loyal employees will provide high work results along with work efficiency (Elmuti, Grunewald, & Abebe, 2010). Companies that fail to create strategic HR practices can lose valuable employees due to lack of employee loyalty to the company (Meyer & Allen, 1997). Through outsourcing, companies generate profits through HR which is the company’s most valuable asset. While HR itself will feel disadvantaged, so that employees are unable to grow their loyalty in working in the company where they work (Jamil & Naeem, 2013).
Employee loyalty in an organization is absolutely necessary for the success of the organization itself, one of the factors that causes employee work loyalty to increase or decrease is job satisfaction (Citra. L.M., & Fahmi. M, 2019). According to Colquitt, LePine, & Wesson (2012) Job satisfaction is a level of pleasant feeling obtained from the assessment of one’s work or work experience. In addition, according to Mathis and Jackson (2000) job satisfaction is a positive emotional state resulting from the evaluation of work experiences carried out by an individual.
Achieving employee job satisfaction will increase employee work loyalty. Job satisfaction expresses a number of conformities between a person’s expectations about his/her work, which can be in the form of work performance given by the company and the rewards given for his/her work. In essence, a person is encouraged to be active because he/she hopes that it will bring a better and more satisfying situation than the current situation. So working is a form of activity that aims to obtain job satisfaction (Mathis and Jackson, 2000).
Job satisfaction can be seen from employees who feel happy with their work. They will give more attention, imagination and skills in their work. Therefore, a motivator is needed for employees, namely providing physical and non-physical needs. These needs are an encouragement for employees in carrying out activities in a company. This encouragement is called work motivation (Arianty, Bahagia, Lubis, & Siswadi, 2016).
According to Vroom (in Setiawan, 2015) work motivation is how much effort is made to achieve certain results or rewards. Meanwhile, according to Purnama (2008), work motivation is the entire process of providing work motivation to subordinates in such a way that they are willing to work sincerely in order to achieve organizational goals efficiently and economically.
Based on the results of research conducted by Jamil & Naeem (2013) showed that work loyalty has an impact on outsourcing employees. This means that work loyalty that grows in each individual does not depend on the status of the employee, whether permanent or outsourcing. Employee loyalty that grows in the outsourcing company has a positive impact on employee engagement, employees have a sense of attachment to the organization or company where the employee works. In addition, research conducted by Wibowo & Sutanto (2013) also stated that the results of the study showed that there was an influence of job satisfaction and work motivation on employee loyalty in the sales department where if the work motivation of employees in the sales department increased, then the loyalty of employees in the sales department would increase. The regression results also showed that employee loyalty CV. Pratama Jaya was influenced by job satisfaction and work motivation, which was 66.7%. Another study conducted by Thanos, Pangemanan, and Rumokoy (2015) also stated that work motivation and job satisfaction had a significant partial effect on employee loyalty at PT Kimia Farma Apotek.
Based on the explanation that has been presented previously, the hypothesis that can be developed in this study are:
- H1: job satisfaction and work motivation affect work loyalty in outsourcing employees;
- H2: job satisfaction affects work loyalty in outsourcing employees;
- H3: work motivation affects work loyalty in outsourcing employees.
RESEARCH METHODS
The population in this study were outsourcing employees and had the following characteristics: outsourcing employees, had worked for 6 months to 3 or more, because it is expected that during this period of work, real behavior can be seen which is reflected as an action of their loyalty in working for the company where the outsourcing employee works.
The sample (subject) of the study consisted of 100 outsourcing employees who had the same characteristics as the population. Sampling was carried out using non-probability sampling techniques and with purposive sampling types. The answer choices on each scale range from 1 – 6 ranging from strongly disagree to strongly agree.
Job satisfaction in this study can be seen through the scores obtained in the job satisfaction scale according to Spector, (1994) namely aspects of salary, promotion, superiors, benefits, non-material rewards, working conditions, coworkers, nature of work, and communication. This measuring instrument contains 36 items divided into 17 favorable items and 19 unfavorable items. One example of an item in the job satisfaction scale is “I feel paid a fair amount for the work I do”. Based on the results of the analysis of the reliability test of the job satisfaction scale, a Cronbach alpha of 0.870 was found, which means that the scale is reliable in measuring job satisfaction.
Work motivation in this study can be seen through the scores adapted by researchers from Tremblay, MA, Blanchard, CM, Taylor, S., Villeneuve, M., and Pelletier, LG (2009) which are arranged based on the form of work motivation according to Deci & Ryan (2000) namely amotivation, intrinsic motivation, external regulation, projected, identified, integrated, extrinsic motivation. This measuring instrument contains 18 favorable items. One example of an item in the work motivation scale is “The awards given by the company are appropriate”. Based on the results of the analysis of the reliability test of the work motivation scale, a Cronbach’s alpha of 0.840 was found, which means that the scale is reliable in measuring work motivation.
Work loyalty in this study is known based on the score obtained through the work loyalty measurement scale adapted by Asih (2018) which is compiled based on aspects of work loyalty, namely obeying regulations, being responsible, dedicated and honest in working. This measuring instrument contains 32 items divided into 30 favorable items and 2 unfavorable items. One example of an item in the work loyalty scale is “I like to work hard, am agile and always want to do my best for the company”. Based on the results of the analysis of the reliability test of the work loyalty scale, a Cronbach’s alpha of 0.967 was found, which means that the scale is reliable in measuring work loyalty.
The data processing technique in this study used simple and multiple regression tests.
RESULTS AND DISCUSSION
Based on the results of the reliability test in this study to determine the consistency of the measuring instrument based on items that have been declared to have good discrimination power and proven by the Alpha Cronbach technique with the help of the IBM SPSS Statistic version 23 program. According to Azwar (2012) the reliability coefficient on the scale that shows high consistency and stability of values, namely 0.70 to 1. Based on the results of the reliability test that has been carried out, the scale of job satisfaction, work motivation and work loyalty is known to have good alpha Cronbach reliability test values, this means that the reliability coefficient on the scale as a whole shows high consistency and stability of values. The results of the reliability test on the three variables can be seen in the following table:
Table 1. Reliability Test
| Variable | Alpha Cronbach | Result |
| Job Satisfaction (X1) | 0,870 | Reliable |
| Work Motivation (X2) | 0,840 | Reliable |
| Work Loyalty (Y) | 0.967 | Reliable |
Based on the results of the study, it is known that the variables of job satisfaction and work motivation have an effect on work loyalty in outsourcing employees. The results of the regression test on the three variables can be seen in the following table:
Table 2. Regression Test
| Variable | F | R | R Square | Sig |
| Job Satisfaction (X1) | 117,576 | 0,739 | 0,543 | 0,000 |
| Work Motivation (X2) | 87,160 | 0,686 | 0,471 | 0,000 |
| Job Satisfaction (X1) and Work Motivation (X2) | 16,773 | 0,507 | 0,257 | 0,000 |
| on Work Loyalty (Y) |
- Effect of Job Satisfaction on Work Loyalty
Based on the results of data analysis on the job satisfaction variable, the F value is 117.576 and the significance coefficient is 0.000 (p <0.01), meaning that the job satisfaction variable has a very significant effect on work loyalty. The R value on job satisfaction of 0.739 indicates a positive relationship direction and a strong relationship. The R Square value of 0.543 means that job satisfaction affects work loyalty by 54.3%, the remaining 45.7% is influenced by other factors.
These results indicate that the hypothesis that states that there is an effect of job satisfaction on work loyalty in outsourcing employees is accepted. This means that the satisfaction felt by employees in working can increase or decrease their work loyalty to the company. The results of this study are in line with research conducted by Susilowati and Supriyadi (2018) which states that job satisfaction affects work loyalty by 34.3%. The higher the job satisfaction felt by employees, the higher the employee’s work loyalty to the company.
Employees who are satisfied will achieve work loyalty within the company. Job satisfaction is basically something that is individual, while each individual has a different level of satisfaction. In a company, leaders must pay serious attention to the job satisfaction of the employees they lead, because job satisfaction has a chain with the organization’s human resources, organizational performance, and the sustainability of the organization itself (Husni., Musnadi., and Faisal, 2018).
- Effect of Work Motivation on Work Loyalty
Based on the results of data analysis on the work motivation variable, the F value is 87.160 and the significance coefficient is 0.000 (p <0.01), meaning that the work motivation variable has a very significant influence on work loyalty. The R value on work motivation of 0.686 indicates a positive relationship direction and a strong relationship. The R Square value of 0.471 means that work motivation affects work loyalty by 47.1%, the remaining 52.9% is influenced by other factors. These results indicate that the hypothesis that there is an influence of work motivation on work loyalty in outsourcing employees is accepted. This means that work loyalty can grow and increase if the motivation felt by employees in working also increases.
The results of this study are in line with research conducted by Swadarma and Netra (2020) which states that there is a positive and significant influence between work motivation and employee loyalty at Rame Cafe Jimbaran of 41.6%. If motivation increases, employee loyalty will increase. High work motivation in employees will make employees work harder in carrying out their work. On the other hand, with low work motivation, employees do not have work enthusiasm, give up easily and have difficulty completing work (Husni., Musnadi., and Faisal, 2018).
The growing employee work motivation can come from themselves or from outside themselves. According to Herzberg (in Robbins & Judge, 2006) stated that basically motivation is divided into two main types, namely, intrinsic motivation and extrinsic motivation. Intrinsic motivation is motivation related to themselves to feel satisfied such as achievement, appreciation, responsibility, opportunities to advance, and the work itself. While extrinsic motivation is motivation from outside themselves such as physical working conditions, interpersonal relationships, company policies and administration, supervision, salary, and job security.
- Effect of Job Satisfaction and Work Motivation on Work Loyalty
Based on the results of data analysis on the variables of job satisfaction and work motivation, the F value is 16.773 and the significance coefficient is 0.000 (p <0.01), meaning that the variables of job satisfaction and work motivation have a significant influence on work loyalty. The R value on job satisfaction and work motivation of 0.507 indicates a positive relationship direction and a strong relationship. The R square value of job satisfaction and work motivation of 0.257 means that job satisfaction and work motivation together affect work loyalty by 25.7%, the remaining 74.3% is influenced by other factors.
These results indicate that the hypothesis that states that there is an influence of job satisfaction and work motivation on work loyalty in outsourcing employees is accepted. This means that the satisfaction and motivation in working felt by outsourcing employees can foster their work loyalty in their workplace. The results of this study are in line with research conducted by Husni., Musnadi., And Faisal (2018) which states that job satisfaction and work motivation owned by prison employees in Aceh Province have an effect on the emergence of employee work loyalty. In addition, another study conducted by Citra and Fahmi (2019) also stated that job satisfaction and work motivation together have an influence of 73.9%, while the remaining 26.1% of work loyalty is influenced by other variables.
Employee loyalty is a positive employee attitude towards the company where they work. Employees with a high level of loyalty can work not only for themselves but also for the benefit of the company. Therefore, the role and duties of a leader in acting and making decisions are very influential, so that they can be a benchmark for actions and motivation for employees in all forms and positive activities that will later build enthusiasm and job satisfaction and even employee work loyalty itself (Citra and Fahmi, 2019).
CONCLUSIONS AND RECOMMENDATIONS
Based on the results of the study, it can be concluded that job satisfaction influences work loyalty in outsourcing employees by 54.3%, the rest, 45.7% is influenced by other factors outside the study. Furthermore, work motivation influences work loyalty in outsourcing employees by 47.1%, the rest, 52.9% is influenced by other factors outside the study. Thus, job satisfaction and work motivation influence work loyalty in outsourcing employees by 25.7%, the rest, 74.3% is influenced by other factors outside the study.
Based on the results of the study, the following suggestions can be submitted so that employees are expected to continue to reflect work loyalty in their workplaces such as in terms of obeying regulations, being responsible, dedicated and honest in working.
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