The Effect of Islamic Work Ethic and Ethic Leadership on Turnover Intention Mediated by Employee Engagement
Abstract
This study aims to determine the effect of Islamic work ethic and ethical leadership on turnover intention and recommend companies in reducing turnover intention. This study also aims to test the mediating effect of employee engagement on turnover intention. To test the variables, the researcher used a survey method by distributing questionnaires to 91 employees using non-probability sampling and purposive sampling techniques at PT CJ Feed Semarang. The study was conducted at a manufacturing company PT CJ Feed Semarang from South Korea which is one of the foreign-owned companies that focuses on animal feed production. The results of the study indicate that Islamic work ethic and ethical leadership can be applied in manufacturing companies. The influence of Islamic work ethic and ethical leadership shows a negative effect on turnover intention. This shows that the higher the Islamic work ethic and ethical leadership, the smaller the turnover intention, while the lower the Islamic work ethic and ethical leadership, the higher the turnover intention in a company. The results of mediation with employee engagement show a higher negative effect on turnover intention. This study is limited to manufacturing companies, but has significant implications for workforce development in other regions and across sectors. Understanding the Islamic work ethic and ethical leadership of the workforce on turnover and its consequences in the company provides an overview of HRD in designing and implementing employee and leader changes in implementing them in the company.
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