Turnover Intention is an employee's desire or intention to leave the organization where they work, either voluntarily or involuntarily. This intention is often used as an important indicator to understand the level of employee turnover in an organization (Novitasari, 2020). Turnover Intention is considered as the first step towards the actual decision to leave a job, so it becomes the focus of management's attention to reduce the employee turnover rate (Hutabarat et al., 2024).

Employee retention refers to an organization’s capacity to maintain its workforce, particularly individuals who demonstrate a propensity for loyalty and sustained commitment to the company (Amelia & Ayani, 2020). Ensuring high levels of employee retention constitutes a critical objective for organizations, as the enduring stability, performance, and overall success of an organization are fundamentally contingent upon its ability to retain valuable human resources (Huan et al., 2023).

Self-efficacy is an individual's belief in his or her ability or capacity to produce a certain performance (Iskandar, 2023). Self-efficacy is important to know about ourselves, because efficacy is knowledge related to understanding ourselves that only we know ourselves and influences our daily activities (Putri & Herdajani, 2024).

Job satisfaction can be conceptualized as the degree of positive and favorable emotions that an individual experiences as a consequence of evaluating their work performance or occupational experiences (Sugiyono & Rahajeng, 2022). In this context, it reflects an employee's constructive disposition toward their professional duties, which emerges from an appraisal of the work environment and conditions (Taurisa & Ratnawati, 2019). Essentially, job satisfaction embodies an affective orientation characterized by a sense of pleasure and attachment to one’s occupational role.

Figure 1. Framework

To conduct this research, researchers took 256 respondents, namely employees of PT. Foresight Global Mas.

Table 1. Respondent Description

Source: Processed primary data, 2025

Based on data from 256 respondents, the majority were female (94%), indicating the dominance of female participation in this study. In terms of age, most respondents came from the age group >30 years (44%), followed by the age group 17–20 years (36%). Meanwhile, based on length of service, most respondents had a work period of 3 months to 1 year (53%), indicating that most were still relatively new employees. In terms of division, respondents dominated from the Packing division as much as 89%, reflecting that this division has the largest number of employees compared to other divisions. This finding is important as a basis for understanding the demographic characteristics of respondents that can influence the results of further analysis.

Table 2. Outer Loading Values Before Elimination

Source: Processed primary data, 2025

As presented in the preceding table, the majority of the research variable indicators exhibit outer loading values exceeding the threshold of 0.7. Nevertheless, the data reveal that certain indicators specifically X1.1, X1.2, X2.1, Z.1, and Y.2 demonstrate outer loading values falling below this critical benchmark. Consequently, these five indicators have been identified for removal, and the dataset will undergo subsequent reanalysis to ensure the validity and reliability of the measurement model.

Table 2. Outer Loading Values After Elimination

Source: Processed primary data, 2025

The table presented above indicates that a substantial number of the research variable indicators exhibit outer loading values exceeding 0.7. This observation demonstrates that none of the indicators fall below the 0.7 threshold, thereby confirming that all indicators are appropriate and valid for utilization in this study. Consequently, these indicators are deemed reliable for inclusion in subsequent analyses.

Beyond examining outer loading values, convergent validity can also be evaluated through the Average Variance Extracted (AVE), with a value exceeding 0.5 considered indicative of validity in terms of convergent validity (Fornell & Larcker, 1981). The AVE values corresponding to each variable analyzed in this study are presented as follows:

Table 3. Average Variance Extracted Value

Source: Processed primary data, 2025

Table 3 presents the Average Variance Extracted (AVE) value of each variable in the study to measure convergent validity. All variables show an AVE value above 0.5, namely Employee Retention (X1) of 0.659, Self-Efficacy (X2) of 0.599, Job Satisfaction (Z) of 0.645, and Turnover Intention (Y) of 0.775. Based on these values, all variables are declared valid because they meet the minimum criteria of AVE > 0.5, which means that the indicators in each variable are able to explain the variance of the construct well.

Table 4. Cross Loading

Source: Processed primary data, 2025

The data displayed in the preceding table demonstrate that each indicator within the research variable exhibits its highest cross-loading value on the variable it is intended to represent, relative to its cross-loading values on other variables. These findings indicate that the indicators employed in this study possess strong discriminant validity, effectively distinguishing the constructs they are designed to measure.

Reliability assessment reflects the degree of consistency and stability of a measurement instrument in capturing a particular concept or construct (Abdillah & Hartono, 2015). In the present study, reliability was evaluated using both Composite Reliability and Cronbach’s Alpha to ensure the robustness and dependability of the research instruments.

Table 5. Reliability Test

Source: Processed primary data, 2025

Table 5 displays the Composite Reliability value of each variable in the study, which is used to measure the internal consistency of the construct. All variables show values above the threshold of 0.7, which indicates high reliability. The Employee Retention (X1) variable is 0.853, Self-Efficacy (X2) is 0.856, Job Satisfaction (Z) is 0.879, and Turnover Intention (Y) is 0.912. Thus, all constructs in the model are declared reliable and can be used for further analysis.

Table 5 presents the Cronbach's Alpha values for each research variable as an indicator of internal reliability. All values are above the minimum threshold of 0.7, indicating that the instrument used to measure each variable has good internal consistency. The Employee Retention (X1) variable is 0.741, Self-Efficacy (X2) is 0.777, Job Satisfaction (Z) is 0.816, and Turnover Intention (Y) is 0.855. Therefore, all variables can be declared reliable and suitable for use in further testing.

The inner model serves as a framework to examine the influence of one latent construct on another within a structural equation model. Assessment of the inner model can be carried out through several analytical procedures, which include the evaluation of the R² (R-square) value, the Goodness of Fit (GoF), path coefficients, and the examination of specific indirect effects. These procedures collectively provide insights into the strength and significance of relationships between latent variables.

The evaluation of the structural model is performed to illustrate the interconnections between manifest indicators and latent constructs, encompassing primary predictor variables, mediating variables, and outcome variables within a single integrated model. The model’s goodness-of-fit is determined through two main metrics: R² (R-square), which indicates the proportion of variance explained by the model, and Q² (Q-square), which assesses the model’s predictive relevance. These measures collectively ensure the robustness and adequacy of the structural relationships being tested.

Table 6. R-Square Value

Source: Processed primary data, 2025

Referring to the data presented in the preceding table, the R-Square statistic serves to quantify the extent to which the variables of Employee Retention and Self-Efficacy contribute to Job Satisfaction. The resulting R-Square value of 0.590, equivalent to 59%, indicates that these variables collectively exhibit a moderate level of influence on Job Satisfaction. In contrast, when examining the impact of Employee Retention and Self-Efficacy on Turnover Intention, the R-Square value is 0.178, or 17.8%, suggesting that the strength of this relationship is relatively weak.

Table 7. Q-Square Analysis (Q2)

Source: Processed primary data, 2025

Table 7 presents the findings from the Q-Square (Q²) analysis, which is employed to assess the predictive relevance of the model for the latent constructs under investigation, specifically Job Satisfaction and Turnover Intention. The Q² statistic serves as an indicator of the model’s capability to accurately forecast the observed data. The results indicate that the Job Satisfaction construct attained a Q² value of 0.369, whereas Turnover Intention registered a Q² value of 0.129. Given that all Q² values exceed zero, it can be inferred that the model demonstrates substantial predictive validity for each latent variable included in this study.

To evaluate the hypotheses formulated in this research, the analysis utilizes a table displaying path coefficient values to represent direct effects, alongside specific indirect effects to capture mediated or indirect relationships. Path Coefficient Test

Table 8. Path Coefficient (Direct Effect)

Source: Processed primary data, 2025

Based on the data presented in the table, the following interpretations can be drawn:

Table 9.Indirect Effect

Source: Processed primary data, 2025

From the data presented in the table, the following findings can be derived:

The findings derived from the path coefficient analysis indicate that, when examined individually, Employee Retention exerts a negative but statistically non-significant influence on Turnover Intention. These outcomes are consistent with the study conducted by Guzeller and Celiker (2020), which similarly identified a negative relationship between employee retention and turnover intention. This suggests that the more effectively an organization implements strategies to retain its workforce, the lower the propensity of employees to consider leaving the organization. This includes various strategies such as fair compensation, a conducive work environment, career development opportunities, and harmonious working relationships. When employees feel valued and have long-term prospects at work, they tend to be highly loyal and less tempted to look for work elsewhere (Wulansari et al., 2020). This significant negative impact confirms that employee retention is a crucial factor in reducing turnover intention, so companies need to consistently evaluate and strengthen their retention policies to maintain workforce stability.

Based on the results of the path coefficient test, partially Self Efficacy has a negative and insignificant effect on Turnover Intention. The results of this study are in contrast to research conducted Biçer, (2023) who found that self-efficacy has a negative and significant effect on Turnover Intention.This finding indicates that an individual's level of confidence in their ability to complete tasks or face challenges at work does not directly influence their desire to leave their job..Even if someone has high self-efficacy, this doesn't necessarily mean they want to stay with the organization. Other factors such as the work environment, job satisfaction, workload, or relationships with superiors and coworkers are likely more dominant in influencing intentions to leave.(I. Sitinjak, 2019). Thus, although self-efficacy is important in supporting performance, employee loyalty or desire to remain in an organization seems to be more determined by external aspects beyond the individual's own abilities.

The findings from the path coefficient analysis indicate that, in a partial context, employee retention exerts a positive and statistically significant influence on job satisfaction. This outcome corroborates the study conducted by Afzal et al. (2019), which similarly demonstrated that effective employee retention positively and meaningfully impacts job satisfaction. In practical terms, this suggests that when organizations implement robust strategies to retain their workforce, employees are more likely to experience higher levels of satisfaction in their roles. Retention mechanisms including competitive compensation packages, recognition of performance achievements, opportunities for career progression, and the cultivation of a supportive organizational climate foster a sense of security and well-being among employees. When individuals perceive that the organization values and supports them, they develop favorable attitudes toward their work, which in turn enhances overall job satisfaction (Mering et al., 2023). Consequently, these findings affirm that employee retention not only stabilizes the workforce but also plays a pivotal role in promoting a positive workplace environment and motivating employees to maximize their contributions.

Similarly, the results of the path coefficient assessment reveal that self- efficacy partially contributes positively and significantly to job satisfaction. This finding is consistent with the research of Dwyer (2019), who reported that self- efficacy exerts a meaningful and favorable effect on job satisfaction. Essentially, employees who possess a strong belief in their capability to accomplish tasks and overcome work-related challenges are likely to exhibit elevated levels of job satisfaction. High self-efficacy individuals tend to display greater confidence, initiative, and optimism when performing their responsibilities, which enhances their ability to manage stress and achieve organizational objectives. As such, fostering self-efficacy among employees not only enhances individual performance but also contributes to their overall satisfaction in the workplace. Successfully completing these tasks provides a sense of accomplishment and satisfaction. Furthermore, individuals who are confident in their competence are typically better able to build positive work relationships and view their work as a form of self-actualization (Klongthong et al., 2020). Therefore, strengthening self-efficacy is an important strategy for increasing overall employee job satisfaction.

The analysis of the path coefficient demonstrates that Job Satisfaction exerts a partially negative and statistically significant influence on Turnover Intention. This finding corroborates the study by Hakim et al. (2022), which similarly reported that higher levels of Job Satisfaction are associated with lower Turnover Intention. In practical terms, employees who experience elevated job satisfaction manifested through a supportive work environment, harmonious relationships with colleagues and supervisors, balanced workloads, and appropriate performance-based rewards tend to exhibit greater organizational loyalty. Job satisfaction fosters feelings of comfort, security, and recognition, thereby diminishing employees’ inclination to seek alternative employment opportunities (Ridho, 2023). Consequently, organizations must consistently prioritize the factors that cultivate job satisfaction to ensure workforce stability and long-term sustainability.

The results of the indirect effect analysis indicate that Job Satisfaction serves as a mediating factor in the relationship between Employee Retention and Turnover Intention. This outcome aligns with the research conducted by Vizano et al. (2021), which found that Employee Retention negatively and significantly impacts Turnover Intention when mediated by Job Satisfaction. In essence, effective retention strategies that enhance employees’ job satisfaction can reduce their intention to leave the organization, highlighting the critical role of satisfaction as a conduit between retention practices and turnover outcomes. This means that a company's efforts to retain employees not only directly reduce the intention to leave, but also have an indirect effect by increasing job satisfaction. When companies implement effective retention strategies, such as fair compensation, a comfortable work environment, career development opportunities, and positive interpersonal relationships, this will increase employee job satisfaction. This satisfaction then encourages employees to be more loyal and reluctant to leave the organization (Prami et al., 2020). In other words, good employee retention will create satisfying working conditions, and this satisfaction is a crucial factor in reducing turnover intention. This finding reinforces the importance of job satisfaction as a mediating variable that bridges the influence of employee retention on their intention to remain in the organization..

Based on the results of the indirect effect test, the researcher found thatJob Satisfaction can mediate the relationship between Self Efficacy and Turnover Intention The results of this study are in line with research conducted by(Shobirin et al., 2023) who found that Self Efficacy had a negative and significant effect on Turnover Intention which was mediated by Job Satisfaction This means that employees' confidence in their ability to complete tasks and face challenges does not directly reduce their intention to leave the organization, but rather influences it through their perceived level of job satisfaction. Employees with high self- efficacy tend to be more able to work independently, complete tasks well, and feel competent in their roles. This creates a sense of job satisfaction because they feel a sense of accomplishment and recognition for their abilities. This job satisfaction then reduces the desire to look for work elsewhere (Ainun, 2022). Thus, job satisfaction becomes an important bridge in connecting self-efficacy with turnover intention, which means that increasing employee self-confidence needs to be balanced with the creation of a supportive work environment in order to produce high job satisfaction and reduce turnover intention.