The Role of Job Satisfaction as a Mediator in the Influence of Work Environment, Reward, and Workload on Employee Loyalty: A Study at PT. Kirana Artha Hannan Surabaya

Abstract

Employee loyalty has become an increasingly critical issue amidst the intensifying global competition and the rising turnover rates observed across key industries, particularly in Indonesia's rapidly growing healthcare sector. This study aims to analyze the mediating effect of job satisfaction on the relationship between work environment, reward, workload, and employee loyalty at PT Kirana Artha Hannan Surabaya, a leading medical device distributor. Employing a quantitative approach with a survey method. The study utilized saturated sampling technique involving all 57 permanent employees of PT. Kirana Artha Hannan Surabaya. The data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) analysis through SmartPLS 3.2.9 software. The findings reveal that both work environment and reward positively and significantly affect job satisfaction, while workload shows a significant but negative relationship. Furthermore, job satisfaction is a strong predictor of employee loyalty. Interestingly, while the direct effects of work environment and reward on employee loyalty were negative, their indirect effects through job satisfaction are positive and significant, highlighting the crucial role job satisfaction plays in mediating these organizational factors. The study concludes that enhancing job satisfaction through improvements in work environment, adequate and fair rewards, and effective workload management is essential to foster employee loyalty and reduce turnover in the medical device industry.