Abstract
The millennial generation has recently dominated the workforce in Indonesia. The millennial generation has many business opportunities provided by an increasingly connected and digitalized world. These opportunities are often accomplished individually without joining a large corporation. Thus, retention becomes one of the most complicated challenges, especially in a state-owned enterprise (SOE). The question arises whether a supportive work environment can still retain the millennial generation in an Indonesian SOE. This study aims to analyse whether there is a positive relationship between a supportive work environment on employee retention among the millennial generation. Furthermore, we examine the mediating role of organizational commitment and organizational engagement in that relationship. This study was conducted through a survey using a closed questionnaire. Respondents are millennials ages working as permanent employees in Indonesian SOEs. 336 respondents participated in the study. We analyse the data with Structural Equation Modelling (SEM) using LISREL. We found a significant positive relationship between a supportive work environment on employee retention. However, both organizational commitment and organizational engagement only partially mediate that relationship.
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