Do the Total Reward and Talent Management Program Affect the Retention and Performance of Generation Y Employees?

Abstract

Currently, the Indonesian national workforce is dominated by generation Y. Generation Y is the generation born between 1980-2000. Based on literature studies, this generation is known as the generation that easily leaves the workplace if they see career opportunities. Employees who move easily will affect company performance. With changes in employee demographics, it is important to examine strategies and factors that influence employee retention. This article tries to discuss and explore the factors that influence the retention and performance of generation Y employees through total rewards and talent management programs. This research uses a questionnaire survey conducted on employees of Bank Syariah Indonesia in Lampung Province, Indonesia. A total of 200 generation Y employee respondents in Lampung participated in this research. The analysis model in data processing uses SEM Lisrel 8.8. The findings reveal that total rewards are proven to influence the retention and performance of generation Y employees. The talent management program has no direct influence on the performance of generation Y employees. Intrinsic rewards are proven to have more influence on the retention and performance of generation Y employees. Talent management programs influence the performance of generation Y employees if mediated by retention.