Human Capital and Two Factor Theories on Job Satisfaction

Abstract

Objective - Human capital is part of driving business. Knowledge and skill are needed in an organization to achieve goals. The research aims to study human capital theory combined with two-factor theories on job satisfaction. Because in 2020, there are many employees had resigned from the company. Methodology/Technique - The simplified methodology is to analyses human capital theory as in quantitative for corporate training structure; budget, manpower, and training program. Moreover, two-factor theories are qualitatively applied for corporate structure; organization policies, salary structure, and achievement. This survey research uses questionnaires with a sample of 109 cases calculated from Taro Yamane's formula. Findings - Data analyses are multicollinearity, heteroscedasticity, and autocorrelation. Findings express that the support in higher education and soft skills training is affecting job satisfaction. Furthermore, in terms of two factors show that all key elements are acted as the "Career Life Factors Chain". Business strategy implication expresses as knowledge management via business training rewards. It will be set under terms and conditions to support higher education to employees who work for five years. Besides, upskill and reskill training will provide to an employee who works for three years. Novelty - Meanwhile, two-factor theories business strategy implication as job evaluation and promotion. Criteria for considering are related to the position, age, year of service, and salary. Therefore, top managers can apply its backward analysis with the restructuring of human capital management. Type of Paper - Empirical Keywords: Human Capital, Job Satisfaction, Upskill – Reskill Management JEL Classification: M10, M19.