Analysis of the Impact of Leadership Style, Compensation, and Work Stress on Employee Turnover Intention

Abstract

This study aimed to analyze the effects of leadership style, compensation, and work stress on employee turnover intention at PT Woori Finance Indonesia Tbk, Sumatra 2 Area. A quantitative survey method was applied to 71 employees using saturated sampling, with data analyzed through multiple linear regression using SPSS 27. Leadership style (t=-5.088, p=0.001) and compensation (t=-4.823, p=0.001) had negative and significant effects on turnover intention, while work stress had a positive and significant effect (t=10.724, p=0.001). Simultaneously, the three variables significantly influenced turnover intention (F=66.276, p=0.001). Improving leadership quality, providing fair compensation, and managing work stress are important strategies for reducing employee turnover intention. The findings indicate that organizations need to develop effective leadership practices, establish competitive reward systems, and create supportive work environments to maintain employee commitment and retention. These efforts are essential for improving organizational stability and long-term performance in the financial services sector. This study is limited to employees of one financial company in the Sumatra 2 Area, which may restrict the generalizability of the findings. This study contributes empirical evidence on the role of leadership style, compensation, and work stress in explaining turnover intention in the financial services sector.