Compensation, Work-Life Balance, and Turnover Intention: Evidence from Digital Talent in IT Managed Services
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Abstract
This study examines how compensation and work-life balance shape turnover intention among contractual digital talent in the IT managed service division of PT. AAA, with job satisfaction positioned as a mediating mechanism. The research responds to a retention problem in a high-pressure service environment characterized by client-site deployment, shift work, and strict service-level agreement demands. A quantitative causal design was applied to 182 operational employees selected through simple random sampling. Data were collected using a structured Likert-scale questionnaire and analyzed through partial least squares structural equation modeling with a reflective-reflective hierarchical component model and a disjoint two-stage approach. The results show that compensation and work-life balance significantly increase job satisfaction, while job satisfaction significantly reduces turnover intention. However, compensation and work-life balance do not directly reduce turnover intention. Job satisfaction fully mediates both relationships, indicating that retention policies become effective only when they are translated into positive daily work evaluations. The study contributes to digital talent management by clarifying the psychological pathway through which rewards and work arrangements influence retention in B2B managed services.
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