The Role of Work Flexibility in Developing Employee Loyalty: Organizational Culture as Mediation
Abstract
This study aims to examine the effect of work flexibility on employee loyalty at PT XYZ Indonesia, with organizational culture as a mediating variable. The research is motivated by the relatively high employee turnover rate, which indicates low employee loyalty despite the implementation of flexible work policies. This study adopts an explanatory quantitative approach using a survey method. Data were collected through questionnaires distributed to employees and analyzed using Partial Least Squares (PLS) to test both direct and indirect relationships among variables. The results reveal that work flexibility has a positive and significant effect on employee loyalty, indicating that increased flexibility in work time, place, and methods contributes to stronger employee commitment. Additionally, work flexibility significantly influences organizational culture, suggesting that flexible practices foster a more adaptive and supportive work environment. Organizational culture is also found to have a positive and significant effect on employee loyalty. Furthermore, organizational culture partially mediates the relationship between work flexibility and employee loyalty, implying that the effectiveness of flexible work policies in enhancing loyalty is strengthened by a supportive organizational culture.In conclusion, optimizing work flexibility supported by a strong organizational culture can effectively enhance employee loyalty and contribute to organizational sustainability
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