The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar

Available online at www.rajournals.in International Journal of Management and Economics Invention ISSN: 2395-7220 DOI: 10.47191/ijmei/v11i12.02 Volume: 11 Issue: 12 December 2025 International Open Access Impact Factor: 8.518 (SJIF) Page no. 4862-4868 4862 Marvin Imanuel Lotulung1, IJMEI Volume 11 Issue 12 December 2025 The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar Marvin Imanuel Lotulung1, Yuniningsih Yuniningsih2, Ika Korika Swasti3 1,2,3Magister Manajemen, University of Pembangunan Nasional Veteran East Java, Indonesia ARTICLE INFO ABSTRACT Published Online: 06 December 2025 Corresponding Author: Marvin Imanuel Lotulung This study aims to analyze the influence of transactional leadership, career development, and work-life balance on turnover intention, with job satisfaction as a mediator at PT. Arina Multikarya Makassar. The research was prompted by a high employee turnover rate of 57% in 2024, reflecting challenges in job satisfaction, career development opportunities, and worklife balance, contributing to organizational instability and reduced employee loyalty. Using a quantitative approach with a survey of 243 active employees, data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test both direct and indirect relationships. The results reveal that transactional leadership does not significantly affect turnover intention, indicating that a reward-and-punishment-based leadership style has not effectively reduced employees' desire to leave. However, career development and work-life balance were found to have a significant negative impact on turnover intention, meaning that better career promotion opportunities, training, and work-life balance policies can lower employees’ intention to leave. Job satisfaction was not found to mediate the relationship between transactional leadership and turnover intention but was significant in mediating the effects of career development and work-life balance on turnover intention. These findings emphasize the importance of improving career development programs and work-life balance policies to enhance job satisfaction and reduce turnover rates. KEYWORDS: Transactional Leadership, Career Development, Work-Life Balance, Job Satisfaction, Turnover Intention. I. INTRODUCTION In the increasingly dynamic era of globalization, one of the significant challenges faced by companies is ensuring that their operational efficiency and effectiveness are maintained amidst the intensifying competition. One strategy widely implemented to achieve this objective is through the outsourcing system. By leveraging external labor service providers, companies can reduce administrative burdens, recruitment costs, and training expenses, thus allowing them to focus more on developing their core business. PT. Arina Multikarya, as a labor service provider in Indonesia, utilizes this outsourcing model to provide solutions to various companies across multiple industry sectors. However, in its implementation, the company faces a significant issue in the form of a high employee turnover rate, which has become one of the main problems that need to be addressed immediately. The phenomenon of high employee turnover at PT. Arina Multikarya Makassar, particularly among workers placed in partner companies, reflects a high tendency for turnover intention among employees. According to the company's internal data, the turnover rate surged sharply in 2024, reaching 57%, indicating dissatisfaction and deeper issues in retaining employees. Several factors contributing to this turnover include dissatisfaction with leadership style, lack of career development opportunities, and an imbalance between work and personal life (work-life balance). The decline in job satisfaction among employees undoubtedly affects operational efficiency, increases costs, and damages the quality of relationships with clients. Low job satisfaction is closely related to employees' behavior within the organization, particularly at the individual level. As Robbins (2013) explains, factors such as motivation, personal values, and perceptions of work significantly affect employees' intentions to remain in the “The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar” 4863 Marvin Imanuel Lotulung1, IJMEI Volume 11 Issue 12 December 2025 organization. Improving job satisfaction can serve as a solution to reduce turnover intention; however, this influence is often affected by other factors such as leadership style, career development opportunities, and work-life balance. Previous studies have shown that these factors have a significant impact on turnover intention, yet there is still a gap in the literature regarding the mediating role of job satisfaction in the relationship between these factors and turnover intention. The importance of this research lies in the effort to further explain how transactional leadership style, career development, and work-life balance influence turnover intention, with job satisfaction serving as a mediating variable. While many studies have discussed the direct impact of these three factors, few have explored the interaction between these factors in the context of Indonesian companies, especially in the outsourcing service sector. Filling this gap is highly relevant, considering that companies like PT. Arina Multikarya face employee retention issues that affect operational sustainability and service quality. The main objective of this article is to analyze both the direct and indirect (through job satisfaction) effects of transactional leadership style, career development, and worklife balance on turnover intention. This article aims to provide deeper insights into the relationships between these factors and offer solutions that companies can apply to effectively reduce employee turnover rates. Theoretically, this article seeks to enrich the literature by providing empirical evidence regarding the role of job satisfaction as a mediator in the relationship between leadership style, career development, work-life balance, and turnover intention. Practically, the findings of this study are expected to provide concrete recommendations for PT. Arina Multikarya and similar companies to design more effective human resource management policies to improve employee retention. II. LITERATURE REVIEW A. Turnover Intention Turnover intention refers to employees' desire to leave their current jobs, influenced by factors such as job dissatisfaction, leadership style, compensation, and a lack of career development opportunities (Jaelani, 2021). High turnover intention often indicates dissatisfaction that drives employees to seek other job opportunities. Key indicators of turnover intention include thoughts of quitting, intention to resign, and actively searching for new employment, as well as signs such as increased absenteeism, job dissatisfaction, burnout, and behavioral changes among employees (Waskito & Putri, 2021). The impact of high turnover intention can lead to increased recruitment and training costs, as well as a loss of productivity. Therefore, companies must address the root causes of turnover intention to retain talent (Dharma, 2013). B. Job Satisfaction Job satisfaction is an employee’s emotional response to their job, influenced by various factors such as the work environment, cooperation, rewards, and physical and psychological conditions (Sutrisno, 2019). High job satisfaction can enhance morale, dedication, and discipline, whereas dissatisfaction can reduce performance and increase turnover intention. Factors affecting job satisfaction include the fulfillment of needs, discrepancies between expectations and reality, value attainment, fairness, and organizational culture (Afandi, 2018). Indicators of job satisfaction include the alignment of the job with employee capabilities, effective supervision, relationships with coworkers, promotional opportunities, and fair compensation (Robbins & Judge, 2015), all of which contribute to individual satisfaction in their work. C. Transactional Leadership Transactional leadership is a leadership model where leaders motivate employees to achieve goals through clear roles and tasks, while offering rewards for achieved productivity (Robbins & Judge, 2009). Transactional leaders motivate employees by identifying tasks that need to be completed, clarifying their roles, and explaining how employees' needs can be fulfilled through clear exchanges (Yukl, 2010). Key elements of this leadership style include contractual cooperation, measurable achievements, and rewards based on loyalty (Lensufiie, 2010). Indicators of transactional leadership include contingent rewards, active and passive management by exception, and the leader's ability to make decisions, motivate, communicate, and manage subordinates (Yukl, 2010). D. Career Development Career development is the process of improving an individual’s skills, undertaken both by the individual and the organization to achieve desired career goals (Komang, 2014). Factors affecting career development include mutually beneficial relationships between employees and organizations, personnel balance, external factors such as regulations and competition, while politicking within the organization can hinder career advancement (Bahri, 2017). Indicators of career development include opportunities for promotion, training, career coaching, compensation, and a supportive work culture (Sugiyono, 2019). Effective career development increases employee motivation and provides opportunities for growth within the organization. E. Work Life Balance Work-life balance refers to the ability to prioritize work and personal life to achieve satisfaction in both roles “The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar” 4864 Marvin Imanuel Lotulung1, IJMEI Volume 11 Issue 12 December 2025 (Handayani, 2013). This balance is achieved when individuals can manage their roles effectively, reflected in low levels of conflict between work and family and high levels of support between the two (Singh & Khanna, 2011). Factors influencing work-life balance include personality traits, family, work patterns, workload, and individual attitudes (Schabracq, 2003). Indicators of worklife balance include time balance, satisfaction, and involvement between work and personal life, as well as the balance between work responsibilities and social life (Pangemanan et al., 2017). III. METHOD This study employs a quantitative approach with a survey method to analyze the impact of transactional leadership, career development, and work-life balance on turnover intention, with job satisfaction as a mediating variable at PT. Arina Multikarya Makassar. Data were collected through an online questionnaire distributed to 243 respondents, selected using a stratified random sampling technique. Data analysis was conducted using the SmartPLS 4.0 platform to test the hypotheses and evaluate the structural model. IV. RESULT AND DISCUSSION A. Analys Of PLS Result Table 1. R-square R Square R Square Adj Job satisfaction (Z) Turnover intention (Y) 0,459 0,464 0,452 0,455 The R-Square value is utilized to indicate the degree to which exogenous variables impact the endogenous variables within the research model. For the Job Satisfaction (Z) variable, the R-Square value is 0.459, which suggests that the exogenous variables in this study account for 45.9% of the variation in Job Satisfaction, while the remaining 54.1% is determined by external factors. Similarly, the RSquare value for Turnover Intention (Y) is 0.464, meaning that the exogenous variables, such as Transactional Leadership (X1), Career Development (X2), and Job Satisfaction (Z), explain 46.4% of the variation in Turnover Intention, with the remaining 53.6% influenced by other factors not included in the model. Hence, these R-Square values reflect that the model has moderate predictive ability in elucidating the relationships among the variables, with Job Satisfaction (Z) and Turnover Intention (Y) showing the proportion of variability explained by the exogenous variables in the model. B. Analys Of PLS Models Figure 1. Outer Model with Factor Loading, Path Coeficient, and R-Square The graph displays the path coefficients and loading factors for the research model, illustrating the relationships between the indicators and their respective variables. Each indicator's loading factor is calculated based on a formula that connects the indicator to the variable it represents. The route coefficients are used to determine the relationships between exogenous (independent) variables and endogenous (dependent) variables. In this model, the Job Satisfaction variable (Z) shows a moderate R-square value of 0.459, indicating that 45.9% of the variance in Job Satisfaction is explained by the exogenous variables. Meanwhile, the Turnover Intention variable (Y) has an Rsquare value of 0.464, meaning that the exogenous variables Transactional Leadership (X1), Career Development (X2), and Work-Life Balance (X3) explain 46.4% of the variance in Turnover Intention. The coefficients and R-square values suggest that the model has moderate predictive power in explaining the relationships between the variables, with Job Satisfaction (Z) and Turnover Intention (Y) as key factors in the analysis. C. Hypothesis Testing Result Table 2. Hypothesis Testing “The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar” 4865 Marvin Imanuel Lotulung1, IJMEI Volume 11 Issue 12 December 2025 The test results indicate that Transactional Leadership (X1) does not have a significant effect on Turnover Intention, with a path coefficient of -0.137 and a P-Value of 0.090, thus rejecting this hypothesis. In contrast, Career Development (X2) and Work-Life Balance (X3) have a significant negative impact on Turnover Intention, with path coefficients of -0.167 (P-Value 0.007) and -0.385 (P-Value 0.000), respectively, suggesting that improvements in these factors can reduce employees' intention to leave the company. Furthermore, the mediation test shows that Job Satisfaction (Z) does not mediate the effect of Transactional Leadership on Turnover Intention (path coefficient -0.003, P-Value 0.879), but it significantly mediates the effect of Career Development (path coefficient -0.044, P-Value 0.044) and Work-Life Balance (path coefficient -0.163, PValue 0.000) on Turnover Intention, with a stronger negative mediation effect for Work-Life Balance. The Effect of Transactional Leadership on Turnover Intention The study reveals that transactional leadership has a negative effect on turnover intention, but this influence is not significant within the context of this sample. While clear guidance, rules, and rewards provided by leaders do reduce the likelihood of employees intending to leave, the effect is not strong enough to be considered a primary factor in decreasing turnover intention. Conceptually, this can be explained by Herzberg’s Two-Factor Theory, where leadership, supervision, policies, and work relationships are classified as hygiene factors, which prevent dissatisfaction and create a comfortable work environment but do not necessarily enhance intrinsic motivation. If hygiene factors are relatively well-established or have little variation, the direct impact of transactional leadership on turnover intention may be weak or not prominent, despite the direction of the relationship being negative (Herzberg, 1959). Transactional leadership focuses on providing rewards for goal achievement and punishments for failure, which can prevent dissatisfaction through clear structure and supervision. However, it does not always enhance employees' intrinsic motivation or long-term job satisfaction. The findings indicate that although transactional leadership shows a tendency to reduce turnover intention, its effect is not significant. This suggests that a leadership style primarily focused on external motivation, such as rewards and punishments, is insufficient in addressing deeper employee needs, such as personal development or work-life balance. The lack of intrinsic motivation strategies limits the effectiveness of transactional leadership in influencing employees' decisions to stay within the organization. These findings diverge from previous research by Payana et al. (2025), which found that transactional leadership significantly reduces turnover intention. The differences may be attributed to various factors, such as differences in organizational context, respondent characteristics, or other more dominant factors like career development and work-life balance, which play a greater role in employees' decisions to stay or leave. Nonetheless, despite its insignificant impact, the negative direction of this relationship suggests that transactional leadership, when implemented fairly, clearly, and consistently, remains relevant as one strategy for improving employee retention, though it is not sufficient on its own without considering other factors. The Effect of Career Development on Turnover Intention The research indicates that career development significantly reduces turnover intention. In other words, the more employees have access to promotion opportunities, training, and career development, the less likely they are to express an intention to leave the company. Key factors such as clearly defined career paths and support for skill development play a crucial role in shaping the career development construct. Employees view the availability of growth opportunities and well-defined career progression as essential factors that prevent them from leaving their positions. These findings are consistent with Herzberg’s Two-Factor Theory (1959), which categorizes career development as a motivator factor that enhances job satisfaction and motivation through achievement, recognition, and personal growth. Furthermore, career development is understood as an organizational strategy aimed at enhancing employees' current skills while preparing them for more significant roles in the future (Werner & DeSimone, 2012). By offering relevant training, coaching, and transparent promotion paths, organizations create a sense of value and future prospects for employees, ultimately reducing their intention to leave. These findings align with those of Putri & Islamuddin (2022), who also found that career development negatively impacts turnover intention, a conclusion further supported by Syahrani et al. (2024), who observed a similar relationship. These results highlight the importance of organizational investments in training programs, succession planning, and equitable promotion systems, which not only enhance individual competencies but also act as a critical employee retention strategy by reducing turnover intention. Career development opportunities foster intrinsic motivation, which strengthens employees' emotional engagement with the organization, thus enhancing loyalty and commitment while decreasing turnover intention. The study emphasizes the importance of prioritizing career development as a key strategy for improving employee retention and fostering a more stable and productive work environment. The Effect of Work Life Balance on Turnover Intention The research indicates that work-life balance has a significant and negative impact on turnover intention. Specifically, when employees perceive a better balance between their work responsibilities and personal life, they are less likely to consider leaving the organization. Key factors “The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar” 4866 Marvin Imanuel Lotulung1, IJMEI Volume 11 Issue 12 December 2025 such as effective time management, job satisfaction, and a healthy balance between work and personal roles play a vital role in shaping the work-life balance construct. Employees view maintaining this balance as an essential factor in preventing turnover intention, as it allows for recovery time, a sense of control, and clearer priorities without negatively affecting work performance. These findings support Herzberg's Two-Factor Theory, which categorizes job satisfaction factors into motivators and hygiene factors. In this case, work-life balance acts as a hygiene factor, helping ensure that employees feel supported by the organization, have adequate rest, and experience a fulfilling work environment. The study confirms that work-life balance lowers turnover intention by serving as a protective factor for emotional and physical health, reducing burnout, improving job satisfaction, and fostering organizational loyalty and commitment. This research aligns with earlier studies. Afifaturochmah & Swasti (2024) identified a negative correlation between work-life balance and turnover intention, suggesting that employees with a better work-life balance are less likely to leave the company. Hastuti Mulang (2022) also found a significant, direct effect of work-life balance on turnover intention, with employee engagement acting as a partial mediator. In addition, Novitasari & Dessyarti (2022) highlighted that while the direct effect might not always be evident, work-life balance still significantly influences turnover intention through its impact on employee engagement. These findings emphasize that organizational policies supporting work-life balance, such as flexible working conditions, manageable workloads, and a culture that values boundaries, are effective strategies for retaining employees. The Effect of Transactional Leadership on Turnover Intention through Job Satisfaction The study indicates that transactional leadership does not have a significant impact on turnover intention through job satisfaction. Although transactional leadership can improve job satisfaction by offering clear guidance, rewards, and addressing basic employee needs, it does not significantly affect turnover intention through job satisfaction. This suggests that while transactional leadership helps maintain a stable work environment and reduces dissatisfaction, it does not directly contribute to decreasing turnover intention through job satisfaction. The findings imply that other factors, beyond job satisfaction influenced by transactional leadership, may play a more critical role in influencing turnover intention. These results are in line with earlier research, such as that by Kinanti (2019) and Payana et al. (2025), which suggested job satisfaction as a potential mediator between transactional leadership and turnover intention. However, this study suggests that job satisfaction is not a primary mediator in this relationship, and managers should focus on other factors, such as career development and work-life balance, which may have a greater influence. The results of this study differ from previous research, which found that transactional leadership influenced turnover intention through job satisfaction as a mediating variable. In contrast, although transactional leadership improved job satisfaction in this study, its impact on reducing turnover intention through job satisfaction was not significant. This indicates that job satisfaction should not be considered the primary connection between transactional leadership and turnover intention. Therefore, management should prioritize other factors, such as career development opportunities and work-life balance, which may have a more substantial effect on employees' decisions to remain with or leave the organization. The Effect of Career Development on Turnover Intention through Job Satisfaction The research indicates that career development has a negative effect on turnover intention through job satisfaction. The findings reveal that job satisfaction plays a significant mediating role in the relationship between career development and turnover intention, with the effect being negative as predicted. This suggests that effective career development improves job satisfaction, which subsequently lowers the likelihood of employees intending to leave their jobs. The study implies that career development not only enhances employees' skills but also boosts job satisfaction, which helps reduce turnover intention. In line with Herzberg's Two-Factor Theory, career development serves as a motivator factor. Opportunities for career growth, such as training, promotions, and skill improvement, increase job satisfaction and alleviate dissatisfaction. When employees feel appreciated and recognized through career development, they experience greater satisfaction, leading to a decreased desire to leave the company. These findings are consistent with earlier research by Nurliawan et al. (2022) and Syafira et al. (2023), which also found that career development negatively affects turnover intention, with job satisfaction serving as a key mediator. This study emphasizes that career development not only improves employees' skills but also plays a vital role in creating a positive work environment. It concludes that effectively implemented career development programs enhance job satisfaction, which significantly helps reduce turnover intention. These insights are valuable for organizational leaders in crafting career development strategies that strengthen employee commitment to the organization and reduce turnover rates. The Effect of Work Life Balance on Turnover Intention through Job Satisfaction The research indicates that work-life balance has a negative effect on turnover intention through job satisfaction. The findings reveal that job satisfaction significantly “The Role of Job Satisfaction in the Relationship Between Transactional Leadership, Career Development, Work-Life Balance, and Turnover Intention at PT. Arina Multikarya Makassar” 4867 Marvin Imanuel Lotulung1, IJMEI Volume 11 Issue 12 December 2025 mediates the relationship between work-life balance and turnover intention, with a stronger negative impact than other variables. This suggests that employees who manage to balance work demands with their personal life are more likely to experience greater job satisfaction, which ultimately reduces their desire to leave the organization. According to Herzberg's Two-Factor Theory, work-life balance acts as a hygiene factor that, when effectively managed, can alleviate dissatisfaction and enhance job satisfaction. Employees who perceive a well-maintained balance between work and personal life feel supported and valued by the organization, leading to higher job satisfaction, which in turn strengthens the relationship between work-life balance and turnover intention. These results align with prior research by Nurhidayati & Dini (2023) and Karoline & Saryatmo (2024), which also found that work-life balance has a negative influence on turnover intention, with job satisfaction serving as a significant mediator. This study further supports the idea that a well-balanced work-life environment fosters job satisfaction, which, in turn, reduces turnover intention. As a result, organizations that promote work-life balance are more likely to retain employees and reduce turnover rates. These findings underscore the importance of management in cultivating a work environment that supports work-life balance as an effective strategy to reduce turnover intention. V. CONCLUSIONS Based on the research results and discussion in the previous chapter, the conclusions obtained from this research are: 1. Transactional leadership tends to reduce turnover intention; however, its impact does not significantly contribute to turnover intention. This is due to transactional leadership’s focus on external motivation, such as rewards and punishments, which is less effective in meeting employees' intrinsic needs, such as personal development and work-life balance. 2. Career development has a strong impact on reducing employee turnover intention. This is because opportunities for growth through training, clear promotion paths, and support for employee competencies make them feel valued, which in turn increases loyalty and reduces the desire to leave the company. 3. Work-life balance can reduce turnover intention by creating a healthy balance between employees' work and personal life. This happens because effective time management, flexibility, and support for personal needs enhance employees' emotional and physical well-being, which in turn improves job satisfaction and loyalty to the company. 4. Transactional leadership does not reduce turnover intention through job satisfaction. Although this leadership style improves job satisfaction, its impact on employees' decisions to stay is not strong enough, indicating that other factors, such as career development or work-life balance, are more decisive. 5. Career development reduces turnover intention through increased job satisfaction. Opportunities for career growth enhance employees' competencies and sense of being valued, which in turn boosts job satisfaction and strengthens their commitment to the company, thus reducing the intention to leave the organization. 6. Work-life balance reduces turnover intention through increased job satisfaction. 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