THE INFLUENCE OF PSYCHOLOGICAL CONTRACT AND JOB INSECURITY ON EMPLOYEE TURNOVER INTENTION

Abstract

At PT. Selamat Lestari Mandiri (Selamat Motor Honda) in Sukabumi City, a phenomenon of increasing turnover occurred annually between 2020 and 2023. This study aimed to investigate the influence of psychological contract and job insecurity on employee turnover intention at PT. Selamat Lestari Mandiri (Selamat Motor Honda) in Sukabumi City. The independent variables examined were psychological contract and job insecurity, while turnover intention served as the dependent variable. An explanatory research design was employed, utilizing quantitative methods with descriptive and verificative statistical approaches. Data collection was conducted through structured questionnaires. The population consisted of 103 employees across four departments, and sample determination employed probability sampling with 82 respondents selected via proportionate stratified random sampling based on the Slovin formula. Data were analyzed using standardized multiple linear regression in SPSS 26. Descriptive results revealed high psychological contract fulfillment (mean = 4.08), low job insecurity (mean = 3.79), and low turnover intention (mean = 3.87). Multiple linear regression yielded the equation Y = 13.875 - 0.073X₁ + 0.283X₂. Hypothesis testing confirmed that psychological contract and job insecurity simultaneously and significantly affected turnover intention (F = 12.950, p < 0.001; t = 5.121, p < 0.001), with a coefficient of determination (R²) of 24.7%. The study concludes that fostering a positive psychological contract and minimizing job insecurity are critical to mitigating turnover intention.