Job Satisfaction Links Salary to Employee Retention in Primary Healthcare

Abstract

This study examines whether job satisfaction mediates the association between salary and employee retention at Klinik Mitra 39. An explanatory cross-sectional survey invited all 74 clinical and support employees, and 51 complete questionnaires were analysed. The study-specific questionnaire contained 22 five-point Likert items, and partial least squares structural equation modelling was performed with SmartPLS. Salary was positively associated with job satisfaction (β = 0.468, p < 0.001; f² = 0.280), and job satisfaction was strongly associated with employee retention (β = 0.836, p < 0.001; f² = 2.014). The direct salary–retention association was non-significant (β = 0.036, p = 0.728; f² = 0.004), whereas the specific indirect effect through job satisfaction was significant (β = 0.391, p < 0.001). The total effect was also significant (β = 0.427, p < 0.001), indicating indirect-only mediation. Salary explained 21.9% of job satisfaction, and salary with job satisfaction explained 72.9% of retention. Managers should combine fair and transparent compensation with supportive supervision, dependable teamwork, meaningful work, and development opportunities. Because the job satisfaction–retention HTMT value was 1.208, the strong association between these constructs requires cautious interpretation.