Workload, Compensation, and Employee Loyalty: Evidence from Batu Alam Jaya, Palembang

Abstract

Developments in the business world require companies to be able to maintain employee loyalty in order to ensure operational continuity. This study aims to analyze the effect of workload and compensation on employee loyalty at Batu Alam Jaya Palembang. This study employs a quantitative approach using a survey method. The sampling technique used is saturated sampling with a sample size of 62 employees. Data collection was conducted through questionnaires, observations, and interviews. Data analysis was performed using multiple linear regression with the assistance of SPSS software. The results of the study indicate that, partially, workload does not have a significant effect on employee loyalty, while compensation has a positive and significant effect on employee loyalty. Simultaneously, workload and compensation have a positive and significant effect on employee loyalty at Batu Alam Jaya Palembang. These findings indicate that compensation is a dominant factor in increasing employee loyalty, especially under conditions of relatively high workload. Theoretically, the findings add a single-firm case to the mixed evidence on workload and loyalty: under a uniformly long working schedule, compensation rather than perceived workload was associated with loyalty. Practically, management of small, labor-intensive firms should prioritize a fair, transparent, and contribution-based compensation system while keeping workload within employees’ capacity to prevent long-term fatigue.