Design Strategy for Improving Employee Retention Based on Two-Factors Theory

Naufal Ghaliya Salsabil(1*), Winda Nur Cahyo(2),

(1) Universitas Islam Indonesia
(2) Universitas Islam Indonesia
(*) Corresponding Author


One of the most important assets of an organization is their own employee. The effect of the employee is more impactful compared to other assets such as technology, information, and finance. The importance of managing strong employee retention for increasing employee performance cannot be overstated. The purpose of the following research is to find Factors that crucially affect employee retention based on Herzberg Two-Factors Theory and develop solutions based on findings. Data gathered by conducting participatory research with company stakeholders and researchers. Hence, the study utilized Analytical Hierarchy Processing as decision making tools to identify crucial factors. Hence, based on findings Salary becoming the crucial part affecting employee retention for this case which was conducted at PT. WASABI. Therefore further development in payment methods that in accordance with the amount of product produced is needed to make sure the payment is enough and fair for production workers to maintain a good retention rate.


Employee Retention, AHP, Two-Factors Theory

Full Text:



Belton, V., & Gear, M. J. (1998). Multicriteria decision analysis: An integrated approach. Boston: Kluwer Academic Publishers.

Bohle, J., & Quick, K. 2002. “Payroll System Benefits, Challenges and Solutions.” Accounting Software News, November 11, 2002. Accessed February 17, 2021.

Brans, J. P., & Vincke, P. (1985). A preference ranking organization method: The PROMETHEE method for MCDM. Management Science, 31(6), 647-656.

Dhandwar, R., Khan, K. S., & Ansari, S. (2017). Payroll Management System. International Journal of Scientific & Engineering Research, 8(3), 1730-1734.

Dyer, J. S., & Chu, F. (1995). An introduction to the analytic hierarchy process. Interfaces, 25(6), 19-43.

Dyer, J. S., & Dyer, J. F. (2004). The Analytic Hierarchy Process: Applications and Studies. Berlin, Germany: Springer.

Ishizaka, A., & Nemery, P. (2011). The Analytic Hierarchy Process: An Exposition. European Journal of Operational Research, 214(1), 1-29.

Jackson, M., & Reid, M. 2018. "How Payroll Software Improves Business Efficiency and Productivity." The Balance Small Business, 10 Dec. 2018,

Kahraman, C., & Kaya, I. (2009). A Review of the Analytic Hierarchy Process (AHP) in Multi-Criteria Decision Making Applications. Mathematical and Computational Applications, 14(2), 255-269.

Keeney, R. L., & Raiffa, H. (1976). Decisions with multiple objectives: Preferences and value tradeoffs. New York: John Wiley & Sons.

McCarthy, P. (2020). What is Payroll Software? Retrieved October 22, 2020, from

Mwangi, J.W. (2016). The Influence of Employee Retention Strategies on Organizational Performance in Kenya. International Journal of Humanities and Social Science

Research, 6(6), 165-172.

Naseer, M.A., & Qureshi, T.M. (2017). The Role of Employee Retention Strategies in Improving Organizational Performance: A Study of Telecommunication Industry in Pakistan. Asian Journal of Management Science and Education, 6(1), 21-28.

Olufemi, O.O., & Adetunji, O.O. (2015). The Impact of Employee Retention on Organizational Performance: A Study of Selected Organizations in Nigeria. International Journal of Humanities and Social Science Research, 5(2), 51-58.

Saaty, T. L. (1980). The Analytic Hierarchy Process. New York, NY: McGraw-Hill.

Saaty, T. L. (1980). The analytic hierarchy process. New York: McGraw-Hill.

Saaty, T. L. (1994). Fundamentals of the analytic hierarchy process. International Journal of Services Sciences, 1(1), 83-98.

Zhang, J., & Li, Y. (2013). A Comprehensive Review of the Analytic Hierarchy Process. Omega, 41(6), 835-853.

Article Metrics

Abstract view(s): 338 time(s)
PDF: 235 time(s)


  • There are currently no refbacks.