Academic journal article International Journal of Business and Society

The Impact of Recruitment, Employee Retention and Labor Relations to Employee Performance on Batik Industry in Solo City, Indonesia

Academic journal article International Journal of Business and Society

The Impact of Recruitment, Employee Retention and Labor Relations to Employee Performance on Batik Industry in Solo City, Indonesia

Article excerpt


On previously research by Rafii and Andri (2015) concerning the recruitment that there is a relationship between the recruitment with employee performance. Research uncovers the existence of a positive and significant relationship between recruitment and employee performance. Other studies have stated that a good recruitment program can provide a positive influence towards increasing employee commitment, productivity, the work quality and performance (Patimah, 2015). Based on the results of previous studies, retention was also positive directly influenced on employee performance, indicated that the retention of good employee will result in improved employee performance (Susilo, 2013). According to Glebbek and Back, the relationship between employee retention on performance is exceedingly complex. There is evidence that performance can fall if the bad employee retention and there is a possibility of employee stagnation if the turnover is too depressed (Sumarni, 2011). A bad employee retention program will improve the employee's intention to move or turnover intention, if an employee gets what they want, then it will improve performance (Sumarni, 2011).

Labor relations also have relationship to employee performance. According to Amjad (in Situngkir, 2013) labor relations can affect the operation of the employee where the problems normally arise from the difference of work, age and demographics. According to Jacqueline et al., it was proved by the research which concluded that the relationship between teams or workgroup has a positive influence on employee performance (in Situngkir, 2013). Established along the phenomenon and the discussion of the background of the above problems, the research will be conducted to examine whether there is a significant impact on the recruitment, employee retention, and labor relations to employee performance on batik industry in Solo.


2.1. Recruitment and Employee Retention

Recruitment is effected on most of the employee retention. The fair recruitment significantly affects employee retention (Janjua and Gulzar, 2014). Proved research conducted by Bernardin and Russell which states that employee recruitment practices and policies affecting employee retention (in Maina, 2014). The average recruitment of employees in an organization have the same recruitment system, differing only relates to the process, decision-making responsibility in recruitment, employment package, and whether public or private recruitment agencies (Maina, 2014). Boselie, Dietz and Boon said that recruitment and retention is most influenced by the overall employment package (in Maina, 2014). This includes salaries and allowances, the intrinsic aspects of the job (e.g. for academic, teaching and research), job security, work organization, autonomy, the development of family-friendly practices, work environment, etc. According to Pirzada et al., The increasingly attractive employment package, the more likely it will attract candidates or applicants and the greater employee retention (in Maina, 2014). Based on previous research, then the first hypotheses:

H1: There is a significant impact on recruitment with employee retention on batik industry in Solo.

2.2. Recruitment and Labor Relations

There is a relationship between recruitment and labor relations. Recruitment can be badly affected labor relations within the organization. Recruitment requires time and the costs are expensive enough, and then the decisions made must be appropriate. A new employee who does not comply with the organizational goals and ethos can damage a labor relations (Tunggal and Setiawan, 2015). It harms and hinders the efforts to help the cooperation formation within the group. Based on previous research, then the second hypotheses:

H2: There are significant impact labor relations with employee recruitment on batik industry in Solo.

2.3. Employee Retention and Labor Relations

On the previously research stated that there are relationships between employee retention with labor relations. …

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