THE MEDIATING ROLE OF EMPLOYEE RETENTION ON THE INFLUENCE OF LEADERSHIP STYLE AND TALENT MANAGEMENT ON EMPLOYEE PERFORMANCE AT PT PLN (PERSERO) UNIT INDUK DISTRIBUSI EAST JAVA
Abstract
This study aims to analyze the influence of leadership style and talent management on employee performance with employee retention as a mediating variable at PT. PLN (Persero) Unit Induk Distribusi Jawa Timur. A quantitative approach with explanatory research design was employed. Data were collected through questionnaires distributed to 160 employees using a saturated sampling technique. Data analysis was conducted using SEM-PLS. The results show that (1) leadership style has a positive and significant effect on employee performance, (2) talent management has a positive and significant effect on employee performance, (3) employee retention significantly improves performance, (4) leadership positively affects employee retention, (5) talent management positively affects employee retention, (6) retention mediates the relationship between leadership and performance, and (7) retention mediates the relationship between talent management and performance. The study provides theoretical implications regarding the mediating role of retention and practical recommendations for PLN’s management to strengthen leadership effectiveness and talent strategies.
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Zainuddin, A., & Maryadi, S. (2017). Leadership in Indonesian organizations. Jurnal Kepemimpinan, 5(2), 78–90.
Armstrong, M. (2006). A handbook of human resource management practice (10th ed.). Kogan Page.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bass, B. M. (1990). From transactional to transformational leadership: Learning to share the vision. Organizational Dynamics, 18(3), 19–31. https://doi.org/10.1016/0090-2616(90)90061-S
Becker, G. S. (1993). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press.
Blau, P. M. (1964). Exchange and power in social life. Wiley.
Chan, C., & Claudia, E. (2018). Talent management and organizational effectiveness. Journal of Human Resource Studies, 6(2), 45–59.
Collings, D. G., Mellahi, K., & Cascio, W. F. (2019). Global talent management and performance in multinational enterprises: A multilevel perspective. Journal of Management, 45(2), 540–566. https://doi.org/10.1177/0149206318757018
Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. IOSR Journal of Business and Management, 14(2), 8–16.
Ekhsan, M., & Taopik, A. (2020). Employee retention strategies and performance outcomes. Indonesian Journal of Human Resources, 5(1), 21–33.
Fadillah, F., & Marzuki, M. (2023). Leadership style and performance in Indonesian SOEs. Jurnal Manajemen, 12(3), 77–90.
Games, D. (2022). Talent development and employee performance: Evidence from Indonesian firms. Asian Journal of Business Research, 12(1), 34–49.
Guruh, P., Susanto, A., & Rahmawati, T. (2021). The role of leadership style on employee performance. Journal of Leadership in Organizations, 3(2), 123–133.
Hasibuan, M. S. P. (2018). Manajemen sumber daya manusia (Edisi revisi). Bumi Aksara.
Hidayat, M. (2023). The impact of talent management on employee performance. Jurnal Ekonomi dan Bisnis Islam, 9(1), 55–70.
Huda, N., & Abdullah, R. (2022). Leadership and employee performance in state-owned companies. Jurnal Bisnis Indonesia, 11(2), 90–105.
Ivana, D., & Marzuki, M. (2023). Talent management and employee outcomes. Jurnal Human Capital, 5(1), 101–114.
Kaleem, M. (2019). The impact of talent management on performance. International Journal of Human Resource Studies, 9(2), 89–103. https://doi.org/10.5296/ijhrs.v9i2.14593
Kardo, I., Yuliani, R., & Putra, S. (2020). Talent management and organizational commitment. Jurnal Bisnis & Manajemen, 21(2), 150–163.
Kartono, K. (2010). Pemimpin dan kepemimpinan: Apakah kepemimpinan abnormal itu? Rajawali Pers.
Khairina, R., Putri, D., & Syamsuddin, H. (2022). Talent management and job performance: Evidence from Indonesia. Jurnal Manajemen Indonesia, 22(3), 200–215.
Kumar, R., Bhatnagar, J., & Sharma, A. (2012). Employee retention and HR practices. South Asian Journal of Human Resources Management, 1(1), 39–55.
Kusumaningrum, T. (2023). Employee retention in Indonesian state-owned enterprises. Jurnal Bisnis dan Manajemen Islam, 7(1), 77–89.
Mahyuni, S. (2021). Talent management and retention: Mediating effects on performance. Jurnal Ekonomi Syariah, 5(2), 134–145.
Manihuruk, M., & Tirtayasa, S. (2020). Employee performance in Indonesian public institutions. Jurnal Administrasi Publik, 8(2), 112–124.
Mannipi, S., Yusuf, A., & Putra, R. (2019). Leadership and organizational performance. International Journal of Business Studies, 7(3), 201–215.
Mathis, R. L., & Jackson, J. H. (2011). Human resource management. Cengage Learning.
Mulyani, L., Sari, F., & Prasetyo, A. (2023). Indicators of transformational leadership. Jurnal Ilmu Administrasi, 15(1), 45–60.
Novryanto, E., & Effendi, D. (2024). Talent management and employee performance in Indonesian SMEs. Jurnal Manajemen, 14(1), 33–49.
Olivia, P., Setiawan, B., & Rahman, F. (2024). Employee retention and organizational performance. Jurnal Sumber Daya Manusia, 9(2), 76–88.
Pella, D., & Inayati, R. (2011). Talent management: Mengembangkan SDM untuk mencapai pertumbuhan dan kinerja prima. Gramedia.
Priansa, D. J. (2018). Perencanaan dan pengembangan SDM. Alfabeta.
Putra, A. (2022). The role of talent management in PLN. Jurnal Administrasi Bisnis, 12(1), 50–61.
Rahman, F., Aditya, M., & Yusran, A. (2023). Talent management and performance. Jurnal Human Capital, 6(2), 80–94.
Rahmawati, L. (2019). Retention strategies in Indonesian firms. Jurnal Ekonomi dan Bisnis, 13(2), 145–159.
Rida, R., Hidayat, M., & Ramli, S. (2016). Employer branding as part of talent management. Jurnal Bisnis dan Manajemen, 7(1), 21–33.
Riza, F., Anisa, W., & Yusuf, M. (2023). Employee retention as a mediator between leadership and performance. Jurnal Ilmu Manajemen, 11(1), 60–75.
Robbins, S. P. (2019). Organizational behavior (18th ed.). Pearson.
Robbins, S. P., & Judge, T. A. (2012). Organizational behavior (15th ed.). Pearson.
Rivai, V., & Sagala, E. J. (2014). Manajemen sumber daya manusia untuk perusahaan. Rajawali Pers.
Sarboini, S., Fauzi, A., & Rini, D. (2017). Leadership and employee performance. Jurnal Ilmu Administrasi, 13(2), 89–99.
Sari, N., Putra, A., & Lestari, W. (2025). Leadership styles and performance outcomes in SOEs. Jurnal Manajemen dan Bisnis, 15(1), 66–80.
Setyawan, D., & Bagasworo, Y. (2022). Leadership and employee performance. Jurnal Administrasi Bisnis, 9(2), 112–125.
Silzer, R., & Dowell, B. E. (2009). Strategy-driven talent management: A leadership imperative. Wiley.
Sopiah, S., & Etta, M. (2018). Perilaku organisasi. Andi.
Subrata, A., & Rizky, M. (2024). Leadership and organizational effectiveness. Jurnal Ekonomi dan Manajemen, 19(2), 130–144.
Sugiyanto, E., & Sutianingsih, D. (2023). Retention as mediator in talent management and performance. Jurnal Manajemen, 11(2), 90–104.
Surya, A., Nugroho, R., & Fitriani, E. (2024). Retention and organizational stability. Jurnal Bisnis dan SDM, 10(1), 77–88.
Syahputra, R., Hartati, S., & Malik, F. (2023). The impact of leadership style on performance. Jurnal Ilmu Ekonomi dan Bisnis, 12(3), 100–115.
Utami, D., & Wardani, S. (2021). Talent management and performance: An Indonesian perspective. Jurnal Manajemen dan Kewirausahaan, 9(1), 55–68.
Wahyudi, A., & Mahargiono, B. (2022). Leadership effectiveness in Indonesian organizations. Jurnal Bisnis dan Ekonomi, 14(2), 70–85.
Wang, Y. (2021). Talent management and employee outcomes in multinational firms. International Journal of Human Resource Management, 32(5), 987–1005. https://doi.org/10.1080/09585192.2019.1674365
Youssef, A. (2024). Leadership style and employee engagement. Journal of Business Research, 128, 45–59. https://doi.org/10.1016/j.jbusres.2021.02.013
Zainuddin, A., & Maryadi, S. (2017). Leadership in Indonesian organizations. Jurnal Kepemimpinan, 5(2), 78–90.
Published
2025-10-01
How to Cite
HANGGARA, Mirza Putra et al.
THE MEDIATING ROLE OF EMPLOYEE RETENTION ON THE INFLUENCE OF LEADERSHIP STYLE AND TALENT MANAGEMENT ON EMPLOYEE PERFORMANCE AT PT PLN (PERSERO) UNIT INDUK DISTRIBUSI EAST JAVA.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 11, n. 1, p. 37-46, oct. 2025.
ISSN 2541-3333.
Available at: <https://conferences.uin-malang.ac.id/index.php/iconies/article/view/3410>. Date accessed: 12 may 2026.
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Articles
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