Articles
DOI DOI: 10.62441/actainnovations.v63i.1097

THE EFFECT OF WORK ENVIRONMENT AND INCENTIVES ON EMPLOYEE LOYALTY, MEDIATED BY JOB SATISFACTION (A COMPARATIVE STUDY BETWEEN CIVIL SERVANTS AND NON-CIVIL SERVANTS IN THE ENVIRONMENT OF THE OMBUDSMAN OF THE REPUBLIC OF INDONESIA

Rinny Dharma Diani1, Rd. Tuty Sariwulan2, Hania Aminah3
  1. 1 Universitas Negeri Jakarta, Indonesia.
  2. 2 Universitas Negeri Jakarta, Indonesia.
  3. 3 Universitas Negeri Jakarta, Indonesia.

Abstract

Employee loyalty is a crucial factor in supporting organizational effectiveness and sustainability, particularly within public service oversight agencies that have distinct employment statuses between Civil Servants (ASN) and non-ASN staff. This study aims to analyze the influence of the work environment and incentives on employee loyalty with job satisfaction as a mediating variable, as well as to compare the relationships between variables in the ASN and Non-ASN groups. This study employs a quantitative approach, with data collected through a survey of employees at a public agency. Data analysis was conducted using covariance-based Structural Equation Modeling (SEM) with the assistance of AMOS software. Additionally, a multigroup analysis was performed to test for differences in structural relationships between civil servants and non-civil servants. The results of the study indicate that the work environment and incentives have a positive and significant effect on employee loyalty. Of these two variables, incentives have a stronger influence than the work environment. In addition, the work environment and incentives also have a significant effect on job satisfaction, which in turn has a positive impact on employee loyalty. Job satisfaction was found to partially mediate the relationship between the work environment and incentives and employee loyalty. The results of the multigroup analysis indicate differences between civil servants and non-civil servants, with civil servants tending to be more influenced by the work environment, while non-civil servants are more sensitive to incentives due to their connection to job security and future prospects. These findings suggest that employee loyalty is influenced not only by emotional factors but also by structural and economic factors. This study implies that organizations need to improve the quality of the work environment and refine their incentive systems to be more fair and adaptive in order to enhance job satisfaction and strengthen employee loyalty in a sustainable manner.

How to Cite

Diani, R. D., Sariwulan, R. T., & Aminah, H. (2026). THE EFFECT OF WORK ENVIRONMENT AND INCENTIVES ON EMPLOYEE LOYALTY, MEDIATED BY JOB SATISFACTION (A COMPARATIVE STUDY BETWEEN CIVIL SERVANTS AND NON-CIVIL SERVANTS IN THE ENVIRONMENT OF THE OMBUDSMAN OF THE REPUBLIC OF INDONESIA. ACTA INNOVATIONS, 63, 273–285. https://doi.org/10.62441/actainnovations.v63i.1097
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