Self-Efficacy, Employee Engagement, Remuneration and Employee Loyalty in Higher Education: The Role of Satisfaction and OCB

Abstract

Employee loyalty is an important factor in managing a higher education institution such as a university. This study aims to examine the relationship between self-efficacy, employee engagement, remuneration, satisfaction organizational citizenship behavior (OCB) and employee loyalty. This study has been conducted in a state university in Indonesia. The data have been collected using a survey with questionnaires from university’s lecturers. This study distributed 500 questionnaires to 8 faculties and got 400 responses (80% response rate). After some preliminary analyses, we employed 389 useable responses in the analysis.  By using Structural Equation Modelling (SEM) with AMOS 24 as the software package, this study found that (1) engagement has a significant impact on satisfaction, (2) engagement is also a significant antecedent of lecturer loyalty (3) self-efficacy significantly affects  satisfaction (4) self-efficacy has a significant impact on OCB (5) remuneration significantly affects satisfaction (6) remuneration is also a significant antecedent of OCB (7) satisfaction has a significant effect on loyalty and finally, (8) satisfaction has a significant influence on OCB. Moreover, this study discusses some limitations and highlights possible future studies.