PREDICTION OF EMPLOYEE LOYALTY CLASSIFICATION FOR MAINTAINING COMPANY SUSTAINABILITY USING COMBINATION OF SEM-PLS AND MACHINE LEARNING

Abstract

The sustainability of a company is influenced by various internal and external factors, with turnover intention being a critical determinant, as it can undermine the loyalty of human resources. Survey results indicate that turnover intention is affected by numerous factors, and a high level of turnover intention poses a threat to organizational stability and continuity. This issue is of particular concern for human resource managers, as it directly impacts workforce retention and organizational performance. Consequently, the primary objective of this study is to analyse the predictors of turnover intention, focusing on the factors influencing employees' decisions to leave or remain with the company. The study employs a combination of Structural Equation Modelling Partial Least Squares (SEM-PLS) and Machine Learning, specifically the Random Forest algorithm, to develop a predictive model for turnover intention. The empirical model is grounded in four key variables: Job Satisfaction (JS), Organizational Commitment (OC), Employee Performance (EP), and Turnover Intention (TI). Through SEM-PLS analysis, the study finds that both Job Satisfaction and Organizational Commitment significantly affect turnover intention levels. These results suggest that the indicators derived from Job Satisfaction and Organizational Commitment can be effectively utilized to construct a predictive model of turnover intention using the Random Forest algorithm. The Random Forest model developed in this study demonstrates a remarkable prediction accuracy of 98%. Further analysis identifies Organizational Commitment (OC01) as the most influential variable affecting turnover intention, with a mean decrease in accuracy of 39.51%. Specifically, OC01 represents employees' strong belief in their career prospects within the company. This finding underscores the importance of human resource management's focus on career development and alignment of employee roles with their long-term career goals. By enhancing career projections and ensuring position suitability, companies can foster greater employee loyalty, thereby improving workforce retention and sustaining long-term organizational stability.