Career Development and Work Motivation Strengthen Employee Loyalty in Surabaya’s Packaging Industry

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FORMOSA NEWS - Surabaya - Career development and work motivation have been shown to have positive and significant effects on employee loyalty at a packaging manufacturing company in Surabaya, Indonesia. The finding was reported by Iene Gading Sukmono, Damajanti Sri Lestari, and Anita Asnawi from Universitas Dr Soetomo in an article published in 2026 in the Formosa Journal of Business and Economic Statistics (FJBES). The study found that career development was the strongest factor influencing employee loyalty, while work motivation also made a positive contribution.

The research is particularly relevant for manufacturing companies seeking to retain skilled workers. Employee loyalty is not limited to an individual's willingness to remain with a company. It is also reflected in compliance with organizational rules, responsibility toward work, willingness to cooperate, a sense of belonging, and the intention to stay with the organization. Strong employee loyalty can help companies maintain productivity and reduce employee turnover.

In the company examined in the study, PT XYZ manufactures Aluminium Barrier Laminate (ABL) and Plastic Barrier Laminate (PBL) tube packaging in Surabaya. The company's production stability depends heavily on its ability to retain skilled operators and technical employees. Therefore, opportunities for internal career growth and a work environment that maintains employee motivation are important components of its employee-retention strategy.

Study Involved 145 Employees

The research used a quantitative approach, with questionnaires serving as the main source of data. From a total population of 228 PT XYZ employees, 145 employees participated as respondents. They were selected using proportionate stratified random sampling so that the composition of the sample reflected the distribution of employees across the company's operational divisions. All 145 questionnaires collected were usable for analysis.

The questionnaire used a five-point scale to measure three main aspects: career development, work motivation, and employee loyalty. Career development was measured through promotion opportunities, clarity of career paths, access to training, competency development, and organizational support for self-development. Work motivation was measured through work enthusiasm, a sense of responsibility, achievement needs, recognition of results, and enthusiasm for achieving organizational targets.

The respondents were relatively young. Employees aged 26–30 constituted the largest age group, with 52 respondents or 35.9 percent, followed by employees aged 20–25, with 46 respondents or 31.7 percent. In terms of tenure, 81 respondents, or 55.9 percent, had worked for the company for more than three years.

Career Development Emerges as the Strongest Factor

The findings showed that all three variables recorded relatively high average scores. Career development had the highest mean score at 3.927, followed by employee loyalty at 3.891 and work motivation at 3.818 on a five-point scale. These figures indicate that employees generally viewed career development opportunities, their loyalty, and their motivation positively.

The most significant finding emerged from the regression analysis. Career development recorded a standardized coefficient of β = 0.692, with a significance level below 0.001. This means that stronger perceptions of career development opportunities were associated with stronger employee loyalty.

Work motivation also had a positive and significant effect, with β = 0.214 and a significance level of 0.007. Although its influence was smaller than that of career development, the result indicates that employees with higher work motivation tend to demonstrate stronger loyalty to the organization.

When the two factors were analyzed simultaneously, career development and work motivation explained 77.9 percent of the variation in employee loyalty. This indicates a substantial contribution from the two factors within the research model. The remaining approximately 22 percent may be associated with other factors not included in the model, such as compensation, leadership, work environment, and job satisfaction.

Clear Career Paths Matter More

According to Iene Gading Sukmono, Damajanti Sri Lestari, and Anita Asnawi from Universitas Dr Soetomo, the findings indicate that companies cannot rely solely on incentives or efforts to create a pleasant workplace. Employees also need to see a clear future within the organization.

Career development can be strengthened through transparent promotion criteria, documented career paths, training linked to competency development, and regular discussions between supervisors and employees about career progress. At the same time, recognition of achievements and performance feedback can help strengthen employee motivation.

The researchers recommend integrating career development systems with motivational programs rather than treating them as two separate policies. Career pathways give employees a clear picture of their future opportunities, while motivation helps them maintain the energy and commitment needed to pursue those opportunities.

For businesses, particularly those in the manufacturing sector, the findings deliver a practical message: retaining employees requires more than short-term motivational initiatives; companies need to provide genuine and credible opportunities for career growth. Clear promotion systems, relevant training, recognition of achievements, and supervisor support can become important elements of an effective employee-retention strategy.

However, the researchers also acknowledge several limitations. The study was conducted at only one company and during a single period, meaning that the findings cannot yet be generalized to the entire Indonesian manufacturing industry. Future research could involve several manufacturing companies, observe employees over a longer period, and include factors such as job satisfaction, organizational commitment, leadership style, and compensation.

Author Profiles

Iene Gading Sukmono — Universitas Dr Soetomo, corresponding author.
Damajanti Sri Lestari — Universitas Dr Soetomo.
Anita Asnawi — Universitas Dr Soetomo.

The source article does not provide the academic degrees or specific fields of expertise of each author. Therefore, this information has not been added in order to maintain factual accuracy.

Research Source

Title: The Influence of Career Development and Work Motivation on Employee Loyalty: Evidence from A Packaging Manufacturer in Surabaya, Indonesia
Authors: Iene Gading Sukmono, Damajanti Sri Lestari, Anita Asnawi
Affiliation: Universitas Dr Soetomo
Journal: Formosa Journal of Business and Economic Statistics (FJBES)
Volume: 5, Issue 4, 2026, pp. 385–400

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