Conceptual Model for Millennial Talents Retention in Indonesia's Manufacturing Industries

The Indonesian government always encourages the growth of manufacturing sector because it is one of the highest contributors (20.27%) of national economy, yet retaining competent talents in this industry is always a big problem as the turnover rate in manufacturing sector can reach 10 - 20% a year. As millennials occupy 33.75% of Indonesian populations and dominate Indonesia's labor market, managing these talents can be an opportunity as well as a challenge. Therefore, this paper aims to address the behavior of millennials talents in manufacturing industry in Indonesia, furthermore it can help companies to design suitable programs to retain millennial talents. The author presents a conceptual model which explains several factors which can influence the turnover intention of millennial talents. Previous literature review points out that competency development, compensation and benefits, work-life balance, and meaningful work mediated by employee satisfaction as important variables to retain millennials talents to pursue a career in the manufacturing sector. In future research, empirical studies need to be conducted to test the hypotheses.