Retention and performance in industrial forest plantations: A structural equation modeling approach

Abstract

This study investigates the effects of workload, distributive justice, and perceived organizational support on employee retention and performance in the Industrial Plantation Forest Workforce of East Kalimantan. Amid the physically demanding and strategically significant nature of this sector, understanding the drivers of workforce sustainability is essential. A quantitative, cross-sectional research design was employed using a survey distributed to 291 contract workers from four plantation districts under the Sinar Mas Group. Data were analyzed using Partial Least Squares Structural Equation Modeling. The results show that distributive justice and perceived organizational support significantly influence employee retention. Moreover, perceived organizational support demonstrates a strong and positive effect on employee performance. In contrast, workload does not have a significant impact on either retention or performance, suggesting that the demanding nature of plantation work may be perceived as a norm rather than a stressor. Additionally, employee retention was not found to significantly influence psychological well-being, indicating that longer tenure alone does not guarantee improved emotional or mental health outcomes. These findings underscore the importance of fairness in reward systems and organizational care in fostering loyalty and effectiveness among workers. The study contributes empirical evidence for workforce management in labor-intensive industries and highlights the need for organizations to move beyond workload management and prioritize equitable treatment and psychosocial support to ensure long-term sustainability and performance.