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In the current condition, Millennials have the biggest portion in the workforce composition. In the next ten or fifteen years, they will be in the top management level, replacing the current management. By retaining them in the organisation, such training and recruitment cost could be minimized and bring less efforts to the organisation in recruiting new talents. This research is aimed to examine the impact of reward and recognition, work life balance on employee retention using the job satisfaction as mediating variable. This research is expected to be able to give insights to organisations to develop programs or policies to retain their current demography of the workforce, which consist of Millennials. The samples were collected by nonprobability sampling method. The statistical method used was structural equation model using partial least square software, with hypothesis testing using t-test and p value result. For validity and reliability, average variance extracted (AVE) and composite reliability (CR) were used to determine whether the tool that was used is valid and reliable. Result of this research shows that reward and recognition, work life balance and job satisfaction have significant positive effect on the employee retention. Corresponding author: Amelia Enrika Email addresses for the corresponding author: ameliaenrika@gmail.com First submission received: 20th May 2020 Revised submission received: 7th July 2020 Accepted: 13th July 2020 Introduction In the next few years, Generation Y or also known as Millennial Generation, will be a demographical bonus in Indonesia, in which its population is estimated will reach 33.75% of the total of Indonesian population (Minister of Women and Children Empowerment, 2018). Explained by Jobstreet, it is estimated that Millennials will dominate 50% of global work force population in 2020 (Hee and Rhung, 2019). In general, productive age is in the range 15-65 years old. Millennials who were born during 19812000, currently is in the productive age of 18-39 years old. They are expected to give significant and their best contribution to Indonesia’s economic development. With this fortunate demographical bonus, productive Millennials become really significant to business and as the main focus in Indonesia’s economy gears. Journal of Business and Retail Management Research (JBRMR), Vol. 14 Issue 3 July 2020 www.jbrmr.com A Journal of the Centre for Business & Economic Research (CBER) 89 Table 1. Composition of Millennial Generation as of 2017 Source: Taken from Indonesian Survey 2017 by Minister of Women and Children Empowerment In this current work force generation, its composition is still dominated by Generation X in management level and Millennials in junior level (Hee and Rhung, 2019). Gradually, however, the management level will be replaced by Millennials. Adjustments are required, considering different characteristics, behavior, and mindset between those two generations. Organisation should prepare mitigation strategy for this management shifting to Millennials and understand their characteristics in order to anticipate potential challenges. Related to their job, Millennials have different expectations compared to previous generations. These expectations arise due to strong willingness in learning, selfdevelopment, and give significant contributions to organisation or even the world. However, Millennials are prone to change their job in a short period of time due to many reasons. The characteristics of Millennials are they tend to move unemployed to get advantages from working experiences, have priorities on job satisfaction, and also consider working environment rather than salary (Calk and Patrick, 2017). This research will focus spesifically on Millennials domiciled in Jakarta and Tangerang who are working in the companies in Jakarta and its surrounding area, due to Jakarta being the business area of Indonesia and it is expected that this research could provide insights to employers located in the areas to retain their employees that is currently dominated by Millennials. 2. Research Problem and Objectives 2.1 Research Problem Previous research which was conducted in several countries showed positive relationship between employee retention and reward recognition and work-life balance. Research conducted by Nasir and Mahmood (2018) focused on how supervisor’s support, reward and recognition and work-life policies affect employee retention. Many researches saying the major factors that affect Millennials to stay in their jobs are recognition and relationships with their co-workers. Research that emphasize on relationships between factors such as work-life balance, compensation or rewards and recognition with employee retention are available. For an organisation, employee retention is one of the challenges that needs to be faced, especially for people in the human resource department (Too and Kwasira, 2017). Millennials are perceived to have high expectations on their work and on the organisation, they work for and they also have specific considerations on accepting work that is offered to them (Arora and Kshatriya, 2017). By having so many factors to be considered, Millennials easily change their job, move from one organisation to another. Hence, employee retention for this generation is a particular challenge faced by an organisation. Journal of Business and Retail Management Research (JBRMR), Vol. 14 Issue 3 July 2020 www.jbrmr.com A Journal of the Centre for Business & Economic Research (CBER) 90 2.2 Research Objectives Objectives of this research are: 1. To understand whether Millennials consider reward and recognition and work-life balance as significant factors to stay in an organisation. 2. To examine whether Millennials consider reward and recognition and work-life balance as significant factors to their job satisfaction. 3. To investigate whether job satisfaction plays a significant role in mediating reward and recognition and work-life balance with employee retention to Millennials. 2.3 Scope of Research This research only focused on variables that will be tested, i.e. reward and recognition, work-life balance, job satisfaction and employee retention. This research was conducted in a specific period of time when the questionnaires were distributed by researchers. Additional variables might have to be added to have complete view on factors that affect employee retention. 3. Literature Review 3.1 Employee Retention From definition, employee retention is an effort or way to encourage employees to remain in the organisation for a long period of time. By retaining the employees within the organisation, the company is more likely to achieve its long-term goals, which is its growth. Zin et al (2012) explained that employee retention becomes an important part in a company’s operational activities, especially long-term activities, i.e. to grow and take over a certain market. Kossivi, Xu and Kalgora (2016) mentioned in their research that employee is one of the important assets of a company. Hence, employee retention is not only limited on how to attract the best talents but also to keep these talents to remain in the company in the long run. Other than the above definitions, according to Putra and Rahyuda (2016), employee retention is one of the ways that is used by top management on its employees to stay within the company in certain period of time, so that the company will gain positive impacts. Much research had been done to review employee retention strategy which could be used by employers or organisations in determining the steps to be taken to retain their employees (Raj and Brinda, 2017). Employee retention becomes important to an organisation as it is the one who keeps the company runs a sustainability in its business. Employees are considered as an asset which gives contributions to organisation in order for it to gain financial advantages and sustainable organisational development (Singh, 2019). However, the process to manage and develop human is considered a complex process. This process involves on the ways of a company could increase employee’s motivation. Employees who have high motivation will impact on their performance and their organisation. Employee retention could be done by creating working environment that supports employees’ motivation development. Factors such as compensation, career development, work flexibility are some examples that are considered to have impact on employee retention. 3.2 Reward and Recognition Ndungu (2017) explained that reward and recognition as an effort by organisation or company’s management to appreciate employees or its member as a response for being a role model or for their certain actions. Reward is also expected to boost employees’ motivation as they will obtain something in return for their achievements or contributions to organisation or company. In other theories, reward is categorized into implicit and explicit reward. Explicit reward is given in form of salary and incentives while implicit rewards are given in a manner of appreciation, recognition (e.g. best employee), and compliments. Rewards that are given should be based on fair and objective evaluation. Brun and Dugas (2008) explained that employee recognition is a common problem faced by most organisations, as recognition is one of the basic needs of an individual. In an organisation, recognition could be elaborated in certain policies or efforts, claiming that organisation wants to recognize results or efforts from its employees. Dimensions of recognition are created based on formed relationships as follows: Journal of Business and Retail Management Research (JBRMR), Vol. 14 Issue 3 July 2020 www.jbrmr.com A Journal of the Centre for Business & Economic Research (CBER) 91 • Relationships with organisation: company’s intention to acknowledge and listen to employees. • Vertical relationships: relationship between employees and leaders. • Horizont

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Understanding the impact of reward and recognition, work life balance, on employee retention with job satisfaction as mediating variable on millennials in Indonesia