The Role of Organizational Justice in Predicting Job Satisfaction and Turnover Intention: Evidence from Indonesian Banks

Purpose: This study examines the connection between organizational justice, job satisfaction, and turnover intention in the Indonesian banking sector and emphasizes the impact of flexible work arrangements (FWAs). Design/methodology/approach: This study is using a quantitative cross-sectional design, this research applies Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze survey data from 204 respondents in the Jabodetabek area. The study is grounded in Social Exchange Theory (SET) to examine how distributive, procedural, and interactional justice affect job satisfaction and turnover intentions. Findings: The findings of this study indicate that higher levels of perceived organizational justice are associated with greater job satisfaction, which subsequently leads to lower turnover intention. However, flexible work arrangements did not significantly influence the relationship between job satisfaction and turnover intention. Research limitations/implications: This study is confined to the Indonesian banking sector, which limits its applicability to other industries or regions. Unfortunately, to successfully retain talent, organizations should emphasize the establishment of a fair and just work environment. Considering the changes in work environments due to the pandemic and the growing demand for flexibility, organizations must be prepared to adapt to new work models. Originality/value: This study is the first to examine the moderating effect of flexible work arrangements (FWAs) in the Indonesian banking context.