biodiversity and make Indonesia one of the largest
agrarian countries in the world. The term was pinned
to Indonesia because most of the population work as
farmers. The term was pinned to Indonesia because
of most of the population work as farmers.
Evidenced by the data collected by the Central
Statistics Bureau (BPS) in the first quarter of 2018,
it is known that the agricultural sector occupies the
first position as the employment sector that has the
most workforce of 38.7 million people or 30.46
Percent. One of the most recognized types of
agriculture in Indonesia is tobacco Natural
conditions, tropical climate, and sunshine throughout
the year support Indonesia's biodiversity and make
Indonesia one of the largest agrarian countries in the
world. The term was pinned to Indonesia because
most of the population work as farmers.
The tobacco commodity is one of the most
profitable industrial activities in the world,
especially for countries with low stages (Stuckler et
al., 2012). Recent studies have shown that people
around the world spend about one-third of their
income on food, tobacco and beverages. This
spending allocation appears not to be uniform across
the world popula- tion. While consumers from the
developing countries spend almost 40% of their
income on food, beverages and tobacco
(Selvanathan & Selvanathan, 2006). Kemenperin
(2016) stated that the tobacco commodity is one of
the domestic strategic sectors with high
competitiveness and continues to contribute
significantly to the national economy. It is known
that the tobacco products industry provides excise
payments of Rp. 138.69 trillion or 96.65 percent of
the total national excise tax. Based on the various
explanations above, it can be seen that the
agricultural business sector in terms of tobacco is a
business sector that is proliferating from year to
year. The development of the industry certainly
shows an increasing demand that must be balanced
with the development of companies producing
tobacco-related products. the leading tobacco
company in Indonesia PT HM Sampoerna Medan 1
is a subsidiary of PT Philip Morris Indonesia
(PMID) and an affiliate of Philip Morris
International Inc. (PMI), a leading international
tobacco company in the world.
As a large-scale company such as PT HM
Sampoerna Medan 1, fulfilling human resources'
availability is very important to support the
company's operational activities. Without human
resources, other organizational resources will not
generate profits or add value to the organization
(McLean, 2005). The role of human resource
management is very important in building
organizations, the function of Human Resources
(HR) in the organization has a long history of
producing goods and services (Becker & Huselid,
2006). Human resources are people who design and
produce goods or services, oversee quality, market
products, allocate financial resources, and formulate
all organizational strategies and objectives.
Therefore, companies need to do proper
management so that their human resources can
continue to dedicate themselves to the company.
Becker & Huselid (2006) states that human resource
management is policy and practice determining
aspects of human or human resources in
management positions, including recruiting,
screening, training, giving awards, and evaluating.
Based on this understanding shows that all types of
actions or policies taken by the company will have
an impact or influence on its human resources.
Human resource management is essential to create a
work environment that enables people to do their
best according to their capacity and potential to
achieve benefits for the company and themselves,
change the work environment's quality, and feel
satisfied with their work. However, human resource
management is not an easy thing to do. Sometimes
obstacles arise that can affect employee behavior, as
happened in one tobacco company in Malang in
2014. It is known that 970 employees resigned.
Employee discharge is known to leave the company
because the company has experienced a decline in
production. Researchers also conducted brief
interviews with several former employees in the
marketing division of PT HM Sampoerna Medan 1.
Turnover intention is one of the widely studied
areas in the field of industrial psychology
(Alkahtani, 2015; Fortuin, 2017; Hendricks, 2017).
This is attributed to its impact on the operational
costs of employing and re-employing employees.
These costs include, but are not limited to,
recruitment costs, leave capitalisation, relocation
costs as well as formal training and induction costs
(Alkahtani, 2015). In addition, organisations are
losing their most valued intellectual capital to their
competitors, which greatly affect their comparative
advantage as some of the organisations’ ways of
doing business might be shared with their rivals.
Turnover intention also impacts internal employees
as well as employee–customer relationships
(Isfahani, 2017). In view of the possible impact of
staff turnover, organisations need to foster
behaviours and systems that promote staff retention.
Aside from the common financial interventions,