Exploring employee retention strategies in Indonesian startups: A qualitative study of human resource management practices

https://doi.org/10.35912/ahrmr.v5i3.2990
Published: Sep 10, 2025

Abstract:

Purpose: Startups in Indonesia have experienced rapid growth over the past decade but face significant challenges in retaining talent due to organizational dynamics and evolving employee expectations. This study explores employee retention strategies implemented by Indonesian startups by examining current human resource management practices.

Methodology: A qualitative approach was employed, using semi-structured interviews with HR leaders and decision-makers from ten high-growth startups in Jakarta, Bandung, and Surabaya.

Results: The study identified key retention strategies including meaning-driven work culture, flexible work arrangements, equity-based compensation, and individualized career pathways. Startups that aligned HR initiatives with intrinsic motivation and employee well-being reported higher retention rates. Founder-led engagement, agile feedback loops, and cross-functional mobility were also notable as innovative HR practices in the startup context.

Conclusions: Retention in Indonesian startups is significantly enhanced through HR strategies that prioritize intrinsic motivators and employee well-being, particularly in competitive talent environments.

Limitations: The study’s qualitative nature and geographic focus on three cities may limit broader generalization across Indonesia's diverse startup ecosystem.

Contribution: This study offers practical insights into effective HR strategies for talent retention in emerging market startups, emphasizing founder involvement and adaptive HR innovations.

Keywords:
1. Employee Retention
2. Human Resource Management
3. Startups
4. Indonesia
5. Talent Strategy
6. Organizational Culture
Authors:
1 . Mulyadi Mulyadi
Ibnu Sina University, Batam, Indonesia
2 . Sumardin Sumardin
Ibnu Sina University, Batam, Indonesia
3 . Dewi Permata Sari
Ibnu Sina University, Batam, Indonesia
4 . Sabri Sabri
Ibnu Sina University, Batam, Indonesia
5 . Sudianto Sudianto
Ibnu Sina University, Batam, Indonesia
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How to Cite
Mulyadi, M., Sumardin, S., Sari, D. P., Sabri, S., & Sudianto, S. (2025). Exploring employee retention strategies in Indonesian startups: A qualitative study of human resource management practices. Annals of Human Resource Management Research, 5(3), 593–603. https://doi.org/10.35912/ahrmr.v5i3.2990
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Issue & Section
Vol. 5 No. 3 (2025): September
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Almaida, A., & Purnomo, S. (2021). Pengaruh Stres Kerja dan Motivasi Kerja terhadap Kepuasan Kerja pada Satuan Polisi Lalu Lintas Polrestabes Makassar. Studi Ilmu Manajemen dan Organisasi, 2(1), 19-32. doi:https://doi.org/10.35912/simo.v2i1.363

    Amajuoyi, P., Benjamin, L. B., & Adeusi, K. B. (2024). Agile Methodologies: Adapting Product Management to Rapidly Changing Market Conditions. GSC Advanced Research and Reviews, 19(2), 249-267. doi:https://doi.org/10.30574/gscarr.2024.19.2.0181

    Amegayibor, G. K. (2021). Training and Development Methods and Organizational Performance: A Case of the Local Government Organization in Central Region, Ghana. Journal of Social, Humanity, and Education, 2(1), 35-53. doi:https://doi.org/10.35912/jshe.v2i1.757

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    Ekasari, S., Dharmawan, D., Rismawan, P. A. E., Munizu, M., & Abdurohim, A. (2024). The Influence of Development and Use of Technology and The Economic Environment Situation on The Growth of Start-Up Companies in Indonesia. Innovative: Journal Of Social Science Research, 4(3), 7382-7390. doi:https://doi.org/10.31004/innovative.v4i3.11286

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    Maidy, E., & Dirbawanto, N. D. (2022). Analisis Penerapan Rotasi Kerja dalam Pengembangan Kinerja Karyawan PT Bank Central Asia Tbk - KCU Medan. Journal Of Social Research, 1(8), 877-886. doi:https://doi.org/10.55324/josr.v1i8.178

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    Men, L. R., Qin, Y. S., & Mitson, R. (2025). Engaging Startup Employees via Charismatic Leadership Communication: The Importance of Communicating “Vision, Passion, and Care”. International Journal of Business Communication, 62(3), 562-582. doi:https://doi.org/10.1177/23294884211020488

    Minzlaff, K., & Palmer, S. (2021). Why Coaching is a Key Component to Engaging and Retaining Millennial Employees. Coaching Psychology International, 14(1), 6-15.

    Mitchell, T. R., Holtom, B. C., Lee, T. W., Sablynski, C. J., & Erez, M. (2001). Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover. Academy of management Journal, 44(6), 1102-1121. doi:https://doi.org/10.5465/3069391

    Ramadhan, N. R., & Rahmawati, S. (2024). Pengaruh Fleksibilitas Kerja Terhadap Kepuasan Kerja Karyawan Hybrid Working Generasi Z dan Milenial pada PT XYZ. Jurnal Manajemen dan Organisasi, 15(3), 336-347. doi:https://doi.org/10.29244/jmo.v15i3.59303

    Sauermann, H. (2018). Fire in the Belly? Employee Motives and Innovative Performance in Start?Ups Versus Established Firms. Strategic Entrepreneurship Journal, 12(4), 423-454. doi:https://doi.org/10.1002/sej.1267

    Setiawan, A., Hasanah, T., Wardani, A. K., & Supratikta, H. (2025). Analisis Teoritis Komitmen Karyawan: Kajian Komprehensif Strategi Pengembangan Loyalitas Organisasi. Multidisciplinary Indonesian Center Journal (MICJO), 2(1), 1-8. doi:https://doi.org/10.62567/micjo.v2i1.328

    Stevens, L., & Wrenn, C. (2013). Exploratory (qualitative) research. Concise Encyclopedia of Church and Religious Organization Marketing, 53

    Tzabbar, D., & Margolis, J. (2017). Beyond the Startup Stage: The Founding Team’s Human Capital, New Venture’s Stage of Life, Founder–CEO Duality, and Breakthrough Innovation. Organization science, 28(5), 857-872. doi:https://doi.org/10.1287/orsc.2017.1152

    Wahyudi, A. S., Syauki, A. Y., Sunaeni, Judijanto, L., & Irfan, M. (2023). Strategies for Enhancing Employee Retention: A Qualitative Study on Modern Human Resource Management Practices. International Journal of Science and Society, 5(5), 566-573. doi:https://doi.org/10.54783/ijsoc.v5i5.917

  1. Agustin, Y., Soegiarto, D., & Fahira, K. T. (2024). The Pathway to Employee Retention: The Impact of Work Stress, Workload, and Organizational Culture with Job Satisfaction as a Mediator. Implementasi Manajemen & Kewirausahaan, 4(2), 160-182. doi:https://doi.org/10.38156/imka.v4i2.494
  2. Allen, D. G., Bryant, P. C., & Vardaman, J. M. (2010). Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies. Academy of Management Perspectives, 24(2), 48-64. doi:https://doi.org/10.5465/amp.24.2.48
  3. Almaida, A., & Purnomo, S. (2021). Pengaruh Stres Kerja dan Motivasi Kerja terhadap Kepuasan Kerja pada Satuan Polisi Lalu Lintas Polrestabes Makassar. Studi Ilmu Manajemen dan Organisasi, 2(1), 19-32. doi:https://doi.org/10.35912/simo.v2i1.363
  4. Amajuoyi, P., Benjamin, L. B., & Adeusi, K. B. (2024). Agile Methodologies: Adapting Product Management to Rapidly Changing Market Conditions. GSC Advanced Research and Reviews, 19(2), 249-267. doi:https://doi.org/10.30574/gscarr.2024.19.2.0181
  5. Amegayibor, G. K. (2021). Training and Development Methods and Organizational Performance: A Case of the Local Government Organization in Central Region, Ghana. Journal of Social, Humanity, and Education, 2(1), 35-53. doi:https://doi.org/10.35912/jshe.v2i1.757
  6. Basnyat, S., & Clarence Lao, C. S. (2020). Employees’ perceptions on the relationship between human resource management practices and employee turnover: A qualitative study. Employee Relations: The International Journal, 42(2), 453–470
  7. Batt, R., & Colvin, A. J. (2011). An Employment Systems Approach to Turnover: Human Resources Practices, Quits, Dismissals, and Performance. Academy of management Journal, 54(4), 695-717. doi:https://doi.org/10.5465/amj.2011.64869448
  8. Bouras, N. (2024). The Startups Ecosystem in Algeria: A Dynamic and Booming Landscape. Revue algérienne d'économie et gestion, 18(2), 64-77.
  9. Braun, V., & Clarke, V. (2006). Using Thematic Analysis in Psychology. Qualitative research in psychology, 3(2), 77-101. doi:https://doi.org/10.1191/1478088706qp063oa
  10. Cropanzano, R., Anthony, E. L., Daniels, S. R., & Hall, A. V. (2017). Social Exchange Theory: A Critical Review with Theoretical Remedies. Academy of management annals, 11(1), 479-516. doi:https://doi.org/10.5465/annals.2015.0099
  11. Ekasari, S., Dharmawan, D., Rismawan, P. A. E., Munizu, M., & Abdurohim, A. (2024). The Influence of Development and Use of Technology and The Economic Environment Situation on The Growth of Start-Up Companies in Indonesia. Innovative: Journal Of Social Science Research, 4(3), 7382-7390. doi:https://doi.org/10.31004/innovative.v4i3.11286
  12. Gallup. (2021). State of the Global Workplace. Retrieved from https://bendchamber.org/wp-content/uploads/2021/12/state-of-the-global-workplace-2021-download.pdf
  13. Herliani, & Priscilla, Y. G. (2025). Faktor–Faktor yang Mempengaruhi Perilaku Kerja Gen Z Terhadap Kinerja Karyawan. Jurnal Manajerial, 12(1), 19-43. doi:https://doi.org/10.30587/jurnalmanajerial.v12i01.8362
  14. Hom, P. W., Lee, T. W., Shaw, J. D., & Hausknecht, J. P. (2017). One Hundred Years of Employee Turnover Theory and Research. Journal of applied psychology, 102(3), 530-545. doi:https://psycnet.apa.org/doi/10.1037/apl0000103
  15. Jensen, J. M., Patel, P. C., & Messersmith, J. G. (2013). High-Performance Work Systems and Job Control: Consequences for Anxiety, Role Overload, and Turnover Intentions. Journal of management, 39(6), 1699-1724. doi:https://doi.org/10.1177/0149206311419663
  16. Kézai, P. K., & Skala, A. (2024). Remarks on the Location Theories of Startups: A Case Study on the Visegrad Countries. Regional Science Policy & Practice, 16(9), 1-20. doi:https://doi.org/10.1016/j.rspp.2024.100063
  17. Kim, H., Li, J., & So, K. K. F. (2024). Psychological Ownership Research in Business: A Bibliometric Overview and Future Research Directions. Journal of Business Research, 174, 1-18. doi:https://doi.org/10.1016/j.jbusres.2024.114502
  18. Kurniawan, A., & Shaleh, A. R. (2024). Generation Z: Person Organization-Fit, Life Balance and Psychological Empowerment for Work Totality. Psikoborneo: Jurnal Ilmiah Psikologi, 12(4), 470-475. doi:http://dx.doi.org/10.30872/psikoborneo.v12i4.17605
  19. Kurtessis, J. N., Eisenberger, R., Ford, M. T., Buffardi, L. C., Stewart, K. A., & Adis, C. S. (2017). Perceived Organizational Support: A Meta-Analytic Evaluation of Organizational Support Theory. Journal of management, 43(6), 1854-1884. doi:https://doi.org/10.1177/0149206315575554
  20. Maidy, E., & Dirbawanto, N. D. (2022). Analisis Penerapan Rotasi Kerja dalam Pengembangan Kinerja Karyawan PT Bank Central Asia Tbk - KCU Medan. Journal Of Social Research, 1(8), 877-886. doi:https://doi.org/10.55324/josr.v1i8.178
  21. Marliani, R., & Merisa, N. (2024). Budaya Organisasi dan Dinamika Organisasi. Jurnal Pelita Nusantara, 1(4), 518-523. doi:https://doi.org/10.59996/jurnalpelitanusantara.v1i4.335
  22. Men, L. R., Qin, Y. S., & Mitson, R. (2025). Engaging Startup Employees via Charismatic Leadership Communication: The Importance of Communicating “Vision, Passion, and Care”. International Journal of Business Communication, 62(3), 562-582. doi:https://doi.org/10.1177/23294884211020488
  23. Minzlaff, K., & Palmer, S. (2021). Why Coaching is a Key Component to Engaging and Retaining Millennial Employees. Coaching Psychology International, 14(1), 6-15.
  24. Mitchell, T. R., Holtom, B. C., Lee, T. W., Sablynski, C. J., & Erez, M. (2001). Why People Stay: Using Job Embeddedness to Predict Voluntary Turnover. Academy of management Journal, 44(6), 1102-1121. doi:https://doi.org/10.5465/3069391
  25. Ramadhan, N. R., & Rahmawati, S. (2024). Pengaruh Fleksibilitas Kerja Terhadap Kepuasan Kerja Karyawan Hybrid Working Generasi Z dan Milenial pada PT XYZ. Jurnal Manajemen dan Organisasi, 15(3), 336-347. doi:https://doi.org/10.29244/jmo.v15i3.59303
  26. Sauermann, H. (2018). Fire in the Belly? Employee Motives and Innovative Performance in Start?Ups Versus Established Firms. Strategic Entrepreneurship Journal, 12(4), 423-454. doi:https://doi.org/10.1002/sej.1267
  27. Setiawan, A., Hasanah, T., Wardani, A. K., & Supratikta, H. (2025). Analisis Teoritis Komitmen Karyawan: Kajian Komprehensif Strategi Pengembangan Loyalitas Organisasi. Multidisciplinary Indonesian Center Journal (MICJO), 2(1), 1-8. doi:https://doi.org/10.62567/micjo.v2i1.328
  28. Stevens, L., & Wrenn, C. (2013). Exploratory (qualitative) research. Concise Encyclopedia of Church and Religious Organization Marketing, 53
  29. Tzabbar, D., & Margolis, J. (2017). Beyond the Startup Stage: The Founding Team’s Human Capital, New Venture’s Stage of Life, Founder–CEO Duality, and Breakthrough Innovation. Organization science, 28(5), 857-872. doi:https://doi.org/10.1287/orsc.2017.1152
  30. Wahyudi, A. S., Syauki, A. Y., Sunaeni, Judijanto, L., & Irfan, M. (2023). Strategies for Enhancing Employee Retention: A Qualitative Study on Modern Human Resource Management Practices. International Journal of Science and Society, 5(5), 566-573. doi:https://doi.org/10.54783/ijsoc.v5i5.917