Linking Work Environment And Organizational Sustainability: Evidence From Indonesian Higher Education

Abstract

This study investigates the interrelationships among work environment, quality of work life (QWL), motivation, compensation, career development, and employee retention in Indonesian higher education institutions (HEIs). Drawing on sustainability and human resource management (HRM) perspectives, the study aims to extend the discourse of organizational sustainability beyond ecological concerns to include institutional and human capital dimensions. Using a quantitative survey design, data were collected from 389 lecturers across 29 accredited private universities and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that work environment and motivation significantly enhance career development, while compensation directly improves retention but does not affect career development. Motivation emerged as the strongest driver of faculty career development, and career development itself was found to mediate the relationship between organizational factors and retention. The model explains a substantial variance in retention (R² = 0.867) and demonstrates high predictive relevance (Q² = 0.967). These findings advance theory by integrating previously fragmented constructs into a single sustainability-oriented framework and provide practical guidance for HEIs to strengthen faculty retention through supportive work environments, motivational strategies, and structured career development. At the policy level, the study underscores the importance of embedding sustainable HRM practices into accreditation and quality assurance frameworks to ensure long-term institutional resilience.