THE ROLE OF INTERNAL MARKETING STRATEGIES IN IMPROVING EMPLOYEE RETENTION: ESG IMPACT STUDY ON ENERGY SECTOR COMPANIES IN INDONESIA

This study aims to analyze the effect of perceptions of Environmental, Social, and Governance (ESG) principles on employee retention in the energy sector in Indonesia, as well as explore the moderating role of generation in the relationship. In the context of the energy industry's transformation towards sustainable business practices, ESG has become an important internal marketing strategy to increase employee loyalty. The concept of internal marketing emphasizes the importance of treating employees as internal customers and meeting their needs to increase satisfaction and retention. This study uses a quantitative approach through an online survey to employees of energy companies, with a total of 14 measurement items that refer to previous research. The results were hypothesized to show that the three dimensions of ESG-environmental (E-ESG), social (S-ESG), and corporate governance (G-ESG)- positively influence employee retention through increased satisfaction and internal engagement. In addition, it was found that the influence of ESG on retention intentions varies across generations, with younger generations (Gen Y and Gen Z) showing higher sensitivity to sustainability values reflected in corporate ESG practices. These findings provide strategic implications for energy sector companies to design ESG-based internal marketing strategies that are adaptive to generational differences in the workplace.