Democratic Leadership Transparency and Rewards Strengthen Employee Loyalty in State Companies

DOI

10.2991/978-2-38476-589-8_34How to use a DOI?

Keywords

Democratic leadership; Organizational transparency; Reward systems; Employee loyalty; State owned enterprises

Abstract

General Background: Employee loyalty is a critical factor in organizational sustainability, particularly in state-owned enterprises responsible for delivering essential public services. Specific Background: At Perusahaan Listrik Negara (PLN), employee dedication and commitment are associated with managerial practices such as democratic leadership, organizational transparency, and reward systems. Knowledge Gap: However, limited studies examine the combined role of these organizational factors alongside demographic characteristics such as age and education level in shaping employee loyalty. Aims: This study aims to analyze the relationship between democratic leadership, organizational transparency, and rewards on employee loyalty, with age and education level as control variables. Results: The study conceptualizes that democratic leadership encouraging participation, organizational transparency fostering trust and engagement, and both material and non-material rewards are associated with increased employee loyalty and motivation, while demographic factors such as age and education level shape employee responses to these organizational practices. Novelty: This study integrates leadership style, transparency, reward systems, and demographic control variables into a unified framework for understanding employee loyalty in a state-owned enterprise context. Implications: The findings are expected to provide strategic insights for PLN management in designing policies that consider leadership practices, organizational transparency, reward mechanisms, and employee demographic characteristics to support employee loyalty.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Adi Septian Nugroho
AU  - Wisnu Panggah Setiyono
PY  - 2026
DA  - 2026/06/18
TI  - Democratic Leadership Transparency and Rewards Strengthen Employee Loyalty in State Companies
BT  - Proceedings of the 1st International Conference on Communication and Digital Multimedia 2025 (ICCDM 2025)
PB  - Atlantis Press
SP  - 411
EP  - 436
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-589-8_34
DO  - 10.2991/978-2-38476-589-8_34
ID  - Nugroho2026
ER  -