Does Sustainable Work Environment Influence Work Engagement, Job Satisfaction and Employee Retention? Perspectives from E-Commerce Industry

Abstract

Objective: The objective of the study is to assess the influence of Sustainable work environment on work engagement, job satisfaction and employee retention. The study also examines the mediating effect of work engagement and job satisfaction between sustainable work environment and employee retention. Theoretical framework: Employee retention problems are emerging as the most critical workforce management challenges in the present era. In order to cater to these challenges, organizations need to work on employee retention strategies work engagement, etc. Work environment is identified as an important factor to predict employee retention. Sustainable work environment components were identified based on social exchange theory and employer-employee relationship. Sustainable work environment such as perceived climate, supervisory relationship, peer group interaction, perceived organizational support are included in the study. Method: A total of 181 valid responses were received from the employee of e-commerce firms. The hypothesized model was tested with the help of multiple regression analysis and mediation analysis. Results and conclusion: The findings of the study suggests that sustainable work environment positively and significantly predicting work engagement, job satisfaction and employee retention. The results of mediating analysis show that work engagement and job satisfactions are completely mediating the relationship between sustainable work environment and employee retention. Implications of the research: The study has several practical implications for e-commerce firms in particular Human resource Professionals of such firms. The study findings infer that sustainable work environment (perceived climate, supervisory relationship, peer group interaction, and perceived organizational support) has huge impact on employee retention i.e., when conducive work environment, supervisory support, good peer group interaction and organizational support are provided to employees, they will be more engaged with the organization and remain with the same organization for a long run. Originality/value: There are very few studies have attempted to assess the sustainable work environment in e-commerce industry in India. Hence, this study is first of its kind to analyse the influence of sustainable work environment on employee retention among employees of e-commerce industry.