Give me my flowers before I die! Linking employee recognition, job satisfaction and employee retention in logistics companies: A multigroup analysis

Abstract

It is quite clear that employee recognition may signify the way employers understand and appreciate employees' efforts towards the achievement of organizational goals in various domains. Similarly, employees are increasingly recognizing their values and the need for appreciation for the efforts directed towards organization's operations. This study explores the role of employee recognition on employee retention in the under-researched domain of logistics companies in Tanzania. Additionally, the study tests the mediating effect of job satisfaction in the main relationship and conducts a multigroup analysis among middle-aged and young adults. Structured questionnaires were employed to collect data from 237 employees and analyzed using partial least squares structural equation modeling. The study established that recognition plays a role in enhancing retention. Also, job satisfaction partially mediates the relationship between recognition and retention. The results from the multigroup analysis revealed that satisfaction fully mediates the relationship between recognition and retention among middle adults. Furthermore, there are statistical differences between middle and young adults in the effect of recognition on retention, satisfaction on retention, and the mediating effect of satisfaction. The findings further unveil insignificant differences in the relationship between recognition and satisfaction. Based on these main findings, the study concludes and provides relevant implications for academics and employing organizations, especially in the logistics industry, and points out areas for future research.