Abstract
Employee engagement and retention is a promising area in management as well as psychology. The purpose of this paper is to examine the effects of employee engagement (EE) on their retention (ER). We proposed a theoretical framework model explaining how employee engagement affects their retention. The original model linked engagement with control at work (CAW) and general well-being (GWB) through psychological capital (PsyCap). We extended this model by linking CAW and GWB to employee retention. We further added job satisfaction (JS) as a mediator between EE and ER. To establish its empirical validity, we conducted a survey from 200 employees working in different companies in Pakistan by using a close ended likert scale type questionnaire. Data was analyzed using confirmatory factor analysis and structural equation modeling. Findings suggested a positive significant relationship between EE and ER. PsyCap, CAW and JS play a significant mediator role for EE and ER, only GWB does not mediates the relationship between EE and ER. This research will help in understanding how to retain employees and mounting their psychological capital through training and development, since when employees will be happy and motivated, they can perform well and will have job satisfaction. As a result, the level of intention of employees to leave would be low. This study is preliminary the first to investigate the association between EE and ER through many other constructs (PsyCap, CAW, GWB and JS) in the Pakistani context.
Highlights
1.1 Background of the StudyThe idea of employee engagement has emerged in gaining recognition among professional health psychologists due to its positive impact on employee’s well-being and control at work (Shuck, 2011)
The second step, includes the measurement model, which is the projected framework, and the variables validity of all variables were measured with the help of confirmatory factor analysis (CFA) using Partial Least Square Analysis (PLS) Smart 3.0
The study is completed in two parts, in the first step CFA was calculated for individual variables to check its factor structure
Summary
1.1 Background of the StudyThe idea of employee engagement has emerged in gaining recognition among professional health psychologists due to its positive impact on employee’s well-being and control at work (Shuck, 2011). A study by (Luthans, 2013) recommends that these engaged workers are vastly creative and organizations should channel their energies in such a way that it stimulates their well-being and greater CAW. Employees who are contented with their careers and who are engaged in their work are expected to be happy individuals in their personal lives as well. Job satisfaction, which is considered as an alternative of one’s supposed quality of work life, has been a vital standard for evaluating an individual’s career as a whole (Judge, 1995). With regard to well-being, the scholar (Lyubomirski, 2001) has related the term with happiness These happy individuals are vigorous, approach oriented, highly attracted in their work and determined in the face of complexity. Individuals with high psychological capabilities can cope up with these numerous demands simultaneously and can invest their energies in work role (Luthans, 2013), while on the other hand, increasing their well-being and control at work (Nguyen, 2012)
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