Effects of supportive work environment on employee retention

TLDR

The role of supportive work environment and organizational engagement is under‑researched in India. The study investigates how organizational engagement mediates the relationship between supportive work environment and employee retention. Using primary data from 211 employees across 67 organizations, the authors performed confirmatory factor analysis and multiple regression to test the mediation model. Results show that supportive work environment predicts employee retention and that organizational engagement partially mediates this relationship. The cross‑sectional Indian sample of 211 employees limits generalizability, though the small size did not adversely affect results.

Abstract

Purpose The purpose of the present study is to investigate the mediating effect of organizational engagement in the relationship between supportive work environment (SWE) and employee retention. Design/methodology/approach Primary data of 211 respondents from 67 organizations were analysed. Confirmatory factor analysis was used to assess the dimensionality and validity of study variables. Further, the hypothesized model was tested with the help of multiple regression analysis. Findings The findings suggest that SWE plays a crucial role in predicting employee retention. Organizational engagement partially mediates the relationship between SWE and employee retention. Research limitations/implications The data were limited to the Indian setting and of cross-sectional design only; so, it may not be generalized across the world. Further, the sample size is also comparatively smaller but the results are not affected adversely. Originality/value The role of SWE along with organizational engagement is currently under-researched in the Indian context. The present study is an intense effort to analyse the mediating effect of organizational engagement in the relationship between SWE and employee retention.