THE ROLE OF ORGANIZATIONAL ENGAGEMENT MEDIATES THE EFFECT OF SUPPORTIVE WORK ENVIRONMENT ON EMPLOYEE RETENTION

Abstract

Human resources are an important part of an organization where the success of a company depends on the quality of its human resources, including the hotel business. Employee retention is recognized as key to the delivery of quality service in a competitive hospitality market environment. This research aims to analyze the influence of a Supportive Work Environment on Employee Retention which is mediated by Organizational Engagement. This research involved 93 employees of InterContinental Sanur Resort Bali. Data collection was obtained through observation, interviews and questionnaires. The analysis techniques used are descriptive statistical analysis and inferential statistical analysis. Data were analyzed using Structural Equation Modeling (SEM) with a Partial Least Square (PLS) approach. The results show that Supportive Work Environment and Organizational Engagement have a positive and significant effect on Employee Retention. Organizational Engagement partially mediates the influence between Supportive Work Environment and Employee Retention. Theoretical implications based on Social Exchange Theory show that the reciprocal relationship between companies and employees will always be positive. The conclusion obtained from this research is that the higher the level of supportive work environment and organizational attachment felt by employees, the better employee retention will be.

Keywords

• supportive work environment
• organizational engagement
• employee retention