The Impact of Employee Retention Motives on Employee Retention Intention: An Empirical Study of Job Satisfaction in the Apparel Manufacturing Industry in Sri Lanka
N. De Silva and P. Morapitiya
ABSTRACT
Employee retention is a critical challenge for the apparel manufacturing industry in Sri Lanka. This study examines the impact of employee retention motives on employee retention intention, focusing on the mediating role of job satisfaction. Utilizing Herzberg's two-factor theory, social exchange theory, and job embeddedness theory, this research explores compensation, rewards, work environment, and work-life balance as key retention motives. The study employs a quantitative approach, analyzing data from 386 sewing machine operators. The findings reveal significant relationships between retention motives and retention intention, mediated by job satisfaction and moderated by job embeddedness. All variables recorded Cronbach's alpha values exceeding the acceptable threshold of 0.70, confirming the internal consistency and reliability of the measurement scale and correlation matrix reveals significant positive relationships with all variables with the strongest between job satisfaction and retention intention (r=0.60, p=0.001). The study findings reveal that there is a significant relationship employee retention motives (compensation, rewards, work environment and work life balance) and job satisfaction which strongly contributes to retention intention. Additionally, job satisfaction serves as a critical mediator, which explains how retention motives impact retention intention. Furthermore, job embeddedness moderates the relationship between job satisfaction and retention intention, revealing that employees who feel well-connected and well-suited to their roles are more inclined to remain with the organization. As a recommendation for improving retention strategies in the Sri Lankan apparel industry, organizations should offer competitive salaries, benefits, and incentive programs aligned with industry standards. Recognition initiatives, such as Employee of the Month and service awards, enhance job satisfaction and boost morale. A safe, compliant, and comfortable work environment, along with flexible work arrangements, supports work-life balance and further strengthens retention efforts
KEYWORDS: Job embeddedness, Rewards, Work environment, Work life balance