The Mediating Effect of Employee Engagement between its Antecedents and Employee Retention: The Case of Ethiopian Airlines

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Employee engagement is a key in improving productivity, performance, and the ability to retain top talented employees within the company. Employee engagement is also considered to be the most powerful factor to measure an organization’s strength and EAL is one of the organizations where engaging and retaining employees are being the most challenging issues but didn’t get much attention from the side of management until recently. Thus, the objective of this research was to study the different determinants of employee engagement and to assess the mediating role of employee engagement between its antecedents and employee retention in the context of EAL. To achieve the objective of this study, questionnaires were adapted from previous research works and pilot study was also conducted on 30 respondents to check the accuracy and reliability of the measurement. Convenience and simple random sampling was implemented as sampling technique with sample size of 337 out of 407 distributed questionnaire (83% of response rate). The time dimension of the research design for this study was cross sectional field survey which was used to collect the data from the sample at one point in a time. The study used Descriptive statistics to measure the level of employee engagement and retention; also Multiple linear regression and Mediation analysis techniques to examine the study variables. The overall analysis result of the study indicated that all the study predictors have positive and significant effect on employee retention and on employee engagement. The mediator which is employee engagement has also a positive and significant effect on employee retention. The study result also confirmed that employee engagement had a full mediating role in the relationship between the proposed factors and employee retention. This implies that employee engagement has an indirect effect in the relationship between those factors and employee retention. Moreover, the study found out that pay and benefit is the strongest factor that determines employee engagement and employee retention the most. An important recommendation based on the study result was EAL should implement the significant determinants of Employee Engagement for gaining competitive advantage, reducing turnover and achieving high productivity



Employee Engagement, Employee Retention