Retention Approaches of Millennial at Private Sector: Mediating Role of Job Embeddedness

Abstract

Frequent turnover of employees began from the last century, increased further with the inception of turnover-prone millennial employees and is likely to continue in the future. This study used expectation–confirmation theory and Herzberg’s two-factor theory as the underpinning theory. Its calibrated factors such as transformational leadership, stress reduction, and compensation and rewards that affect employee retention mediating through job embeddedness. A simple random sampling technique was utilized while selecting the respondents from millennial employees in private sectors. For developing the model, Smart Partial Least Square (PLS) was applied for path modelling, measurement models as well as for bootstrapping while testing the hypotheses. The study found that all these factors have got a significant positive relationship as predicted. This study has got numerous contributions, which are beneficial for all stakeholders of private industries. Although the enormous studies have been carried out in the Western context, the problem of frequent millennial turnover remains unresolved both in the West and in non-Western context. Practically, the study will be helpful for all against the frequent turnover and its losses. The paucity of studies on transformational leadership, stress reduction, compensation and rewards, and the retention of millennial employees in a developing country’s context made this research more significant and relevant. The mediating role of job embeddedness was also found to be significant in this relationship. Finally, the study was found to have implications for all stakeholders and future researchers.