Industrial and Organizational Psychology Studies

The Effect of Perceived Organizational Support on Employee Retention with the Mediating Role of Leader-Member Exchange, Creative Work Involvement and Feelings of Energy-

Document Type : Research Article

Authors

Mehdi Nadaf 1
Hossein Ershad 2
Farajollah Rahimi 1
Sara Mohammadi 1

1 Associate Professor, Department of Management, Shahid Chamran University of Ahvaz, Ahvaz, Iran

2 Master of Business Administration, Entrepreneurship Orientation, Department of Management, Shahid Chamran University of Ahvaz, Ahvaz, Iran

https://doi.org/10.22055/jiops.2024.47669.1424
Abstract
Introduction
Employee retention has emerged as a critical strategic imperative for organizations across industries. The ability to retain talented employees is essential for organizational success, innovation, and sustained competitive advantage. Beyond traditional factors such as compensation and benefits, psychological and relational factors significantly influence employees' decisions to remain with their employers. This study delves into the intricate relationship between perceived organizational support (POS), high-quality leader-member exchange (HiLMX), creative work involvement (CWI), and individual feelings of energy as predictors of employee retention. POS, as a construct, reflects employees' perceptions of their organization as supportive, caring, and valuing their contributions. HiLMX, on the other hand, refers to the quality of the dyadic relationship between an employee and their immediate supervisor. CWI encapsulates employees' active and enthusiastic engagement in creative work activities. Finally, individual feelings of energy represent employees' subjective experiences of vitality and vigor. This study posits that POS positively influences employee retention directly and indirectly through its impact on HiLMX, CWI, and individual feelings of energy.
 
Method
To examine the proposed relationships, a descriptive non-experimental research design was employed. Data were collected from a sample of 299 employees working in a steel company. Participants completed self-reported questionnaires measuring POS, HiLMX, CWI, individual feelings of energy, and employee retention. The reliability of the measurement instruments was assessed using Cronbach's alpha, yielding a satisfactory alpha coefficient of 0.885. Data analysis involved descriptive statistics to provide an overview of the sample characteristics and measures. To test the hypothesized relationships, structural equation modeling (SEM) was conducted using SPSS and AMOS software. SEM is a powerful statistical technique that allows researchers to examine complex relationships among multiple variables simultaneously.
 
Results
The findings of the study provided partial support for the proposed relationships. Results indicated a significant positive relationship between POS and employee retention, suggesting that employees who perceive their organization as supportive are more likely to remain with the company. Furthermore, POS was found to positively influence both HiLMX and individual feelings of energy. This implies that employees who perceive high levels of organizational support are more likely to develop strong relationships with their supervisors and experience higher levels of energy. Individual feelings of energy emerged as a significant positive predictor of both CWI and employee retention. Employees with higher levels of energy were more engaged in creative work activities and were more likely to stay with the organization. However, contrary to expectations, the hypothesized direct relationships between HiLMX and CWI, as well as HiLMX and employee retention, were not supported by the data.
 
Discussion
The findings of this study underscore the critical role of POS in fostering employee retention. The results highlight the importance of creating a supportive organizational climate that employees perceive as caring and valuing their contributions. Moreover, the study emphasizes the mediating role of individual feelings of energy in the relationship between POS and both CWI and employee retention. This suggests that organizations can enhance employee retention by implementing strategies that boost employees' energy levels and encourage creative engagement. While the results did not support a direct relationship between HiLMX and employee retention, this does not negate the importance of leader-member exchange in the overall employee experience. Future research could explore the moderating effects of HiLMX on the relationship between POS and employee retention or investigate the combined effects of HiLMX and other variables on employee retention. Additionally, examining the generalizability of the findings to other industries and organizational contexts would contribute to a deeper understanding of the factors influencing employee retention. In conclusion, this study provides valuable insights into the complex interplay of POS, HiLMX, CWI, and individual feelings of energy on employee retention. By understanding these relationships, organizations can develop targeted interventions to enhance employee satisfaction, engagement, and retention.

Keywords

Perceived organizational support
high-quality leader-member exchange
creative work involvement
individual feelings of energy
employee retention
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Industrial and Organizational Psychology Studies
Volume 12, Issue 1
July 2025
Pages 49-66

  • Receive Date 04 August 2024
  • Revise Date 17 October 2024
  • Accept Date 14 December 2024

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