Exploring the Dynamics of Employee Retention: A Causal Model Approach

This research investigates the complex relationships influencing intergenerational employee retention within private power generation and distribution utilities in two major cities in the Southern Philippines. Utilizing path analysis and structural equations modeling, two hypothesized models are examined to determine the impact of job resources, job demands, employee engagement, and burnout on employee retention. Analyzing the responses of 256 employees in a cross-sectional survey, findings reveal that while the initial model failed to meet standard fit criteria, the second model demonstrated superior fit, indicating significant relationships. Specifically, employee engagement emerges as a critical factor of retention, influenced by job resources and job demands, while burnout negatively influences employee engagement. The findings of the study further highlight employee engagement as a significant predictor and mediator of retention, regardless of generational differences. Implications emphasize the perspective of employee engagement’s influence on retention, while challenging assumptions of generational disparities and advocating for customized engagement strategies among baby boomers, gen-Xers, and millennials This study, thus, underscores the importance of nurturing positive work environments, addressing job demands, and fostering engagement to reinforce retention across generations. To optimize talent management strategies and ensure sustainable retention, practical recommendations bridging policy-making, talent management enhancements, knowledge dissemination, and regulatory considerations are proposed for executives, HR practitioners, and researchers alike.

Keywords: intergenerational employee retention, employee engagement, job resources, job demands, burnout, path analysis, talent management