The Impact of Digital Transformation on Turnover Intention: The Mediating Role of Employee Engagement

The purpose of this study is to examine the relationship between digital transformation, employee engagement, and turnover intention, with particular emphasis on the mediating role of employee engagement. Using a quantitative research design, data were collected from 240 employees working in public and private sector organizations in Saudi Arabia. Structural Equation Modelling (SEM) was employed to examine the proposed relationships. The findings reveal that employee engagement serves as a significant mediator in the relationship between digital transformation and turnover intention. Specifically, employees reporting higher levels of engagement are less likely to express intentions to leave their organizations during periods of technological change. In contrast, the direct relationship between digital transformation and turnover intention was not statistically significant, indicating a full mediation mechanism. These findings contribute to the literature by enhancing understanding of the human and organizational dimensions of sustainable digital transformation, particularly within emerging economies. The results suggest that the success of digital transformation initiatives depends not only on technological investments but also on fostering employee engagement to support workforce sustainability and long-term organizational resilience. By promoting engagement, organizations can strengthen employee retention, maintain workforce stability, and support sustainable organizational performance during periods of digital change. Consequently, the study highlights employee engagement as a critical mechanism for achieving both digital transformation objectives and broader sustainability goals related to human capital development, employee well-being, and sustainable organizational growth.