The Impact of Perceived Organizational Support and Job Security on Employee Retention with Job Satisfaction Serving as a Mediator

This study aims to explore how perceived organizational support (POS) and job security influence employee's turnover with job satisfaction as a mediating variable in service sector organizations in Karnali province, Nepal. A conclusive research design was used. Stratified random sampling was done and 404 employees of service sector organizations (bank, insurance and academic institutions) were selected in Surkhet district. Structural equation modelling (Smart PLS, 4.1.0.9) and statistical analysis (SPSS) were used for the study to assess the relationships between the key constructs. The study found that perceived organizational support and job security significantly influenced employee retention, with job satisfaction in between for the latter. Job satisfaction partially mediated the relationship between perceived organizational support and employee retention, and between job security and employee retention. The seven hypotheses proposed were validated. The direct impact of POS on job satisfaction was the greatest with a β of 0.471, and the direct impact on employee retention was the next strongest with a beta of 0.275; job satisfaction also had a significant direct impact on retention with a beta of 0.252. The study concludes that improved organizational support and job security play a significant role in improving the job satisfaction of employees in the study area, thereby supporting employees' retention. It adds to the literature through its validation of these relationships in the relatively unstudied province-based service sector in Nepal. Conclusive design of the study precludes causal conclusions and the ability to generalize beyond Surkhet. Self-reported responses may lead to bias, and other mediating and moderating factors between the relationships were not explored.