Effect of Motivation on Employee Retention: Mediating Role of Perceived Organizational Support

Abstract

Employees play crucial role for the success and failure of any organization. In modern competitive work environment, employee retention is meaningful for the achievement of organizational goals. The aim of the study is to investigate the effect of intrinsic and extrinsic motivation on employee retention. Along with that, the study also examined the mediating role of perceived organizational support on motivation-retention relationship. Primary data was collected from the commercial banks of Lahore, Pakistan. A sample size of 342 banking sector employees in commercial banks of Lahore, Pakistan was selected. Partial Least Square- Structural Equation Modeling was used to analyze the data. The findings revealed that intrinsic and extrinsic motivation has a significant impact over employee retention and perceived organizational support mediates the relationship between extrinsic, intrinsic motivation, and employee retention. By empirically testing the research contributes academically to Social Exchange Theory, Hertzberg Two Factor and Organizational Support Theory.