Impact of Psychological Empowerment and Organizational Justice on Turnover Intentions Directly and Indirectly Through Talent Engagement in Banks of Twin Cities of Pakistan.

Abstract

Employees are an integral part of the organization. An organization’s success or failure usually depends on how motivated its employees are. Employee retention has become an important topic of discussion as it is giving sleepless nights to most of the HR professionals and managers today. The main purpose of this study was to examine the direct relationship of psychological empowerment and organizational justice on turnover intentions and through talent engagement (job engagement and organizational engagement) among the employees in banking industry of twin cities in Pakistan. This study has investigated engagement in two different dimensions. A total of 285 questionnaires were distributed among the middle management working in top five banks of Pakistan (with respect to profitability). The study found that psychological empowerment and organizational justice have significant negative relationship with employees’ turnover intentions. The interesting finding of the study was that the job engagement and organizational engagement statistically significantly mediates the relationship between psychologically empowerment and turnover intentions and organizational justice and turnover intentions. The findings of the study are useful for the management of the banks who can retain potential employees by psychologically empowering them and giving a fair treatment to all the employees.