Determinants of Employee Retention in the Cement Industry of Pakistan with a mediating role of Organizational Culture

Abstract

Employee retention remains a significant challenge in the cement industry, where high turnover disrupts operations and increases costs. This study investigates key determinants of employee retention, specifically focusing on compensation and benefits and working conditions, within the cement industry of Pakistan. It also explores the mediating role of organizational culture in influencing these relationships. Using a quantitative, cross-sectional survey-based research design, data was collected from a sample of 221 employees across various cement companies in Pakistan. Smart PLS-4, was employed to analyze the data and test the hypothesized relationships among the variables. The findings reveal that both compensation and benefits, as well as favorable working conditions, positively impact employee retention. Additionally, organizational culture is found to play a crucial mediating role, strengthening the relationship between these determinants and employees' intention to stay. This study highlights the importance of fostering a culture that aligns with employee values, suggesting that cement companies can improve retention by adopting competitive compensation structures, safe and supportive working environments, and a cohesive, employee-centric organizational culture. The findings provide actionable insights for human resource managers in the cement industry, offering a framework for retention strategies that address both tangible and cultural factors.