Impact of Employee Engagement on Turnover Intentions with the Mediating Role of Intrinsic and Extrinsic Motivation in the Startups of Rawalpindi & Islamabad

Abstract

This research investigates the essential link between employee engagement, motivation, and ideas about leaving one’s job in startups based in Rawalpindi and Islamabad, Pakistan. Startups in these parts of the world experience major difficulties keeping talent because resources are scarce, career options are uncertain, and HR departments are underdeveloped. Though actively engaged employees usually help retain them, it’s not clear if this is the case in fast-paced startup environments. The research tries to solve this gap by studying the link between motivation and engagement, which can help resource-constrained entrepreneurial ventures find useful solutions to retaining staff. A quantitative research design was used, surveying 284 workers from different startups with the help of authorized tools such as the “Utrecht Work Engagement Scale (UWES) and the Work Preference Inventory (WPI)”. Statistical analyses, such as factor analysis, correlation, and regression, were used to validate the hypotheses of the study. So, findings show that employee engagement by itself does not strongly predict diminished turnover intentions. Intrinsic motivation creates a strong effect by making employees engaged and satisfied with their jobs, so employees are less likely to think of leaving their jobs. Further, Extrinsic motivation also acts as a mediator, although less so. These findings highlight the fact that psychological drivers such as purpose and autonomy are stronger than monetary incentives in keeping employees in startup cultures. Moreover, the research provides practical suggestions to startup leaders and HR professionals alike on using intrinsic benefits, participatory leadership, and non-monetary benefits to build employee retention. It also adds to the organizational behaviour body of knowledge by situating global motivational theories in the context of Pakistan's startup environment.