Drivers of Employee Engagement and their Impact on Job Satisfaction and Turnover Intentions.

This paper investigated the impact of performance related rewards, decision making and communication as three key drivers of employee engagement. It also examined the impact of these drivers on job satisfaction and turnover intentions. As the latter two are potential outcomes of employee engagement, hence, the paper also tested the mediating role of employee engagement in the relationship between the three drivers and the two outcomes. A survey of 135 employees was carried out in five organizations based in Islamabad and Rawalpindi. The data were analyzed through structural equation modeling. Results indicated that all three HR practices were significant predictors of employee engagement. They also indicated that performance related rewards extensively contribute towards job satisfaction and lower turnover intentions. As far as outcomes were concerned, low turnover intention was a significant outcome of employee engagement. Furthermore, it was found that employee engagement was a partial mediator between the drivers and outcomes. Thus, special focus and effort is required by the HR strategists to foster a culture where employees are well-rewarded and empowered to enhance their satisfaction and retention. [ABSTRACT FROM AUTHOR]