Effects of Organizational Inducements on Employees’ Intention to Stay: Mediating Role of Perceived Insider Status

Abstract

Research problem/purpose: This study was conducted from the perspective of the banking sector, with the primary objective of assessing the effects of organizational inducements on employees’ intention to stay. Additionally, the study tests the mediation of perceived insider status.

Design/methodology/approach: The study followed the PLS-SEM approach. A total of 418 samples were selected using purposive sampling. To compile data, the current study conducted both paper-and-pencil surveys and web-based surveys accompanied by self-administered questionnaires.

Findings: This study reveals that all the factors of organizational inducements, such as career development, financial rewards, participative decision-making, perceived supervisor support, and work-life balance, have significant impact on perceived insider status. Again, the relationship between perceived insider status and employees’ intention to stay is also found to be significant and positive. Moreover, perceived insider status significantly mediates the relationships between the dimensions of organizational inducements and employees’ intention to stay.

Originality/value: This study represents the first attempt to empirically investigate the relationships between various factors of organizational inducements and employees’ intention to stay, with perceived insider status serving as a mediator in these relationships, all within a single model focused on the context of Bangladesh.

Practical implications: This study contributes to academia by enriching this domain of knowledge and to industries by enhancing employment relationships in this competitive and dynamic job market.

Research limitations: The study focused specifically on the banking sector in Bangladesh.

JEL Classification: J28, J63, M12, M54