THE MEDIATING EFFECT OF EMPLOYEE ENGAGEMENT AND WELL-BEING ON TURNOVER INTENTION IN INDONESIA

Employee turnover is challenging for firms, and it is usually fueled by employee stress due to their heavy workload. To minimize turnover, firms can implement various initiatives, such as employee well-being and employee engagement programs. Previous studies have examined the influence of work stress, employee engagement, or employee well-being separately on turnover intention. By exploring these factors simultaneously, this study aims to explain the roles of employee well-being and engagement as mediators in alleviating the impact of work stress on turnover. Data were collected from 425 employees working in various economic sectors (e.g., finance, education, research and development, retail, and business) in Indonesia and analyzed using the structural equation modeling (SEM) with the Lisrel 8.8 software. The results confirmed that work stress and employee engagement are factors that can directly influence turnover intention. Nevertheless, employee well-being does not have a direct impact on reducing turnover. The role of employee engagement in mediating the impact of work stress and employee well-being on turnover intention has been proven to be significant. This indicates that the company can withstand the stress that leads to employee turnover by creating jobs that make employees enthusiastically enjoy their work. Furthermore, company initiatives to create employee well-being will only be effective if those initiatives encourage employee engagement. Based on these findings, companies can develop strategies to reduce employee turnover. This can be achieved by prioritizing work stress management and improving employee well-being and engagement.