IMPACT OF PSYCHOLOGICAL EMPOWERMENTON EMPLOYEE ENGAGEMENT AND INTENTION TO LEAVE

Abstract

In the dynamic world, human capital is a critical factor for organizational success. The retention of skilled employees is vital not only for sustaining competitive edge but also for nurturing a prosperous organizational culture. This study focuses on understanding the factors that influence an employee's decision to stay with or leave an organization by examining effects of psychological empowerment on employee engagement and intension to leave. Data were collected from 5006 employees at a university in Thailand. The data were analyzed using SPSS and Amos and reveals that psychological empowerment positively related to employee engagement, and then employee engagement negatively related to intension to leave. In addition, psychological empowerment directly affect intension to leave. These results suggest that nonmonetary rewards can be very a powerful tool to motivate and retain employees.  Organizations and managers can apply empowerment to strategically retain and cultivate engaged workforce.