EMPLOYEE ENGAGEMENT AS A MEDIATOR BETWEEN ORGANISATIONAL POLITICS AND TURNOVER INTENTION AMONG DEVELOPMENT BANK EMPLOYEES IN OMAN

Abstract

Background: Organisational politics are a common feature of workplaces and can shape employees’ motivation, engagement, and retention. Perceived unfairness or favouritism in pay and promotion decisions often leads to disengagement and increased turnover intention. This study examined the impact of organisational politics—political behaviour (PB), go-along-to-get-ahead (GAGA), and pay and promotion politics (PPP)—on employee engagement and turnover intention among staff in development banks in Oman. Employee engagement was tested as a mediator in these relationships.

Methods: A descriptive, cross-sectional survey design was employed. Data were collected from 300 full-time employees across various departments and hierarchical levels. Employee engagement was conceptualised as a second-order construct comprising vigour, dedication, and absorption. SmartPLS 4.2 was used to analyse the measurement and structural models with bootstrapping (10,000 resamples).

Results: PPP had a significant positive effect on turnover intention (β = 0.55, p < .001) and a significant negative effect on engagement (β = –0.29, p = .001). PB and GAGA had no significant effects. Employee engagement negatively predicted turnover intention (β = –0.38, p < .001) and significantly mediated the relationship between PPP and turnover intention (β = 0.11, p = .002). The model explained 17.1% of the variance in engagement and 58.9% in turnover intention.

Conclusion: Perceived unfairness in pay and promotion reduces engagement and increases turnover risk. Transparent and merit-based systems are essential to enhancing engagement and retention in the banking sector.