Influence of empowerment, psychological contract and employee engagement on voluntary turnover intentions

Abstract

PurposeThe purpose of the study is to explore the influence of psychological empowerment, psychological contract and employee engagement on voluntary turnover intentions of employees in theinformation technology (IT) industry.Design/methodology/approachThe study used a cross-sectional, quantitative research design. The analysis for the study is based on a sample of 392 Indian IT professionals. Partial least square–structural equation modelling (PLS-SEM) was used to analyse the data.FindingsThis study has identified a significant relationship between turnover intentions, employee engagement, psychological contract and psychological empowerment. The findings of the study are that there exists significant positive influence of psychological contract and psychological empowerment on employee engagement. Employee engagement, in turn, has the capability to influence intention to leave the organization.Originality/valueThere is heightened awareness among industry leaders about the need to retain top performers. However, organizations are found to repeatedly fail in this regard. The study has succeeded in empirically establishing the complex relationship between empowerment, psychological contract, employee engagement and turnover intentions. The findings of the study are significant and have practical implications. It can be put to use by progressive managements in devising strategies to reduce turnover intentions.