Employer Branding and Employee Retention in the Banking Sector in Saudi Arabia: Mediating Effect of Relational Psychological Contracts

Abstract

The main purpose of this study is to examine the impact of employer branding on employee retention and the mediating effect of the relational psychological contract between employer branding and employee retention among employees of the banking sector in Saudi Arabia. A cross-sectional survey is used to gather data from 459 employees working in the banking sector. The study findings reveal that employer branding is positively and significantly related to relational psychological contracts and employee retention. Furthermore, a relational psychological contract significantly mediates the relationship between employer branding and employee retention. The current study is considered the first to provide empirical evidence of the role of the relational psychological contract as a mediator between employer branding and employee retention. As a result, the current study will extend the employer branding literature by recognizing a new way through which employer branding impacts employee retention. Theoretical and practical implications are discussed.