Retaining Employees with Adoption of Industry 4.0 Technologies in the Automotive Sector– Mediation of Training 4.0 & Employee Competency

Abstract

This research aims to elaborate on the impact of Industry 4.0 adoption on Employee Retention in light of the Unified Theory of Acceptance and Use of Technology (UTAUT) theory.The data for this causal-explanatory study was collected from a sample of 275 respondents. The Partial Least Square Structural Equation Modeling statistical technique was used to analyze in-sample and out-of-sample predictive power.The findings indicate that Industry 4.0 adoptions affect Employee Retention. The mediation analysis reveals that Training 4.0 and Employee Competency mediate the relationship between i4.0 adoption and Employee Retention.This study indicates that training related to industry 4.0 and employee competencies having a skill set related to technological change affect employee retention. The role of training 4.0 and Employees’ competencies as mediators indicate that retention is influenced when employees are provided similar training for I4.0. When organizations focus on developing employee competencies, they tend to remain in the company for a long time.This study provided evidence of an empirical relationship between Industry 4.0, Employee Retention, Employee Competencies, Industry 40 readiness, Management support and Training i4.0.