The mediating role of employee loyalty and job engagement relationship between job satisfaction and intention to leave among bank employees in Mongolia

Abstract

Organizations need to focus on employee loyalty, commitment and retention in a dynamic business environment to gain a competitive advantage over rural areas.  The success factors for organizational development and well-being are excessively contingent on engaged and skilled employees. This study is anticipated to examine the mediating role of employee loyalty and job engagement on the relationships between job satisfaction and intention to leave in the case of bank employees in Mongolia. The study used data from 444 employees across two private banks in Mongolia. Reliability analysis, correlation analysis, and structural equation modeling (SEM) were used to analyze the data. Results showed a moderately positive relationship between job satisfaction and job engagement and a negative relationship with the intention to leave. Employee loyalty had a weak and negative correlation with job engagement. Employee loyalty was found to partially mediate the relationship between job satisfaction and the intention to leave while job engagement showed no mediation effect. Improving job satisfaction can enhance employee loyalty and reduce intentions to leave the bank. However, enhancing engagement may not affect turnover intentions. Banks should focus on building loyalty among satisfied employees to retain talent. The mediating role of loyalty highlights its importance in influencing whether satisfied employees consider leaving. This study demonstrates the importance of employee loyalty in partially explaining the mechanism behind the relationship between job satisfaction and retention among Mongolian bank employees. The findings provide insights to help banks improve talent management strategies and retention.