The Mediating Role of Employee Engagement on the Link Between Person-Organization Fit and Turnover Intention: Evidence from Business Process Outsourcing Companies in the Philippines

Abstract

This study is grounded in the social exchange theory. The present study aims to investigate employee engagement's intervening role in the relationship between person-organization fit and turnover intention of business process outsourcing (BPO) companies in Metro Manila, Philippines. The participants were identified using a purposive sampling technique from BPO employees (n = 302). Quantitative research and a predictive-causal approach were used to measure interrelationships among constructs, and partial least squares–structural equation modeling (PLS-SEM) was employed to estimate the parameters of the structural model. The findings revealed that person-organization fit and employee engagement significantly and negatively affect turnover intention. Moreover, a significant and positive relationship between person-organization fit and employee engagement was also observed. Employee engagement was also found to significantly and negatively mediate between person-organization fit and turnover intention. Future research includes developing a study comparing BPO companies to other industries based on the three latent variables used in this undertaking.