The mediating role of employee engagement in the relationship between employer branding and turnover intention: Evidence from government banks

Abstract

This study investigates the mediating role of employee engagement in the relationship between employer branding and turnover intention in government banks. While employer branding has been widely examined concerning talent attraction, its influence on employee retention through engagement in the public banking sector remains underexplored. A quantitative research design was employed using a cross-sectional survey of 160 employees from government banks in Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4.0. Established scales were adapted to measure employer branding, employee engagement, and turnover intention. Reliability, convergent, and discriminant validity were assessed, and hypotheses were tested through bootstrapping with 5,000 resamples. The results demonstrate that employer branding has a significant positive effect on employee engagement and a significant negative impact on turnover intention. Employee engagement also negatively influences turnover intention. Mediation analysis confirmed that employee engagement partially mediates the relationship between employer branding and turnover intention. These findings highlight the dual role of employer branding: directly reducing turnover intention and indirectly enhancing engagement. This study contributes to the literature by extending employer branding research into the retention domain, confirming the mediating role of engagement, and providing empirical evidence from government banks, a context rarely examined in prior studies. For managers and policymakers in government banks, the findings underscore the importance of strengthening employer branding and fostering employee engagement as strategic levers to reduce turnover, enhance workforce stability, and improve organizational performance.