Mediating and Moderating Effects of Job Satisfaction, Organizational Commitment, Perceptions of External Markets, and Work-Life Balance on Employee Retention

Author

Naya J. Gillespie

Date of Award

3-2025

Document Type

Thesis

Degree Name

Master of Science

Department

Department of Systems Engineering and Management

First Advisor

John J. Elshaw, PhD

Abstract

Employee retention remains a critical challenge for organizations across industries, particularly in environments with high turnover rates and competitive external job markets. This thesis examines the correlations between organizational commitment, job satisfaction, work-life balance, and perceptions of external job markets to uncover their collective and individual impacts on employee retention. Using quantitative research design, data was collected through an online survey of 240 participants across various hierarchical levels. Key findings indicate that organizational commitment and job satisfaction significantly influence retention, with job satisfaction also serving as a mediator between organizational commitment and turnover intentions. Work-life balance plays a direct role in retention, while perceptions of external job markets both predict employee retention and moderate the relationship between job satisfaction and retention. However, work-life balance was not significantly related to perceptions of external markets, and external market perceptions did not mediate the relationship between work-life balance and retention. These results provide insights for organizations seeking to enhance retention. Recommendations include prioritizing strategies to improve job satisfaction, strengthening organizational commitment, and monitoring and mitigate the influence of external market perceptions by emphasizing unique internal benefits and competitive compensation. By utilizing the results of this study, leaders can develop tailored approaches to increase retention and foster a more engaged, satisfied, and committed workforce.

AFIT Designator

AFIT-ENV-MS-25-M-051

Comments

An embargo was observed for this posting.

Distribution A: Approved for public release, Distribution Unlimited. PA case number 88ABW-2025-0378

Recommended Citation

Gillespie, Naya J., "Mediating and Moderating Effects of Job Satisfaction, Organizational Commitment, Perceptions of External Markets, and Work-Life Balance on Employee Retention" (2025). Theses and Dissertations. 8285.
https://scholar.afit.edu/etd/8285