Articles
DOI DOI: 10.62441/actainnovations.v63i.1081

A MECHANISM-BASED MODEL OF EMPLOYEE RETENTION IN THE OIL AND GAS INDUSTRY: THE ROLE OF EMPLOYER BRANDING, ENGAGEMENT, AND WORK-LIFE BALANCE

Kartika Dwi Jayanti Pranomo1, Laurence Laurence1, Yohana F.C.P. Meilani1
  1. 1 Universitas Pelita Harapan, Indonesia.

Abstract

This study explores employee retention in the Indonesian oil and gas industry through a mechanism-based perspective. Recognizing that previous research often assumes direct links between organizational conditions and retention, this study instead conceptualizes retention as an outcome of interconnected organizational, psychological, and contextual factors. Specifically, employee engagement is identified as the psychological mechanism through which employer branding influences retention, while work-life balance serves as a contextual moderator. Data was gathered from 208 employees and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that employer branding significantly boosts employee engagement and lowers turnover intentions, with engagement partially mediating the effect of employer branding on retention. Furthermore, work-life balance strengthens the positive relationship between engagement and retention. These findings suggest that long-term employee retention is best understood as a dynamic process shaped by both psychological involvement and supportive organizational practices, rather than by direct organizational factors alone.

How to Cite

Pranomo, K. D. J., Laurence, L., & Meilani, Y. F. (2026). A MECHANISM-BASED MODEL OF EMPLOYEE RETENTION IN THE OIL AND GAS INDUSTRY: THE ROLE OF EMPLOYER BRANDING, ENGAGEMENT, AND WORK-LIFE BALANCE. ACTA INNOVATIONS, 63, 52–73. https://doi.org/10.62441/actainnovations.v63i.1081
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