HOW JOB SATISFACTION AND PERSON–ORGANIZATION FIT REDUCE TURNOVER INTENTION IN SMES: THE MEDIATING ROLE OF EMPLOYEE ENGAGEMENT

Abstract

This study aims to analyze the influence of job satisfaction and person–organization fit on turnover intention and to examine the role of employee engagement as a mediating variable among employees of small and medium enterprises (SMEs). The study used a quantitative approach with a survey of 266 employees from 10 SMEs in Malang City, selected through purposive sampling. Data analysis was conducted using Structural Equation Modeling (SEM) with a two-stage approach to test validity, reliability, and structural relationships between variables. The results showed that job satisfaction and person–organization fit had a negative and significant effect on turnover intention. Furthermore, employee engagement was shown to significantly mediate the relationship between job satisfaction and turnover intention, as well as between person–organization fit and turnover intention. These findings indicate that increased job satisfaction and individual–organization value congruence can reduce employee turnover intention, both directly and indirectly through increased work engagement.