The Mediating Effect of Stress Management Competency on the Relationship between Job Satisfaction and Employee Attrition: Evidence in a Local Government Unit

Abstract

Purpose: The workforce or manpower is one of the 4Ms of production and is considered the most critical factor of production. It is the employees who determine whether the organization succeeds or fails. The primary goal of this study was to determine the mediating effect of stress management competency on the relationship between job satisfaction and employee attrition.
 Materials and Methods: A non-experimental quantitative research design was used, specifically the descriptive-correlational and mediation approaches. A face-to-face survey was used to obtain data. The data were obtained from 322 City Environment and Natural Resources employees, including regular and contractual employees, job orders, and allied service personnel selected through stratified random sampling. The statistical tools used to analyze and interpret the data were descriptive statistics, Pearson’s R, regression procedures, and Sobel’s Z-test. The mediation effect on the relationship between the independent and dependent variables was ascertained by path analysis (Structural Equation Modelling, or SEM) and the Medgraph Sobel’s Z-test.
 Findings: Results revealed a high descriptive level of job satisfaction and employee attrition and a very high descriptive level of stress management competency. It was found that job satisfaction and employee attrition, job satisfaction and stress management competency, and stress management competency and employee attrition are significantly related. The results revealed that stress management competency partially mediated the relationship between job satisfaction and employee attrition.
 Implications to Theory, Practice and Policy: Upskilling programs improve employees’ skills and knowledge, making them valuable assets to the organization. Employees may invest in both hard skills and soft skills. Organizations may also continue to recognize the accomplishments and achievements of their employees no matter how small or big they are because being recognized at work will boost employees' morale, which will also lead to efficiency and productivity. The concept of Diversity, Equity, and Inclusion (DEI) should continue to be practiced for long-term solutions to discrimination issues. Organizations, through their HRM, may continue formulating holistic programs and schemes that promote employees' physical and mental health, foster a positive working environment, a harmonious relationship, competitive salary, and benefits packages, and strengthen retention programs.