FACTORS IMPACTING EMPLOYEE RETENTION IN THE SAUDI ARABIAN EDUCATION SECTOR, MEDIATED BY EMPLOYEE SATISFACTION AND MODERATED BY GENDER

Abstract

Saudi Arabia's higher education system suffers from poor employee retention as we as low employee satisfaction. For many years, employment in Saudi universities has been unstable, as shown by the high turnover rates among academic staff, especially in public universities. This study examines factors that influence employee retention and satisfaction within Saudi Arabia's higher education sector, focusing on public universities where turnover has risen from 1.7% in 2020 to 2.3% in 2022. The research explores the mediating role of employee satisfaction between five key factors (work engagement, coworker relationships, compensation packages, perceived organizational support, and a supportive work environment) and their impact on employee retention. It also investigates the role of gender in these relationships. Using a quantitative approach, the study surveyed 384 academic staff members from public universities and applied structural equation modeling to test the proposed hypotheses. Results show that work engagement, perceived organizational support, and a supportive work environment directly and positively affect employee retention, regardless of gender. However, the effects of coworker relationships and compensation packages on retention were not significant for either gender. Notably, while work engagement and a supportive work environment significantly enhance employee satisfaction, coworker relationships do so only for females, and compensation packages show no significant relationship with satisfaction for either gender. These findings reveal a complex interplay of factors influencing satisfaction and retention, underscoring the need for tailored strategies that reflect gender differences and cultural nuances in the educational sector. This study provides practical implications for human resource policies in Saudi public universities, highlighting the importance of gender-specific retention strategies to support a diverse workforce. The findings also offer guidance for policymakers and university administrators to create a more supportive and engaging work environment that aligns with the aspirations of Vision 2030 in Saudi Arabia.