Abstract:
Employee retention remains a critical task in Sri Lankan apparel sector, particularly in the Katunayake
Export Processing Zone (EPZ). Using coworker support as a moderator and employee engagement as a mediator,
this study uses a quantitative research design to investigate the link between employer branding and employee
retention. 126 staff-level employees from three apparel companies in the Katunayake Export Processing Zone
(EPZ), Sri Lanka were asked to complete a structured questionnaire with a 5-point Likert scale. Representativeness
across subgroups was guaranteed by the stratified random sampling technique. Using SPSS, statistical analyses
were conducted to assess the hypotheses, including correlation, regression, mediation, and moderation analysis.
Bartlett's Test of Sphericity, KMO coefficients, and Cronbach's alpha were used to verify validity and reliability.
Employer branding has a significant effect on employee engagement (r = 0.872, p < 0.01) and retention (r = 0.843,
p < 0.01), according to this study. Employer branding accounts for 76% of employee engagement and 71.1% of
employee retention variance, according to regression study. The association between employer branding and
retention is partially mediated by employee engagement, according to mediation analysis (indirect impact =
0.1833, p < 0.05). The beneficial impact of employer branding on employee engagement is reinforced by coworker
support, according to moderation analysis (R-squared change = 0.188, p < 0.001). To improve engagement and
retention, these findings highlight the necessity of a strong brand and a positive work environment. The examine
gives actionable insights for groups to cope with retention challenges, emphasizing the importance of strategic
employer branding, fostering engagement, and co-worker support. However, the studies are restrained via its
attention at the Katunayake EPZ, go-sectional layout, and reliance on self-suggested information. Future studies
must explore longitudinal research, extra variables along with management and repayment, and tailor
interventions to organizational contexts. The findings function a realistic framework for enhancing employee
retention in competitive industries.
