Exploring the Relationship Between Employer Branding and Employee Retention of Staff Level Employees: The Mediation Effect of Employee Engagement and the Moderating Role of Co-worker Support in the Apparel Sector Companies at Katunayake Export Processing Zone, Sri Lanka

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.