The Impact of Non-Mandatory Employee Benefits on Organization?s Employee Turnover Intention: The Mediating Role of Organizational Commitment

The purpose of this paper is to analyze the relationship between non-mandatory employee benefits and employee turnover intention. The paper explores the mediating and moderating roles of organizational commitment and organizational justice respectively within the relationship using the Social Exchange Theory. Data was collected from 505 Chinese and Malawian based employees using a questionnaire as the preferred data collection method and structural equation modeling has been utilized to analyze the data obtained from the two regions. The findings indicate that non-mandatory employee benefits implementation and satisfaction has positive impact on organizational commitment constructs and a negative impact on employee turnover intention. The findings also support findings by other scholars that organizational commitment negatively associates with employee turnover intentions. One of the main objectives of this paper was to assess the moderating role of organizational justice in the relationship; the findings however failed to support any significant moderating role of the construct. Findings in this paper illustrate that implementation of non-mandatory employee benefits remains an important strategy to attracting, retaining and motivating employees. Study limitations and future study suggestions are further discussed.