Abstract
The research was conducted to determine if there was a mediating effect of employee satisfaction between psychosocial hazards and retention intention among Private Higher Education Institutions (PHEI) employees. With the aid of G*power, a sample size of 120 employees of selected PHEIs in Calamba City were included through a multistage sampling technique. The Job Descriptive Index was adopted to measure employee satisfaction and retention, and the Job-Demands-Control questionnaire (CVR = 1.00) (Cronbach’s α = .767) was adapted to measure psychosocial hazards. Employing mediation analysis, data were gathered and analyzed using regression and the Sobel test. It was revealed that among PHEI employees, the level of psychosocial hazards was very low, and the level of employee satisfaction and retention was high. It was also revealed that psychosocial hazards had a significant impact on employee satisfaction (B = 2.281, p<.001), wherein psychosocial hazards accounted for 40.4% of the variance in employee satisfaction, employee satisfaction had a significant impact on retention level (B = -.996, p<.001) wherein, employee satisfaction accounted 63.9% of the variance in retention, and psychosocial hazards had significant impact with retention level (B = .691, p <.001) wherein, psychosocial hazards accounted 39.4% of the variance in retention. Furthermore, employee satisfaction carried a significant effect on the relationship between psychosocial hazards and retention of PHEI employees which meant that the relationship between psychosocial hazards and retention is mediated by employee satisfaction. Lastly, an action plan was proposed intended to be used by the Human Resource Department of each PHEI.