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Purpose

This paper aims to examine the mediating role of job satisfaction in the relationship between psychological empowerment and employee engagement. There is also an investigation of the moderating effect of religiosity on psychological empowerment and job satisfaction as well as job satisfaction and employee engagement.

Design/methodology/approach

Data were obtained from 265 employees working in the service industry in Nigeria. The hypotheses were tested and analysed using structural equation modelling and bootstrapping procedure.

Findings

The results show that the direct relationship between psychological empowerment and employee engagement was partially mediated by job satisfaction. Intrinsic religiosity (IR) was found to have a moderating effect on job satisfaction and employee engagement. IR and extrinsic religiosity (ER) does not moderate the impact of psychological empowerment on job satisfaction and employee engagement. ER was found to have a negative insignificant moderating effect on job satisfaction and employee engagement.

Research limitations/implications

A cross-sectional study reveals the relationship between variables at one point in a time. As such this study may not precisely predict the dominant pattern of the association over time. Future research can use longitudinal study to establish a dominant pattern of relationships.

Practical implications

This study informs human resource practitioners and scholars by demonstrating that religiosity and job satisfaction are important factors that should be considered in managing and keeping employees engaged.

Originality/value

To the best of the authors’ knowledge, this study is among the first atte`mpts to enrich the literature in the fields of psychological empowerment and employee engagement by highlighting organisational mechanisms that amplify the relationship.

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