This study investigates the impact of psychological capital on employees' intention to remain in the United Arab Emirates (UAE) telecommunications sector, examining job satisfaction as a mediator and work engagement as a moderator. The study is based on Locke’s affect theory of job satisfaction and the Aon Hewitt work engagement model.
A quantitative, cross-sectional design was used. The sample included employees from major UAE telecommunications organizations, such as Etisalat, Du and smaller providers. Data from 412 employees were analyzed using structural equation modeling (SmartPLS).
Job satisfaction is a significant predictor of the intention to stay. Among the dimensions of psychological capital, only optimism is positively linked to job satisfaction, while hope, resilience and self-efficacy are not. Resilience negatively forecasts the intention to stay. Hope indirectly affects the intention to stay through job satisfaction. Significant interaction effects were found between hope and both vigor and dedication, and between resilience and all three dimensions of work engagement (vigor, dedication and absorption).
Organizations should carefully design psychological capital development initiatives, as not all dimensions produce favorable outcomes. Monitoring job satisfaction and implementing targeted engagement strategies can enhance employee retention.
This study extends existing theories by offering new insights into how psychological capital, job satisfaction and engagement interact to influence employee retention in the UAE telecommunications sector.
