Hybrid work is often presented as an inherently beneficial arrangement that improves employee retention through flexibility and autonomy. However, this assumption remains underexamined, particularly in contexts where flexibility may not directly translate into stronger organisational attachment. Drawing on job demands–resources (JD-R) theory, self-determination theory (SDT) and social exchange theory (SET), this study examines whether hybrid work functions as a direct retention mechanism or whether its influence depends on underlying psychological processes. Specifically, the study investigates the roles of work–life integration and employee engagement, including their sequential mediation, in shaping employees' intention to stay.
The study adopts a quantitative research design using survey data collected from 258 full-time employees working under hybrid arrangements in the Indian information technology sector. Data were analysed using confirmatory factor analysis, structural equation modelling, and bootstrapped mediation analysis to examine the direct and indirect relationships among hybrid work, work–life integration, employee engagement and intention to stay.
Hybrid work was positively associated with work-life integration and employee engagement, but its direct effect on intention to stay was comparatively weak. Employee engagement emerged as the strongest predictor of intention to stay, and the indirect effects of hybrid work, particularly through employee engagement and the sequential pathway via work-life integration and engagement, were stronger than the direct effect.
The findings offer several practical insights for organisations implementing hybrid work policies. First, the results suggest that hybrid work alone does not automatically enhance employee retention. Instead, organisations must ensure that hybrid arrangements genuinely support employees' ability to integrate their professional and personal responsibilities. Second, managers should recognise that the effectiveness of hybrid work depends on how it shapes employees' daily work experiences. Policies that provide flexibility without adequate communication, coordination, and managerial support may fail to generate meaningful engagement. Third, organisations should prioritise initiatives that strengthen employee engagement within hybrid environments. Practices such as supportive leadership, clear performance expectations, and opportunities for meaningful work can enhance employees' psychological connection with their roles, thereby strengthening retention.
This study contributes to the hybrid work literature by moving beyond flexibility-centred explanations and offering a more nuanced account of how hybrid work shapes employee retention. It extends the job demands–resources theory by showing that hybrid work should not be treated as a uniformly positive job resource with automatic retention benefits. Its value depends on whether flexible work arrangements generate supportive employee experiences that improve work–life integration and, more importantly, strengthen employee engagement. In doing so, the study positions hybrid work as a conditional resource whose retention value operates primarily through psychological and motivational mechanisms.
