The Mediating Role of Job Satisfaction in the Relationship between FWAs and Turnover Intentions

The problem of employee turnover has been investigated in recent years because more and more countries and organizations are faced with the lack of an adequate labor force. The new generation of employees (Y and Z generations), contemporary political, social, and economic challenges, and the COVID-19 pandemic have raised new issues in human resource management (HRM), especially concerning turnover intentions. In such situations, companies need to create working conditions that will attract, motivate, and retain employees. One possible response is the usage of flexible working arrangements (FWAs) as a more flexible way of organizing traditional jobs and working positions; these arrangements allow employees more possibilities to maintain work-life balance. The main aim of this paper is to investigate the relationship between FWAs and turnover intentions of employees, and the mediating effect of job satisfaction. The theoretical research is based on the literature review. The empirical part of the paper is based on the analysis of a sample of 219 employees from organizations in Serbia. The authors used descriptive statistics and the PLS-SEM method to investigate proposed relations. The results pointed to the positive effects of FWAs and job satisfaction on turnover intentions. In addition, there is an indirect effect of FWAs on turnover intentions through job satisfaction. FWAs may contribute to increasing job satisfaction and, in turn, job satisfaction contributes to decreasing turnover intentions. Job satisfaction mediates this relationship, and employees that are offered FWAs may experience a lower level of turnover intentions when they are satisfied on the job.