Why Millennials Didn't Stay? The Role of Employee Engagement as A Mediator in The Relationship Between Person-Organization FIT and Organizational Commitment

The millennial generation is known as a generation that likes to change occupations, so they are considered less committed to their work. The main reason why millennials often change occupations is because there is a mismatch between the working conditions, values, and culture adopted by millennials and their work. Therefore, an organization needs to have congruent values, culture, ways of fulfilling needs, and organizational goals with employees from the millennial generation. This overall fit is called Person Organization FIT or P-O Fit. P-O fit has previously been found to have a significant role in predicting employee commitment. However, the portion of this influence is still minimal, so researchers hypothesize that other variables are needed to bridge the interaction between P-O Fit and Organizational commitment. Based on the literature analysis, the employee engagement variable is considered suitable as a bridge or mediator variable to strengthen the relationship between P-O fit and organizational commitment. This research was conducted on 277 respondents, millennial employees in Indonesia. The data collection method used was a survey method with purposive sampling. This research found that P-O Fit is proven to need to be mediated by employee engagement in predicting Organizational commitment. This is because after the indirect effect occurs, the relationship between P-O Fit and Organizational Commitment becomes insignificant, resulting in a fully mediated interaction between P-O Fit and Organizational Commitment mediated by Employee Engagement.