Building Employee Loyalty: Strategies to Reduce Turnover Intention in Companies in the Digital Era

Abstract

The rapid advancement of digital transformation has significantly reshaped human resource management practices and employee expectations in modern organizations. While digital technologies offer greater efficiency and flexibility, they also increase employee mobility and intensify competition in the labor market, leading to higher turnover intention. This study aims to examine the role of employee loyalty in reducing turnover intention in companies operating in the digital era, as well as to identify key strategies that strengthen employee retention. Using a quantitative research design, data were collected through an online survey of employees working in organizations that have implemented digital work systems. The data were analyzed using multiple regression and structural equation modeling techniques. The results indicate that employee loyalty has a significant negative effect on turnover intention. Furthermore, employee engagement, digital human resource practices, and work flexibility significantly influence turnover intention both directly and indirectly, with employee engagement acting as a partial mediating variable. These findings suggest that organizations should adopt integrated, employee-centered strategies that align digital HR practices with engagement and flexibility initiatives to enhance employee loyalty and reduce turnover intention. This study contributes to the literature by providing empirical evidence on employee retention strategies in digitally transformed organizational contexts.