“The Impact of Work Environment on Employee Retention in the Microfinance Sector: The Mediating Role of Job Satisfaction”رسالة ماجستير

Abstract

Purpose: The primary aim of this research is to examine the mediating role of job satisfaction in the impact of the work environment on employee retention in Palestinian microfinance institutions. Methodology: The study follows a quantitative, cross-sectional design using structured questionnaires distributed to employees across nine microfinance institutions in the West Bank. Validated scales were employed to measure the constructs of work environment, job satisfaction, and employee retention. Data was analyzed through descriptive statistics, reliability assessments, correlation analysis, and Structural Equation Modeling (SEM) to test both direct and mediating effects. Results: The findings confirm that both humanistic and entrepreneurial aspects of the work environment significantly affect job satisfaction, which in turn has a positive effect on employee retention. The results show that job satisfaction fully mediates the relationship between the work environment and employee retention, emphasizing the importance of fostering supportive and empowering work conditions. Value/ Originality: This research contributes original insights to the underexplored field of human resource management in the Palestinian microfinance sector, especially within conflict-affected regions. It introduces a dual-dimensional model of job satisfaction and provides empirical validation through a robust quantitative framework, offering theoretical contributions and practical recommendations for HR policy and practice.