The Mediating Role of Working Conditions on the Relationship between Social Compliance and Employee Retention

Organizations operating in the global market are faced with the challenge of satisfying the requirements of buyers for social compliance. Existence of a working environment safer and comfortable for the workforce provides evidence of social compliance. Sri Lanka is regarded as a country which maintains a very high standard in relation to employing workers, in comparison with other countries in the Asia Pacific region. However, the wellbeing of employees in the apparel sector of Sri Lanka is questionable where their intention to leave is high even in the presence of social compliance. Mediating role of working conditions in the context of social compliance in retaining employees has not been the focus of many studies conducted in the apparel sector of Sri Lanka. This study aimed at identifying whether working conditions could improve the relationship between social compliance and employee retention. A pre designed questionnaire was used to collect data. The responses of a sample of 143 blue collar employees in the apparel sector of Sri Lanka revealed that working conditions mediate the relationship between social compliance and employee retention. The implication of this result is that by improving the working conditions employees can be motivated to stay in the job.