Branding Beyond Benefits: How Agile Values Strengthen Employee Retention in The It Industry

Abstract

Background: Employee retention persists as a significant challenge within the information technology (IT) sector of Sri Lanka, where the competition for proficient professionals alongside global mobility consistently contributes to elevated turnover rates. Analysing the factors that motivate employees to stay is crucial for maintaining productivity and innovation. Objective: Accordingly, this study has two main objectives they are firstly, to examine the effect of employer branding on employee retention, and secondly, to investigate the moderating role of agile values in this relationship within the Sri Lankan IT sector. Anchored in SelfDetermination Theory, this research identifies the impact of employer branding on employee retention and evaluates the moderating influence of agile values on this association. Methodology: A quantitative, cross-sectional methodology was utilized, involving data gathered from 210 IT professionals employed in technology firms located in Colombo via a structured questionnaire. The reliability and validity of the measures were confirmed through Cronbach’s alpha, composite reliability (CR), and average variance extracted (AVE). The analysis was executed using SPSS (version 24), employing hierarchical regression modelling to assess the proposed relationships. Key Findings: The findings indicated that employer brand exerts a significant positive effect on employee retention (β = 0.61, p < 0.001), suggesting that a strong and credible employer image plays a pivotal role in retaining IT Professionals. Furthermore, Agile values showcased a substantial direct influence on employee retention (β = 0.45, p < 0.01) as well as a positive moderating effect on the relationship between employer brand and employee retention (β = 0.28, p < 0.05), indicating that agile-oriented work environments strengthen the retention benefits derived from employer branding. Conclusion/ Implication: These results broaden the theoretical framework of SDT by elucidating how agile values satisfy psychological needs that amplify the effect of employer branding on retention. In practical terms, IT organizations in Sri Lanka have the potential to fortify employee loyalty and mitigate turnover by aligning their branding strategies with agile principles, thereby cultivating a collaborative, transparent, and purpose-oriented work culture that enhances intrinsic motivation and organizational commitment.