Engagement as a Retention Mechanism in a State-Owned Electricity Company: Trust in Management, Reward and Recognition, and Intention to Stay

This study examines how trust in management and reward and recognition influence intention to stay among Human Capital employees of PT PLN (Persero), with employee engagement as a mediating mechanism. A quantitative explanatory design was applied using cross-sectional survey data from 395 eligible respondents, which were analyzed using partial least squares structural equation modeling. The measurement model met convergent validity, discriminant validity, and reliability requirements. The structural model shows that trust in management does not directly affect intention to stay, while reward and recognition and employee engagement have positive significant effects. Trust in management and reward and recognition are positively and significantly associated with employee engagement. Employee engagement fully mediates the relationship between trust in management and intention to stay and partially mediates the relationship between reward and recognition and intention to stay. The findings contribute to retention research by suggesting that employee engagement may explain how managerial trust is associated with intention to stay. Retention policy in state-owned enterprises should integrate trust-building, fair appreciation, and engagement-centered employee experience.