Beyond practicing: understanding the influence of ESG perceptions on employee retention

Purpose This study aims to investigate how perceived environmental, social and governance (ESG) factors influence employee retention, with a focus on the mediating roles of pride and satisfaction and the moderating role of employees’ pro-environmental behavior. Design/methodology/approach Set in Brazil, an emerging market with complex socioeconomic and environmental challenges, this study used survey data from 237 employees. And structural equation modeling was used to analyze the relationships among ESG perceptions, satisfaction, pride and retention. Findings The results highlight that ESG perceptions significantly enhance employee retention through increased satisfaction and pride. In addition, employees’ pro-environmental behaviors strengthen the positive relationship between ESG perceptions and retention. Originality/value This study provides insights into the intersection of ESG factors and employee behaviors in shaping retention strategies, offering implications for both scholars and practitioners, especially in emerging market contexts like Brazil.