Journal of Economics and Behavioral Studies (ISSN: 2220-6140) Vol. 13, No. 5, pp. 1-11, October 2021 1 The Effect of Black Tax on Employee Engagement: The Mediating Role of Idiocentrism-Allocentrism-A Case of Pharmaceutical Industry in Zimbabwe Vakira, E., Nikisi, D., Ndlovu, N., Shumba, V., Ncube, C. M. & Mpofu, B. D. Department of Human Capital Development, Lupane State University (LSU) Bulawayo, Zimbabwe eltonvakira@gmail.com Abstract: Employees in the Pharmaceutical industry are coming late to work and knocking off early. These actions unveiled by the employees are likely to incur economic costs on the employer, occasioned by low employee productivity. Owners of production have expressed concern over the general low staff morale in the pharmaceutical sector. While most studies have concentrated on internal job-related factors as drivers of employee engagement, this study seeks to assess employee engagement as being influenced by black tax, an external factor. The main aim of the research was to establish the influence of black tax on employee engagement, being mediated by idiocentrism-allocentrism, particularly focussing on the pharmaceutical manufacturing and retailing industry in Bulawayo, Zimbabwe. The study employed the philosophical approach of pragmatism to guide the whole research. The researcher adopted a multi-stage sampling technique supported by the census technique to pick participants from the population. Closed and open- ended questionnaires were used to collect data from qualified pharmacists who are working in both the manufacturing and retailing industry in Bulawayo. Statistical Package for Social Sciences v23 (Process v3.5 by Andrew F. Hayes) was used to test the hypothesised relationship among variables. Qualitative data were analysed using thematic analysis. The results suggest that black tax directly influence employee engagement in the presence of a mediator (idiocentrism-allocentrism). Furthermore, the results indicate that the indirect coefficient was partially significant, which means that idiocentrism-allocentrism has a partial influence on employee engagement. The researchers recommend that management should ensure that employees are motivated all the time. They should implement an open-door policy so that employees can share their issues that affect their engagement level at work. Keywords: Black Tax, Employee Engagement, Idiocentrism-allocentrism, Social Exchange, Behavioural. 1. Introduction Black tax is referred to extra money that black working people or entrepreneurs are spending every month to support their extended families (Magubane, 2016). It can also be defined as a financial obligation which the working class pay to look after their relatives who are not capacitated to fend for themselves (Ratlebjane, 2015). While looking at black tax concerning who it affects, in the South African society, Ratlebjane, (2015) established that black tax was almost exclusively associated with working-class black people. This added pressure, over and above work-related activities tends to reduce and disrupt employee concentration, commitment, application and total devotion to work, hence influencing effective employee engagement. Engaged employees are more productive for the firm (Johnson, 2016). Employee engagement is a critical component that can augment the growth of the organisation in any sector or industry. Employee engagement is clearly expressed by Knight & A. (2009) as the dedication, vigour and absorption which is exhibited by employees towards their work. Employee engagement enhances production which can lead to maximum output due to effort displayed by employees. Workers are a veritable instrument of organisational success and hence it is essential to keep them engaged in their work (Tran, 2018). If employees are fully committed to the organisation, its business outcome will also improve and customer satisfaction is also achieved easily. However, in Zimbabwean culture, it is the norm for those who are financially stable to support their relatives who are weak in terms of financial capabilities. In this culture, grown-up children are obligated to look after their parents and younger siblings. So, this research is very important because it highlights the effect of black tax, an external variable on employee engagement. In 2008, the Gallup Management Group pointed out that employee engagement is important because engaged employees have 51% lower turnover, 27% less absenteeism, 18% more productivity and 12% higher profitability (Balaji, 2007). In the pharmaceutical industry, employees play a prolific role in the research and development of new drugs, manufacturing of human drugs, and contributing to the Gross Domestic Product of the country. However, the sector is contributing less as compared to other sectors in the country. The table