Sustaining Talent: The Role of Personal Norms in the Relationship Between Green Practices and Employee Retention

Abstract

Amid growing sustainability demands, limited research explores how green organizational practices influence employee retention through personal norms. In the Chinese manufacturing sector, where talent retention is increasingly critical amid environmental challenges, this study examined the relationships between green shared vision, green corporate social responsibility (CSR), green psychological climate, and green human resource management (HRM) with employee retention, mediated by personal norms. A quantitative research design was adopted, collecting survey data from 263 employees working in the Chinese manufacturing sector. Structural equation modeling (SEM) using Smart PLS tested the direct and mediating effects of personal norms on the relationship between green organizational practices and employee retention. The results reveal that green shared vision and green CSR significantly enhance personal norms, which positively impact employee retention. Personal norms mediate the relationships between these two practices and retention. However, green psychological climate and green HRM show no significant direct or mediated effects on personal norms and retention, suggesting the need for additional contextual alignment to enhance their effectiveness. Organizations should integrate sustainability into their strategic vision and CSR activities to foster personal norms that drive retention. Efforts such as green communication campaigns, community-centered CSR programs, and targeted green HRM policies can strengthen employees’ alignment with organizational goals and reduce turnover. This study extends the theory of planned behavior (TPB) by demonstrating the role of personal norms as a mediator, providing fresh insights into the psychological mechanisms linking green practices to employee retention within China’s manufacturing context.