Examination of HRM practices in relation to the retention of Chinese Gen Z employees

Abstract

Employee retention has attracted the attention of both scholars and practitioners, especially with the gradual entry of Gen Z employees into the workplace. HRM literature indicates that the employee retention research stream in the context of Gen Z employees requires further development. Based on an exploratory study, this research has identified four HRM practices influencing the retention of Gen Z employees: supportive working environment, pay, training and development, and role clarity. An empirical investigation using 529 questionnaires was used to examine the impact of these HRM practices on retaining Gen Z employees with an emphasis on the moderating role of employee gender. The findings of PLS-SEM showed that the four HRM practices have a significant effect on employee retention. The multi-group PLS analysis revealed that a supportive working environment and training and development practices are more important for female employees, whereas pay and role clarity had a salient impact on retaining male employees. Based on the empirical findings, HR managers may devise suitable intervention mechanisms to encourage the retention of Gen Z employees through maintaining a supportive work environment, providing fair and competitive pay, providing effective training and development, and clarifying job duties and responsibilities.