Do human resource management practices inspire employees' retention?

Abstract

This study examines the relationship between the human resource management practices implemented by the organization and employees' motivated intention to stay and work effectively for the organization. Human resource management practices deployed in study are training and Development, development of teams, performance appraisal, internal communication system, employment security, person-organization fit, employee empowerment and reward and compensation. Four hundred questionnaires were distributed among the middle management cadre employees of textile industry, out of which, 303 questionnaires completed in all respects were received back with a response rate of 75.75%. It is explored that four human resource management practices: person-organization fit, employment security, communication and training and development are contributing strongly (adjusted R2 = 0.782) in developing the employees' intentions to stay with organization. Further, strong positive inter-relationships were found between human resource management practices and employees' retention. It is concluded that adoption of human resource management practices enhances employees' retain ability of organizations.