A Structural Equation Model for Measuring the Impact of Employee Retention Practices on Employee’s Turnover Intentions: An Indian Perspective

Abstract

The role of human resource management practices dealing with employee turnover has been widely explored and examined in the existing literature. The majority of human resource management researchers have focused on the role of policies and practices in different sectors related to employee retention. However, less attention has been given to identify the practices and policies common across all industries and sectors. The present study attempts to identify and examine the most important practices of employee retention management and proposes a comprehensive structural equation model to measure the impact of these practices on employee’s turnover intentions. After an extensive review of literature, compensation, job characteristics, training, career opportunities and work–life balance have been identified as five important practices dealing with employee turnover and are common across all industries. These practices constitute the component factors of an employee retention management predicting employee’s turnover intentions. A five-factor scale with a 33-item measurement model has been validated in the study. Theoretical and managerial implications are discussed in the light of the findings.

Employee Participation and Employee Retention in View of Compensation

“…As suggested by Kashyap and Rangnekar (2014) that utilization of employee participation practices, that is, employee delegation, employee consultation, worker director, and participation in the tasks of worker union, organizations can plan reward and career development strategies, thus resulting in more visibility of talented employees. Employer-employee relationship should be strengthened through open door policy and regular communications so that an environment of trust can be developed between them.…”

“…In this era of hyperactive environment, the formulation and implementation of traditional human resource management (HRM) strategies and practices are not enough to retain talented workforce. With the inclusion of more and more Generation X and Y employees in the workforce, utilization of these traditional retention strategies is becoming less effective to meet the requirements of these generations (Kashyap & Rangnekar, 2014). Organizations are compelled to find gateways to be more adaptive, accommodative, and cooperative as the challenges and pressures of competition in the global changing markets are nerve breaking and highly intense (Park, Appelbaum, & Kruse, 2010).…”

“…Even though studies conducted by Agarwala (2003); Gupta (2014); Kashyap and Rangnekar (2014); Ready, Hill, and Conger (2008) have provided enough empirical evidence on the influence of employee participation practices on employee retention, still it requires an elaborated model that provides an insight on employee retention in a country like Pakistan, which is developing and facing high inflation, high unemployment, and high skilled brain drain.…”

Exploring employee retention and intention to leave within a call centre

“…The root cause of voluntary turnover may be because of organisational practices such as unfair treatment of employees, and involuntary turnover may be because of the employee's own doing such as theft or damage of the employer's property leading the employer to terminate the employment relationship. Employees' general decision to leave the organisation results in them seeking alternative employment or accepting a job offer from another organisation (Kashyap & Rangnekar, 2014). Thus, the retention of employees is necessary as the decision of an employee to stay or leave is potentially costly to the organisation (Van Rooyen et al, 2010).…”

“…Organisations can gain a competitive advantage by being proactive in terms of introducing innovative human resource practices that can be used as strategies to retain employees, namely, offering a great work environment that is safe and healthy, competitive compensation and benefit packages, allowing employees freedom to make choices on how they will perform their duties. Furthermore, training opportunities, career development, trust and fairness between employees and the employer, regular and fair performance appraisals, potential development and succession planning (Kashyap & Rangnekar, 2014) assist with better retention. Filwood (2014) emphasised on job security as a strategy to retain employees.…”