The Effect of HR Practices on Employee Retention - Literature Review

This paper presents a literature review investigating the impact of Human Resource (HR) practices on employee retention, with a focus on the mediating role of affective commitment. It addresses the challenges organizations face in retaining talented employees amid competitive environments and skills shortages. The review examines theoretical and critical literature, highlighting the importance of aligning HR practices with organizational objectives to promote workforce ability, motivation, and opportunity. Key research questions explore the effect of HR practices on employee retention, the influence of employee commitment, current strategies for reducing turnover, and alternatives for enhancing retention. The methodology section outlines a positivist approach, employing a mixed-methods research design with both qualitative and quantitative data collection techniques, including interviews, observations, and secondary data analysis. The study also addresses potential challenges and ethical considerations to ensure the integrity and validity of the research findings. The research aims to determine the model that best illustrates the relationship between HR practices and employee retention.

Effect of Human Resource Practices on Employee Retention
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Contents
INTRODUCTION......................................................................................................................3
1.1 Background of the Study..................................................................................................3
1.2 Aims of the Study.............................................................................................................4
1.3 Objectives of the Study....................................................................................................4
1.4 Research Questions..........................................................................................................4
LITERATURE REVIEW...........................................................................................................5
2.1 Theoretical Literature.......................................................................................................5
2.2 Critical Literature.............................................................................................................6
2.3 Conceptual Framework....................................................................................................6
2.3.1 HR practices...............................................................................................................6
2.3.2 Affective commitment...............................................................................................6
2.3.3 Employee retention....................................................................................................7
METHODOLOGY.....................................................................................................................8
3.1 Philosophical Approach/ Paradigm..................................................................................8
3.3 Data collection..................................................................................................................9
3.5 Challenges and Limitations............................................................................................10
3.6 Ethical matters................................................................................................................10
RESEARCH TIMETABLE.....................................................................................................12
Bibliography.............................................................................................................................13
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INTRODUCTION
1.1 Background of the Study
The business world has experienced massive growth and tremendous revolutionary changes
during the last 2-3 decades. Some of these changes include privatisation, globalisation, and
progression. Baruch (2004) asserts that these changes impact the lives of workers, work itself,
and the society at large, prompting organisations to significant degrees of adaptable, limitless
and innovative exercises. The approaches to conducting business shift from the conventional
specialist culture to the modern computerised data management. Consequently, the workforce
needs to be trained in higher refined and more sophisticated methods of business resulting in
the diminishing of administrative hierarchical faithfulness.
Highly skilled employees tend to work on projects that enhance their skills and knowledge,
and in the end, boost their career and future earnings. Therefore, the employees tend to leave
their current employer at the slightest notice of a greener pasture elsewhere. The challenge
for many employers is the difficulty in retaining talented employees amid a competitive
environment with a shortage of experienced candidates (Chiang & Hsieh, 2012; Al-Emadi,
Schwabenland, & Wei, 2015). Typically, businesses that stand out from other organisations
can identify the trends in skilled culture and adapt accordingly (Hamid & Al-Damoe, 2012).
It is the work of the human resource (HR) manager to ensure that employees make a
committed and valid stand to remain faithful to the organisation to generate best results
characterised by expanded deals, increased efficiency, gainfulness and improved
representative maintenance (Hamid et al., 2012). As such, this paper proposes to carry out a
research study to determine the effect of human resource practices on employee retention.
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1.2 Aims of the Study
The primary aim of the study will be to determine the model that best illustrates the
relationship between the HR practices and employee retention. Additionally, the study will
investigate the mediating outcome of affective commitment from the relationship between
employee retention and HR practices.
1.3 Objectives of the Study
The general objective of the study will be to determine the effect of HR practice on employee
retention. Other specific objectives will include:
1) To investigate the mediating effect of employee commitment on HR practices.
2) To examine existing strategies for reducing employee turnover.
3) To determine the best alternatives for employee retention.
1.4 Research Questions
The study will be guided by the following research questions:
1) What is the effect of HR practice on employee retention?
2) How does employee commitment affect HR practices?
3) What are the current strategies for reducing employee turnover?
4) Which are the best alternatives for employee retention?
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LITERATURE REVIEW
This section will discuss relevant literature relative to the HR practices’ impact of employee
retention. It will include the theoretical literature review, the critical literature review, and the
conceptual framework.
2.1 Theoretical Literature
Kehoe and Wright (2013), researched on “The impact of human resources practices on
employees’ attitudes and behaviours” with the aim of understanding the relationship between
high-performance HR practices on absenteeism, intent to remain in the business (employee
retention), and behaviour in the organisation. The Study shed light on the mediating role of
the organisation in the relationship between HR practices and employee behaviour and
attitude. Kehoe and Wright’s study focused on the hospitality industry and concluded that
employees’ collective perspective of high-performance HR practices relate to organisational
commitment and behaviour, employee retention, and are negatively connected to
absenteeism. Moreover, the study asserts that affective commitment moderately mediates the
relationship between high-performance HR practice perceptions and organisational
behaviour, and fully mediates the relationship between high-performance HR practices and
employee retention (Kehoe & Wright, 2013).
A similar study was conducted by Dhiman and Mohanty (2010) to determine how HR
practices affect attitudinal outcomes and employee turnover in the Indian oil and Gas
exploration and production sector. The experimental study surveyed a sample population of
450 high-level employees guided by the mediation hypothesis. The study concluded that
there exists a relationship between HR practices, affective commitment and turnover intent.
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2.2 Critical Literature
Other studies have shown that consistent systems emphasising HR practices are likely to
better support sustainable performance outcomes than individual practices (Delery & Shaw,
2001). Secondly, all HR systems are not mutually effective (Delery & Shaw, 2001; Wang,
Bruning, & Peng, 2007). The particular HR practices included in high-performance HR
systems have been different across studies; a common thing across methods in any high-
performance approach is the focus on promoting workforce ability, motivation, and
opportunity for performing behaviours consistent with organisational objectives and (Al-
Emadi, Schwabenland, & Wei, 2015). Other HR practices such as improvement, acquisition,
reconciliation upkeep, and remuneration propose to increase adequacy in associations and to
hold skilled workers but are hardly engaged, and the proposals are seldom on theoretical
grounds (Mahal, 2012).
2.3 Conceptual Framework
2.3.1 HR practices
HR practices impact workers by influencing the operational, financial, and share value
execution. The employees’ behaviour and attitude towards the HR structure depend on the
HR practices that the representatives of the organisation see as existing in their work setting
(Kehoe & Wright, 2013). Hamid and Al-Damoe (2012) stated that if the employees of an
organisation have a positive perspective of HR practices, they are more likely to put effort
and resources into bringing exceptional customer services.
2.3.2 Affective commitment
Affective commitment is an employer’s or employee’s emotional connection or attachment to
the organisation. Employees with affective commitment will stay in the organisation and
work hard to attain the goals of the organisation (Long, Lim, & Chuen, 2016). Affective
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commitment is an emotional attachment that drives the employees to remain in the business
because of the organisation’s interest in their benefits (Zargar, Vandenberghe, Marchad, &
Ayed, 2014). Individuals are typically willing to behave in a particular manner based on the
organisation’s point of view on account of loyalty relative to strong emotional attachment to
the organisation (Mahdi, Mohd, & Almsafir, 2014).
2.3.3 Employee retention
The concept of employee retention described in the literature varies. Hamid and Al-Damoe
(2012) distinguished the idea as a global procedure by any organisation to benefit a domain
which inspires employees to stay in the organisation for the long run. Mandhanya (2015)
differentiated employee retention as an action taken by the administrative department to keep
employees from leaving the organisation by giving them compensations for doing their jobs
adequately, guaranteeing a harmonious workplace.
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METHODOLOGY
This section describes the approach to be used in conducting the research. In essence, it
includes the philosophical approach/paradigm, strategy, data collection, data analysis,
challenges and limitations, and the ethical matters.
3.1 Philosophical Approach/ Paradigm
Research philosophy explains the process to be followed in collecting and analysing
systematically. Understanding the philosophical approach is vital in comprehending the
research questions to choose the most relevant research strategy. This research will use the
philosophy of positivism as described by Chiang and Hsieh (2012) as it supports knowledge
acquisition using scientific analysis. The view of positivism relates research findings to the
conclusion giving no room for data manipulation. Therefore, it guarantees a valid analysis
since the respondents can be linked to their answers.
3.2 Research Strategy
The research strategy elaborates the framework that the study will use (Bryman & Bell,
2015). This paper proposes to employ a deductive approach. As such, the research will utilise
a mixed research approach that uses both the qualitative and quantitative designs. The
researcher will use these methods to answer the research questions and achieve the goals of
the study. The qualitative approach will be crucial in gathering primary data from the
respondents concerning HR practices. On the other hand, the quantitative method will be vital
in retrieving statistical information about employee retention.
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3.3 Data collection
Data collection refers to the instruments to be used in gathering data from research
respondents. The study will use interview, observation, and transcription to collect data from
the respondents regarding the research questions. The researcher will collect both primary
and secondary data. Telephone, email and Face-to-face interviews will be used during the
four weeks survey. Face-to-face interviews will allow the researcher to make pertinent
observations. The telephone interviews will be recorded for transcription. Sekaram and
Bougie (2010) indicate that the interview is an important instrument in the collection of
relative data as it allows the respondents to air their opinions concerning the research
questions. Sekaram da Bougie (2010) emphasize that interviews give unbiased information.
The secondary data will be collected from published and peer-reviewed sources online
explaining relevant theories on HR management.
According to Kothari (2004), the interview is a written paper containing research
questions that require the respondent to fill appropriately. Interviews are completed either in
writing or orally. The researcher has the option of reading out the questions and recording the
independent responses of each participant. In this study, the researcher will develop a list of
pertinent questions for the interview and distribute them to the respondents accordingly. The
questions will be clear and concise to avoid ambiguity. The researcher will carry out the
interviews physically allowing ample time for participants to respond. Nonetheless, a pilot
study will be conducted to determine the areas of the questions requiring adjustment
(Sekaram & Bougie, 2010).
3.4 Data Analysis
When the research has collected a significant number of the questionnaires, the
answer will be edited for consistency and completeness (Bryman & Bell, 2015). Data from
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the interviews will be coded and grouped into themes. Open coding will be used to
summarise the data into themes and labelling observation data. The coded data will then be
compared using axial coding to identify relationships in the open codes. The data will then be
tabulated for interpretation and analysis (Zikmund et al., 2013).
Data analysis will be employed in examining the collected information after the
survey to make deductions and inferences. During the analysis, the responses will be assigned
numerical values. The qualitative data will be analysed systematically to deduce logical
conclusions and recommendations. Percentage distribution and frequencies will be calculated
where necessary.
3.5 Challenges and Limitations
1. Time constraint during survey and collection of data.
2. Lack of sincerity among some respondents. All employees might not disclose the
data’s as it is. Some may be reluctant to be sincere during the process.
3. Non-response. Since the data collection is done through online and offline, there is a
chance where the person does not respond to the questionnaire.
3.6 Ethical matters
This study will be subject to ethical matters. Participants will be expected to sign a
written letter of acceptance confirming their willingness to take part in the research.
Concomitantly, the respondents in the study will be required to sign a debriefing and
withdrawal letter assuring them of their voluntary participation and freedom to withdraw
from participating in the study at any stage without consequences.
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Participants will be encouraged to familiarise with the objectives of the research
during the initial stages of the study and will be assured of privacy and confidentiality of any
information that they will give. The information provided will also not be used for other
purposes except for the completion of this research study. Therefore, the study shall not abuse
or cause any harm to the participants either physically or psychologically.
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RESEARCH TIMETABLE
The study is expected to take an estimated period of three (3) months. The milestones of the
study are shown on a Gantt Chrt in figure 1 below:
Time(Weeks)/
Activity
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12
Research
Proposal
Preparation for
Research
Data Collection
and Evaluation
Data Analysis
Discussion of
Results
Conclusion and
Recommendation
Reporting
Research
Findings
During the first and second weeks of the study, the researcher will develop the research
proposal and seek the approval of the academic supervisor. During this period, the researcher
will also make the necessary adjustments according to relative advise from the supervisor.
During the third week, the researcher will prepare to conduct the actual research by ensuring
that the tools needed for data collection are in place, are reliable, valid and trustworthy. From
the fourth week to the seventh week, the researcher will engage in data collection and
evaluation. The data collected will be analysed during the eighth and ninth weeks. Results
from the analysis of data will be discussed during week nine and ten. The last two weeks,
week 11 and 12 will be used to develop the conclusion and recommendation and to report the
findings of the study respectively.
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Bibliography
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