HRM's Impact on Employee Retention: CQ University Project Report

This research report examines the impact of Human Resource Management (HRM) on employee retention within organizations. It identifies key factors to consider when framing HR policies, including terminations, recruitment, compensation, leave and attendance, and working hours. The research uses secondary data from online journals, articles, and governmental databases to analyze the relationship between HRM practices and employee retention rates. It explores how HRM strategies, such as training and development, employee engagement initiatives, and performance appraisals, contribute to a healthy organizational culture and ultimately improve employee retention. The report follows a positivism research philosophy and a deductive approach, employing a descriptive research design to validate research aims and objectives. Ethical considerations are addressed to ensure data security and prevent copyright issues.

Running head: HUMAN RESOURCE MANAGEMENT
Impact of Human Resource Management on Employee Retention
Name of the Student
Name of the University
Author’s Note

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Executive Summary
This research deals with HRM in an organization. The importance of HRM has been identified in
the research. The aim of research is to analyze importance of HRM in an organization. The
factors affecting the HR policies have been discussed in the research. A proper methodology has
been followed in the research. Various HRM strategies have been discussed in the research.
Data has been collected from secondary sources of data including online journals, articles and
governmental databases. The research has followed proper ethical values for conducting the
study in proper way. Data and outcomes of the study have been kept secured and not published
before completion of study.

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Table of Contents
1.0 Introduction...........................................................................................................................4
1.1 Research Aim.........................................................................................................................4
1.2 Research objectives...............................................................................................................4
1.3 Research questions.................................................................................................................4
2.0 Literature Review......................................................................................................................5
2.1 Factors that should be considered while framing HR policies..............................................5
2.2 Impact of Human Resource management on employee retention.........................................6
3.0 Project Plan................................................................................................................................8
Conclusion.....................................................................................................................................11
Research timeline...........................................................................................................................12
References......................................................................................................................................13
Appendix........................................................................................................................................15

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1.0 Introduction
In modern world, technology has been blemishing its height in all fields. However, in
middle of this, human resource management (HRM), has been already linked in every step of the
technological aspects (Armstrong & Taylor 2014). This research will identify various human
resource management practices for improving employee retention polices in an organization.
This research will focus on factors required to consider for creating HR policies for an
organization. The dependency of employee retention on HRM practices will be discussed in the
research.
1.1 Research Aim
The aim of research is to analyze importance of HRM in an organization. The two
variables of the research will be human resource management (Independent variable) and
employee retention (dependent variable). The impact of the HRM on employee retention will be
discussed in the research. To achieve this aim, the research will perform:
 Analysis of relation between these variables
 Research on recent trends
1.2 Research objectives
Following are objectives for research:
 To identify factors that are required for framing HR policies
 To identify regulators for employee motivation
 To analyze whether employee retention depend in healthy organizational culture

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1.3 Research questions
Following are research questions:
 What are factors that should be considered while framing HR policies?
2.0 Literature Review
Human resource can be expressed as people management for increasing their
performance in organization. The human resource management deals with strategic management
of human resources in an organization. The use of the HRM systems helps in maintaining a keen
approach to development of organization. The use of the HRM techniques in an organization
helps in maintaining a development al graph in the balance sheet of the company.
2.1 Factors that should be considered while framing HR policies
There are various factors that need to be considered during framing any HR policies in an
organizations:
Terminations, Recruitment and Compensation: Various policies and procedures regarding
recruitment, termination and compensation have been made in any organization. Verification of
Ids and resignation procedures need to be maintained properly (Paillé et al. 2014). The notice
period of an employee needs to be maintained in a formal way.
Leave and attendance: The attendance of the employee needs to be attained properly as
there will be a direct impact in the salary of the employee. The leaves of the employee needs to
be legally mentioned with proper cause that might help in a proper communication with client.

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Working Hours: Working conditions include framing basic rules for working in an
environment. These conditions include working hours of an employee in a daily basis and
overtime incentives.
According to the Australian Bureau of Statistics, average earnings of adult has in
November 2013 was $1533.90, which has been increased to $1678.40 in May 2018. The
employee retention has been increased in recent years. The turnover rate of employees have been
increased by 32% in past year. Therefore, therefore, there has been increase in the income of
adults. It also states companies are liable for retaining their employees in the workforce. This
shows a positive impact of HRM policies in the organization. Various other data can be found at
http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6302.0May%202018?
OpenDocumentand
http://www.abs.gov.au/ausstats/abs@.nsf/0/FB2AF09A6FD45227CA25783F000ECEE8 .Other
data regarding the implementation of HR policies at different places have been discussed in the
available governmental database in
http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6524.0.55.0022011-2016?
OpenDocument.
2.2 Impact of Human Resource management on employee retention
Various factors have been affecting the HRM policies of the company (Jackson, Schuler
& Jiang 2014). The models included in the HRM system have been helping in providing a
profitable aspect in the organization. The human development capital needs to be invested by the
company in thought of overall development of employees. The performance of the company
might get increased in future (Brewster, Chung & Sparrow 2016). Therefore, human resource
management has gained important place in every organization. The growth in work-family

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policies have been utilizing deep analyses in the research (Albrecht et al. 2015). The influence of
HRM practices in behavior of employee has been focused in this research. This research will
focus on importance of HRM in any organization in market. Employee engagement helps in
development of the company in the market. The features of HR systems for engaging employee
to their work has been an essential point of the growth of the company (Brewster et al. 2016). A
proper HRM strategies helps in providing training and development sessions to employees that
might help in increasing the motivation and efficiency of an employee. Therefore, training and
development of skills helps in increasing production of a company in the market (Bolman &
Deal 2017). The recruitment of correct person in the company helps in increasing number of
quality employees. This help in working efficiently in the team a proper HRM practices help in
providing a proper appraisal in the performance of an employee in the team. This helps in
increasing the performance appraisal results in the work force of the company. Proper HRM
practices helps in enriching relationships with employees in the workforce. Therefore, employee
retention ratio get increased gradually. The human resource systems of an organization has been
an important department for the company as employees are vital assets for the company. The
intentions behind the HRM practices at basic level will be discussed in the research. The
individual perception related to the HRM practices in an organization will be analyzed in the
research.

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Figure 1: Conceptual Framework
(Source: Created by Author)
3.0 Project Plan
The research methodology deals with selection of appropriate research philosophy,
research approach, design and strategy for proper completion of research. The research methods
needs to be followed by collecting data and information related to human resource management.
This help in accessing ethical standards and limitations need to overcome for conducting
research.
Research philosophy are of two types including positivism and interpretivism. Positivism
research philosophy deals with theories, ideas and new concepts related to the research topic.
Therefore, it deals with the natural phenomenon of the processes and concept of the human
resource management (Cooke, Saini & Wang 2014). The researcher will select positivism

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research philosophy for the conduction of the research study. Interpretivism deals with the
opinion of the people related to the human resource management. Therefore, the researcher will
not use of the interpretivism research philosophy in research.
There are two categories of research approach including deductive and inductive research
approach. Deductive approach helps in validating research assumptions done initially. However,
inductive approach helps in focusing in new ideas, concepts and theories. The study requires
only validating the research aims and objectives done in initially (Rothenberg, Hull & Tang
2017). Therefore, the researcher will use only the deductive approach for research study. The
use of deductive research helps in focusing on their seats objectives and aims of the study. The
research questions developed ay the first it the research will be analyzed properly with the help
of the deductive approach.
The research design are of three types including explanatory, exploratory and descriptive
research designs. The research will be done using the theories and models related to the human
resource management system. The descriptive design helps in providing an outline of the design
that will be beneficial for the research. The explanatory research design helps in explain existing
research theories and content (Brueller, Carmeli & Markman 2018). Therefore, the descriptive
research design will be selected for the study.
Data collection has been an important part of the research study. The two variables in the
research study has been the Human Resource Management and Employee retention. To answer
the research question, employee retention will be the variable, as it depends on framing HR
policies by the human resource department in an organization. Organizations based on HR
policies that ensure work-life balance has been reported to yield higher production and profit
ratio. Therefore, data and information regarding human resource development in an organization

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can be collected from two types, including primary and secondary data sources. Primary data
collection method deals with the survey questionnaires using participants for the survey. On
different side, secondary data collection method help in collecting data from online articles
journals, books and governmental databases. Therefore, in this research the researcher will
select secondary data collection method for collecting data and information related tithe human
resource management in an organization. The secondary set of data has been obtained from the
Google Scholar and PubMed using smart search on best HR policies i.e.
http://www.abs.gov.au/ausstats/abs@.nsf/0/FB2AF09A6FD45227CA25783F000ECEE8?
Opendocument .
The sampling technique can be done by using probability and non-probability sampling
technique. The probability research technique helps in collecting sample in random process.
However, non-probability sampling technique helps in convenient sampling technique. The
random sampling technique might help in selecting quantity of respondents form large amount of
heterogeneous samples (Ones, Viswesvaran & Schmidt 2017). There will be 20 journals taken
as a population for the research study related to the human resource management. However, out
of 20 journals, only 15 journals will be taken as sample size for the study as they would be fulfill
all the criterion of research study.
Qualitative data analysis will be used for analyzing the data as it has been accessed form
secondary sources of data including online journals and government databases. The researcher
will use a qualitative data analysis method for analyzing data and information of the research.
The obtained data will be analysed by statistical software including SPSS. The number of
employees joined over a year and number of employees separated during a year will be analysed
using the SPSS software. The retention percentage can be calculated by dividing the number of

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employees who left during a period by the total number of employees at the end of a period. The
results will be formulated in tables and graphs.
There might be some limitations during the data collecting method including irrelevant
sources of data and information for the research. Some of the websites might be locked and
required sign process for accessing data. Time constraint and budget might be another limitations
the study’s. The time frame for the research might be appropriate to complete the research study.
The budget for the conduction of research might be less enough to use advance data analysis g
tool in the study.
The ethical consideration of the research will be followed properly in order to secure data
and information related to the human resource management in an organization. The Data
protection Act 1998 might help in securing data and information used in the research study. The
results and outcomes of the study might not be published before the completion of the research in
time. The data and information will it be copied from anyone’s research article for minimizing
copyright issues.
Conclusion
It can be concluded that human resource management has been helping in maintaining a
keen approach to the development of the organization in market. The outcomes of HRM has
been maintaining a positive arena in every organization. Various work policies have been
imposed in an organization for the beneficial of human resource at every step. Common human
resource policies include flexibility in work environments and arranging full control over the
work. The use of the HR department helps in managing the employees of the company. The use

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of the HR framework is to maintaining a strong relationship with the employees and customers
sin the market.