Abstract
The successful implementation of human resource practices in manufacturing companies poses a greater influence on the firms concerning employee performance, organization innovation, and turnover. The core aim of the present study is to analyze selected HR practices and their relationship with employee retention.
Therefore, the present study relied upon secondary sources, i.e. key research papers from various publication houses and search engines, for conducting a systematic review of HR practices and how they can be associated with employee retention. Five HR practices, namely, training and development, recruitment and selection, performance appraisal, compensation and rewards, and career development have been operationalized.
Outcomes of the study reported that HR practices do relate to employee retention, but with mixed and disparate findings where both strength and direction of the relationships tends to vary. Overall, all selected HR practices (except career development), i.e. training and development, recruitment and selection, compensation and reward, and performance appraisal hold strong positive impact on employee retention, meaning thereby the effective implementation of such four HR initiatives can reduce the likelihood of employee turnover in the organizations.
Contemplating the direct effects of all HR practices would provide an all-inclusive understanding on this topical area. The presence of significant relationships mainly depends upon the priorities assigned and the context wherein such HR practices are implemented in the organizations. The findings of the study will be highly valuable for HR practitioners in the manufacturing sector for mitigating the likelihood of growing attrition rate therein.
Keywords: Employee retention, HR practices, recruitment and selection, training and development, compensation, career development, manufacturing sector
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