UNDERSTANDING EMPLOYEE RETENTION THROUGH TACTICAL HRM PRACTICES, EMPLOYEE ENGAGEMENT AND COMMITMENT: AN EMPIRICAL STUDY OF SELECTED IT COMPANIES IN COIMBATORE

Abstract

Employee retention has become a matter of great interest to organizations due to the adverse impact of its loss on productivity, continuity, and development of the entity. This research work aims to study the influence of tactical Human Resource Management Practices, Engagement, and Organizational Commitment on Employee Retention. In this study, quantitative approach research technique is used. In this study, data collection was through using a questionnaire. Data analysis continued with reliability analysis, correlation analysis, multiple regression, and Structural Equation Modelling (SEM). The structural analysis exposed that Strategic HRM Practices had a positive and significant relationship with Employee Retention (β = 0.184, p = 0.006). Employee Engagement also had a positive and significant relationship with Employee Retention (β = 0.197, p = 0.01). In the similar method, Organizational Commitment had a positive and significant relationship with Employee Retention (β = 0.193, p = 0.004). The three variables explained 82.7 per cent of the variation in Employee Retention. The model's overview was found to be statistically significant (F = 23.59, p < 0.05). The results can be interpreted to mean that a company can recover employee retention through the upgrading of work procedures, motivation to simplify employee participation, and inspiring organizational commitment. However, the results of the measurement reveal a need to go back and review certain items in the questionnaire before the model can be regarded as a confirmatory SEM.