AN EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEE RETENTION IN THE TEXTILE SECTOR OF KARACHI

Abstract

Purpose: This study examines the relationship between the human resource management practices implemented by the organization and employee retention. Human resource management practices deployed in this study are compensation, performance appraisal, training and development, and employee empowerment. Methodology & Design: This is an explanatory study, that uses a deductive approach and in quantitative in nature. The study was conducted on 315 employees from textile companies operating in the city of Karachi. A survey questionnaire was developed and validated. Pearson correlation matrix and regression were used to predict and estimate the relationships. Findings: Regression results indicated that that four human resource management practices: compensation, performance appraisal, training and development, and employee empowerment are contributing in employee retention. Further, positive inter-relationships were found between human resource management practices and employees’ retention. Implications: This paper contributes to existing knowledge by testing HR practices in the textile sector of Karachi. The results of this study will provide organizations with better insights into some practices that could elevate retention of employees. Recommendations: The study recommends that Human resource practices should be highly regarded in every organization. Organizations should establish and review their human practices as this contributes greatly to employee retention leading to the success of the organization. Also, future studies are recommended to expand their scope and sample size to get more generalized results.