Impact of HR Practices on Employee Satisfaction and Employee Retention with a Mediating Effect of Employee Engagement in Business Process Outsourcing (BPO) Industry of Islamabad

Abstract

The Objective is to Examine the effect of HR practices on Employee Satisfaction and Employee Retention With the mediating effect of Employee Engagement in Call Centers of Islamabad, Pakistan. The study has used five-point Likert scale questionnaire for data collection while nonprobability purposive sampling has been used for the selection of the respondents. In addition, this study has used PLS-SEM for data analysis due to mediation analysis and more than one outcome variables in the model framework. The results have shown that recruitment and selection, training and development, and compensation and benefits have positive effect on employee engagement, whereas employee engagement has positively effect on employee retention, and employee satisfaction. Moreover, recruitment and selection, training and development, and compensation and benefits have positive effect on employee retention with the mediating role of employee engagement. Similarly, recruitment and selection, training and development, and compensation and benefits have positively effect on employee satisfaction with the mediating role of employee engagement.