Navigating Digital HRM for Sustainable Workforce: Examine the Mediating Role of Employee Motivation in Reducing Employee’s Intention to Leave

Abstract

In recent years, the Pakistan banking sector has experienced rapid growth, underscoring the crucial role of employees. In today's dynamic environment, retaining employees has become a priority for organizations, as they form the cornerstone of organizational success. This study aims to explore the relationship between Digital HRM practices and Employees' Intention to Leave (EITL) through Motivation. There exists a gap in understanding the linkage between Digital HRM practices, Employee Motivation, and their impact on Employees' Intention to Leave. The primary objective of this study is to investigate how Digital HRM practices influence the intention to leave among employees. Additionally, the study seeks to analyze the mediating role of motivation in the relationship between Digital HRM practices and Employees' Intention to Leave. This study, grounded in social exchange theory, examines the relationship between one independent variable with two dimensions (DPA and DT), mediators (motivation), and one dependent variable (Employees' Intention to Leave). Conducted within twin city banks (Rawalpindi and Islamabad) in Pakistan, the research emphasizes the critical role of employees in the banking sector, with employee retention emerging as a paramount concern for banks. Utilizing partial least squares (PLS) modeling with Smart PLS 4 software, the study investigates both the direct relationship between Digital HRM practices and employee intention to leave and the indirect impact through motivation on employee intention to leave. The study's sample size comprises 250 participants. The convenience sampling technique is used for this research work. The respondents of this study were both male and female, with different job statuses; lower, middle, and upper-level staff were considered as the population of the study. The findings reveal significant relationships between Digital HRM practices (DPA and DT) and employee intention to leave. Overall, the results highlight a strong and significant correlation, emphasizing the importance of Digital HRM practices in employee retention within organizations.