Evaluating Moderating Effect of Organizational Transformation on Relationship of Strategic HRM Practices and Employee Retention

Abstract

Turnover is a symptom of a critical structural issue such as inadequate retention management, companies should consider what makes people commit to being loyal and successful. The easiest way to retain employees is to increase their level of satisfaction, but this will only be effective if properly performed. To retain skillful employees, Strategic Human Resource Management (SHRM) practices are required. The purpose of study is to examine the moderating effect of organizational transformation on SHRM practices and employee retention in manufacturing area. Data is collected from employees of textile sector through questionnaire consisted 384 responses. Data statistically analyzed through structural equation modelling using Warp PLS. Results shows that SHRM practices and its dimensions have a significant impact on employee retention, and organizational transformation has a moderating role in the impact of SHRM and on employee retention. The results of study are useful for management of the companies by way of improving the employee retention. This study contributes in the body of knowledge by way of testifying the hypothesized relationships.