Employee Retention Through Effective Human Resource Management Practices in Maldives: Mediation Effects of Compensation and Rewards System

• Autorzy: Zubair Hassan
• Języki publikacji: EN

Abstrakty

EN

PURPOSE: The purpose of this study is to examine the effects of human resource management (HRM) practices on employee retention mediated by reward and compensation. Also, this study has examined the moderating role of performance appraisal, and training and development on the relationship between HRM practices and employee retention. METHODOLOGY: A sample of 250 respondents among the employees working in the retail sector in Capital City of Maldives was selected using the random probability sampling technique. A structured questionnaire was distributed, and data was collected. Structural equation modeling analysis was carried out to examine the causal effect of HRM practices on employee retention. FINDINGS: The results showed that reward and compensation (R&C) practices had significant and positive effects on employee retention. However, the study found no significant effect of career development, training and development, and performance appraisal on employee retention. In terms of mediating effects, R&C had significantly positive mediating effects on the relationship between training and development (T&D) and employee retention as well as on the relationship between performance appraisal and employee retention. However, there were no moderating effects between performance appraisal as well as T&D and employee retention. Therefore, it was concluded that increasing the positive perception towards HRM practices, particularly R&C practices in the retail sector of Maldives, causes an increase in employee retention (ER). Also, it was concluded that HRM practices such as R&C mediate the relationship between Training and Development (T&D) and Employee Retention along with the relationship between Performance Appraisal (PA) and ER. This means, indirectly PA and T&D can increase ER in the retail sector of Maldives. Similarly, we conclude that there is no moderating effect of PA and T&D in the relationship between HRM practices and ER. The overall conclusion is that R&C has a partial mediating effect on the relationship between HRM practices and ER. IMPLICATIONS: This study contributes to the current knowledge of HRM by confirming that reward and compensation is a key determinant and a significant mediator for employee retention. This study contributes to developing new knowledge in the theoretical domains of HRM practices. In particular, the findings of the study strengthen Hertzberg's Two-Factor theory by confirming that career growth opportunities, advancement and salary significantly determine employee retention. This showed that both motivators and hygiene factors are crucial in retaining employees. In practice, the findings also enable managers to make new organizational and HRM policy decisions on improving and enhancing employee retention. This study can be useful for organizational management to formulate effective reward and compensation policies. This study signifies the importance of training and development and performance appraisal by linking these with reward and compensation practices. ORIGINALITY AND VALUE: This could be one of the pioneering studies carried out in the retail sector of Maldives by examining the four constructs of human resource management practices to shed light on how retail sector business organizations in Maldives make decisions on improving employee retention. Furthermore, the current study indicated that reward and compensation have full mediating effects on the relationship between employee retention and training and development as well as performance appraisal. This filled the existing research gaps by adding value to the existing literature. Moreover, the current study adds practical values by confirming that reward and compensation should be emphasized to retain employees through other human resource management practices in the retail sector of Maldives. (original abstract)

CEL: Zbadanie wpływu praktyk zarządzania zasobami ludzkimi (ZZL) na utrzymanie pracowników za pośrednictwem nagród i wynagrodzeń. Zbadano również moderującą rolę oceny wyników, szkoleń i rozwoju i ich związku z praktykami ZZL a utrzymaniem pracowników. METODYKA: Próba 250 respondentów spośród pracowników zatrudnionych w sektorze handlu detalicznego w stolicy Malediwów została dobrana metodą losowej próby. Rozesłano ustrukturyzowany kwestionariusz i zebrano dane. Przeprowadzono analizę modelowania równań strukturalnych w celu zbadania wpływu przyczynowego praktyk ZZL na retencję pracowników. WYNIKI: Wyniki pokazały, że praktyki nagradzania i wynagradzania (R&C) miały znaczący i pozytywny wpływ na utrzymanie pracowników. Jednak badanie wykazało, że rozwój kariery, szkolenia i rozwój oraz ocena wyników nie miały znaczącego wpływu na utrzymanie pracowników. Jeśli chodzi o efekty pośredniczące, R&C miało znacząco pozytywny wpływ pośredniczący na związek między szkoleniem i rozwojem (T&D) a zatrzymaniem pracowników, a także na związek między oceną wyników a zatrzymaniem pracowników. Nie zaobserwowano jednak moderujących efektów między oceną wyników a T&D i utrzymaniem pracowników. W związku z tym stwierdzono, że zwiększenie pozytywnego postrzegania praktyk ZZL, zwłaszcza praktyk R&C w sektorze detalicznym Malediwów, powoduje wzrost retencji pracowników (ER). Stwierdzono również, że praktyki ZZL, takie jak R&C, pośredniczą w relacji między szkoleniem i rozwojem (T&D) a utrzymaniem pracowników, a także relacją między oceną wyników (PA) a ER. Oznacza to, że pośrednio PA i T&D mogą zwiększyć ER w sektorze detalicznym Malediwów. Podobnie dochodzimy do wniosku, że nie ma moderującego efektu PA i T&D w relacji między praktykami ZZL a ER. Ogólny wniosek jest taki, że R&C ma częściowy wpływ mediacyjny na relacje między praktykami ZZL a ER. IMPLIKACJE: Niniejsze badanie przyczynia się do poszerzenia aktualnej wiedzy na temat ZZL, potwierdzając, że wynagrodzenie jest kluczowym wyznacznikiem i znaczącym mediatorem utrzymania pracowników. Niniejsze badanie przyczynia się do rozwijania nowej wiedzy w teoretycznych domenach praktyk ZZL. W szczególności wyniki badania wzmacniają teorię dwóch czynników Hertzberga, potwierdzając, że możliwości rozwoju kariery, awans i wynagrodzenie znacząco determinują utrzymanie pracowników. To pokazało, że zarówno motywatory, jak i czynniki higieniczne mają kluczowe znaczenie dla zatrzymania pracowników. W praktyce wyniki pozwalają również menedżerom na podejmowanie nowych decyzji dotyczących organizacji i polityki zarządzania zasobami ludzkimi w zakresie poprawy i zwiększenia retencji pracowników. Badanie to może być przydatne dla kierownictwa organizacji do formułowania skutecznych polityk nagradzania i wynagrodzeń. Badanie to wskazuje na znaczenie szkolenia i rozwoju oraz oceny wyników poprzez powiązanie ich z praktykami nagradzania i wynagradzania. ORYGINALNOŚĆ I WARTOŚĆ: Może to być jedno z pionierskich badań przeprowadzonych w sektorze detalicznym na Malediwach poprzez zbadanie czterech konstrukcji praktyk zarządzania zasobami ludzkimi, aby rzucić światło na sposób, w jaki organizacje biznesowe sektora detalicznego na Malediwach podejmują decyzje dotyczące poprawy retencji pracowników. Co więcej, obecne badanie dostarcza ram teoretycznych, które wskazują, że wynagrodzenie i nagradzanie mają pełny wpływ pośredniczący na związek między utrzymaniem pracowników a szkoleniem i rozwojem, a także oceną wyników. Wypełniło to istniejące luki badawcze, dodając wartość do istniejącej literatury. Co więcej, obecne badanie potwierdza, że należy położyć nacisk na wynagrodzenie i nagradzanie, aby zatrzymać pracowników poprzez inne praktyki zarządzania zasobami ludzkimi w sektorze detalicznym Malediwów. (abstrakt oryginalny)

Słowa kluczowe

EN

Remuneration; Employee reward; Training; Career development; Human Resources Management (HRM); Results evaluation

PL

Wynagrodzenia; Nagrody; Szkolenia; Rozwój kariery zawodowej; Zarządzanie zasobami ludzkimi; Ocena wyników

• Czasopismo: Journal of Entrepreneurship, Management and Innovation (JEMI)
• Rocznik: 2022
• Tom: 18
• Numer: nr 2 Quantitative Research in Economics and Management Sciences
• Strony: 137--173

Twórcy

autor

Zubair Hassan

• International Islamic University, Malaysia

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DOI

https://doi.org/10.7341/20221825