Impact of HRM Practices on Employee Retention with Moderating Role of Organizational Culture, in Banking Sector of Pakistan

Research Article - HRM

Abstract

ABSTRACT

The “current paper is aimed at investigating the impact of HRM practices on employee retention with moderating role of organizational culture in banking sector of Pakistan. In this study, recruitment and selection, training and development, performance appraisal, and compensation were considered as the independent variables, organizational culture being the moderator and employee retention being the dependent variable. The responses were recorded from 250 respondents through an adopted questionnaire based on 5-Likert scale.  adopting convenience sampling technique. The data were analyzed through statistical tests including correlation, regression, and moderation analysis using SPSS Software. Findings of the research indicate that recruitment & selection, training & development, performance appraisal, and compensation are having a positive relationship with employee retention. Regression analysis has proved that there exists a significant positive impact of recruitment and selection, training and development, performance appraisal, and compensation on employee retention. Moreover, moderation analysis has proved the moderating effect of organizational culture in relationship between all variables under study. The study is considered quite useful for the banking sector in ascertaining the impact of various HRM practices on employee retention. The study is equally beneficial for the researchers and academia in understanding the prevailing trends in the banking sector. Other sectors of service industry may also benefit from the findings of this study.

Keywords: HRM Practices, Recruitment and Selection, Training and Development, Performance Appraisal, Compensation, Organizational Culture, Employee Retention.