THE IMPACT OF STRATEGIC HUMAN RESOURCE PRACTICES ON EMPLOYEE RETENTION: EXAMINING THE MODERATING ROLE OF EMPLOYEE ENGAGEMENT AMONG NON – EXECUTIVE EMPLOYEES IN THE GLOVE MANUFACTURING INDUSTRY OF SRI LANKA’S WESTERN PROVINCE

Abstract

Employee retention is one of the significant topic in today business landscape, as organizations strive to identify the key factors contributing to employee turnover and have to implement effective policies to retain their work pool. These challenges are particularly significant in the glow manufacturing companies in Sri Lanka’s Western Province. Therefore, the intention of this research is to study the impact of the effectiveness of perceived Strategic Human Resource Management practices on employee retention and moderating effect on employee engagement Conducted on the non-executive employees in few glow manufacturing companies in Sri Lanka. In this analysis, 337 considered out of 2600 number of non-executive employees from the few manufacturing companies were taken as a sample. Primary data were collected using a self-administrated questionnaire and analyzed through deductive approach. Correlation analysis indicates strong positive relationships between the variables. The findings reveals that there is positive impact of SHRM practices on employee retention and significantly moderated by the Job engagement because Strategic HRM Practices are significantly correlated with Employee Retention (r=0.633) and Employee Engagement (r=0.852) and Employee Engagement is also strongly associated with Employee Retention (r=0.649). All the correlations are significant at 0.01 level. According to the results obtained through regression and showing higher Strategic HRM Practices with a higher retention level (R=0.633, R 2=0.401, F=223.225). In order to examine the moderating effect of employee engagement, shows a strong positive effect of Employee Engagement on Employee Retention (R=0.649, R2=0.421, F=242.623), with β=0.649. According to the results, model has an even stronger relationship between Employee Engagement and Strategic HRM Practices, R=0.852, R2=0.726, F=882.809, with β=0.852, which also indicates a high contribution. As a conclusion when management of Glove manufacturing industry should have to formulate the performance base pay and incentives for increase their employee retention. Moreover, other the current study found all other independent and moderating variables effect on positively.