The GCG Group has been experiencing tremendous employee turnout due to unknown reasons. The main objective of this study was to investigate the HRM practices at the organization and their link to employee retention. The study employed a survey of the organization’s employees using closed and open-ended questionnaires to obtain information on employee perception, attitude, or opinion towards different organizational HRM practices. The study uses mean analysis which shows the number of specific outcomes. Additional employees express varying development on the data sets tested. The findings of the research reveal the prevalence of poor HRM practices. Further studies have linked poor HRM practices to high employee turnover. Results of poor remuneration, performance evaluation, promotions, training, and development at GCG Group explain why the firm is constantly losing its employees to rivals. The study recommends developing fair and equitable HRM practices guidelines to ensure that the human resource department has a framework that improves employee job satisfaction.
The current global economic uncertainty has left many organizations striving to remain profitable and competitive. Commonly referred to as the GCG Group, the Goddard Catering Group (Antigua) Ltd is a prominent provider of catering services for industrial, airline, and events within Latin America and the Caribbean. Established in 2009, the firm has diverse employees within their GCG Ground, GCG catering, and GCG events (GCG Group, 2022). In a bid to maintain their market share and obtain a competitive advantage over their rivals, businesses are committed to discovering new performance indicators: human capital has been understood as one of these performance indicators (Delery and Roumpi, 2017). Human resources are considered one of the most valuable resources of an organization. It is essential to have the correct human resource management (HRM) practices in place to attract and retain the best employees.
Employee retention has become one of the most crucial aspects for businesses as serious problems arise when employees leave the firm. Some of the complications arising from employee turnover include the prevalence of inefficiencies, increased costs, reduced productivity, and a threat to the long-term sustainability and survival of the business. These impacts have heightened the need for the human resource department to commit itself to ensure employee retention within the organization (Anwar and Abdullah, 2021, p.41). Some of the positive practices within the human resource department that aim to improve staff retention include providing better compensation packages, training, job security, and job freedom, among others. According to Irabor and Ugo, (2022), retaining productive employees enhances value and competitiveness. This study aims at understanding human resources practices at Goddard Catering Group (Antigua) Ltd and how these practices affect employee retention.
Businesses increasingly identify human capital as a valuable resource for both the shareholders and the business. As talent is valuable, rare, and difficult to substitute, firms that better attract, select and retain talent tend to outperform companies that do not. The labor market is undergoing significant changes that dictate how firms motivate, attract, and retain talented workers. Ineffective management of employees contributes to increased employee turnover, thereby affecting the business as knowledge is lost. The HRM bears heightened challenges to the GCG Group Ltd regarding competencies, attitudes, staff development, culture, motivation, mismatches, and behaviors (Chatzoglou and Diamantidis, 2019, p.180). Researchers like Kryscynski, Coff and Campbell (2020) propose that executives aware of the value of human capital and utilizing organizational policies and management practices in search of employee retention will outdo the competitors. Permanent employees lessen recruitment needs, separations, hiring, and selection costs linked with employee turnover and improve productivity, leading to profitability and better competitiveness. The majority of financially successful businesses today attribute their success to their ability to develop and retain their productive employees.
Today, organizations have efficiently managed their activities by procuring and maintaining the most productive employees. Previous studies failed to adequately offer sufficient attention on human resources management activities in GCG Group Ltd and the relationship for this to employee retention. The research aims at finding the effect of human resource practices like remuneration. Promotion, performance evaluation, training and development on employee retention in GCG Group Ltd. These practices tend to determine employee job satisfaction and, ultimately, employee retention within the firm.
Research Aim and Objectives
The study aims to shed light on the effects of human resource management practices on employee retention at Goddard Catering Group Antigua LTD. The specific objectives of guiding the research include:
- To examine the role of remuneration practices on employees retention in GCG Group.
- To assess the influence of performance evaluation practices on employee retention in GCG Group.
- To identify the effect of training and development at GCG Group on employee retention.
- To explore the relationship between promotions and employee retention.
The following research questions were essential in realizing the objectives of the research:
- What role do the remuneration practices affect the retention of staff in GCG Group?
- What is the influence of performance evaluation practices on employee retention in GCG Group?
- How do promotions within the GCG Group affect employee retention?
- What is the link between training and development and employee retention?
Scope of the Study
The study focuses on identifying the HRM practices at the GCG Group based in Antigua. The study intends to use a sample of 20 employees from the company who work in different departments. The sample size is significant for the study of the Antigua-based firm as the small sample size increases the margin of error, which can affect the validity of the research. The study will identify common employee attitudes or opinions on organization HRM practices like remuneration, promotion, performance evaluation, training and development. The study intends to find how HRM practices affect the firm’s capability to retain its employee. Therefore, the research also aims at analyzing different resources and their perspective on HRM Practices and their links to employee retention so as to understand the situation at the GCG Group. The results of the study will be crucial in finding the solution to the problem of employee retention at the GCG Group. The entire study is expected to cover a period of three months when the final submission will be submitted.
Significance of the Study
The research aims at finding solutions to a genuine and challenging issue regarding employee retention within businesses. The study will guarantee inclusive and progressive knowledge of HRM practices and how it influences employee retention in the GCG Group. The research results will also be crucial for businesses as they will help them develop strategies that aim to increase employee retention while also enabling firms to respond to challenges about employee retention. The research results will be essential for different scholars who wish to conduct further research within this area as they can appraise the findings of this research and develop gaps for additional studies. The study findings will be crucial in providing new ideologies to human resource practice and policymakers regarding the development of relevant retention strategies. These strategies and policies might ensure that skilled employees remain within their respective organizations longer.
The human resource management function has become a crucial element in every organization. As globalization takes effect, the need to retain talented employees is essential for any organization that aims at competing favorably in the market. The GCG Group, based in Antiqua, faces a growing challenge in retaining its employees. This research aims to investigate the organization’s HRM practices in a bid to understand their link with employee turnover. The findings of this study are crucial in designing different HRM practices that are essential in ensuring employee retention at GCG Group.
This section aims at reviewing both theoretical and literature sources about the topic under study. In this section, different HRM practices are examined to derive an understanding of the available practices that enhance employee retention. This topic has been subject to different studies by various researchers hence offering reliable findings that have helped manage employees successfully. The majority of researchers are still finding gaps within previous studies and contributing towards finding solutions to fill the unsolved issues, thereby making substantive addition to knowledge and theory in this field. The HRM assists organizations in enhancing organizational behavior, thereby improving employee competency, retention, flexibility, and commitment which further leads to better performance from the staff.
The study draws its basis from the Herberg two-factor theory and the social exchange theory. The two-factor theory was developed by Herzberg (1959) and has also been referred to as the motivation-hygiene theory. The theory majors on different job-linked factors that tend to bring experiences that raise employees’ satisfaction. These factors are motivators or satisfiers and inclusive growth, advancement, responsibility, and achievement. On the other hand, the hygiene factors or dissatisfiers include the factors which tend to dissatisfy the employee while they are still not related to the job. These factors include the company policies, the techniques used for supervision, and relations with other colleagues within the organization. Eradication of the dissatisfaction factors creates a better environment for employee satisfaction (Bail and Zierler, 2018, p.620). The two-factor theory can be understood as the basis of the prevailing prominence on employee development, management, and training.
The social exchange theory refers to a psychological and sociological theory. The model postulates that an individual will weigh the cost or negative outcome of a social interaction against the reward or positive result. According to this theory, individuals weigh the potential benefits and risks of a given social relationship. If the risks outweigh the rewards, the individual will abandon the relationship (Arasanmi and Krishna, 2019). For instance, support awarded by a supervisor can be discussed based on the perception of the employee in connection with the supervisor. Findings by Zaharee et al. (2018) and (Pohl and Galletta, 2017) state that perceived support refers to how workers think of the supervisor’s approval. If the supervisor’s support is high, the workers tend to feel emotionally linked and therefore reciprocate their loyalty to the organization and supervisor.
Human Resource Management Practices
In most organizations, HRM practices bear a substantive effect on employee retention. The practices revolve around policies and strategies executed to ascertain that the firm’s human resources effectively and efficiently commit to realizing the firm objectives (Jehanzeb and Mohanty, 2018, p.180)). The findings of an empirical study by Chong (2020) reveal that HRM practices affect employees’ productivity. HRM practices are the primary strategies that set up a talented pool of employees capable of realizing the firm’s goals (Sunday et al, 2018). While investigating the effect of HRM practices on attaining competitive advantage at Five-star hotels in Northern Cyprus, Elrehail et al. (2019) link the practices to achieving competitive advantage. Alshaikhly (2017) reveals that the global economy has become talent-based: therefore, firms have to adapt, advance, and appropriately oversee outstanding HRM practices and competencies if they desire to compete and survive. The author found a positive relationship between HRM practices and job satisfaction among employees at Jordanian telecommunication companies. These practices include training, compensation, recruitment, selection, and performance appraisal.
Training and Development
Today, the success of an organization dramatically relies on the firm’s capability to adequately train its employees. To obtain a competitive edge over their rivals, businesses ensure that their employees have the necessary expertise and knowledge to navigate the dynamic environment. The training aims at equipping the employees with skills and knowledge that enable them to perform better and improve productivity (Basyuk, Sushchenko, 2019, p.6). Every firm deserves a pool of experienced and well-trained employees to undertake the initiatives of the business. According to Huettermann and Bruch, (2019), training does not entirely signal the development or enhancing of employee skills to enable them to perform better. Employee training has shown a substantive contribution to employee retention as it makes employees feel recognized for their strengths and develops the likelihood of enhancing their capabilities.
Performance evaluation revolves around employee development and performance. The practice is employed to ascertain the activities and goals of any given employee are in line with the organization’s goals. Performance appraisals are essential in providing employees with feedback and enhancing performance (Basyuk and Sushchenko, 2019, p. 6). Performance evaluation exercise locates, assesses, and advances the performance of employees to attain both the organizational and employee goals (Barabashev, 2021, p.1440). This exercise typically involves checking how employees perform their tasks against given criteria. The process is also essential to determine the employees that deserve training, and promotion, among other practices. According to Khan, Hoque and Shahabuddin, (2020), the performance evaluation results show the effectiveness of the organization’s HRM practices. The effectiveness and efficiency of the performance evaluation process rely on the interpersonal interviewing capabilities of the supervisor or the person conducting the appraisal.
Promotion refers to situations when an employee is elevated to a higher role or position within a firm due to exceptional performance. Promotions are associated with a higher salary or more responsibilities. According to Fitrio et al, (2019), promotional opportunities develop employee job satisfaction, and organizational loyalty and reduce the urge to leave the organization. Revelations by Jehanzeb and Mohanty (2018, p.178) that lack of promotional opportunities affects an employee’s decision to stay within a business. According to survey findings by Bibi (2017), the availability of promotional opportunities enhanced employee retention to that organization. Apart from the availability of promotional opportunities, the review methods employed within the promotion and reward system also significantly impact employee intention to leave.
Remuneration refers to any compensation awarded to an individual as payment for their work or service. Income can either be in the form of salary, commissions, bonuses, or other benefits that have financial value. How an organization compensates its employees has significantly impacted employee attitude toward the job or customers, the quality of their work, and their willingness to remain flexible and learn new skills. High remuneration and benefits to employees relative to those of competitors can assure an organization’s capability to attract and retain talented employees (Mabaso, 2018). Employees tend to understand pay as the measure of the time and effort on their duties and weigh whether it is worthwhile. Fair remuneration acts as a crucial element in enhancing the commitment and retention of employees.
Different theories and research investigations explain the link between employee turnover and HRM practices. For instance, the social exchange theory elaborates that an individual weighs the cost versus the benefits/rewards in a relationship to determine if they will continue with the connection. Similarly, according to different research findings, employees tend to remain within an organization where they feel they get an opportunity for training, promotion, evaluation, and better remuneration packages.
This research will be conducted to source knowledge about the impact of HRM Practices on employee retention at GCG Group in Antigua. The research first touches on the research philosophy which the researcher has taken and the subsequent choice of the quantitative approach. The quantitative research approach enables a researcher to define, study, analyze and report the results without manipulating the variables under study. This approach provides details on the research design, the target population, sample and sampling procedures, data collection instruments and procedures, and data analysis procedures. The next part discusses the rationale behind the choice of the research design with further details about the population and sampling. The chapter also provides an overview of the data collection methods for the research as well as the means used to analyze the data. The section concludes with research quality and ethical issues in research. The validity and reliability of the research instruments will be further examined, while ethical considerations in the study will be discussed.
Research philosophy is the development of research background, research knowledge and its nature. Research philosophy is a paradigm that means an approach, pattern, or way of thinking about conducting research. In undertaking research, it is advisable to take into account the different research paradigms since the parameters describe the perceptions, beliefs, nature of reality, truth, and individual values of the researcher. These aspects can influence how the research will be conducted, including the final results and conclusions. Consideration of research philosophy also helps to expose, understand and minimize research biasness.
This study takes a positivist research philosophy because it is an objective-based method. A positivist researcher plays the role of an objective analyst in the evaluation of the collected data. Because this study relies on objective data collection and analysis in order to achieve useful and accurate results, it adopted the positivist philosophy. The central element of the positivism paradigm is that social phenomena can be explained by observing cause and effect. Positivist philosophy posits that reality is stable and, therefore, can be observed, described, predicted, controlled and explained from an objective point of view without interfering with the phenomenon being studied. Guided by the positivism paradigm, this study aims at generating quantitative data that helps to address the research questions. In addition, the study uses a quantitative measuring instrument in the form of a questionnaire which the positivist approach favors. Data analysis will be carried out objectively as advocated in the positivist philosophy.
Research design is the plan by which the researcher provides answers to the research questions. This study will take a quantitative approach that uses statistical or quantifiable data to explain the relationship between independent and dependent variables. The study will take a descriptive design to try and describe the current status of the phenomenon. The descriptive research approach enables a researcher to describe a situation by asking individuals about their attitudes, perceptions, values, or behaviors (Chafouleas, 2021). There is no hypothesis at the beginning of the research, but the researcher will develop the research hypothesis after all the relevant data is collected and analyzed.
The population in this study entails the employees working at the Goddard Catering Group (Antigua) LTD. A sample of twenty employees of GCG will be given questionnaires to fill out a series of questions which will be used to gain information about the employees’ satisfaction levels. Questionnaires provide a fast, affordable, and reliable method for collecting data in a study where respondents request complete anonymity. Apart from increasing respondent confidence, questionnaires offer a reliable way of measuring the attitudes, intentions, opinions, behavior, or preferences of GCG employees.
The study will adopt a stratified random sampling procedure to sample the organization’s employees. The sampling technique will entail grouping employees into smaller sub-groups based on shared attributes like level of income, position, or education. The study will select the respondents randomly according to their position, department, and level of education or income. This selection procedure is appropriate to the study since it will ascertain an equal representation of employees. The process will also be essential in reducing sampling bias and achieving a high presentation level.
The data collected will be documented and analyzed to establish a finding for the study. The study will use quantitative methods to generate and analyze the information. A descriptive approach will be employed when conducting comparisons, while statistical summaries will be used to communicate the nature of quantitative information. The mean statistical analysis will be essential for this research as it shows the overall trend of a given data set. This analysis method has been preferred as it is simple to use with quick calculations. The information will be presented in diagrams, pie charts, graphs, percentages, and tables.
According to Bridget and Lewin (2005), validity is the degree by which a sample of test items represents the content the test is designed to measure. To establish the validity of the tool the researcher first, went through the instruments and compared them with the set objectives and ensures that they contained all the information that answers the set questions and address the objectives. Secondly, an expert (supervisor) was consulted to scrutinize the relevance of the questionnaire items against the set objectives of the study. To ensure that the information that is collected from the field is accurate and reliable, there was a need to determine the validity of the instruments. The supervisor and lecturer with relevant skills in the field of the study assessed the content and face value of the instrument and gave feedback. The feedback obtained was incorporated into the final instruments before the actual study.
Ethical Issues in Research
The researcher will follow all codes of ethics and apply the 3 three principles of research ethics: beneficence, respect and justice as prescribed in the Belmont Report, to full use, to ensure prudent ethics of research are followed. Institutional Ethical approval will be sought by the researcher from Strathmore University and a research authorization permit will be applied from National Commission for Science Technology and Innovations (NACOSTI) to carry out the study. Informed consent will be sought from respondents before administering the research instruments. Privacy and confidentiality will be practiced during data collection and data handling. All data collection tools will be applied only after verbal voluntary informed consent is obtained. The researcher will assure the respondents that the information sought will be solely for academic purposes and the information received will be treated with the utmost confidentiality. Research studies are only effective if they are created originally and authentically. This study will not pertain to any cases of plagiarism, in a bid to ensure it contributes authentic and original knowledge on the topic of study.
Different types of research adopt various methodologies to realize their research objectives. The type of research methodology is essential in ensuring the reliability and validity of a given study. This objective-based research method takes a quantitative approach where statistical or quantifiable data will be used to explain the relationship between independent and dependent variables. A sample of twenty employees of GCG will be randomly selected and given questionnaires to fill out a series of questionnaires which will be used to gain information about the employees’ satisfaction levels.
Analysis and Findings
The study sought to understand different HRM practices employed at the GCG and how these practices impact employee retention. The study used both closed and open-ended questionnaires where the employees filled in the questions on their time. The questionnaires sought to determine the attitude, perceptions, preferences, or opinions on different HRM practices and how they affect their intention to remain in the GCG group. Some of the HRM practices that were key to the study include training and development, remuneration, performance evaluation, and promotion (Liu, Ngolob and Palaoag, 2020). The research uses means to analyze the trend of a given data set so as to identify any link between organizational HRM practices and employee retention. The analyses also draw backing from literature from previous studies which associate different HRM practices with high employee turnover. Before conducting data analysis, the data were subjected to screening to inspect any missing variables, availability of any possible outliers as well as data entry errors within the data set. A prefatory examination indicated that eight questionnaires had more than 80% of information missing thereby rendering them unsuitable for further analysis thus they were ruled out.
The research targeted 25 employees and the same questionnaires were distributed to the firm employees at Antigua. Out of the 25 questionnaires supplied, only 20 questionnaires were filled up and returned. The response rate for this study was therefore 80.0% which is considered significant for the purposes of data interpretation and analysis.
Demographic Characteristics of the Respondents
The research seeks to develop different features or aspects regarding the respondent and include their gender number of years worked, level of education and the rank of the respondent.
Table 1.0: Gender Composition of Respondents
The goal of the research was to develop the different features of the respondents including their gender. The findings of the research in table 1.0 reveal that over half of the respondents (70%) were women while only 30% were male. This result indicates that the majority of the employees working within the catering industry are majorly women. The reason could be due to the nature of the duties as women have shown to be highly absorbed within the hospitality industry.
Highest Level of Education
|Level of Education||Frequency||Percentage|
Table 1.2: Highest education qualification
The research also sought to investigate the highest level of education of the respondents. According to the findings of the research, the majority (50%) of the firm’s employees had a diploma as the highest level of education attained. The respondents were drawn from different levels in the organization ranging from middle to top management. An estimated 30% held certificate/license as their highest education level while an estimated 15% had a degree as their highest level of education. Only 5% of the respondents had a master’s degree and represented top management.
Number of Years Worked in the Organization
|Length of services (years)||Frequency||Percentage (%)|
|Over 20 years||1||5|
Table 1.3 length of service in the current organization
The study sought to determine how long the respondents had worked within the catering firm. The findings in table 1.3 reveal that the majority of the respondents (35%) have only stayed within the organization for a period of fewer than five years. An estimated 25% of the respondents have worked for the organization for a period of around six to ten years while only 20% of the respondents reveal that they have worked for around 11 to 15 years. An estimated 15% of the respondents reveal that they have been working for the GCG Group for a period of 16 to 20 years. Only 5% of the respondents reveal that they have been in the organization for a period of more than 20 years.
Respondents Ranking in the Organization
|Top level management||1||5|
|Middle level management||2||10|
Table 1.4 Ranking in the Organization.
The study sought to develop the position held by the individual respondent in the firm. Table 1.4 reveal that the majority of the respondents came from the lower-level management within the organization. Additionally, an estimated 10% of the respondents were in middle-level management while only g5% of the respondents work at the top-level management of the company.
Training and Development
On training and development, the research employed five items to assess the perception, opinion, and attitude of the GCG employees on training. The respondents were required to agree or disagree on the training and development items. Different questions were asked to the employees in a bid to reveal the prevalence of training and development within the organization.
|I have training opportunities to learn and grow||4||20.0|
|I get training from the firm for my next promotion||2||10.0|
|Employee individual needs fairly evaluated for effective training||2||10.0|
|The existing training match with my current job||5||25|
Table 1.5 training and Development
According to the study’s findings, only 20% of the GCG Group employees reported being awarded training opportunities to help them learn and grow. An estimated 10% of the respondents indicate that they obtain training from the organization for their next exercise. Additionally, only 10% of the respondents felt that the opportunities for training were fairly awarded based on individual needs. An estimated 25% of the GCG Group employees perceived the training matches their prevailing job.
The training and development of the GCG group reveal some weakens from different perspectives. The results of the study show a weakness within the firm’s training and development HRM practice. According to the findings, the company’s out of the 20 employees who participated in the study, only two felt that they were trained based on a fair evaluation of their skills. The organization seems to be training employees without necessarily finding out what skills they need. The organization hardly provides its employees with training and development opportunities with around 80% of the statement that they have never received any training and development opportunity while working for the GCG Group.
To study remuneration at GCG Group, the research questionnaire assigned five items to the variable. When asked if the existing remuneration practices are fair and non-discriminative, 38% accepted. However, only 35% felt that their salaries were reasonable based on the duties and responsibilities of their job. An estimated 15% of the GCG Group employees perceive that they are guaranteed to earn better remuneration in terms of commissions and bonuses if they do well. Only 12% of the respondents felt that their annual rise is relevant and satisfactory.
The findings of the analysis are demonstrated in Fig 1.1 below.
The GCG Group remuneration system and the process is a major causes of dissatisfaction for the organization’s employees. Findings reveal that only a limited number of employees feel adequately compensated based on the duties and responsibilities of their jobs. According to the results, the majority of the employees feel that their annual pay rise is irrelevant and hence not satisfied with the annual pay rise. The remuneration system of the company seems to bring discontent among the employees as the majority of the respondents state that they feel the company’s remunerations are discriminatory and not fair. Additionally, the findings reveal that there is a lack of recognition of employee efforts in the reward system. Employees reveal that in the organization, working harder or better does not earn one any marginal income or benefit. This situation seems to be affecting employee motivation to perform better as it does reflect any change in individual benefits.
The study assigned five items to the variable to study employee perceptions and attitudes toward performance evaluation practices at the GCG Group. The findings reveal that 70% agree that a formal and written performance appraisal system exists. However, only 15% believe that the performance appraisal process is fair. An estimated 20% state that they received feedback on the performance appraisal procedure. An estimated 15% held that they were informed of how their performance was evaluated, while only 10% believe that the appraisal rating focuses on the individual’s performance instead of personality. The findings of the analysis are demonstrated in Fig 1.2 below.
In a bid to study promotional human resource activities within the organization, the study subjected five items to the variable. According to the revelations by the respondents, 65% of the respondents indicated that they were aware of an existence of a promotion policy within the organization. An estimated 35% claim that the business promotes its employees based on their capabilities. Around 80% of the respondents felt that the company’s promotion represents increased status, prestige and responsibilities. Only 20% of the respondents felt that the firm’s promotion is equitable and fair. The results of the study are demonstrated in figure 1.3 below.
This result indicates that most of the employees working in the catering industry are mostly women. The majority (50%) of the firm’s employees had a diploma as the highest level of education attained. In comparison, most of the respondents (35%) have only stayed within the organization for less than five years. An estimated 25% of the GCG Group employees perceived the training matches their prevailing job, while 80% revealed that they have never received any form of exercise. The firm’s remuneration is poor, while only 15% believe that the performance appraisal process is fair. Promotion opportunities seem to be present at the firm though findings reveal that they are not honest.
Conclusion and Recommendations
Different studies have linked poor HRM practices to low job satisfaction among employees. Employee remuneration, training, promotions, and effective job evaluations enhance an organization’s capability to retain its top employees. Research findings from a study conducted by Asaari et al. (2019) on a Malaysian Government Trade Agency employee’s links rewards to employee motivation. According to the research results, when employees have a negative perception of the company remuneration, promotion, or the award system, their job satisfaction tend to reduce (Adrianoa nd Callaghan, 2020, p.8). A systematic review by Putra (2020) reveals that job satisfaction significantly impacts employee retention. Ensuring that employees are satisfied and motivated is essential in every organization that aims to compete favorably.
The study findings amongst GCG Group employees reveal a negative trend in its HRM practices. Though most (65%) of the employees know of promotion policy within the firm, only 20% feel that the organization’s promotions are equitable and fair. Additionally, only 35% of the employees believe that majority of the advertisements are based on employee capabilities. Statistics reveal a problem with the effectiveness of the pthe romotion process and the prevalence of employee discontentment with the process. A survey by Alnaser, Alshurideh, and Kurdi, (2020, p.3563) on both private and public banks in Rajasthan reveals a positive correlation and link between job satisfaction and HRM practices like promotion, remuneration, and award system. Negative employee perception of HRM practices like promotion tends to affect job satisfaction, leading to high turnover.
A common hypothesis emerges as different investigations link poor HRM Practices to poor employee retention. A study by Abdoulaye (2018) on the impact of HRM practices on employee retention at Huawei in Senegal reveals a positive and substantial link between the two variables. The scholar shows that HRM practices like training and development, remuneration, promotion, and performance evaluations positively influenced Huawei’s capability to retain its employees. The GCC Group is constantly experiencing high employee turnover, which affects the firm’s productivity. Providing employees with training and development helps improve their job satisfaction and commitment to the firm (Albrecht, Breidahl and Marty, 2018, p.72). Research findings reveal GCG Group hardly offers training and development opportunities for training and development. According to the study results, only 20% of the GCG Group employees reported being awarded training opportunities to help them learn. Only 10% of the respondents indicate that they obtain training from the organization for their next, promotion. While only 10% felt the movement and development program was pretty awarded. These results explain another probable cause of poor employee retention at GCG Group.
Better employee remuneration has shown positive effects in improving employee retention. Revelations by Akeyo (2017) show that remuneration is an essential feature with a substantive impact on employee retention. The author recommends that the HRM practices ensure a competitive remuneration system to ensure talented employees don’t join the competitors. Remuneration is a crucial aspect for employees as it gives them the reason for work and status in society. While studying the HRM Practice at GCC Group, only 15% felt that better performance would represent better remuneration. At least 35% of the employees felt the company’s remuneration is fair and non-discriminative. The results show a less competitive remuneration system at the GCG Group that might be making it lose its talented employees. When performance evaluation is not performed relatively, adequately, and regularly, the capability of an organization to retain its top talent is diminished.
The Importance of Findings
The findings of this study are crucial in understanding the cause of high employee retention at GCG Group. The human resource department, in particular, will benefit from the findings of this study as it provides crucial information on the effectiveness of their practices. The results of this research point to poor remuneration, job evaluation, promotion, training, and development as key to high employee turnover within the organization. These findings will also be crucial in designing better remuneration packages and performance evaluations and ensuring fairness in the organization’s management. The study results will act as a critical reference point for future managers on different management models employed within the organizations and their impacts.
The Implication of the Findings
The findings of this research will also be crucial in advancing knowledge about the link between HRM practices and employee retention. The study by Abdoulaye (2018) shows a positive and significant association between HRM practices like employee training and development, promotion, performance evaluation, and remuneration (Ali, and Anwar, 2021, p.368). The findings of Abdoulaye’s (2018) study conform to the revelations brought about by this study that show the GCG Group’s poor HRM practices are the key to poor employee retention. The findings of this research will be essential to managers and policymakers who will be able to establish procedures and practices that aim at increasing productivity and enhancing employee retention (Ardini and Rizky, 2019, p.71) The research findings can explain why Bhardwaj, Mishra and Kumar Jain (2021) found that salaries were a key concern among employees’ retention. Based on the survey conducted at GCG Group, only 12% of the respondents felt that their annual rise was relevant and satisfactory. When employees are dissatisfied with the remuneration procedure, they are more likely to leave the organization.
Possible Ways to Continue Research
The study investigates HRM practices and their link to high employee turnover at the GCG Group. The research analyzed standard HRM practices like remuneration, training and development, promotion, and performance evaluation. Other researchers can expand on this topic and explore other HRM practices like job timings, employee relations, or enforcement of disciplinary actions and how they affect employee retention. Additionally, this research employs mean as its statistical analysis tool. The mean tends to show the central location of the distribution of a random variable. However, this analysis method has been discouraged as it is prone to the influence of outliers. To further this research, researchers can chi-square tests to alternatively identify any possible relationship between the two variables. The strength of the relationship can additionally be measured using correlation analysis to enable researchers to discover new insights and show unknown interdependencies even if the measures emanate from different departments.
Different studies reveal a link between HRM practices and employee retention. This research shows that only 20% of the GCG Group employees reported being awarded training opportunities to help them learn. The results indicate a less competitive remuneration at the GCG Group that might contribute to poor employee retention. The findings of this study show that poor remuneration, job evaluation, promotion, training, and development as significant to high employee turnover within GCG Group. This research will be essential to managers and policymakers in developing procedures and practices that aim to increase productivity and enhance employee retention.
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Section A: Socio-Demographic Profile of respondents
Please respond to each item by choosing the response and ticking (√) that best describes you.
- What is your gender?
- What is your age?
- 18 – 25 years
- 26 – 35 years
- 36 – 45 years
- 46 – 55 years
- 56 years and above
- What is your highest level of education?
- Bachelor’s Degree
- Master’s Degree
- How long have you worked for the current organization?
- 0-5 years
- 6-10 years
- 11-15 years
- 16-20 years
- Over 20 years
- What is your position/ranking?
- Lower level management
- Middle level management
- Top level management
Please indicate to the extent to which you agree to the following statements by ticking (√) the appropriate response.
Likert Scale Indicator:
- 1=Strongly Disagree (SD)
- 2= Disagree (D)
- 3=Neutral (N)
- 4=Agree (A)
- 5=Strongly Agree (SA)
Please indicate the extent to which you agree to the following statements by circling your appropriate response rating.
|HUMAN RESOURCE MANAGEMENT PRACTICES||S D||D||N||A||S A|
|1.||The existing remuneration practices are fair and non-discriminative|
|2.||My salary is reasonable based on the duties and responsibilities of my job|
|3.||People who are hardworking and results-oriented |
are rewarded in the organization.
|4.||The salary and benefits I receive in this organization’s commensurate with my responsibilities.|
|5.||Compensation is satisfactorily reviewed from |
time to time and are based on job performance
|Training and Development||1||2||3||4||5|
|6.||I have training opportunities to learn and grow|
|7.||I get training from the firm for my next promotion.|
|8.||The firm’s promotion is equitable and fair|
|9.||Employee individual needs fairly evaluated for effective training|
|10||The existing training match with my current job|
|11||Employee individual needs fairly evaluated for effective training|
|12.||A formal and written performance appraisal system exists within the organization.|
|13.||The performance appraisal process is fair|
|14.||The company’s promotion represents increases status, prestige and responsibilities|
|15.||I am informed of how my performance will be evaluated|
|16.||appraisal rating focuses on the individual’s performance instead of personality|
|17.||Performance management practices are aligned |
to the organizational strategic goals and objectives
|18.||Aware of an existence of a promotion policy within the organization|
|19.||The business promotes its employees based on their capabilities.|
|20.||The company’s promotion represents increases status, prestige and responsibilities|
|21.||The organization clearly communicate its goals |
and strategies to me
|22.||The firm’s promotion was equitable and fair|