A Structural Equation Model for Measuring the Impact of Employee Retention Practices on Employee’s Turnover Intentions: An Indian Perspective

Abstract

The role of human resource management practices dealing with employee turnover has been widely explored and examined in the existing literature. The majority of human resource management researchers have focused on the role of policies and practices in different sectors related to employee retention. However, less attention has been given to identify the practices and policies common across all industries and sectors. The present study attempts to identify and examine the most important practices of employee retention management and proposes a comprehensive structural equation model to measure the impact of these practices on employee’s turnover intentions. After an extensive review of literature, compensation, job characteristics, training, career opportunities and work–life balance have been identified as five important practices dealing with employee turnover and are common across all industries. These practices constitute the component factors of an employee retention management predicting employee’s turnover intentions. A five-factor scale with a 33-item measurement model has been validated in the study. Theoretical and managerial implications are discussed in the light of the findings.