Challenges in Human Resource Management for Employee Retention in Private Companies: Case Study of the Private Sector in the Republic of Kosovo, Pristina

Abstract

Objective: This study aimed to investigate the challenges faced by private companies in Pristina, Republic of Kosovo, in managing their human resources and retaining employees between 2014 and 2023. The research focused on understanding the influence of HR technology and the financial implications associated with employee turnover, particularly in relation to human resource management practices that impact employee retention. Theoretical Framework: The study was based on contemporary HRM theories, focusing on the evolving HR landscape due to demographic shifts, the "war for talent," and the COVID-19 pandemic. It also examined how HR technology enhances employee engagement and supports data-driven decision-making. Method: A mixed-methods research design was employed, involving structured surveys distributed to employees from various private companies in Pristina using probability sampling. The study collected quantitative data on job satisfaction and employee engagement, offering a comprehensive view of the multifaceted challenges faced by these companies. Results and Discussion: The findings showed a significant negative correlation between job satisfaction and turnover, and a positive correlation between engagement and intention to stay, highlighting the importance of both for employee retention. Research Implications: The study highlights the need for private companies in Pristina to enhance job satisfaction and employee engagement to reduce turnover. It recommends implementing customized HR policies and regular monitoring to tackle these issues effectively. Originality/Value: This study enriches the literature by analyzing HRM in Pristina's private sector. It underscores the need to adapt to demographic shifts, tackle talent acquisition issues, and use HR technology to boost employee retention.