Human Resource Practices and Employee Retention: The case of Maldives Small and Medium-sized Enterprises (SMEs)

Abstract

The main objectives of this study are to examine Human Resource (HR) practices (Compensation and rewards, Training and development) and the mediating role (affective-based) of trust in supervisors to retain employees in SMEs in the Maldives using the social exchange theory (SET). A sample of 275 respondents among the employees working in SMEs in the capital city of the Maldives was selected using a simple random sampling method. Data were analysed using SPSS and SmartPLS version 3.7. The findings of this study offer several critical theoretical and practical implications for SME owners and managers interested in enhancing employee retention.