The role of HRM practices in retaining employees: Evidence from the banking sector

Abstract

Banking is one of the fastest-growing sectors because of its contribution to the economy, however, today employee retention is demurring for banks and they are striving to fulfil this challenge. It has been observed from the past few years that it is due to the lack of knowledge related to the proper implementation of HR practices in the commercial banks. The main purpose behind conducting the research is to understand the effect of compensation (C), working environment (WE), training and development (T&D), and performance appraisal (PA) on employee retention (ER). The study used convenience sampling with a sample size of 200 and data was collected from the employees of different commercial banks located in Islamabad and Rawalpindi. The empirical results showed that WE, PA, and COM have a significant positive relationship with the ER whereas T&A has the insignificant one.