Abstract:
This study seeks to establish the influence of human resource management practices on
employee retention. A questionnaire was developed based on pas literature and a pilot test
was done to test the normality, reliability and validity of the scale. The independent
variables to measure human resource management practices include career and
development, training and development, performance appraisal, reward and
compensation, and health & safety. The dependent variable used in this research is
employee retention. The study adopted descriptive and explanatory research design. Also
this study used a cross sectional survey methods using a survey questionnaires containing
30 items with Likert Scale (Disagree -1 and 5 for Agree). The sample of 254 employees
from 14 retail outlets in Male’ (capital city of Maldives) were selected using convenient
sampling. The collected data was analysed using descriptive means and regression via
SPSS.20. This study found that three human resource practices such as career
development, reward and recognition, and health and safety have a positive and
significant impact on employee retention. This research did not find any significant
influence of training and development nor performance appraisal on employee retention.
However when training and development is linked with career development, there is a
positive and significant influence on employee retention. Also when performance appraisal
is linked with reward and compensation there is a positive and significant influence on
employee retention. Though this study included only 14 retail organisations, future studies
may include larger sample by conducting the research on more organisations including
tourist resorts, particular only tourism industry . The future studies may compare
differences based on socio-demographic profile and might examine the similarities and
difference of HR practices in different sectors in Maldives
