Impact of Recruitment Practices on Employee Retention at Low-Voltage Panel Board Manufacturing Industry in Sri Lanka

Abstract

Great businesses understand the importance of keeping their employees for a long period time. By doing this, organizations do not need to spend more money and time necessary to replace employees. Selected Low-Voltage Panel board manufacturing company recently face an issue with the employees who are in one to three years of the service period are leaving the organization at a significant level. Therefore, the organization is continuously recruit new employees and spending more money and time on training employees. This study is conducted to investigate the impact of recruitment and selection process on employee retention. It also, focuses on to examine the influence of the source of recruitment, other recruitment and selection process factors that are currently proceeding in the organization which make effects on employee retention. The sample size of the study was 100 employees in the capacity of senior executives, executives, and shop-floor workers. IBM SPSS© (version 25) used to analyze the data. The study has been identified that employee incentives and individual attributes plays a major part in employee retention. Research concluded that the employees were highly dissatisfied with the incentive schemes. Study showed that the current incentive scheme is not transparent. Some employees feel this system being unfair. It resulted them to leave the company. Therefore, the researcher has given attainable recommendations applicable for the respective company in order to retain its employees for a greater time period.