IMPACT OF HUMAN RESOURCE PRACTICES ON EMPLOYEE RETENTION: MEDIATING ROLE OF JOB SATISFACTION

Abstract

The research question is based on the influence of human resource (HR) practices namely compensation (COMP), career development (CD), work environment (WE) and leadership skills (LS) on employee retention (ER) within the education sector of Pakistan and job satisfaction (JS) as a controlling variable. The research design adopted was quantitative and cross-sectional design and used a structured questionnaire where 300 employees of the education sector were used. Techniques were applied to analyze data with the help of the Partial Least Squares Structural Equation Modeling (PLS-SEM). Results prove that each of the four HR practices has a significant impact on job satisfaction, as well as employee retention. In addition, job satisfaction completely mediates all HR practice-retention links. The model accounts for 57.7% and 62.3% variation in employee retention and job satisfaction, respectively. The implications of these findings in the HR policy in the education sector in Pakistan are discussed.