The Impact of HRM Practices on Organisational Commitment and Employees’ Intention to Stay: A Comprehensive Analysis

Abstract

Human Resource Management (HRM) practices are one of the crucial issues in today's dynamic business environment that help organisations develop their productivity. This study looks into the effects of some HRM practices, namely, compensation, work-life balance, job security, and supervisor support, on employees' intention to stay with their organisations. Employee retention is an important concern for businesses, as it directly impacts any organisation’s performance, growth, and overall success. The research targets employees with at least two years of experience in Bangladesh's business and financial industries. Data were collected from 313 respondents, with a high response rate of 89.71%, using a standardised questionnaire on a five-point Likert scale. The data analysis in this study, such as Principal Component Analysis (PCA) and regression analysis, was done using SPSS 20. Some key results show that HRM practices and employees' intention to stay with an organisation are positively correlated. Compensation, work-life balance, and supervisor support emerged as strong factors in retaining employees. Organisational Commitment (OC) is also a significant outcome that can ensure a good work environment. Reliability and validity tests like Cronbach's alpha, KMO, and Bartlett's Test of Sphericity have verified that the data is robust. The study infers that HRM practices significantly influence employees' commitment and intention to stay with their employer. This calls for businesses to strategically invest in HRM practices to enhance employee satisfaction and reduce turnover. The overall findings from the study add to the broader understanding of how HRM practices contribute to employee retention within Bangladesh's business environment.