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The impact of HR Practices on
Employee Retention
Under the guidance of: Presented By:
Ms. Tanushree Mukherjee Ishvinder Kaur
(Assistant Professor) MBA (Final)
Roll No.- 202118
Contents
 Introduction to Industry
 Introduction to SIP organization
 Tasks perpetrated in SIP
 Introduction to Base paper
 Theoretical framework of base paper
 Hypothesis of base paper
 Findings of the research
 Proposed theoretical framework
 Proposed Research Methodology
 Sample Determination & Data Collection
 Statistical tools & Analysis
 Limitations of the study
 Policy implications
 Recommendations
Retail industry
Reliance retail
• Reliance Retail is an Indian retail company and a subsidiary of
Reliance Industries Limited.
• Founded in 2006 by Mukesh Ambani, it is the largest retailer in
India in terms of revenue.
• Its retail outlets offer foods, groceries, apparel, footwear, toys,
home improvement products, electronic goods, and farm
implements and inputs.
• Apart from physical outlets, the company also sells products on its
e-commerce channels. It has 280,000 employees with profit of $1
billion. Reliance Retail valuation amounts to $150 billion.
Reliance trends
• Trends is India’s largest fashion retail chain across
India. Trends offers stylish, high-quality products
across Womenswear, Menswear, Kids wear and
fashion accessories through a diversified portfolio of
own brands, national and international brands.
• "FASHION AT GREAT VALUE".
• www.trends.ajio.com
• Trends has developed a strong portfolio of own
brands that cater to diverse tastes and preferences of
the customers.
13
In-House
Brands
22
External
Brands
Tasks perpetrated in SIP
Hired and onboarded 12 new associates.
PF nominations of 34 in-house employees.
Maintained Brand Promoter Compliance of 18
employees.
Conducted interviews for CSA profile.
Shortlisted 20 candidates for NSO.
Cluster follow-up for PME and Booster dose of staff.
Introduction to base paper
Human resource practices
HR Practices involve the strategic operations of HR. They are the
means through which the HR personnel can develop the leadership
of the staff.
Employee retention
• Employee retention refers to the ability of an organization to retain
its employees, make sure their sustainability and reducing the
turnover.
• It includes the strategies used by employers to keep productive and
talented workers by fostering the use efficient use of HR practices
in the organization.
Role of HR practices in
Employee retention
Theoretical framework
of
base paper
• CONSTRUCT: Studying the impact of HR Practices and Policies on
Employee Retention.
• INDEPENDENT VARIABLES : Training & Development
Organization Culture
Compensation and Rewards
• DEPENDENT VARIABLE: Employee Retention
Hypothesis
of the
Base Paper
Findings of the research
The dependent variable, employee retention, was highly
correlated with all three HR practices. This shows that
employee retention in the organization can be increased
through better HR practices.
The beta coefficient of training and development was
surprisingly negative. Training and development had 30.2%
negative impact on employee retention. Thus the first
hypothesis stood rejected.
The other two HR practices, compensation and organizational
culture, had significant positive impact on employee
retention. They were considered important in enhancing
employee loyalty and thus, increased the employee retention.
Proposed theoretical framework
CONSTRUCT:
Studying the impact of HR Practices on Employee Retention.
Independent Variable
HR Practices
Dependent Variable
Employee
Retention
PROPOSED RESEARCH METHODOLGY
Purpose of Study Descriptive Study
Type of Investigation Causal
Study Setting Non-Contrived
Time Horizon Cross Sectional
Measurement and Scaling • HR Practices (adapted from Langford,
2009)
• Employee Retention (adapted from Eva
Kyndt, 2009)
• 5- Point Likert Scale.
Sampledetermination
Population Unknown
Sampling Method Non - Probability
Sample Unit Employees in Reliance Retail
Sampling Size 270 Respondents
Sampling Technique Convenience Sampling
Sampling Area Chandigarh
Data collection
Data collection
summary
Total participants = 270 Total respondents = 210
Response Rate =77.7 %
Statistical tools
Descriptive
Statistics
Reliability
Statistics
Correlation
Analysis
Regression
Analysis
The following tools have been
used in the research:
Descriptive statistics
Descriptive Statistics
Mean Std. Deviation N
ER 3.6392 .58123 210
HRP 3.5923 .54751 210
After applying Descriptive Statistics, the result shows that there
is no ceiling effect and flooring effect. This is a clear indication
that there is a variance response of all the respondents.
Reliability statistics
Scale: ALL VARIABLES
Case Processing Summary
N %
Cases Valid 210 100.0
Excluded a
0 .0
Total 210 100.0
a. Listwise deletion based on all variables in the procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.818 27
By applying reliability statistics on variables, the value of Cronbach’s
Alpha was .818 which was greater than .70 which satisfied the
condition that a scale should consistently reflect the construct it is
measuring.
Correlation
Correlations
HRP ER
HRP Pearson Correlation 1 .744**
Sig. (2-tailed) .000
N 210 210
ER Pearson Correlation .744** 1
Sig. (2-tailed) .000
N 210 210
**. Correlation is significant at the 0.01 level (2-tailed).
There is a positive correlation between HR Policies and Practices and Employee
Retention. After applying correlation, we get the value .744 which shows that there
is a high degree of positive correlation between HR Policies and Practices and
Employee retention.
Regression
Model Summaryb
Model R R Square
Adjusted R
Square
Std. Error of
the Estimate
Change Statistics
R Square
Change F Change df1 df2
Sig. F
Change
1
.744a .554 .552 .38917 .554 258.186 1 208 .000
a. Predictors: (Constant), HRP
b. Dependent Variable: ER
The Table shows that HR policies and practices have 55.4 % impact on
Employee Retention.
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant)
.801 .179 4.484 .000
HRP
.790 .049 .744 16.068 .000
a. Dependent Variable: ER
ANOVAa
Model
Sum of
Squares Df
Mean
Square F Sig.
1 Regression
39.104 1 39.104 258.186 .000b
Residual
31.503 208 .151
Total
70.606 209
a. Dependent Variable: ER
b. Predictors: (Constant), HRP
Since the significance value in ANOVA table is less than the
0.05, it refers to that the model is a good fit.
LIMITATIONS OF THE STUDY
Small sample size
Unwillingness of respondents
Limited area for research
Respondents’ bias
Researcher’s bias
Provide benefits to
employees
Increase flexibility
Ingenious techniques
to motivate and
retain employees
Positively adapt the
changes
Policy
implications
Recommendations
Maintain
cordial
relations
with
employees
Create a
participative
work culture
Provide
breaks and
social
gatherings
Training for
skill
development
Impact of HR Practices on Employee Retention

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Impact of HR Practices on Employee Retention

  • 1. The impact of HR Practices on Employee Retention Under the guidance of: Presented By: Ms. Tanushree Mukherjee Ishvinder Kaur (Assistant Professor) MBA (Final) Roll No.- 202118
  • 2. Contents  Introduction to Industry  Introduction to SIP organization  Tasks perpetrated in SIP  Introduction to Base paper  Theoretical framework of base paper  Hypothesis of base paper  Findings of the research  Proposed theoretical framework  Proposed Research Methodology  Sample Determination & Data Collection  Statistical tools & Analysis  Limitations of the study  Policy implications  Recommendations
  • 4. Reliance retail • Reliance Retail is an Indian retail company and a subsidiary of Reliance Industries Limited. • Founded in 2006 by Mukesh Ambani, it is the largest retailer in India in terms of revenue. • Its retail outlets offer foods, groceries, apparel, footwear, toys, home improvement products, electronic goods, and farm implements and inputs. • Apart from physical outlets, the company also sells products on its e-commerce channels. It has 280,000 employees with profit of $1 billion. Reliance Retail valuation amounts to $150 billion.
  • 5. Reliance trends • Trends is India’s largest fashion retail chain across India. Trends offers stylish, high-quality products across Womenswear, Menswear, Kids wear and fashion accessories through a diversified portfolio of own brands, national and international brands. • "FASHION AT GREAT VALUE". • www.trends.ajio.com • Trends has developed a strong portfolio of own brands that cater to diverse tastes and preferences of the customers. 13 In-House Brands 22 External Brands
  • 6. Tasks perpetrated in SIP Hired and onboarded 12 new associates. PF nominations of 34 in-house employees. Maintained Brand Promoter Compliance of 18 employees. Conducted interviews for CSA profile. Shortlisted 20 candidates for NSO. Cluster follow-up for PME and Booster dose of staff.
  • 8. Human resource practices HR Practices involve the strategic operations of HR. They are the means through which the HR personnel can develop the leadership of the staff.
  • 9. Employee retention • Employee retention refers to the ability of an organization to retain its employees, make sure their sustainability and reducing the turnover. • It includes the strategies used by employers to keep productive and talented workers by fostering the use efficient use of HR practices in the organization.
  • 10. Role of HR practices in Employee retention
  • 11. Theoretical framework of base paper • CONSTRUCT: Studying the impact of HR Practices and Policies on Employee Retention. • INDEPENDENT VARIABLES : Training & Development Organization Culture Compensation and Rewards • DEPENDENT VARIABLE: Employee Retention
  • 13. Findings of the research The dependent variable, employee retention, was highly correlated with all three HR practices. This shows that employee retention in the organization can be increased through better HR practices. The beta coefficient of training and development was surprisingly negative. Training and development had 30.2% negative impact on employee retention. Thus the first hypothesis stood rejected. The other two HR practices, compensation and organizational culture, had significant positive impact on employee retention. They were considered important in enhancing employee loyalty and thus, increased the employee retention.
  • 14. Proposed theoretical framework CONSTRUCT: Studying the impact of HR Practices on Employee Retention. Independent Variable HR Practices Dependent Variable Employee Retention
  • 15. PROPOSED RESEARCH METHODOLGY Purpose of Study Descriptive Study Type of Investigation Causal Study Setting Non-Contrived Time Horizon Cross Sectional Measurement and Scaling • HR Practices (adapted from Langford, 2009) • Employee Retention (adapted from Eva Kyndt, 2009) • 5- Point Likert Scale.
  • 16. Sampledetermination Population Unknown Sampling Method Non - Probability Sample Unit Employees in Reliance Retail Sampling Size 270 Respondents Sampling Technique Convenience Sampling Sampling Area Chandigarh
  • 17. Data collection Data collection summary Total participants = 270 Total respondents = 210 Response Rate =77.7 %
  • 18.
  • 20. Descriptive statistics Descriptive Statistics Mean Std. Deviation N ER 3.6392 .58123 210 HRP 3.5923 .54751 210 After applying Descriptive Statistics, the result shows that there is no ceiling effect and flooring effect. This is a clear indication that there is a variance response of all the respondents.
  • 21. Reliability statistics Scale: ALL VARIABLES Case Processing Summary N % Cases Valid 210 100.0 Excluded a 0 .0 Total 210 100.0 a. Listwise deletion based on all variables in the procedure. Reliability Statistics Cronbach's Alpha N of Items .818 27 By applying reliability statistics on variables, the value of Cronbach’s Alpha was .818 which was greater than .70 which satisfied the condition that a scale should consistently reflect the construct it is measuring.
  • 22. Correlation Correlations HRP ER HRP Pearson Correlation 1 .744** Sig. (2-tailed) .000 N 210 210 ER Pearson Correlation .744** 1 Sig. (2-tailed) .000 N 210 210 **. Correlation is significant at the 0.01 level (2-tailed). There is a positive correlation between HR Policies and Practices and Employee Retention. After applying correlation, we get the value .744 which shows that there is a high degree of positive correlation between HR Policies and Practices and Employee retention.
  • 23. Regression Model Summaryb Model R R Square Adjusted R Square Std. Error of the Estimate Change Statistics R Square Change F Change df1 df2 Sig. F Change 1 .744a .554 .552 .38917 .554 258.186 1 208 .000 a. Predictors: (Constant), HRP b. Dependent Variable: ER The Table shows that HR policies and practices have 55.4 % impact on Employee Retention.
  • 24. Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) .801 .179 4.484 .000 HRP .790 .049 .744 16.068 .000 a. Dependent Variable: ER ANOVAa Model Sum of Squares Df Mean Square F Sig. 1 Regression 39.104 1 39.104 258.186 .000b Residual 31.503 208 .151 Total 70.606 209 a. Dependent Variable: ER b. Predictors: (Constant), HRP Since the significance value in ANOVA table is less than the 0.05, it refers to that the model is a good fit.
  • 25. LIMITATIONS OF THE STUDY Small sample size Unwillingness of respondents Limited area for research Respondents’ bias Researcher’s bias
  • 26. Provide benefits to employees Increase flexibility Ingenious techniques to motivate and retain employees Positively adapt the changes Policy implications