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The Impact of HR Practices on Employee Retention; A Case of BPO Sector, Sri Lanka

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Listed:
  • N.R.A.S.S. Wijesiri
  • G.S. Paranagama
  • M.M.A.S. Sirirwardhana
  • D.L.N.C. Thilakarathna
  • R.S Weerarathna
  • U.P.G.Y Pathirana

Abstract

In today’s business world, employee retention is one of the much debated topics and identifying the reasons for employee turnover and implementing the necessary policies to retain employees can be crucial. Thus, all organizations expect to minimize the employee turnover to best possible level. Therefore, the intention of this research is to study the impact of Human Resource practices on employee retention, conducted on the Business Process Outsourcing (BPO) sector in Sri Lanka. BPO sector is recognized as an emerging sector in Sri Lanka, and this sector is well known as an under-researched area. This study is significant as such research projects have been sparse in the Sri Lankan context and in order to fill that gap this research have been conducted for three companies namely Company A, B and C. The analysis was mainly based on 237 executive level employees from Company A, B and C respectively 108, 32 and 97 selected through simple random sampling. Primary data were collected using a self-administrated questionnaire and analyzed through deductive approach. According to the results obtain through regression analysis all three companies indicated that there is less impact of HR practices on employee retention. As a conclusion when management of BPO sector formulate the policies in their organizations with regard to employee retention, they should consider not only the HR practices but also, they have to concern about other factors that can effect on employees.

Suggested Citation

  • N.R.A.S.S. Wijesiri & G.S. Paranagama & M.M.A.S. Sirirwardhana & D.L.N.C. Thilakarathna & R.S Weerarathna & U.P.G.Y Pathirana, 2019. "The Impact of HR Practices on Employee Retention; A Case of BPO Sector, Sri Lanka," International Journal of Human Resource Studies, Macrothink Institute, vol. 9(1), pages 1-21, December.
    • Handle: RePEc:mth:ijhr88:v:9:y:2019:i:1:p:1-21
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    References listed on IDEAS

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    1. Neeraj Bhanot & P. Venkateswara Rao & S.G. Deshmukh, 2016. "Identifying the perspectives for sustainability enhancement," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 13(3), pages 244-270, November.
    2. Liyanachchi Mahesha Harshani De Silva & Charith D. Chitraranjan, 2018. "Factors Affecting on Gaining a Sustainable Competitive Advantage for Sri Lankan Higher Educational Institutes," International Business Research, Canadian Center of Science and Education, vol. 11(4), pages 106-118, April.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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