A study on relationship between Human Resource Management Practices and Employee Retention in SMEs in Punjab

Abstract

Purpose: The purpose of the study is to examine how HRM practices affect employee retention within SMEs in Punjab. It identifies key HRM practices that influence employee retention and examines their effectiveness in the context of SMEs in Punjab and the difficulties SMEs face during implementation.

Methodology: This research employs a qualitative approach, utilizing semi-structured interviews and surveys to gather insights from SME owners and managers in Punjab.  Primary data was collected through structured questionnaires distributed among employees and HR managers in SMEs across Punjab.

Findings: The findings of the research show the relationship between HR Practices and Employee Retention and also helps in identify the challenges faced by SMEs in Punjab in conducting Employee Retention. The findings of the study signifies that SMEs that successfully navigate these challenges will have a better chance of retaining employees and attaining long-term organizational success. Thus, this research aids in determining which HRM strategy best retains the best talent and emphasizes the need for customized solutions to address some unique issues that SMEs in the region deal with.

Originality: This study is novel because it focuses on Human Resource Management practices in SMEs in Punjab, which has been relatively unexplored in extant literature. The literature that currently exists on employee retention originates mostly from research conducted on large firms or in other regions of the world; as a result, it usually ignores specific challenges that SMEs in Punjab face. The research fills a gap in the literature and provides useful information for academic and real-world HRM applications.