What Impact Does Human Resource Management Practices Have On Retaining Employees In The Savings & Loans Subsector? A Study of Advans Savings and Loans Limited

Abstract

Retaining talented employees forms the foundation for increasing the competitive advantage in any organization and for which reasons the necessary measures must be put in place to keep such staff. Organizations that implement effective practices in human resource management have high probability to keep their important employees. The intense competition within banking industry, especially the savings and loans sub-sector makes it very difficult for such companies to keep their staff and so always at the risk of high labour turnover. This study primarily assessed how HR Management practices on influences the retention of workers in the savings and loans sub-sector at Advans Ghana Savings & Loans Limited. The study particularly looked at how employee engagement and compensation affects retention of employee. Also observed is the moderating effect of job satisfaction on the link between human resource management practices and retention of employees. This investigation was carried out in 3 out of the 19 branches of Advans Ghana and the head office. The research also embraced an exploratory research design. The purposive and convenience sampling technique was adopted by the researcher for this study. This technique was employed to conveniently sample about 234 respondents to participate in the data collection process. Descriptive statistics were employed in the analysis of data as this is an exploratory study. It was concluded from the findings that human resource management practices play a significant role in the staff retention at Advans Ghana as evidenced by the positive responses gathered in the data collection process. On the other hand, it was deduced that the practices being used were unsatisfactory. Notwithstanding this, the results show that retention in the organization was either good or fairly good. It is concluded also from this research that a set of HR Management practices will not necessarily have a direct effect on the staff retention at Advans Ghana. The study also concludes that employee engagement involves making it possible for workers to hook up with their co-workers, bosses and the organization as a whole. Results from the study also concludes that besides compensation practices and employee engagement, there are other organizational and human resource management practices that play important role in enhancing employee loyalty and retention to organizations hence their retention and should therefore not be ignored. These include performance management practices, leadership, employee motivation and recruitment