The Effect of Human Resources Management on Employees Retention in IBM Corporation

Tadesse Beyene Okbagaber ()

Journal of Asian Business Strategy, 2019, vol. 9, issue 2, 158-173

Abstract: The study investigates HRM practices and their effect on employee retention in the International Business Machine (IBM) Corporations. Organizational success and growth depend on retaining key employees; however, nowadays, organizations are facing a notable challenge in retaining staff (Haider et al., 2015). The research used IBM’s human resources management secondary data consists of 1470 sample size. Established the study’s independent and dependent variables, the reliability coefficient of 0.899 and the model’s adjusted r-square of 91% (p<0.0000). It anchored on Social Exchange Theory (SET) to examine the hypotheses and the survey supported its four hypotheses; whereas it failed to support the remaining two hypotheses. It seems rather odd to conclude that findings on the percentage of salary hike have a negative effect on employee retention, and also an insignificant contribution of an hourly rate and extent of training provided. Hence, its implication to management includes salary hike, hourly rate, and training programs should be geared to improve employee retention rather than as standalone practices. Besides, it has a theoretical contribution anchored on the SET lens. It also incorporated a new variable an extended years’ of work experience, promotion, and supervisory relations have a positive and significant effect on employee retention.

Keywords: Employee retention; Compensation; Promotion; Supervisor-employee relations; Training & Development; Work experience and SET. (search for similar items in EconPapers)
Date: 2019
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