Enhancing Employee Retention in the Private Banking Sector: A Comprehensive Analysis of Human Resource Management Practices in Mirpurkhas District

Abstract

This research study examine the impact of Human Resource Management (HRM) practices on employee retention within the private banking sector of Mirpurkhas, Pakistan. With contribution of factors like Skill development training, performance appraisal, as perks and Benefits, and work-life balance, and growth opportunities, A Close-Ended Questionnaire is utilized for data collection, with a sample size of 205 participants chosen through non-probability random sampling. The survey encompasses five variables—Employee Perks & Benefits, Skill Development Training, Performance Appraisal, Work-Life Balance, and Growth & Retention—with 25 items adapted from existing studies. Descriptive statistics and Structural Equation Modeling (SEM) using Smart PLS are employed for data analysis.  Study collected data Sample 205, out of 350 total population from proposed area of private banking sector of Mirpurkhas, Pakistan. The sample size determination follows the formula outlined in Krejcie's article (1970), with a commendable response rate of 88.8 percent. The study establishes excellent reliability with a Cronbach's alpha of 0.878, ensuring the internal consistency of the data. The demographic profile of respondents, including age, gender, marital status, education, and experience, is presented. The normalized mean and standard deviation values indicate standardized data, facilitating objective assessment. The Measurement Model, Factor Loading, and Discriminant Validity Test confirm the reliability and validity of the employed constructs. Internal Consistency Reliability Analysis and Hypothesis-Testing validate the substantial impact of HRM practices on employee retention. highlight the pivotal role of compensation, training, performance appraisal, work-life balance, and growth opportunities in shaping employee loyalty. Recommendations include revising compensation structures, investing in training programs, implementing effective performance appraisal, promoting work-life balance, creating growth opportunities, and considering additional perks. In conclusion, the research contributes valuable insights for organizational leaders and HR practitioners, guiding them in strategic HRM practices to enhance employee retention within the dynamic banking industry of Mirpurkhas.

Keywords: compensation, HRM, growth, retention, appraisal.