Abstract:
The present study is aimed at examining the impact of HRM practices, employee
engagement, person-organization (P-O) value fit on employee retention in the
healthcare sector. It is an attempt to assess the relationship of key HRM practices
namely recruitment and selection, compensation and reward, performance appraisal,
training and development, and employee participation on the employee retention.
Moreover, the research further investigates the mediating role of employee engagement
and P-O value fit in the relationship between HRM practices and employee retention.
To fulfill the research objectives based on identified research gaps, primary
responses were collected from 311 registered medical allopathic doctors (knowledge
workers) working in private hospitals in Delhi and National Capital Region (NCR).
Respondents who have atleast completed their graduation in medicine (MBBS) are
included for the research. Furthermore, the purposive selection of private hospitals is
focused on institutions where HRM practices are systematically implemented,
ensuring a relevant and accurate assessment of their impact on engagement and
retention. A structured questionnaire has been designed based on the validated scales
relevant to the study. The questionnaires were circulated both physically and online
(via Google Forms). The primary data collection process is aimed towards obtaining
firsthand insights into the influence of HRM practices on employee engagement and
retention.
The study has employed IBM SPSS Statistics for generating descriptive statistics,
normality testing using Kolmogorov-Smirnov and Shapiro-Wilk tests and common
method bias using Harman’s Single-Factor test. Additionally, PLS-SEM using Smart
PLS 4 is applied to analyze theoretical model and test the hypothesized relationships.
The PLS-SEM framework is advantageous for handling complex models with multiple
constructs and latent variables. The analysis involved measurement model assessment
including reliability testing, convergent validity and discriminant validity followed by
formative model assessment. Final structural model is observed where bootstrapping
procedure is followed for hypothesis testing.
Overall, the bootstrapping results confirmed the robustness of the HRM Practices
construct, validating the inclusion of all five first-order constructs in the model. The
significant T-values and P-values reinforced that these dimensions meaningfully
contribute to HRM Practices, with recruitment & selection and compensation &
reward having the strongest influence. The findings of this study emphasize the crucial
role of HRM practices in fostering employee engagement and enhancing employee
retention in the healthcare sector. Effective recruitment, competitive compensation,
structured training, and participatory decision-making significantly contribute to
engagement and retention. However, performance appraisal systems require further
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refinement to maximize their impact on engagement. the insignificant impact of
performance appraisal on engagement suggests that existing appraisal systems may
require reassessment and refinement to better align with employee expectations and
organizational goals. Additionally, mediation analysis is conducted to evaluate the
mediating role of P-O value fit and engagement in the relationship between HRM
practices and employee retention. The statistical significance of the indirect effect,
combined with a strong mediation pathway, confirmed that Employee Engagement
partially mediated the relationship between HRM Practices and Employee Retention.
These findings emphasized the need for the healthcare organizations to not only
implement effective HRM practices but also ensure that such practices enhance
employee engagement to achieve workforce retention. Similarly, the results confirm
that P-O value fit partially mediated the relationship between HRM Practices and
employee retention. While HRM practices had a direct positive impact on retention,
their effectiveness was further enhanced by ensuring that employees identified with the
organization’s values.
Finally, the research is concluded with theoretical contributions and practical
implications. The theoretical contributions provide a robust conceptual foundation for
understanding influence of HRM on healthcare organizations, integrating established
theories to explain the dynamics of employee engagement and retention. Meanwhile,
the practical implications offer actionable insights that can guide healthcare
organizations, HR professionals, and policymakers in implementing HRM practices
that enhance employee engagement and long-term retention. By focusing on these
aspects, the study not only enriches academic literature but also provides a roadmap
for healthcare organizations to optimize their HRM practices, ensuring a more
engaged and dedicated knowledge workers.