Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system

PURPOSE: The purpose of this study is to examine the effects human resource management (HRM) practices on employee retention mediated by reward and compensation. Also, has examined moderating role performance appraisal, training development relationship between HRM retention. METHODOLOGY: A sample 250 respondents among employees working in retail sector Capital City Maldives was selected using random probability sampling technique. structured questionnaire distributed, data collected. Structural equation modeling analysis carried out causal effect FINDINGS: results showed that compensation (R&C) had significant positive However, found no career development, appraisal In terms mediating effects, R&C significantly (T&D) as well there were T&D Therefore, it concluded increasing perception towards practices, particularly Maldives, causes an increase (ER). such mediate Training Development Employee Retention along with Performance Appraisal (PA) ER. This means, indirectly PA can ER Maldives. Similarly, we conclude overall conclusion a partial IMPLICATIONS: contributes current knowledge confirming key determinant mediator for developing new theoretical domains practices. particular, findings strengthen Hertzberg‘s Two-Factor theory growth opportunities, advancement salary determine both motivators hygiene factors are crucial retaining employees. practice, also enable managers make organizational policy decisions improving enhancing be useful formulate effective policies. signifies importance linking these ORIGINALITY AND VALUE: could one pioneering studies examining four constructs shed light how business organizations Furthermore, indicated have full appraisal. filled existing research gaps adding value literature. Moreover, adds practical values should emphasized retain through other