Human resource practices and employee retention : The moderating effect of job engagement

This study investigates the relationship between human resource management (HRM) practices and employee retention in Ghana's Information and Communication Technology (ICT) sector, emphasizing the moderating role of job engagement. High turnover rates in this sector pose significant challenges, prompting the need for effective HRM strategies. The study identifies key HR practices, including compensation and training and development, as critical drivers of employee retention. It employs a quantitative approach, utilizing structural equation modeling (SEM) to analyze data from employees at the National Information Technology Agency (NITA). The findings reveal that both compensation and training significantly influence retention rates, with job engagement enhancing these effects. Specifically, engaged employees are more likely to remain with their organizations when they perceive fair compensation and effective training programs. However, the study uncovers a complex interaction where high job engagement may negatively moderate the relationship between training and retention, suggesting potential role overload or misalignment with employee needs. The research contributes to existing literature by integrating theories such as Equity Theory, Human Capital Theory, and Job Demands-Resources Theory to explain how HRM practices can be optimized for better retention outcomes. The implications extend to HR managers who are encouraged to develop equitable compensation structures and comprehensive training initiatives while fostering an engaging work environment. Limitations include the study's cross-sectional design and focus on a single organization, which may affect generalizability. Future research is recommended to explore longitudinal effects and additional variables influencing employee retention across diverse sectors.