The Relationship between HRM Strategies and Intention to Stay

Abstract

Retaining employee can be considered as a major challenge for many organizations. This is because employees are the most important assets for an organization to stay competitive advantage. Construction industry plays a significant role in economic development of the country. It is thus important for the industry to retain its employees as turnover would be costly. This paper investigates the relationship between Human Resource Management (HRM) strategies i.e. recruitment and selection, compensation, training and development, supervisor support and work-life balance, and employees’ intention to stay working in the company. Questionnaire was distributed to 52 employees in a construction company. The correlation analysis revealed a positive, moderate and significant relationship between HRM strategies and employees’ intention to stay. Results of multiple regression showed that work-life balance dimension is a strong predictor whilst training and development dimension is the least significant predictor for employees’ intention to stay.