The Role of Strategic Human Resource Management in Enhancing Employee Performance and Retention: Evidence from HR Analytics Data
Keywords:
Strategic Human Resource Management, HR Analytics, Employee Performance, Employee Retention, Data-Driven Decision MakingAbstract
Strategic Human Resource Management (SHRM) is a vital organizational strategy that helps enhance the performance of the workforce and retain employees amidst the rapidly growing competition in the business world. This research investigates how SHRM can help improve employee performance and retention based on HR analytics information. The quantitative, descriptive and analytical research design was used with secondary HR data of 1470 employee records including demographic, job related, compensation, satisfaction, training, performance and attrition variables. The key determinants of employee performance and retention were identified using descriptive statistics, correlation analysis, and regression analysis. The results show that increased job satisfaction, increased job involvement, compensation, work-life balance, training participation, managerial relationships and stock option benefits are associated with increased retention, while overtime and delayed promotions are associated with increased risk of employee turnover. The result revealed that salary increment was found to be strongly related to employee performance, thus showing that employee evaluation is related to salary arrangements. The study also proves that HR analytics can be a powerful source of evidence-based insights for predicting employee turnover, understanding employee behaviors, and making strategic HR decisions. The results highlight how organizations could enhance employee performance and retention by leveraging HR analytics and SHRM practices to create proactive, data-driven workforce strategies. The study builds upon the current body of knowledge on strategic HRM and HR analytics and offers practitioners valuable insights on how to improve the performance of organizations using evidence-informed HRM.
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