TALENT RETENTION USING HIGH PERFORMANCE WORK SYSTEMS

Tahir Masood Qureshi

Associate professor, College of Business Administration (COBA)

American University in the Emirates (UAE)

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Abstract

This research study is intended to explore the impact of High Performance Work Systems (HPWS) on Employee retention at Will (ERW) in addition to testing mediating role of Employee Commitment (EC). The sampled elements are selected using stratified random sampling technique from oil and gas industry considering its economic importance for the Gulf Cooperation Council (GCC) region. The industry contributes substantially to the GDP and provides enormous employment opportunities to uplift the regional growth and development. The regional energy providers are in competition with each other, hence free employee switching is usual norm in the region that emerge the challenge of employee retention. Therefore, this study is designed to identify the role of HPWS as independent, EC as mediator towards Employee Retention. Using five-point Likert scale self-administered questionnaires, primary data in this cross-sectional study is collected from 303 respondents. Data is analysed using SPSS-25 and mediation of employee commitment is identified between HPWS and ERW. As oil and gas industry is very competitive and volatile, hence there are many political, economic, social, environmental and legal constructs that can’t be controlled to maintain organizational economic sustainability. However, companies can generate commitment, motiva-tion and can retain the talented staff by implementing (HPWS) in short and long run. Current study emphases on previously focussed elements of HPWS, however testing Employee Retention at Will as dependent and Employee Commitment as mediator in the GCC region are unique additions. Analysis revealed that the High-Performance Work Systems is significantly impacting Employee Retention at Will and further it explicates the noticeable mediation of Employee Commitment. Therefore, companies operating in this industry can use HPWS practices as a tool to retain the employee to attain economies of scale and better performance.

Keywords: Human Resource Management (HRM), Employee Commitment (EC), Employee Retention (ER), Higher Performance Work Systems (HPWS), Oil and Gas, and Gulf Cooperation Council (GCC).

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