Employee Retention of Human Resource Management
Employee
retention has become one of the most important strategic responsibilities of
Human Resource Management. As emphasized in contemporary HRM theory, HRM plays
a crucial role in maintaining employee engagement, supporting people through
change, improving leadership effectiveness, and strengthening workplace
culture—all of which directly influence retention (Boxall, Purcell and Wright,
2007). In today's competitive business environment, retaining skilled and
motivated employees is essential for organizational growth and sustainable
competitive advantage. Sri Lankan companies, especially in industries such as
IT, banking, apparel, hospitality, and retail, are increasingly focusing on
retention strategies to reduce turnover, protect organizational knowledge, and
ensure long-term stability.
Why Employee Retention Matters
Effective HRM is directly linked to higher retention rates. The attached document highlights several HRM functions that support this, including:
Maintaining
employee engagement
Ensuring
productivity and organizational success
Facilitating
skill development
Promoting a
positive workplace culture
Strengthening
leadership effectiveness
These HRM
foundations help reduce voluntary turnover and build a committed,
high-performing workforce, which is critical for long-term performance (Bratton
and Gold, 2017).
1. Creating a Positive Workplace Culture
Fostering a positive organizational culture is a core HRM function. A strong culture creates a sense of belonging and significantly reduces an employee's desire to leave (Armstrong, 2021).
Example - Brandix
Brandix promotes
a culture of empowerment, open communication, and continuous improvement.
Through various employee engagement activities, wellness programmers, and
recognition systems, Brandix has managed to retain a loyal workforce across its
manufacturing plants, demonstrating the link between culture and retention.
2. Strengthening Leadership and Employee
Support
Leadership effectiveness is essential for employee retention. Research consistently shows that employees are more likely to stay when they feel respected, supported, and valued by their immediate leaders (Boxall, Purcell and Wright, 2007).
Example - MAS Holdings
MAS invests
heavily in leadership development through coaching, mentoring, and
cross-functional exposure. Strong leaders provide guidance, recognize
performance, and support career growth—factors that are proven to reduce
turnover and improve job satisfaction.
3. Offering Career Growth and Skill
Development
HRM should facilitate skill development and strengthen employee performance. These elements are highly connected to retention, as employees stay longer when they see a clear path for development and progression within the organization (Dessler, 2020).
Example - HNB (Hatton National Bank)
HNB offers
continuous learning programmers, certifications, and clear career pathways for
both new and experienced employees. By investing in skills and professional
growth, HNB increases retention among ambitious banking professionals who see a
future with the company.
4. Supporting Employees During Organizational
Change
Supporting people through change and minimizing resistance are critical HRM responsibilities. Employees are more likely to remain with an organization when they feel supported and informed during periods of uncertainty (Bratton and Gold, 2017).
Example - Dialog Axiata
During major
digital transformation initiatives, Dialog provided extensive training, clear
communication sessions, and emotional support. By reducing employee anxiety and
adequately preparing staff for change, Dialog successfully maintained workforce
stability and reduced turnover that often accompanies such disruptions.
5. Ensuring Fair Rewards and Recognition
While the attached document focuses on HRM systems, the themes of employee engagement and organizational success highlight the importance of rewards and recognition. Engaged employees, who feel their contributions are valued fairly, are less likely to leave (Armstrong, 2021).
Example - Keels
Keels uses a
structured reward system, performance-based bonuses, and regular recognition
events to appreciate employees' contributions. These practices improve morale
and reduce attrition in the highly competitive retail sector.
6. Promoting Work–Life Balance and Well-being
Modern employees increasingly priorities work life balance. HRM’s focus on supporting people and promoting a positive culture includes well-being initiatives that are crucial for retaining staff (Dessler, 2020).
Example - Jetwing Hotels
Jetwing invests
in employee wellness, stress-management programmers, flexible scheduling, and
supportive leadership. This creates a healthy working environment resulting in
lower turnover in a hospitality industry known for high attrition rates.
7. Improving Communication and Employee
Involvement
Effective communication and employee involvement are central to organizational processes. When employees feel heard and involved in decisions that affect them, they are more likely to stay committed to the organization (Bratton and Gold, 2017).
Example - Pick Me
Pick Me actively
communicates with drivers and staff through digital platforms, feedback
channels, and engagement activities. By listening to concerns and involving
employees in decision-making, Pick Me builds strong loyalty and reduces
retention issues even in a rapidly changing gig economy environment.
Challenges Affecting Employee Retention in Sri
Lanka
Many challenges also affect retention:
Poor
communication
Lack of
leadership support
Inadequate
training
Cultural
barriers
Inconsistent HRM
implementation
Addressing these
issues is essential for building a stable, long-term workforce and requires a
strategic and consistent approach from HR and leadership (Armstrong, 2021).
Conclusion
Employee
retention is not achieved through a single policy it requires a comprehensive
HRM strategy that includes skill development, leadership support, cultural
alignment, and strong communication. As outlined in strategic HRM theory, HRM
is essential for improving employee engagement, supporting people through
change, and ensuring organizational success (Boxall, Purcell and Wright, 2007).
Sri Lankan organizations that invest in employee development, recognition,
leadership, and well-being are better equipped to retain skilled talent, reduce
turnover costs, and build a stable and motivated workforce capable of driving
long-term growth.
References
Armstrong, M.
(2021) Armstrong's Handbook of Human Resource Management Practice (15th edn.).
London: Kogan Page.
Boxall, P.,
Purcell, J. and Wright, P. (2007) The Oxford Handbook of Human Resource
Management. Oxford: Oxford University Press.
Brandix Lanka
(2022) Sustainability and People Development Report. Available at:
https://brandix.com
Bratton, J. and
Gold, J. (2017) Human Resource Management: Theory and Practice (6th edn.).
London: Palgrave Macmillan.
Dialog Axiata
PLC (2023) Annual Report 2023. Available at: https://dialog.lk
Dessler, G.
(2020) Human Resource Management (16th edn.). Harlow: Pearson.
HNB PLC (2021)
Annual Report. Available at: https://hnb.net
Jetwing Hotels
(2022) Employee Well-being and HR Practices. Available at:
https://jetwinghotels.com
John Keells
Holdings (Keells) PLC (2022) Annual Report. Available at: https://keells.com
MAS Holdings
(2022) Sustainability Report. Available at: https://masholdings.com
PickMe Digital
Mobility Solutions (2023) Company Overview and HR Initiatives. Available at:
https://pickme.lk
Sampath Bank PLC
(2021) Annual Report. Available at: https://sampath.lk
Softlogic
Holdings PLC (2022) Annual Report 2022. Available at:
https://softlogicholdings.lk
Sri Lanka
Tourism Development Authority (SLTDA) (2022) Hospitality Sector HR Trends
Report. Available at: https://sltda.gov.lk
Strong overview of retention strategy, Rajitha.
ReplyDeleteThe work-life balance aspect at Jetwing Hotels addresses a real challenge in service industries. High-pressure customer-facing roles create burnout quickly.
Flexible scheduling and wellness support aren't just nice-to-haves—they're retention necessities. The cost of constant recruitment and training far exceeds investment in employee well-being."
Hi Dharsha,
DeleteExcellent points. You're spot on that in service industries, wellness isn't a perk—it's a core retention strategy.
Your cost-benefit analysis is exactly right. The hidden costs of turnover (lost knowledge, team morale, customer service) make investing in employee well-being one of the smartest business decisions an organization can make.
Thanks for adding such a valuable perspective.
A very relevant article! I liked the way you broke down retention into culture, leadership, and rewards. In my opinion, retention is strongly tied to meaningful work and development opportunities, not just salary. Which factor do you believe has the biggest impact on reducing turnover in today’s workforce?
ReplyDeleteHi Shashi,
DeleteExcellent point. Your focus on meaningful work and development is spot-on.
To answer your question: While all factors are critical, leadership has the single biggest impact.
A strong leader is the one who creates meaning, provides growth, and builds a positive culture. They are the primary reason employees stay or leave. Investing in leadership quality is the most effective retention strategy an organization can implement.
This comment has been removed by the author.
ReplyDeleteThis is an excellent summary of why retention requires a holistic HRM approach rather than isolated policies. Your emphasis on development, leadership, communication, and cultural alignment captures the core drivers of sustained engagement. Organisations in Sri Lanka that prioritise these areas will not only reduce turnover but also build a stronger, more motivated workforce capable of delivering long-term success.
ReplyDeleteThank you for such a thoughtful and insightful comment. You've perfectly captured the central thesis of the article.
DeleteYour emphasis on how these elements development, leadership, communication, and cultural alignment work together as the "core drivers of sustained engagement" is spot on. Building that motivated, resilient workforce is precisely the goal, and it's fantastic to see that message resonate so clearly.
This article explains that keeping employees requires a full HRM strategy, not just one‑time rules. Leading Sri Lankan companies show how culture, leadership, fair pay, and well‑being together reduce turnover and build loyalty. The key message is that retention is a strategic responsibility—organizations grow stronger and more stable when employees feel supported, respected, and developed.
ReplyDeleteThank you for such a concise and insightful summary. You've perfectly captured the core message: retention isn't just an HR task, but a fundamental strategic responsibility.
DeleteWhen employees feel genuinely supported, respected, and see a path for growth, it creates the stable, motivated workforce that every organization strives for. I appreciate you articulating it so clearly.
This blog shows a clear understanding of the role that HRM can play in retaining employees in contemporary organizations. The writing connects the most important HR functions: leadership, communication, culture, skill development, and employee assistance to the themes featured in your document. The illustrations of the Sri Lankan firms in Brandix, MAS, HNB, Keels, Dialog, Jetwing and PickMe assist in demonstrating the functionality of the retention plans in the actual working environments. In every part, the authors provide the reasons why employees remain when they feel supported, valued, and provided with opportunities to grow. Some of the challenges such as poor communication and lack of training are also noted in the blog which reinforces the discussion. In order to make the academic richness even more, it would be useful to make a brief reference to one of the retention theories like Herzberg Two-Factor Model. On the whole, the post is fairly well-structured, easy, and applicable to HRM practice
ReplyDeleteThank you so much for your incredibly detailed and thoughtful comment. I truly appreciate you taking the time to provide such insightful and constructive feedback.
DeleteIt's wonderful to hear that the post's structure and the connection of different HR functions to retention came across clearly. You've perfectly summarized the core message.
I'm especially glad that the real-world examples from companies like Brandix, MAS, and Dialog were effective in grounding the concepts in practical application.
Your suggestion to reference a retention theory like Herzberg's Two Factor Model is absolutely brilliant. It's an excellent point. Weaving in that theoretical framework would indeed add a layer of academic richness and provide a powerful lens through which to view the practical strategies. It would help explain why certain factors are so much more powerful for long-term retention than others which perfectly aligns with the post's central theme. Thank you for that fantastic idea.
Feedback like yours is incredibly valuable for creating content that is both practical and academically sound. Thank you again for adding such depth to the conversation.
This is a thoughtful analysis linking HRM functions like leadership, culture, and skill development to employee retention in Sri Lanka. The real-world examples make the discussion tangible.
ReplyDeleteAnd the blog could explore the challenges of implementing these strategies in smaller or resource-limited organizations and consider potential downsides of over-reliance on structured HRM systems. Acknowledging these factors would provide a more balanced perspective on retention strategies
Thank you so much for taking the time to leave such thoughtful and constructive feedback. I'm delighted to hear that you found the analysis and the real-world examples valuable.
DeleteYou have raised two incredibly important points that would certainly add a richer, more balanced perspective to the discussion.
Your suggestion to explore the challenges for smaller or resource-limited organizations is spot on. The reality for many SMEs in Sri Lanka is vastly different from that of large corporations, and their ability to implement structured HRM strategies is often constrained by budget and expertise. Acknowledging this and exploring more agile, low-cost retention methods tailored to their context is a crucial next step.
Furthermore, your point about the potential downsides of an over-reliance on structured systems is a critical insight. While structure is essential, it can sometimes lead to bureaucracy, stifle flexibility, or overshadow the importance of genuine human connection. Acknowledging this trade-off is key to a well-rounded analysis.
I genuinely appreciate you pointing out these areas. Your suggestions have provided excellent direction for future discussions and will help in creating a more comprehensive and nuanced view of employee retention strategies.
This is an excellent and strategic analysis of Employee Retention, rightly treating it as a holistic HRM responsibility that goes far beyond compensation. The article effectively demonstrates how key factors leadership quality, strong organizational culture, career development, and employee well-being, collectively reduce turnover. The real-world examples from diverse Sri Lankan companies, strongly reinforce the message when employees feel supported, valued, and provided with opportunities to grow, they become a stable and motivated asset, driving long term organizational success. Fantastic work linking these elements back to the core strategic aims of HRM.
ReplyDeleteThank you so much for your wonderfully positive and detailed feedback!
DeleteI'm thrilled that you found the analysis strategic and that it successfully framed retention as a holistic HRM responsibility.
You've articulated the core message perfectly: when employees feel supported, valued, and see clear opportunities for growth, they transform into the stable, motivated assets that drive long-term success. The Sri Lankan examples were included specifically to ground these concepts in a local, tangible context.
This is a well-structured and insightful analysis of how strategic HRM directly strengthens employee retention in Sri Lankan organizations. The integration of theory with real corporate examples—Brandix, MAS, HNB, Dialog, Keells, Jetwing, and PickMe—makes the content practical and highly relevant. The emphasis on culture, leadership, communication, and employee development clearly highlights the multifaceted nature of retention. A valuable read for HR leaders and practitioners seeking sustainable retention strategies
ReplyDeleteHi Rajitha,
ReplyDeleteReally good overview of retention strategies, but it feels a bit focused on what companies intend to do rather than the actual impact. For example, while Brandix and MAS have great programs on paper, it would be interesting to see how effective these are in practice and whether all employees really feel the benefits. Still, the emphasis on culture, leadership, and well-being is spot-on—retention isn’t just about salary.
This article explains clearly how employee retention is central to effective human resource management. The emphasis on providing growth opportunities, supportive leadership, and a positive work environment highlights key factors that keep staff committed. Noting that retention depends on more than just salary makes the discussion realistic and balanced. Overall, it is a useful and relevant contribution to understanding employee retention strategies.
ReplyDelete