10. The Dynamics of Cultivating Loyalty: Strategic Human Resource Management as the Keystone of Employee Retention within the Evolving Corporate Landscape of Sri Lanka


1        Introduction

Human resource management (HRM) continues to place a strong emphasis on employee retention, especially in developing nations like Sri Lanka. Elevated employee attrition rates may result in amplified expenses for hiring and onboarding, forfeiture of organizational expertise and client connections, decline in team spirit, and reduced output (Ayupp & Then, 2010). This report explores how HRM in Sri Lankan firms effectively contributes to employee retention.

 

Source (Morella-Olson, 2021)

2        HRM and Employee Retention

Retention of employees can be improved with effective HRM techniques. Employers can mostly keep workers by offering competitive pay, a great workplace, job security, incentives, organizational culture, performance review processes, chances for professional advancement, and supportive supervisors (Ton & Huckman, 2008).

Source (TED Institue, 2015)

3        Employee Retention Situation in Sri Lanka

The private sector in Sri Lanka is facing difficulties in keeping its workforce. In Sri Lankan businesses, factors that impact employee turnover include inadequate career advancement possibilities, management styles, and inadequate benefits and awards (Perera & Sardana, 2021). This calls for appropriate HRM interventions to improve employee retention.

 

4        Evidence from Sri Lankan Companies

HRM in leading Sri Lankan firms, such as MAS Holdings, show clear correlations with employee retention. Emphasizing on creating an appealing work environment, the firm offers amenities including gymnasiums, day care centers, and transports. Moreover, it focuses on substantial rewards, learning opportunities, and career progression paths for its employees (MAS Holdings, 2019).

Bank of Ceylon, another Sri Lanka's leading bank, has adopted a rigorous HRM strategy focused on providing job security, competitive salaries, and performance bonuses to retain employees (Bank of Ceylon, 2020).

Brandix Apparel Ltd. has a structured performance management system that fosters a high-performance culture while recognizing and rewarding employees' contributions, thereby enhancing retention (Gunawardana, 2017).

Virtusa Corporation promotes work-life balance through flexible work arrangements, which is an important determinant of job satisfaction and retention (Perera, 2019).

5        Conclusion

This information demonstrates how HRM has a major impact on staff retention in Sri Lankan businesses. Employers can cut employee attrition by a large amount by implementing focused HRM strategies that emphasize competitive pay, job security, great working conditions, and growth possibilities.

 

6        References

Ayupp, K. & Then, S. K., 2010. The Employment Relationships: Predictive Indicators to Employee Retention. Journal for Global Business Advancement, 3(2), pp. 197-212.

Bank of Ceylon, 2020. People Practices, Colombo: Bank of Ceylon.

Gunawardana, D., 2017. erformance management and employee retention strategies in Brandix. Sri Lanka Journal of Human Resource Management, 7(1), pp. 34-45.

MAS Holdings, 2019. Shaping Careers with Experiential Learning. [Online]
Available at: https://www.masholdings.com/
[Accessed 13 04 2024].

Morella-Olson, M., 2021. 12 Employee Retention Strategies You Need Right Now to Delight Employees and Reduce Turnover. [Online]
Available at: https://www.imaginasium.com/blog/employee-retention-strategies
[Accessed 13 04 2024].

Perera, G., 2019. The impact of work-life balance on employee retention: A case study of Virtusa Sri Lanka. Business and Economic Research, 11(1), pp. 12-23.

Perera, G. & Sardana, G. D., 2021. Causes of Employee Turnover in the Private Sector in Sri Lanka: Developing a Framework for Further Research. Amity Business Review, 22(1), pp. 91-102.

TED Institue, 2015. Diana Dosik: Why we need to treat our employees as thoughtfully as our customers, s.l.: TED Institue.

Ton, Z. & Huckman, R. S., 2008. Managing the Impact of Employee Turnover on Performance: The Role of Process Conformance. Organization Science, 19(1), pp. 56-68.

 

 

Comments

  1. Madushika SugathaghanaApril 13, 2024 at 11:50 AM

    Well explained the topic

    ReplyDelete
  2. Gowri PereraApril 13, 2024 at 8:28 PM

    Good explanation

    ReplyDelete
  3. Rusky AhamedApril 14, 2024 at 2:19 AM

    Due to issues including inadequate benefits and rewards, management styles, and limited opportunities for professional growth, the private sector in Sri Lanka struggles to retain its staff. These problems emphasise the necessity of focused HRM initiatives aimed to increase employee retention.

    ReplyDelete
  4. Shehan PriyashanthaApril 14, 2024 at 5:51 AM

    Practical issue in modern day is explained nicely

    ReplyDelete
  5. Amina MahmoodApril 14, 2024 at 8:25 PM

    Employee retention is the organizational goal of keeping productive and talented workers and reducing turnover by fostering a positive work atmosphere to promote engagement. You have explained the practical scenario very well.

    ReplyDelete
  6. Dhanushka PathiranaApril 14, 2024 at 10:21 PM

    This blog post provides a compelling and insightful analysis of the importance of strategic human resource management for employee retention within the evolving corporate landscape of Sri Lanka. You have done an excellent job of highlighting the key challenges facing organizations in Sri Lanka, such as changing workforce demographics, talent shortages, and increasing competition for skilled workers.

    ReplyDelete
  7. Sachini HithakshikaApril 14, 2024 at 10:56 PM

    Strategic HR management is essential for maintaining talent retention, in a changing business dynamics, coordinating HR procedures with organizational objectives, encouraging employee engagement, and making sure long-term progress. the article has described it well using the Sri Lankan examples.

    ReplyDelete
  8. Tharuka LiyanaarachchiApril 15, 2024 at 3:56 AM

    Your blog effectively highlights the critical role of HRM strategies in employee retention within the evolving corporate landscape of Sri Lanka. By examining various leading companies in the country, you provide insightful examples of how organizations are addressing employee turnover challenges through tailored HRM interventions. The emphasis on competitive pay, job security, favorable working conditions, and growth opportunities underscores the importance of a holistic approach to employee retention. Overall, a well-researched and informative exploration of HRM's pivotal role in cultivating loyalty within Sri Lankan businesses.

    ReplyDelete
  9. Mithun SarathchandraApril 15, 2024 at 6:59 AM

    You article nails down how important HRM is for keeping employees in Sri Lankan companies. It shows how big players like MAS Holdings, Bank of Ceylon, Brandix Apparel Ltd., and Virtusa Corporation are doing it right by offering good pay, job security, and perks like gyms and daycare. By focusing on these things, they're reducing employee turnover and keeping their teams happy. It's a great guide for businesses looking to hold onto their best people. Well researched post with great insight!

    ReplyDelete
  10. Mithun SarathchandraApril 15, 2024 at 7:14 AM

    Your article shines a light on the vital role of HRM practices in shaping a compelling employer brand in Sri Lanka's competitive landscape. With economic growth fueling intense competition for skilled talent, it's clear that businesses must prioritize strategies like offering competitive compensation, fostering a healthy work environment, and providing professional development opportunities to stand out as employers of choice. The examples from leading companies like John Keells Holdings PLC, Commercial Bank of Ceylon, Dialog Axiata, and MAS Holdings underscore the importance of strategic HRM in attracting and retaining top talent. It's a timely reminder of the significance of employer branding in today's economic environment.

    ReplyDelete
  11. sudarshiApril 16, 2024 at 12:26 AM

    This data shows how HRM significantly affects employee retention in Sri Lankan companies. By putting focused HRM policies into place that prioritize competitive compensation, job security, excellent working conditions, and growth opportunities, employers may significantly reduce employee churn.

    ReplyDelete

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