Impact of human resource practice on work engagement and turnover intention in information technology companies

Abstract

Orientation: The information technology (IT) sector, a global economic driver, faces high employee turnover because of low work engagement. This study examines the relationship between human resource management (HRM) practices and their impact on work engagement and turnover intention (TI) in IT companies.

Research purpose: The primary purpose of this research article is to investigate how HRM practices influence employee work engagement and TI in the IT sector.

Motivation for the study: This study is motivated by the need to address this critical issue by exploring the role of HRM practices in shaping employee engagement and TI.

Research approach/design and method: The research data came from 10 IT organisations in Pune IT parks. Non-probability convenience sampling was used to collect data. Data were analysed using Structural Equation Modelling (SEM), Statistical Package for Social Science (SPSS) and Moment Structure Analysis to evaluate the hypotheses.

Main findings: The study found that HRM practices such as effective communication (EC), training satisfaction (TS), performance appraisal satisfaction (PAS), pay satisfaction (PS) and opportunities for development (OFD) positively influence work engagement among IT employees. Addressing these HRM practices can enhance employee retention and engagement in the IT sector.

Practical/managerial implications: Implementing these strategies can lead to a more committed and productive workforce, improving overall organisational performance and retention.

Contribution/value-add: This research offers actionable recommendations for IT companies to improve employee retention and engagement, filling a gap in existing literature by focussing exclusively on the unique challenges and dynamics of the IT industry.