The effect of GHRM on young employee retention and performance: Evidence from Indonesia

Abstract

Orientation: Green Human Resource Management (GHRM) is vital for enhancing human asset management, helping companies retain talent and boost organisational performance.

Research purpose: This research investigates the impact of GHRM practices on employee performance and young talent retention, as well as the connection between GHRM and employee performance through talent retention in star-rated hotels in Central Java, Indonesia.

Motivation for the study: This study assesses the impact of GHRM practices on young talent retention, employee performance, and the mediating role of young talent retention in linking GHRM to employee performance in the hospitality industry.

Research approach/design and method: This study employs a quantitative approach with a survey method involving 400 young workers (ages 18–35 years) from three-star and above hotels in Central Java, Indonesia. The data were analysed using structural equation modelling (SEM) and PLS software.

Main findings: The research showed that GHRM practices enhance young talent in the company and improve employee performance. Retention of young talent was discovered to partly explain the connection between GHRM practices and employee performance. Green training and development, along with green performance appraisal, have a big effect on keeping employees and how well they perform.

Practical/managerial implications: This study offers key insights for hotel managers in crafting sustainable GHRM strategies, emphasising environment-based training, development, and performance evaluation to enhance talent retention and employee performance.

Contribution/value-add: This study offers key insights for hotel managers in crafting sustainable GHRM strategies, emphasising environment-based training, development, and performance evaluation to enhance talent retention and employee performance.