Effect of Strategic Human Resource Practices on Employee Retention in Multinational Corporations in Europe
DOI:
https://doi.org/10.47604/ejbsm.3842Keywords:
Human Resource Practices, Employee Retention, Multinational CorporationsAbstract
Purpose: To aim of the study was to analyze effect of strategic human resource practices on employee retention in multinational corporations in Europe.
Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
Findings: Empirical evidence indicates that strategic HR practices, including performance management, training and development, flexible work arrangements, digital HR systems, participative decision-making, and reward and recognition programs, significantly enhance employee retention in European multinational corporations. Employees exposed to structured HR interventions demonstrate lower turnover intentions, longer tenure, and higher engagement scores across diverse subsidiaries. Furthermore, culturally sensitive and contextually aligned HR practices, particularly for expatriates, strengthen organizational commitment and reduce attrition, highlighting the critical role of integrated HR strategies in retaining talent in multinational settings
Unique Contribution to Theory, Practice and Policy: Social exchange theory, human capital theory, psychological contract theory may be used to anchor future studies on the effect of strategic human resource practices on employee retention in multinational corporations in Europe. Culturally sensitive HR initiatives are critical for retaining expatriates and employees in diverse European subsidiaries. Policymakers should develop frameworks and incentives that support the implementation of strategic HR practices to improve retention, including funding for employee development, digital HR infrastructure, and standardized flexible work policies.
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