DefinePK

Abstract

Based on Social Exchange Theory (SET), the study purpose is to investigate the impact of HRM practices on employee retention correspondingly over and done with the employment of effective Human Resource Management (HRM) practices.  Moreover, it examines the mediating influence of OCB on the relationship between HRM practices and retention outcomes, explaining the give and take relationship between employer and the employee. The study data was gathered from employees working in companies of Lahore’s corporate sector, using a quantitative methodology. The collected data were analyzed using SPSS and SMART PLS 4.0 software. Results reveal that HRM resourcefulness, reassuring teamwork, accountability, and supportive behavior significantly enhance employee loyalty and retention. Additionally, it was discovered that OCB had a significant role in this dynamic by somewhat mediating the relationship between HRM practices and retention. Underpinning the Social Exchange Theory, these findings enhance theoretical frameworks and real-world applications in comparable socioeconomic contexts by offering valuable insights for improving HRM strategies to better retain employees by fostering OCB. The research's conclusions also offer insightful information about how to improve HR procedures to increase employee retention by encouraging OCB, which advances our theoretical and practical knowledge of successful HR tactics in comparable socioeconomic settings. The study also seeks to provide practical suggestions for HR managers and company executives to create an environment that fosters social responsibility and teamwork, increasing employee retention and long-term success.