Human Resource Management Practices and Employee Retention

Abstract

The study aims to assess the predicting role of human resource management (HRM) practices in retaining employees in NTPC Ltd.  The company has been successful not only in attracting the best talent in the market, but also in retaining them, according to NTPC’s annual reports from 2013 -17, attrition rate was between .93% to 1% of the Middle Executive.  NTPC is a leader not only in the power industry, but also in the market due to its robust HRM practices.  Training and development emerged as the most prominent HRM practice during the study, which is also considered the backbone of NTPC Ltd. The company maintains a dedicated Knowledge sharing centre located in Noida, known as the ‘Power Management Institute’ (PMI) which is a world-class learning centre, has collaborated with best institutes in the world and train employees at all levels from entry level to top executive level with ‘planned intervention ‘. Data was obtained from NTPC’s publications maintained in the form of annual reports and ‘Power Management Institute ’annual calendars for the previous five years. A survey was conducted across various plants of NTPC on Middle- Level Executive on human resource practices which are followed in NTPC. HRM practices examined in this study are Security, training and development, quality of work life, compensation, career advancement, Promotion, award and rewards, and work-life balance.  Findings indicate that Training and Development and Compensation are the most significant human resource practices in retaining employees and Promotion is the least significant HRM Practice in retaining employees at NTPC Ltd.