STRATEGIC HUMAN RESOURCE MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN IT ORGANIZATIONS IN CHENNAI: A STRUCTURAL EQUATION MODELING APPROACH

Companies in the information technology
sector in Chennai still find great difficulty keeping staff
members due to the hi gh turnover rates and intense
competitiveness for qualified professionals. Regarding
improving employee satisfaction and retention, effective
HRM practices are quite important. Higher recruiting costs,
loss of intellectual capital, and disturbance of workf low
resulting from high staff turnover rates all affect operations.
The paper investigates how strategic HRM practices
influence retention outcomes using structural equation
modeling (SEM). These techniques address pay, work work-life
balance, professional deve lopment, employee involvement.
Experts in information technology from several Chennai
firms were asked to respond to a set questionnaire. Direct
and indirect links between HRM strategies and employee
retention were investigated using SEM. The findings reve al
that work work-life balance, career development opportunities,
and employee engagement significantly affect rates of
employee retention together with other factors. Better HRM
practices help to increase employee satisfaction, so reducing
the likelihood of em ployees leaving their jobs. Showing both
the root mean square error of approximation (RMSEA) of
0.05 and the GFI of 0.92, the proposed SEM model proved
the robustness of the model. This research offers HR
managers understanding in the very competitive info rmation
technology industry that can be applied to apply targeted
HRM strategies so improving employee retention.