The impact of HRM practices and job satisfaction on employee retention in an organization: A case of Cambodia's context

Changes in technology, global economics, trade agreements, and working culture create barriers in employee and employer relationships. Until recently, loyalty was the cornerstone of those relationships. The loss of talented employees could also be very detrimental to the company's future success. However, the retention of skilled employees is a critical concern for human resource managers due to the unprecedently high rate of employee turnover. In addition, there were limited studies of employee retention in Cambodia's context, and it required more research. Therefore, this study aims to investigate the effects of HRM practices (recruitment and selection, compensation and rewards, performance appraisal, work environment, training and development) and job satisfaction on employee retention. The research was conducted on 225 employees working in both the public and private sectors of Phnom Penh as the target sample. The results of structural equation modeling (SEM) reveal that HRM practices and job satisfaction have a positive effect on employee retention. Job satisfaction is positively predicted by HRM practices.