Strategic Human Resource Management and Workforce Planning Examining Their Impact on Employee Retention and Organizational Performance
DOI:
https://doi.org/10.66635/25rxzj87Keywords:
Strategic human resource management, Workforce planning, Employee retention, HR analytics, Organizational performanceAbstract
The study analysed the impact of strategic human resource management and workforce planning on employee retention and organizational performance using HR data of employees. The quantitative research design was used and involved descriptive, inferential and predictive analyses. A total of 11,991 employee records were subjected to analysis after eliminating duplicate observations, based on satisfaction level, performance evaluation, project workload, average monthly working hours, organizational tenure, work accidents, promotion history, department, salary level and attrition status. This was done with group comparisons and chi-square analysis, and logistic regression and machine-learning models were used to determine which factors were important in predicting attrition. The overall rate of employee turnover was found to be 16.6%. The factors associated with higher employee turnover included lower satisfaction, low salary, no promotion, longer tenure and workload conditions. Departmental differences were also noted and positive relationships were found between employee performance evaluation and project involvement as well as monthly working hours. The highest accuracy was 98.50% and the F1 score 0.953, the Random Forest predictive model proved to be the most accurate model used. The highest ROC-AUC value of 0.983 was obtained by the Gradient Boosting model. The results highlight that HR analytics combined with workforce planning can aid in early detection of employee attrition, targeted retention measures, optimal workload distribution, and data-driven HR decision-making, ultimately fostering stability and success in the workforce and organization.
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