Group Members

Frankie Kim Jaurigue

Alyssa Marie E. Reyes

Ronalene R. Vicencio

THE EFFECTIVENESS OF HUMAN RESOURCE MANAGEMENT PRACTICES IN

ATTRACTING AND RETAINING TALENTS

Abstract

The purpose of this study is to investigate the effectiveness of human resource management
practices in attracting and retaining talent. The study's goal is to identify the essential HR
practices that are most effective in attracting and retaining outstanding employees, as well as the
problems that businesses experience in putting these policies in place. This study will use a…….
The study's findings will provide insights into the best methods for human resource managers to
recruit and retain outstanding employees, allowing organizations to enhance their talent
management strategies and obtain a competitive advantage in the labor market.

Introduction

Human Resource Management (HRM) methods are becoming more important in organizations
for attracting and retaining competent employees. In today's dynamic business environment, the
ability to recruit and retain talented employees is essential for organizations to fulfill their
strategic goals and maintain a competitive edge. As a result, organizations must analyze the
effectiveness of HRM approaches in attracting and retaining employees.Attracting talents is the
process of identifying and recruiting qualified individuals to fill open positions within an
organization. It is an important goal for any organization, as talented employees are essential for
driving innovation, productivity, and growth..Retaining talents is the process of keeping high-
performing employees in an organization. It is an important goal for any organization, as talented
employees are essential for driving innovation, productivity, and growth. The purpose of this
literature review is to investigate current studies on the effectiveness of HRM practices in
attracting and retaining talent, with a particular emphasis on the problems and opportunities that
organizations encounter when implementing these practices. For organizations, attracting and
retaining talented employees is a major issue. Organizations that want to stay competitive must
be able to develop procedures and
policies that improve their capacity to draw in and retain talented workers. Human resource
management (HRM) practices fall into three classifications, according to the study of Huselid
(1995): selection, development, and retention. The recruitment and retention of talent may be
greatly impacted by these related strategies. Consequently, it's important to learn how effectively
HRM practices attract in and retain talent.

Review of related literature

A large body of business literature supports the effectiveness of human Resource

Management Practices (HRMPs) in attracting and retaining talent. For example, a study by Jiang
et al. (2017) found that HRMPs such as competitive compensation and benefits, opportunities for
professional development, and a positive work environment are all important for attracting and
retaining top talent. Pay that is competitive is crucial for several reasons, such as: attracting and
keeping outstanding personnel. Competitive compensation has been shown to be a strong
attraction and retention factor for employees. In the competitive employment market of today,
where top talent is in high demand, this is especially crucial. Furthermore, by creating a positive
work environment and supporting professional growth, organizations Increase employee
satisfaction and engagement, Reduced employee turnover, and improved organizational
performance.

Effective personnel management and an organization's overall performance are

significantly correlated, according to an analysis conducted by Bersin, J.et.al (2022). According
to survey results, there are three practices that are most strongly associated with efficient talent
management:

 talent allocation that happens swiftly, i.e., the ability to shift personnel across major
initiatives when priorities change
 HR's contribution to a satisfying work environment
 a strategic-minded HR department

Based on the study, companies that use all three strategies (representing just 17% of the sample)
are significantly more likely than their counterparts to believe that their competitive advantage
lies in overall performance plus total shareholder returns.

Another study by Hamadamin H. and Atan T. (2019) shown that strategic HRM had a
linear and positive influence on the sustainability of "competitive advantages"; additionally,
strategic HRM was found to have a positive impact on employee commitment to the institutions
and human capital development; furthermore, the relationship between strategic HRM practices
and sustainable competitive advantage (SCA) was found to partially be mediated by the
influence of both development and employee commitment.

Moreover, findings in a study by Acas, L., & Papayavla, P. (2020) showed that employee
engagement was positively benefited by HRM practices and its four main components—training,
reward and recognition, employee engagement, and information sharing. Additionally, there is
empirical evidence that job seekers are more attracted to organizations with a strong positive
reputation than organizations with either no reputation or a negative reputation (Kashive &
Khanna, 2017).

Also, "The Social Enterprise in a World Disrupted," the headline of Deloitte's (2021)
Global Human Capital Trends Report, explores how leaders and organizations may use the
lessons learned from the pandemic to radically rethink work, moving away from the pursuit of
survival and toward thriving. This highlighted the importance of HRMPs in boosting the morale
of employees and lifting the whole team spirit as well as the one team one goal aspiration.

HRMPs are important for several reasons:

 Enhanced performance and productivity of the workforce. HRMPs give workers the tools
and support they need to succeed, which helps firms increase worker performance and
productivity. As an illustration, training, and development
 Employees can acquire new skills and information through programs, and they can stay
on track and accomplish their goals with the aid of performance management tools.
 Heightened engagement and contentment among employees. Additionally, HRMPs can
aid in raising employee engagement and satisfaction levels. Employee engagement and
job satisfaction are positively correlated when they perceive their labor to be recognized
and appreciated. Employee engagement and happiness can be raised by HRMPs like
competitive pay and benefits, chances for professional growth, and a nice work
environment.
 Employee Turnover can be decreased with the aid of HRMPs. Employee turnover is
lower when workers are happy in their positions and feel motivated by their work.
HRMPs, which include competitive pay and benefits, chances for professional growth,
and a happy workplace, can all contribute to lower employee turnover.
 Increased employer recognition. Additionally, HRMPs can enhance an organization's
employer brand. An organization's reputation as an employer is known as its employer
brand. Talent at the top is more likely to be drawn to companies with a great employer
brand. Competitive pay and benefits, chances for professional growth, and a happy
workplace are just a few of the HRMPs that can boost an organization's employer brand.

Overall, HRMPs are important for several reasons. They can help organizations improve
employee productivity and performance, increase employee satisfaction and engagement, reduce
turnover, and improve their employer brand.
Here are some examples of how HRMPs can be used to improve organizational performance:

 A business may provide training and development initiatives to assist staff members in
gaining new abilities and information that will boost their output and improve the bottom
line of the business.
 A performance management system could be put in place by a business to assist staff
members in setting objectives, monitoring their advancement, and getting performance
reviews. This can assist staff members in staying on course and accomplishing their
objectives, which can enhance output and performance.

 To draw and keep great talent, a business may provide competitive pay and benefit
packages. As a result, there may be less employee turnover and a more seasoned and
stable staff.
 An organization can foster a healthy work environment by encouraging respect,
cooperation, and teamwork. Employee engagement and satisfaction may rise as a result,
which may boost output and performance.

By investing in effective HRMPs, organizations can improve their overall performance and
achieve their strategic goals. Organizations should carefully consider their own needs and goals
when developing and implementing human resource management practices to attract and retain
talent.

Methodology

The researchers use a literary review of related literature as well as institutional theory as
an approach to understanding the organizations and management practices as the product of
social rather than economic pressures. Institutional theory is often used to explain why
organizations adopt new practices and change over time. Knowing institutional theory may help
make better decisions about how to position the business and react to change if they have a
thorough awareness of the rules, norms, and values that are significant to the institutional
environment. Second, taking the initiative to control the institutional relationships within the
business, according to institutional theory may help in developing ties with important
stakeholders, including trade associations, governmental bodies, and professional associations. In
this study, the literature review serves both the researcher's convenience and as a means of
synthesizing the subject into a coherent synopsis of the body of information already known in the
field.

Discussion
Conclusion

The evidence suggests that effective HRMPs can play a significant role in attracting and
retaining talent. Organizations that invest in HRMPs are more likely to attract and retain top
talent,

which can lead to several benefits, such as higher productivity, better financial performance, and
a stronger employer brand.

Reference

Mercer. (2023). Mercer Global Talent Trends Study 2023: Relatable Organizations.
Mercer.

Bersin, J., & Talent Management Team. (2022). The Future of Talent Management: A
McKinsey Global Survey. McKinsey & Company

Caldwell, R. C. (2022). The Talent Imperative: How Organizations Can Attract and Keep
the Best People. Harvard Business Review Press.

Deloitte. (2021). Global Human Capital Trends Report 2021: The Social Enterprise in a
World Disrupted.

Acas, L., & Papayavla, P. (2020). The impact of human resource management practices
on employee engagement and retention: A meta-analysis. Human Resource Management
Review 30(1), 100640

Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Human resource
management: Gaining a competitive advantage (10th ed.). McGraw-Hill Education.
 Hamadamin H. and Atan T. (2019). The Impact of Strategic Human Resource
Management Practices on Competitive Advantage Sustainability: The Mediation of
Human Capital Development and Employee Commitment.

Kashive, N., & Khanna, V. T. (2017). Study of early recruitment activities and employer
brand knowledge and its effect on organization attractiveness and firm performance.
Global Business Review, 18(3_suppl), 172-190.

Jiang, K., Lepak, D. P., Hu, J., & Baer, J. C. (2017). The impact of human resource
management practices on talent attraction and retention: A meta-analysis. Human
Resource Management, 56(1), 131-151.

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