The Impact of Human Resource Practices on Employee Retention Decsions: Evidence from the Egyptian Electrical and Power Sector
Author(s)
Mohamed Elhanafy Abdelfattah Elhanafy ,
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Abstract
Purpose: This study examines how human resource (HR) practices shape employees' decisions to remain with their organizations in the Egyptian electrical and power sector. It assesses the combined effect of compensation and benefits, work-life balance, and career development on employee retention decisions, as well as the separate effect of each practice, and identifies which practice exerts the strongest influence.
Design/ Methodology/ Approach: The research follows a deductive, quantitative, cross-sectional design. Data were gathered through a structured online questionnaire completed by white-collar employees working in electrical and power organizations in Egypt. A non-probability sample was drawn using convenience and snowball sampling; of the 351 questionnaires returned, 289 complete responses were retained for analysis. Reliability, exploratory factor analysis, correlation, and simple and multiple linear regression were performed using SPSS.
Findings: All four hypotheses were supported. Taken together, the three HR practices explained 65.5% of the variance in employee retention decisions. Work-life balance was the strongest predictor, followed closely by compensation and benefits, whereas career development had a significant effect on its own but did not add unique explanatory power once the other two practices were considered. The results remained consistent after robustness checks.
Originality/ Value: The study provides rare empirical evidence from a technically intensive and under-researched sector in a developing economy. It shows that, even where financial pressures are considerable, retention depends on more than pay, and that supportive work arrangements are at least as important as financial rewards.
Paper Type: Research Paper.
Keywords
Human Resource Practices, Employee Retention, Compensation and Benefits, Work-Life Balance, Career Development, Egypt
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