Strategic human resource management (SHRM) can be applied to a variety of business spheres with differing results. In the study “Strategic Human Resource Management and Public Employee Retention,” Fahim looks at its use in the public sector of a developing country and its potential connection to employee retention rates. The article was published in volume 3, issue 2 of the Review of Economics and Political Science in 2018. The purpose of the present paper is to summarize and critically evaluate the claims made by the researcher in connection to SHRM practices and principles.
Article Summary and Relevance
The study under investigation is exploratory, looking at the current state of SHRM practices in Egypt and their use in the private sector. According to the author, there exists limited evidence that shows the application of SHRM in public organizations, as their structure, flexibility, and financial capabilities differ from those of private businesses (Fahim, 2018). As a result, public companies are not always able to implement meaningful changes fully and quickly, which could harm the organizations’ performance. Fahim (2018) focuses on the outcome of employee retention – the desire and decision of workers to remain employed by the public entity. According to previous research, few authors have investigated the connection between retention rates and SHRM practices, but the results were mixed (Fahim, 2018). Therefore, the author aims to add to the small number of available sources and strengthen the foundation of research on SHRM in the public sector.
The study’s focus is the National Bank of Egypt (NBE), which increases its relevance as the author focuses on developing countries and presents a unique outlook on government-owned enterprises. Fahim (2018) utilizes a combination of approaches – a literature review to connect the ideas of SHRM and employee retention and provide a basis for the quantitative part. The latter is based on a survey completed by 150 participants – bank employees and managers – who answered questions concerning their view of the HRM practices and factors affecting their job satisfaction (Fahim, 2018). The collected data is then evaluated using the “descriptive analysis, Pearson correlation coefficient, simple linear regression, and structural equation modeling” (Fahim, 2018, p. 29). Finally, the author presents several recommendations based on the findings.
As the central investigation revolves around such concepts as employee retention and SHRM, the main claim in the study is that SHRM practices positively influence workers’ desire to stay with the organization. Fahim (2018) limits this research question to the public sector and NBE, in particular. Using the collected data, he concludes that SHRM practices have a positive impact on retention rates. The strategies included in SHRM are viewed in total as well as individually. Nevertheless, the use of all methods seems to lower worker turnover and increase job satisfaction. Fahim (2018) considers recruitment and selection, training and development, performance evaluation, and benefits as particular practices under the SHRM umbrella. All of these steps in the HRM process appear to have a statistically significant influence on employee retention.
In addition to these analyses, the author also looks at potential links between employees’ demographics and retention rates. For instance, it is discovered that SHRM practices are less effective for employees than managers (Fahim, 2018). Furthermore, the connection between SHRM and retention is weaker in workers with more than ten years of experience in the bank under examination (Fahim, 2018). These findings are not a part of the main research question, but they extend the author’s contribution to the scholarship and offer additional considerations for future research.
As noted above, the author relies on limited evidence and enters into a new field of investigation with the discussed paper. The existing scholarship on the SHRM is vast, but most articles focus on the private sector, where the HR budget is determined by the specific business. In the case of government-owned organizations, the extent to which HRM can be used is limited by the government’s structure, flexibility, innovation, and financial resources. Moreover, Fahim (2018) also considers an Egyptian enterprise which further presents a new addition to the scholarship. As Fahim (2018) notes, the bank’s employees’ feelings about retention are influenced by their commitment to the public sector as well as their cultural background. Therefore, it can be argued that Fahim’s article offers a new addition to the limited range of papers on the use of SHRM in public organizations. It does not fully align with the mixed results of the connection between retention and SHRM shown in earlier works, which could serve as a point of interest for future investigations in other contexts.
The use of SHRM practices continues to interest researchers who look at its applications in different spheres. In the investigated article, Fahim considers the link between SHRM and employee retention in Egypt’s public sector. Basing the quantitative study on limited previous scholarship, the author argues that SHRM is positively connected to lower turnover rates. However, it should be noted that the context of the study is very particular, and future research is vital to enrich this conclusion and provide further insight into factors that establish the role of SHRM strategies in different sectors and cultural environments.
Fahim, M. G. A. (2018). Strategic human resource management and public employee retention. Review of Economics and Political Science, 3(2), 20-39.