Retaining talent by enhancing organizational prestige : An HRM strategy for employees working in the retail sector

Abstract

Purpose

The purpose of this paper is to investigate the impact of perceived external prestige on turnover intentions among retail employees in India. Moreover, this study aims to explore the mediating effect of affective commitment on the relationship between perceived external prestige and turnover intentions.

Design/methodology/approach

This study is quantitative in nature. The data for the present study were collected from 186 employees working in various retail stores. Existing, established scales were used to measure the research constructs.

Findings

The results of the study indicate a negative relationship between perceived external prestige and turnover intentions. A negative relationship was observed between affective commitment and turnover intentions. Moreover, affective commitment was observed to partially mediate the relationship between perceived external prestige and turnover intentions.

Practical implications

This study provides valuable insights into understanding the significance of perceived external prestige in retaining employees working in the retail sector. Findings of the study indicate that adoption of non-conventional human resource strategies, like a focus on enhancing external prestige of the organization may be one of the ways to enhance employee commitment and reduce turnover intentions, and thus to retain employees in economies with highly mobile workforce.

Originality/value

This research has investigated the significance of perceived external prestige in retaining employees in a context which is different, in several ways, from contexts where most of the previous research has been conducted. It, thus, contributes to current theoretical understanding about perceived external prestige and it impact on work attitudes.

Citation

Rathi, N. and Lee, K. (2015), "Retaining talent by enhancing organizational prestige : An HRM strategy for employees working in the retail sector", Personnel Review, Vol. 44 No. 4, pp. 454-469. https://doi.org/10.1108/PR-05-2013-0070