The Effects of Human Resource and Industrial Relations Practices on Employee Attachment

Marie Edo-Bargielski


Encouraging employees to stay is essential as high quit rates are a signiicant cost to organizations, both because they raise labor costs and because they lower organizational performance (Batt, Colvin & Keefe, 2002) and morale. This paper shares the findings of research conducted during the first quarter of 2014, which included 120 bank employees representing two local, unionized banks and two foreign, non-unionized banks. The study compared employees’ perception of Human Resource and Industrial Relations practices as manifested in
ten social drivers, employer intention and presence of union, and how these concepts relate to and influence employee attachment. Findings indicate significant positive relationships between employee attachment and security, acceptance and sense of belonging, learning opportunities, work-life balance, compensation and benefits, trust and value and senior leadership. Distinguishing between local and foreign bank employees, significant positive relationships were observed
between employee attachment and age, position and salary among local bank employees; employee attachment and gender among foreign bank employees. Moreover, employer intention to retain employees long-term and presence of union were also found to mediate the impact of employee attachment. Accordingly, the research has important implications for the banking and financial industry and other organizations aiming to curb the exit tendencies of its members.

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