New evidence in an old debate: Investigating the relationship between HR satisfaction and turnover

The debate relating to an interconnection between organizational performance and HRM may be old, but the evidence presented in present analysis is new and reflects the critical value of employee satisfaction with HR practices, referred to as HRS. Turnover is chosen as a dependent variable because of its centrality in improving organizational performance. In order to advance the scope of employees’ day-to-day experiences with HRM, a multiple respondent research strategy is adopted. Pakistan, with its current socio-economic transitions, presents a rich context in which to study HRS and turnover. Several demographic and organizational factors of turnover are also included as moderators. Findings, based upon an analysis of 508 questionnaires in 12 organizations, reveal HRS is negatively related to turnover. Employee age and organizational performance are also found to moderate this relationship significantly. Explanations of results reveal relevance of a contextual paradigm in strategic human resource management and highlight prominence of HRS in this debate.