Influence of Sustainable Human Resource Practice and the Mediating Role of Job Satisfaction on Employee Retention: The Case of Bole Lemi Industrial Park
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Date
2026-06-02
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Addis Ababa University
Abstract
The research focused on the Influence of Sustainable Human Resources practice and the mediating role of job satisfaction in Bole Lemi Industrial Park. The study uses Quantitative research approach where descriptive and explanatory research designs have been used. Data collection through primary method has been done through questionnaire from 11 manufacturing firms and total 400 samples have been taken and overall response rate of 94.5%. Data analysis has been done using Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4. The findings of the research indicate that all the dimensions of SHRM significantly influence the employee retention positively. Training and development dimension positively affects the employee retention (β = 0.189, p value of 0.000). This shows that the opportunity of learning and development helps the employees retain in their organizations. Similarly, compensation and benefits dimension positively affect the employee retention (β = 0.231, p value of 0.000). The finding indicates that the proper compensation and benefits is important in retaining the employees. In addition, the safe and inclusive working environment is found to be the best dimension in predicting the employee retention (β = 0.283, p value of 0.000). Thus, the workplace safety, inclusion and respect have crucial roles. The employee engagement and participation positively increase the employee retention (β = 0.203, p value of 0.000). The finding suggests that the engaged and committed employees tend to stay in their firms. Moreover, the job satisfaction has significant mediation role between all SHRM practices and the employee retention. Generally, it has been found that the employees who are satisfied by the HR practices of their organization feel better job satisfaction and ultimately their retention is improved. Keywords: Bole Lemi Industrial Park, Employee Retention, Job Satisfaction, Sustainable Human Resource Management
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Bole Lemi Industrial Park, Employee Retention, Job Satisfaction, Sustainable Human Resource Management