The Relationship Between Socially Responsible Human Resource Management And Employee Retention: The Roles Of Perceived Organizational Support And Psychological Contract Breach

Abstract

Employee turnover behavior presents significant challenges in many countries, including Vietnam. It not only impacts organizations' financial value but also diminishes their market competitiveness, leading to unsustainable development. Therefore, it is important to achieve sustainable development by applying suitable policies to retain employees. The purpose of this study is to examine the role of socially responsible human resource management (SR-HRM) on employee retention, particularly highlighting the moderating influence of psychological contract breach (PCB) and the mediating impact of perceived organizational support (POS). The research framework is developed based on social exchange theory to explore these relationships. To collect valid data, a quantitative method was applied, and 261 valid responses from employees who had at minimum one year working experience in Ho Chi Minh City, Vietnam. The findings reveal that SR-HRM practices have an impact on employee retention directly and also indirectly via the mediator role of POS. Interestingly, the study contributes a new perspective rarely mentioned in previous research which is the moderating role of PCB. It significantly affects the effectiveness of SR-HRM and POS on employee retention. Specifically, the relationships are stronger when PCB is low and weaker when PCB is high. In conclusion, the study highlights its theoretical contributions, management contributions, limitations, and suggestions for further research