Deciphering retention pathways through HR analytics: SEM based serial mediation and multi-group analysis
Vasuda Jain, Sarbjit Singh Bedi, Remya LathabhavanPurpose
This study explores the relationship between human resource analytics (HRA) and employee retention, examining the mediating roles of employee engagement (EE) and well-being (WB) in the Indian fast moving consumer goods sector (FMCG). It also investigates whether these relationships are moderated by gender and age, grounded in Social Exchange Theory (SET).
Design/methodology/approach
A quantitative research design was adopted using a structured survey administered to 390 HR professionals from medium and large-sized FMCG organisations in India. Structural equation modeling (SEM) was employed to test the hypothesised mediation model, while multi-group analysis (MGA) assessed differences across gender and age cohorts.
Findings
The results indicate that HRA enhances engagement and well-being, which substantially mediate its impact on retention rates. MGA shows that these paths vary as a function of employee demographics, being stronger for female and younger employees.
Research limitations/implications
The study extends HRA literature by positioning HRA as a strategic enabler of performance management rather than merely a measurement tool. Anchored in SET, it uncovers a sequential mechanism through which HRA strengthens retention via engagement and well-being.
Practical implications
The findings offer actionable insights for HR practitioners to integrate analytics into performance systems, enabling targeted interventions that enhance engagement, well-being, and long-term retention.
Originality/value
This study uniquely integrates dual mediation and demographic moderation to explain the HRA–retention link. It advances Social Exchange Theory by revealing differentiated exchange mechanisms and positions HR Analytics as a strategic, employee-centric capability within the underexplored Indian FMCG context.