ABSTRACT

Employees are an asset to an organization where they could be the determinant behind organizational’s success or failure in an industry. Employees’ retention is a important aspect for every company because human resource is the most critical asset of today’s modern world. The main purpose of this study was to examine the relationship of human resource practices and employees’ retention in the Selangor travel agencies industry. Seven human resource practices namely recruitment and selection, training, compensation system, performance appraisal, job security, employee empowerment, and communication were used as variables to predict such intention. A total of 320 questionnaires were distributed to employees who were currently working in the travel agencies. Data were analyzed by using SPSS and results indicated that all practices have significant positive relationships with employees’ retention. Results indicate that practices that are important for travel agencies were communication. It is hoped that the findings of this study will help managers to implement these practices so that their employees loyal and remain working with them and maximize the employees’ retention.