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Abstract
Purpose: This study investigates the value of AI in HRM practices within organizations with a significant impact on employee retention.
Design/methodology/approach: To achieve the stated objectives a systematic literature review (SLR) method was conducted.
Findings: The finding of study emphasizes the importance of addressing these issues and the role of Artificial Intelligence (AI) in enhancing human resource practices to increase employee retention. AI techniques, such as machine learning and big data analysis, provide effective methods for predicting employee turnover, optimizing recruitment processes, boosting employee engagement, and undertaking sentiment analysis.
Practical implications: By incorporating AI into HR practices, organizations can mitigate turnover issues and cultivate a more positive work environment, resulting in increased employee retention.
Keywords: Artificial Intelligence, Human Resource Management, Employee Engagement, Employee Retention
Introduction
Motivation of employee turnover to leave a job is a critical issue for organizations in Malaysia (Munir & Tobi, 2020). According to recent research on employee retention that the reason why employees quit organizations is complicated and may be related to HR functions. The issue of employee turnover cause organizations to deal with high cost and uncertainty of training new employees. This situation causes employees to feel demotivated and reduce the performance as well as contribute to increasing turnover rate of the organizations (Alias, Rohmanan, Ismail, Koe, & Othman, 2018). Moreover, employees want to leave their organization due to some of the reasons, such as in the hiring process, the organization did not hire the right candidate in the first place, because of the poor candidate selection by the employer, many newcomers conducted early turnover due to lack of skills needed and poor job match (Srinithi & Sivapragasam, 2022). On the other hand, lack of training given by the organization for career development is one of the reasons for high turnover. Also, lack of performance appraisal such as monitoring and giving feedback for the employee can be considered as a reason for employee turnover. In general, lack of tracking employee engagement also can lead to turnover, the organization may need to identify employee personal behavior and employee feedback for the organization to improve in order to make them feel appreciated (Fatemi, 2019).
Furthermore, employee turnover issues have been ongoing for decades, according to Hosen (2022) employee turnover rate...