Influence of Strategic Human Resource Management Practices on Employee Retention in Rwanda: A Case of Rwanda Medical Supply Limited (RMS Ltd)

Elias Salim Gasana & Ruth Odengo
University of Kigali, Rwanda
Email: ellysalim6@gmail.com

Abstract: This study examined the influence of Strategic Human Resource Management (SHRM) practices on employee retention at Rwanda Medical Supply Limited (RMS Ltd). Specifically, it assessed the effects of compensation, career management, and work-life balance on employee retention. The study was anchored on Maslow’s Hierarchy of Needs Theory, Herzberg’s Two-Factor Theory, Human Capital Theory, and Universal Theory of Strategic Human Resource Management. A descriptive research design and quantitative approach were adopted. From a target population of 288 permanent employees, a sample of 167 respondents was determined using Yamane’s formula and selected through stratified random sampling. Data were collected using structured five-point Likert-scale questionnaires and documentary review, then analyzed using SPSS version 25 through descriptive statistics, Pearson correlation, and multiple regression analysis. Results showed significant positive correlations between employee retention and compensation (r = .695, p < .01), career management (r = .583, p <.01), and work-life balance (r = .549, p < .01). Regression results indicated that compensation (β = .532, p < .001) and work-life balance (β = .429, p < .001) significantly influenced retention, while career management had a positive but non-significant effect (β = .045, p = .484). The model explained 61.5% of the variance in employee retention (R² = .615, p < .001). The studyrecommends competitive compensation, flexible-work and wellness initiatives, and strengthened career development.