Transforming Human Resource Management into a Dynamic Capability and the Effects on Employee Attraction and Retention
Jimenez, William Ricardo
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Employee attraction and retention remain one of the biggest difficulties faced by employers in the United States. One way for firms to combat this issue is through the creation of dynamic capabilities. Dynamic capabilities are processes developed by a company that are based on its history, asset positioning, and process changes which could potentially lead firms to a competitive advantage. The purpose of this study was to explore whether a dynamic capability could be created through a firm’s Human Resource Management (HRM). More specifically, the study examined the relationship between a business’s HRM through the creation of a dynamic capability composite variable and a firm’s employee attraction and retention. A survey was developed and distributed to three associations in the construction trade, the Association of General Contractors, Association of Builders and Contractors, and the Home Builders and Contractors Association, totaling 526 companies. Of those businesses surveyed, 68 firms completed the survey, which equated to a 12.92% completion rate. The results were analyzed using a bivariate correlation and indicated that there was a strong positive correlation between a firm’s HRM and the creation of a dynamic capability. This connection suggests that firms who are better utilizing their HRM have the potential of attracting more salaried employees to a company. The study also found that there was no significant correlation between a firm merely investing into its HRM and the attraction or retention of its employees.