Digital Human Resource Management Accessibility and Employee Retention: A Serial Mediation Analysis of Banking Professionals in Nepal

Abstract

Background: While the adoption of digital Human Resource Management (HRM) systems is increasing, the relationship between Digital HRM Accessibility (DHRMA) and employee retention remains insufficiently explored. This study applies Social Exchange Theory (SET) and the Job Demands-Resources (JD-R) model to investigate how DHRMA influences employee retention through the mediating roles of Perceived Organisational Support (POS), Work-Life Balance (WLB), and Employee Engagement.

Objective: The study aims to evaluate the direct and indirect effects of digital HRM accessibility on employee retention, specifically by testing a serial mediation model in the Nepalese banking sector.

Methodology: A cross-sectional survey was conducted among 504 employees from 10 commercial and 6 development banks in Nepal using convenience sampling. Partial Least Squares Structural Equation Modelling (PLS-SEM) was employed to analyse the direct and serial mediating effects. The measurement model’s validity and reliability were verified through Cronbach’s alpha, composite reliability, factor loadings, and Average Variance Extracted (AVE).

Results: The findings indicate that DHRMA exerts a substantial and significant impact on retention (β=0.708, p<0.001), POS (β=0.759), and WLB (β=0.804). While the direct mediating effect of engagement on retention was insignificant, the serial mediation pathway (DHRMA • POS → WLB → Retention) was statistically significant. This suggests that digital HRM serves as a strategic resource that fosters organisational support and facilitates work-life balance, both of which collectively drive retention.

Conclusion: Digital HRM accessibility serves as a critical organisational resource that enhances employees' perceptions of support and work-life stability. Although engagement is positively influenced, it plays a secondary role compared to the cumulative effects of support and balance in ensuring long-term retention.

Unique Contribution: By integrating the SET and JD-R frameworks, this study demonstrates that retention in digitised workplaces is primarily driven by resource accumulation (support and balance) rather than engagement alone. This provides a theoretical shift towards human-centred digital HR systems.

Key Recommendation: Banking institutions should design digital HR platforms that prioritise accessibility and employee support functions. Management should leverage these tools not just for administrative efficiency, but as instruments to improve work-life balance and signal organisational care to retain talent in a competitive digital landscape.