Human Resource Climate and Faculty Retention: Evidences from Institutions of Higher Education in Northern India

Abstract

This study investigates the role of Human Resource (HR) Climate in shaping faculty retention within higher educational institutions (Central, State, Private and Deemed to be Universities) across Northern India. Data was collected from 770 faculty members across Punjab, Haryana, Delhi, and Chandigarh, selected from the top 100 universities in these states as per NIRF rankings, with final participation based on institutional and individual consent., the research aims to (1) examine and compare the HR Climate of different types of higher education institutions, (2) assess the influence of HR Climate and Individual Factors on faculty retention, and (3) explore the mediating roles of Organizational Trust, Organizational Commitment, and Job Satisfaction in this relationship. The study adopts a two-phase quantitative methodology. Exploratory Factor Analysis (EFA) on an initial sample of 300 faculty members identified five key sub-dimensions of HR Climate: Senior Support, Peer Support, Research Environment, Rewards, and Task Environment. Subsequently, Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed on a sample of 470 to validate the measurement and structural models and test hypothesized relationships among variables. Additionally, the entire sample was used for comparing HR Climate perceptions across institution types using ANOVA. A self-designed questionnaire was used to measure HR Climate, while standardized and validated instruments from existing literature were adopted to assess Individual Factors, Organizational Trust, Commitment, Job Satisfaction, and Faculty Retention. Findings reveal that faculty in central and state universities perceive a significantly more positive HR Climate than their counterparts in private institutions. However, no significant differences emerged between central, state, and deemed-to-be universities in overall HR Climate perception, fulfilling the first objective. Structural model results confirmed that HR Climate has a strong and positive impact on faculty retention, job satisfaction, organizational commitment, and trust. Interestingly, Individual Factors—such as work life balance and availability of alternate job opportunities—do not directly influence faculty retention, showing a non-significant path coefficient. However, they significantly contribute to job satisfaction, commitment, and trust, which in turn strongly influence retention, thereby fulfilling the second objective.

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Mediation analysis provided further insights. The relationship between HR Climate and Faculty Retention is partially mediated by job satisfaction, commitment, and trust—indicating complementary partial mediation. In contrast, the relationship between Individual Factors and Faculty Retention is fully mediated through these three variables, highlighting their critical indirect role in retention decisions. These results underscore the importance of positive psychological states in translating individual and organizational dynamics into long-term faculty engagement, achieving the third objective. This research significantly advances the understanding of faculty retention through the lens of Organizational Support Theory (OST) by positioning HR Climate as a central contextual variable that shapes perceptions of organizational support. The study offers practical implications for educational administrators, particularly in private universities, where faculty perceive HR practices as comparatively less favourable. Institutions aiming to enhance retention must focus on building a supportive HR Climate, fostering research culture, developing transparent reward systems, and strengthening faculty experiences through job satisfaction, trust, and commitment. The establishment of dedicated HR departments in private universities is recommended to institutionalize such practices, which are essential for sustaining talent, improving academic outcomes, and achieving long-term institutional success.