The Impact of HR Practices on Employee Engagement and Retention Among Gen Z in the IT Sector.

PRAJWAL B H1, NITHYA R2

1 MBA Student, Department of Management Studies, Surana College (Autonomous), Bengaluru, Karnataka, India

2 Assistant Professor, Department of Management Studies, Surana College (Autonomous), Bengaluru, Karnataka, India

ABSTRACT

The global workforce is experiencing a fundamental generational shift as Generation Z individuals born between 1997 and 2012 rapidly emerges as the newest and fastest growing segment of the professional workforce. The Information Technology (IT) sector, which employs a disproportionately large share of young, digital Ly skilled professionals, is particularly affected by this transition. Despite this, most IT organizations continue to rely on Human Resource (HR) practices designed for earlier generational cohorts, creating a critical misalignment between organizational offerings and GenZ expectations. This misalignment has resulted in declining employee engagement and persistently high voluntary attrition rates, with industry reports indicating that nearly 40 percent of GenZ employees plan to leave their current employer within two-year. This study examines the impact of specific HR practices including flexible work arrangements, training and development, performance appraisal systems, rewards and recognition, and managerial support on the engagement and retention intentions of GenerationZ employees with in the Indian IT sector. Guided by five research objectives To Understand, To Examine, To Analyse, To Evaluate, and To Apply the study adopts a descriptive research design using a structured questionnaire administered to Gen Z professionals currently employed in IT organizations. Data is analysed using a 5-point Likert Scale, Yes/No responses, and open-ended questions to capture both quantitative and qualitative insights. The study further investigates the expectation–perception gap between what IT companies currently offer through their HR practices and what GenZ employees actually expect from their workplace, and how this gap affects their motivation to remain with the organization. Findings aim to provide HR practitioners with evidence-based recommendations to redesign people practices that genuinely engage and retain this emerging workforce majority.

Keywords: HR Practices, Employee Engagement, Employee Retention, GenerationZ, IT Sector, Flexible Work, Training and Development, Performance Appraisal, Attrition, Workforce Management.