Employee Turnover in Sri Lanka - An HRM perspective

 

           Image 01 : Source - https://www.aihr.com/blog/high-turnover-meaning-rates/

Employee turnover is a increasing challenge for organisations in Sri Lanka, impacting operational efficiency, productivity, and overall business performance. Human Resource Management departments play a important role in addressing these issue by identifying underlying causes and implementing effective retention strategies. 

Reasons for High employee turnover

Research shows that several factors contribute to employee turnover in Sri Lanka. A study on a tea manufacturing company identified heavy workloads, high work pressure, low wages, long working hours, unclear job roles, and lack of career development opportunities as primary drivers of turnover (Abesinghe et al., 2021). In the banking sector, remuneration packages and promotion opportunities are critical factors influencing employee turnover, with a negative relationship observed between these factors and turnover rates (JBT, 2021).

The Role of HRM in Addressing Employee Turnover.

HR departments can use many tactics to reduce employee turnover. Implementing talent retention techniques such as talent recognition, engagement, and empowerment is critical to sustaining a skilled workforce (ID Publications, 2016). These tactics increase job satisfaction while decreasing turnover rates by meeting employees' needs and prviding opportunities for growth and development.

In the context of Sri Lanka's IT sector, talent retention is particularly challenging due to labor migration among middle management. Companies must balance competitive compensation with talent development programs to retain key personnel (Adaderana Biz English, 2023). This approach not only reduces turnover but also fosters a consistent and proficient workforce essential for industry sustainability.

The Role of HRM in Reducing Employee Turnover.

HR departments have several kinds of strategies to avoid employee turnover. Implementing talent retention strategies such as talent recognition, engagement, and empowerment is key to maintaining a skilled workforce (ID Publications, 2016). These approaches improve job satisfaction while reducing turnover by addressing employees needs and providing opportunities for growth and development.

By adopting these evidence-based strategies, HRM professionals in Sri Lanka can significantly reduce employee turnover rates. This not only saves costs associated with recruitment and training but also enhances organisational performance by retaining valuable talent.

Factors affecting employee turnover 👇

Source - Youtube / Nova Academy of Business & Technology

Conclusion

Addressing high employee turnover in Sri Lanka requires a multifaceted approach that involves understanding the underlying causes and implementing targeted HRM strategies. By focusing on talent retention, improving work environments, and providing opportunities for growth, organisations can reduce turnover and enhance their competitive edge in the global market.

References : 

Abesinghe, H.Y.M., Madhumal, H.H.D., Shashikala, W.K.N., & Kapiyangoda, K.K. (2021). Strategies for Overcoming Employee Turnover: Case-Study of a Tea Manufacturing Company. Journal of Business Studies, 8(2). Available at: https://www.maco.jfn.ac.lk/jbs/wp-content/uploads/2023/02/Article-01.pdf [Accessed on 16th March 2025]

JBT. (2021). Factors affecting employee's turnover in the banking sector. Available at: https://jbt.sljol.info/articles/47/files/submission/proof/47-1-124-1-10-20211119.pdf [Accessed on 16th March 2025]

Adaderana Biz English. (2023). The Challenges of Talent Retention in the Sri Lankan Tech Industry. Available at: http://bizenglish.adaderana.lk/the-challenges-of-talent-retention-in-the-sri-lankan-tech-industry/ [Accessed on 16th March 2025]

ID Publications. (2016). The HR strategies impact of talent retention on performance of private sector organizations in Sri Lanka. Available at: https://www.idpublications.org/wp-content/uploads/2016/05/Full-Paper-THE-HR-STRATEGIES-IMPACT-OF-TALENT-RETENTION-ON-PERFORMANCE-OF-PRIVATE-SECTOR-ORGANIZATIONS-IN-SRI-LANKA.pdf [Accessed on 16th March 2025]

Gender Equality in Sri Lankan Workplaces: Role of HRM

            Image 01 : Source - https://toolagentechnology.com/7-ways-to-promote-gender-                        equality-in-the-workplace/

Regardless of Sri Lanka's progress to gender equality in education and healthcare, these improvements have not resulted in equal labour force participation. Women's labour force participation in Sri Lanka has been gradually falling, with major economic consequences for both individuals and organisations. This disparity highlights the important part that Human Resource Management (HRM) must do to increase workplace gender equality through deliberate policies and actions.

Current State of Gender Equality in Sri Lankan Workplaces

Recent research reveals persistent gender disparities across Sri Lankan workplaces. Women face unfair barriers for economic participation, with female labor force participation remaining "relatively low compared to emerging market peers and even some low-income developing countries within the region" (Portal.pep-net.org, 2024). These gaps extend beyond participation rates to include quality of employment, with women "more likely than men to experience limited access to well-paying jobs" across various sectors.

The gender pay gap in Sri Lanka reflects wider Social discrepancies, notably impacting women's economic empowerment and financial freedom. A pilot study indicates that women across occupational backgrounds face a "double burden of balancing work and caregiving responsibilities," while discrimination creates differences in pay and career advancement opportunities (Womenandmedia.org,2024). These barriers requires systemic changes to promote gender equality in workplace settings.

HRM's Responsibility in Advancing Gender Equality

Human Resource Management departments bear significant responsibility for implementing transformative gender equality initiatives. Effective HRM strategies include integrating "affirmative action in employment policy to ensure gender parity, particularly in decision-making positions at all levels," through approaches such as active recruitment to high-level positions and ensuring gender expertise on recruitment panels (Fpasrilanka.org, 2023). These interventions help dismantle barriers that have historically limited women's advancement opportunities.

Gender mainstreaming represents another crucial HRM responsibility, requiring the integration of gender considerations across "all programmes, budgets, strategic plans and policies" with systematic monitoring and evaluation (Fpasrilanka.org, 2023). This comprehensive approach facilitates organisational transformation beyond superficial policy changes.

Creating Inclusive Workplace Cultures

The Employers' Federation of Ceylon (EFC) emphasises that "upholding equity, diversity and inclusion at the workplace" must become an organisational priority while "recognisng the need for creating respectful workplaces free of discrimination for all employees" (Employers.lk, 2024). HRM departments must lead this cultural transformation by implementing best practices that create diversity.

Interestingly, the landscape of HRM itself reflects gender disparities, with research indicating that the majority of HR professionals in Sri Lankan private sector organisations are male sex-typed, representing over 50% of practitioners. This dynamic reflects a broader shift, as "HRM was a female dominant field and currently it is shifting to the male domination" in Sri Lankan organisational contexts (Journals.sjp.ac.lk, 2014).

Workplace Gender Equality in Sri Lanka 👇

Source - Youtube / Dhanusha Karunarathna

Conclusion

Addressing gender inequality in Sri Lankan workplaces requires concerted effort from HRM professionals through comprehensive policy implementation, systemic change initiatives, and cultural transformations. By prioritising gender-responsive recruitment practices, implementing workplace flexibility policies, conducting regular gender audits, and fostering inclusive organisational cultures, HRM can play a transformative role in creating equitable work environments that enable women's full participation and advancement.

References : 

Employers.lk. (2024). EFC inspires inclusion to forge a more inclusive workplace for women. Available at: https://employers.lk/2024/03/20/efc_inspires_inclusion_to_forge_a_more_inclusive_workplace_for_women/ [Accessed on March 16th 2025]

Fpasrilanka.org. (2023). Gender Equality Policy FPA Sri Lanka. Available at: http://www.fpasrilanka.org/sites/default/files/2023-11/gender_equality_policy.pdf [Accessed on March 16th 2025]

Journals.sjp.ac.lk. (2014). Gender Differences of Human Resource Professionals in the Sri Lankan Private Sector. Available at: https://journals.sjp.ac.lk/index.php/phrc/article/view/2873/1920 [Accessed on March 16th 2025]

Portal.pep-net.org. (2024). Women's access to decent work in Sri Lanka: Addressing context-specific barriers. Available at: https://portal.pep-net.org/document/download/39124 [Accessed on March 16th 2025]

Womenandmedia.org. (2024). Pilot Study on the Gender Pay Gap in Sri Lanka. Available at: https://womenandmedia.org/wp-content/uploads/2024/12/Pilot-Study-on-the-Gender-Pay-Gap-in-Sri-Lanka.pdf [Accessed on March 16th 2025]

Identification & Selection - How to identify the right candidate?

Image 01  :  Source - https://edu4sure.com

In today's Sri Lankan job market, human resource managers have significant hurdles in discovering and employing the suitable candidates. To align with local cultural norms and meet corporate objectives, companies must establish systematic hiring strategies in response to the changing employment market.

Developing Clear Job Specifications and Strategic Advertising

Effective candidate identification begins with clear job descriptions that precisely outline required skills and experience. According to Diriya.lk (2024), organizations should "focus on clear, concise job descriptions that outline required skills and experience" while utilizing "cost-effective methods like local job boards, employee referrals, and universities to recruit staff." This initial clarification establishes essential parameters for recruitment activities and ensures alignment between organizational needs and candidate attributes. Modern recruitment in Sri Lanka increasingly leverages digital platforms, with "virtual job fairs, online hiring platforms, and social media networks like LinkedIn becoming popular channels for both job seekers and employers" (9CV9Official, 2025).

Implementing Structured Interview Methodologies

Structured interviews represent a critical component of effective selection processes in the Sri Lankan context. The recommended approach involves conducting "structured interviews with a focus on skills needed for the role" while involving "relevant team members in the interview process" to ask skill-related questions (Diriya.lk, 2024). This methodical approach reduce bias and improves evaluation consistency, allowing for more accurate comparisons between candidates based on job-relevant competencies rather than subjective impressions.

Assessing Cultural Fit in the Sri Lankan Context

Cultural alignment remains particularly significant in Sri Lanka's collectivist workplace environment. Organisations should specifically "look for candidates who demonstrate a strong work ethic, can do attitude, respect for hierarchy, and ability to work in harmony, which are valued traits in Sri Lankan workplaces" (Diriya.lk, 2024). This assessment helps ensure that candidates will integrate effectively into existing team structures while contributing positively to organisational culture.

Figure 01 : Source - https://www.shrofile.com/blog/recruitment-process/

Navigating Legal Requirements and Comprehensive On boarding

Successful recruitment extends beyond selection to include proper on boarding within Sri Lanka's legal framework. As Multiplier (2025) notes, the hiring process involves several structured steps including advertising positions, shortlisting applicants through fair screening processes, and conducting thorough interviews. Organisations should make sure their processes maintain compliance with Sri Lankan labor regulations while implementing comprehensive onboarding programs that facilitate new employee integration.

By implementing these evidence based strategies developing clear job specifications, conducting structured interviews, assessing cultural fit, and making sure legal compliance—HRM professionals in Sri Lanka can significantly enhance their ability to identify and secure candidates who align with both immediate position requirements and wider organisational objectives.

11 Sourcing Strategies to Find the Best Candidates 👇

                        Source - YouTube /  AIHR - Academy to Innovate HR

References : 

9CV9Official. (2025). How to Find and Hire Employees in Sri Lanka in 2025. Available at: https://www.linkedin.com/pulse/how-find-hire-employees-sri-lanka-2025-9cv9official-nojrc [Accessed on 15th March 2025]

Diriya.lk. (2024). Basic Human Resource Practises for SMEs in Sri Lanka. Available at: https://diriya.lk/basic-human-resource-practises-for-smes-in-sri-lanka/ [Accessed on 15th March 2025]

Multiplier. (2025). Essential Guide to Hiring Employees in Sri Lanka. Available at: https://www.usemultiplier.com/srilanka/how-to-hire [Accessed on 15th March 2025]

HRM managing culture and diversity in HRM

 

Image 01 - Source https://vnmanpower.com/

Managing Culture and Diversity in HRM: Strategies for Inclusive Workplaces

Human Resource Management (HRM) plays a very important role on developing organisational cultures that promote diversity, equity, and inclusion. As globalisation accelerates, workplaces increasingly include people from many cultural, ethnic, and social backgrounds.Effective HRM methods must handle these differences in order to gain the benefits of diversity, such as increased innovation, employee engagement, and organisational resilience (Thomas & Ely, 1996). 

The Strategic Value of Diversity

Diverse teams improve decision-making and problem-solving by bringing together multiple viewpoints (Lorenzo et al., 2017). Companies with gender-diverse leadership teams, for example, beat industry averages by 21% (Lorenzo et al., 2017). HRM can meet these goals by using inclusive recruitment strategies like blind hiring or collaborating with different talent sources. However,diversity alone is not enough, encouraging inclusion is a necessity for making employees feel appreciated and encouraged to contribute (Mor Barak, 2016).

Challenges in Managing Cultural Diversity.

even though there are advantages, cultural variety can result in misunderstandings, communication obstacles, and unconscious biases. Employees from collectivist cultures, for example, may prioritise group cohesion over individual assertiveness, which may conflict with Western-centric workplace norms (Hofstede 2011). HRM must address these issues through cultural competency training and policies that prioritise psychological safety. A study by Dobbin and Kalev (2016) discovered that mandated diversity training frequently backfires, whereas volunteer initiatives and mentorship programs provide greater results.

Image 02 - Source https://www.geeksforgeeks.org/ - Benifits of Diversity Management 

Best Practices in HRM

To create inclusive workplaces, HRM should take a multidimensional strategy.

Leadership Commitment: To communicate organisational priorities, senior leaders must embrace diversity efforts (Roberson, 2019).

Employee Resource Groups (ERGs) enable under-represented employees to discuss their experiences and influence policy (Welbourne et al., 2017).

Flexible Policies: Allowing for cultural customs such as religious holidays or flexible work hours increases inclusivity (Mor Barak, 2016).

Managing culture and diversity is an ongoing strategic process rather than a one-time initiative. Organisations that can Connect their HRM procedures with the demands of a diverse workforce can unlock innovation, enhance retention, and build their reputations. As workplaces adapt, HRM's role in overcoming cultural barriers will remain critical to long-term success.

Managing Culture and Diversity in Sri Lanka

Human Resource Management (HRM) practices in Sri Lanka increasingly recognise the importance of cultural diversity management as a strategic organisational imperative. Traditional HRM approaches require adaptation to Sri Lankan context by considering specific cultural conditions and labor regulations to enhance their effectiveness (Opatha, 2009). Research indicates varied conceptualisations of diversity management across Sri Lankan businesses, with some organisations demonstrating sophisticated understanding while others maintain narrower approaches focusing primarily on preventing negative workplace interactions (ECCSL, 2024).

While Sri Lankan organisations have developed various approaches to gender, age, and disability diversity, many remain hesitant to engage with ethnicity and religion dimensions. Common practices include zero tolerance policies for discrimination, cultural exchange events, and providing facilities for religious observance (ECCSL, 2024). Language barriers represent significant challenges, often diminishing the positive effects of diversity initiatives by impeding effective communication across different ethnic groups.

To maximise both business success and social cohesion, Sri Lankan HRM professionals must develop context-specific strategies that address all dimensions of workplace diversity while overcoming linguistic and cultural barriers.

The Importance of Diversity In The Workplace 👇

References

Dobbin, F. and Kalev, A. (2016) ‘Why diversity programs fail’, Harvard Business Review. Available at: https://hbr.org/2016/07/why-diversity-programs-fail [Accessed on 13th March 2025]

Lorenzo, R. et al. (2017) ‘How diverse leadership teams boost innovation’, Boston Consulting Group. Available at: https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation [Accessed on 13th March 2025]

Mor Barak, M.E. (2016) Managing Diversity: Toward a Globally Inclusive Workplace. Sage Publications. Available at: https://us.sagepub.com/en-us/nam/managing-diversity/book242583 [Accessed on 13th March 2025]

Thomas, D.A. and Ely, R.J. (1996) ‘Making differences matter: A new paradigm for managing diversity’, The University of Utah. Available at: http://ereserve.library.utah.edu/Annual/MGT/6154/Bakhsheshy/making.pdf [Accessed on 13th March 2025]

ECCSL. (2024). Unlocking the Power of DEI: Diversity, Equity, and Inclusion as a Strategic Imperative for Business Success and Social Harmony. Available at: https://eccsl.lk/wp-content/uploads/2024/03/Unlocking-the-Power-of-DEI.pdf [Accessed on 13th March 2025]

Opatha, H.H.D.N.P. (2009). Human Resource Management. Available at: http://dr.lib.sjp.ac.lk/bitstream/handle/123456789/7007/Human%20Resource%20Management.pdf?sequence=1&isAllowed=y [Accessed on 13th March 2025]