Employee retention, particularly concerning the increasingly prevalent Gen Z workforce, is a significant concern for both academics and practitioners. Existing literature highlights a need for further research on Gen Z retention strategies. This study aims to identify key HRM practices influencing Gen Z employee retention in China and explore the moderating role of gender. Understanding generational differences is crucial for effective management and HRM practices. Gen Z's unique experiences with technology, social events, and economics shape their values and expectations, influencing their workplace preferences. This research addresses a gap in the literature by focusing on Gen Z employees within the Chinese context, where turnover rates are high, and research on this topic remains limited. The study uses a mixed-methods approach, combining an exploratory study (mini-questionnaire and focus groups) with a larger empirical investigation (a survey of 529 Gen Z employees) to identify and analyze the effects of key HRM practices on retention. The theoretical foundation is rooted in Social Exchange Theory (SET), examining the reciprocal relationship between organizational investments in HRM and employee retention.

The literature review examines the characteristics of the Chinese Gen Z cohort and their workplace preferences, emphasizing their distinct values regarding work-life balance, fair treatment, and innovative work environments. It also reviews existing research on employee retention, identifying factors like job satisfaction, organizational trust, supportive culture, leadership style, work-life balance, compensation, rewards, and career development opportunities. However, the literature lacks sufficient focus on Gen Z employees, particularly within the Chinese context, highlighting the need for this study. Social Exchange Theory (SET) is introduced as the theoretical framework, explaining how the exchange of resources between employers (HRM practices) and employees (retention) leads to mutual obligations and beneficial outcomes. The literature suggests that organizations need to proactively offer attractive conditions to stimulate positive employee outcomes, especially for Gen Z, who may be more inclined to switch jobs frequently.

The study employed a mixed-methods approach. An exploratory study involved a mini-questionnaire distributed to 213 Gen Z employees across five industries in two Chinese cities (Hangzhou and Jinhua), identifying four key HRM practices: supportive working environment, pay, role clarity, and training and development. This was followed by focus group interviews with nine employees to further understand the reasons behind the prioritization of these factors. The findings from the exploratory phase informed the design of a larger survey questionnaire administered to 834 Gen Z employees across four major cities in Zhejiang province, with 529 valid responses (63.4% response rate). The survey used a 5-point Likert scale to measure the four independent variables (supportive working environment, pay, role clarity, and training and development), one moderating variable (employee gender), and one dependent variable (employee retention). Established measurement scales from previous research were adapted and refined based on the exploratory findings. Partial Least Squares-Structural Equation Modeling (PLS-SEM) was used for data analysis, including multi-group analysis to assess gender differences. A bootstrapping technique was employed to evaluate path significance and explanatory power.

The results show that all four HRM practices – supportive working environment, pay, role clarity, and training and development – have a significant and positive impact on Gen Z employee retention (p < 0.001). The model explained 41.2% of the variance in Gen Z employee retention. Multi-group PLS analysis revealed significant gender differences. A supportive working environment and training and development were found to be more significant for female employees, while pay and role clarity were more influential for male employees. Specifically: * **Supportive Work Environment:** The effect on retention was significantly stronger for women (tspooled = 13.297, p < 0.001). * **Pay:** The effect on retention was significantly stronger for men (tspooled = -15.793, p < 0.001). * **Role Clarity:** The effect on retention was significantly stronger for men (tspooled = -14.813, p < 0.001). * **Training & Development:** The effect on retention was significantly stronger for women (tspooled = 11.863, p < 0.001).

The findings align with existing research on the importance of various HRM practices in employee retention, but specifically highlight the relevance of these practices for Gen Z in the Chinese context and demonstrate the importance of considering gender differences when designing retention strategies. The significant positive relationship between all four HRM practices and employee retention supports the applicability of Social Exchange Theory (SET). The gender differences suggest that a one-size-fits-all approach to HRM may be ineffective. Organizations should tailor their strategies to address the specific needs and priorities of male and female Gen Z employees. The strong emphasis on a supportive working environment for female employees highlights the importance of creating a culture of inclusivity and support. For male employees, the emphasis on clear roles and competitive pay reinforces the importance of offering clear career paths and equitable compensation.

This study contributes significantly to understanding Gen Z employee retention in China by identifying four key HRM practices and highlighting important gender differences. The findings offer valuable insights for HR managers seeking to retain this valuable cohort. Future research should explore the study's model in different cultural contexts, use longitudinal designs to track retention over time, investigate mediating and moderating variables such as organizational commitment and leadership style, and delve deeper into the impact of role clarity on retention.

The cross-sectional nature of the study limits the ability to establish causal relationships. The focus on the Chinese context may limit the generalizability of the findings to other cultural settings. The convenience sampling method may introduce bias. While PLS-SEM is suitable for large datasets, other statistical methods could offer additional perspectives. Future research could use longitudinal designs to establish causality, expand the geographical scope, and explore additional mediating and moderating variables.