Summary and Recommendations on Factors Influencing Employee Retention
BUSI 240-Organizational Behavior 1
Liberty University
2022
Summary
It was established that majority of the respondents had served in the state corporations for
21 years and above as indicated by 36.6%, and that most of the respondents had been
serving as head of the human resource function for 6–10 years as shown by a mean score of
41.5% thus lending credibility to the findings of the study. With regard to the measures of
employee empowerment influencing retention, opportunities for professional growth as
shown by mean of 2.73, the availability of loan facilities as indicated by mean of 3.25, well
defined goals and objectives as indicated by mean of 3.64, well defined job descriptions as
indicated by mean of 3.58, guaranteed job security as indicated by mean of 3.19 and stress
management programs as indicated by mean of 2.87 were all rated well above the average
(i.e. 2.5). Slightly over 50% of the respondents disagreed that adequate working
equipment as a measure of employee empowerment influenced retention as shown by mean
of 2.42.
On the issue of employee training and career development, the respondents agreed with the
statements that organizations offered sponsored training to employees shown by mean of
4.25, company employees received training and career development on regular basis as
shown by mean score of 3.81, employees were satisfied with the training and career
development offered to them by the organization as shown by mean of 3.71 and that
employee training and career development benefits were in place as shown by mean of
3.54. The respondents’ level of agreement was, however, moderate on the statement that
employee training and career development programs offered are linked to each employee’s
career needs as shown by mean of 2.96.
Regarding employees compensation, the study found that the employees were satisfied
with the educational subsidies given by the organization as indicated by mean of 3.51. The
study further established that the respondents’ level of agreement was moderate on the
statements that employees were satisfied with the number of annual leave days given by the
organization as shown by mean of 3.49 and that rewards and benefits offered were
comparable with what the market offered as shown by mean of 2.92. The respondents
disagreed with the statement that rewards and benefits offered were commensurate with the
amount and quality of work done as indicated by mean of 2.37.
On the issue of performance appraisal, the respondents agreed that their organization had
an effective and transparent performance appraisal process in place as shown by mean of
3.72, feedback from performance appraisals led to enhanced employee development as
shown by mean of 3.87 and that performance appraisal system encompassing mentoring
and coaching of employees were in place as shown by mean of 3.51. The findings further
established that the respondents moderately agreed that employees’ career goals were
established and supported by the performance appraisals as shown by mean of 3.19.
With regard to employees’ commitment, it was established that the respondents were in
agreement that employees were proud to tell others that they were part of the organizations
as shown by mean of 3.51. The study finally established that respondents’ level of
agreement was moderate with the statements that job security encouraged employees to
remain in the organizations as shown by mean of 3.38, employees were committed to work
for the organization until they retire as shown by a mean of 3.14, employees were
recognized and rewarded for their commitment and dedicated service to the organizations
as shown by mean of 2.91, and that employees’ intention to continue working with the
organization is influenced by their commitment as shown by mean of 3.26. The
respondents’ disagreed with the statement that employees were committed to work in the
organization because they did not want to lose their benefits (e.g. retirement benefit) as
shown by mean of 2.29.
Discussion of Findings
From the findings of the study, it was established that employee’s retention was influenced
by employee’s empowerment, training and career development, employee compensation,
performance appraisal and employees commitment. These findings are consistent with
those of Lathan (1988) who established that if the training is relevant and if it is efficiently
and effectively designed and delivered, it should impart new knowledge and skills as well
as meet the employees’ and organizational needs. As Huselid ((1995) argued, improvement
in performance such as productivity, quality and services are the training outcomes
provided that the job is strategically aligned to the organization’s needs. For an individual
employee, if their desired needs are fulfilled through the training programs provided, there
is no doubt that the desired outcome by the organization, retention on employees, will be
reached. From the findings, the presence of opportunities for professional growth, well
defined goals and objectives and job descriptions contribute to the retention of employees
in state corporations.
The study further established that employees’ retention is influenced by readily available
loan facilities, guaranteed job security and stress management programs. According to
Ogilvie (1986), these types of Human Resource Management (HRM) practices are more
likely to have a positive impact on employee commitment and satisfaction than employee
demographics or job characteristics.
The study established that employees were satisfied with the number of annual leave days
given by the organization and that rewards and benefits offered were comparable with what
the market offered. Rewards and benefits offered were not commensurate with the amount
and quality of work done. These findings are consistent with Reville, Boden and Biddle
(2003), benefits, such as pension, life and health insurance, retirement plans and
allowances that include company cars or subsidized transportation, all represent a
significant pay element in many large firms which go a long way in improving employee
commitment to an organization and hence employee retention. Well remunerated
employees will find little reason to leave to another organization provided the tasks are
challenging enough.
The study also established that an effective and transparent performance appraisal process
was in place at state corporations and that feedback from performance appraisals led to
enhanced employee development and that performance appraisal systems encompassing
mentoring and coaching of employees were also in place. These findings are consistent
with the argument of Gruman and Saks (2011) who argued that in order to enhance
organizations’ ability to survive through turbulent environment; most top corporations take
great care in managing the performance measures of their employees. The employees were
also proud to tell others that they were part of the organizations and that job security had an
influence on employee retention in the organizations. The employees were recognized and
rewarded for their commitment and dedicated service to the organizations.
Implications of Findings
The study found out that employees’ retention was influenced by employee’s
empowerment, training and career development, employee compensation, performance
appraisal and employees commitment. These findings therefore imply that in order for
government and other organizations to promote the level of employee retention, they need
to find ways of empowering their employees through training and career development.
Through training and career development, employees are equipped with skills necessary in
their career development.
In addition, the Government and other organizations need to remunerate their employees
competitively and have fair appraisal performances as this will promote employee
commitment in the organization. In return, this will improve an organization’s
performance. This is also supported by the finding where it was established that giving
employees’ educational subsidies influenced the retention to a great extent and that their
level of adoption in state corporations was great.
Conclusion
The study concluded that employee’s retention was influenced by employee’s
empowerment, training and career development, employee compensation, performance
appraisal and employees commitment. The presence of opportunities for professional
growth, well defined goals and objectives and job descriptions contribute to the retention of
employees in state corporations. The study further concludes that the extent to which
employees’ retention is influenced by readily available loan facilities, guaranteed job
security and stress management programs is moderate and that adequate working
equipment does not influence employee retention in their organization.
The study further concluded that training and career development were adopted to a great
extent by the state corporations and that they offered sponsored training and career
development programs and that employees were satisfied with the training and career
development offered to them by the organization. The study further concluded that
employee training and career development benefits were in place and that they influenced
employees’ retention to a great extent. The study further concluded that the extent to which
employee training and career development programs offered were linked to each
employee’s career needs was moderate. The study also concluded that giving employees’
educational subsidies influenced the retention to a great extent and that their level of
adoption in state corporations was great. The study further concluded that to a moderate
extent, employees were satisfied with the number of annual leave days given by the
organization and that rewards and benefits offered were comparable with what the market
offered. The study further concluded that rewards and benefits offered were not
commensurate with the amount and quality of work done. The study also concluded that an
effective and transparent performance appraisal process was in place at state corporations
and that feedback from performance appraisals led to enhanced employee development and
that performance appraisal systems encompassing mentoring and coaching of employees
were also in place. The study further concluded that to a moderate extent, the employees’
career goals were established and supported by the performance appraisals.
The employees were also proud to tell others that they were part of the organizations and
that job security had an influence on employee retention in the organizations. It was also
concluded that employees were committed to work in the organization because they did not
want to lose their benefits and that they were committed, to a moderate extent, to work for
the organization until they retire. The study also concluded that the employees were
recognized and rewarded for their commitment and dedicated service to the organizations.
Recommendations
The study recommended that government should enact policies that ensure that the working
environment in the state corporations promotes employees retention. The policy makers
should enact policies that promote the implementation of aspects contributing to the
retention of employees in the state corporations.
The findings further established that respondents disagreed with the statement that rewards
and benefits offered were commensurate with the amount and quality of work done. It is
therefore recommended that the management should take actions aimed at ensuring that
employees are rewarded accordingly and benefits offered to them be improved.
It established that the employees’ commitment to working in state corporations was
moderate. This study therefore recommends that measures should be taken to ensure that
the employees’ commitment is enhanced in the state corporations.
