The Effect of Employee Reward on Employee Retention: The Case of John Snow, Inc. (JSI), Ethiopia
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Date
2024-10
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Addis Ababa University
Abstract
This study explores the effect of employee reward on employee retention. More specifically, this study investigates the impact of salary, promotion, meaningful work, and responsibility on employee retention. The study is conducted in JSI, an international NGO with more than 40 years of experience in Ethiopia. The data was collected from 85 employees working at JSI Ethiopia's Addis Ababa offices and samples were drawn using a systematic random sampling method. This research is a quantitative study and explanatory and descriptive in its design. Regression analysis has been used to test the cause-and-effect relationship between employee reward and employee retention. Descriptive statistics like mean and standard deviation are employed to assess the practice of employee reward and employee retention issues in JSI. With a sig value of .000, the research indicates the model is statistically significant in envisaging salary, promotion, meaningful work, and responsibility. With an R square value of 0.703, the findings reveal that salary and responsibility have a statistically significant and positive effect on employee retention, whereas promotion and meaningful work demonstrated no statistically significant effect on retention. It is recommended that JSI consider adopting a comprehensive approach to employee retention by enhancing its monetary packages and incorporating intrinsic rewards like responsibility to strengthen its efforts in employee retention.
Keywords: Employee Reward, Employee Retention, Intrinsic Reward, Extrinsic Reward