The Influence of Job Satisfaction and Work-Life-Balance on Employee Retention in Ethiopian Small & Mid-Size Enterprises: the Role of Work-Life Balance as a Moderator Variable in Bole Sub-City Administration
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Date
2025-05-30
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A.A.U
Abstract
This study analyzes the causes of employee retention in Ethiopian Small and Medium Enterprises (SMEs), focusing on Job Satisfaction (JS) and Work-Life Balance (WLB) within the Bole Sub-City Administration. Using a mixed-methods approach, it incorporates qualitative insights from semi-structured interviews and quantitative data from structured questionnaires completed by 279 employees. The study employs a stratified sample and validates scales with Cronbach's Alpha (JS: 0.95; WLB: 0.92; Employee Retention: 0.96) to ensure reliability. Key findings reveal strong positive correlations: JS and Employee Retention (r=0.719), WLB and Employee Retention (r=0.901), and JS and WLB (r=0.760). Regression analysis confirms both JS (β=0.110, p=0.043) and WLB (β=1.063, p=0.000) as significant predictors of retention, explaining 81.5% of variance (R²=0.815), while WLB’s moderating role between JS and Employee Retention is statistically insignificant (p=0.438), indicating independent effects. The study highlights that younger employees (60.57% aged 21–36) prioritize flexibility and career growth, with demographic factors such as gender (60.22% male) and educational attainment (53.76% bachelor's degree holders) affecting tailored retention strategies. It addresses gaps in the literature regarding Ethiopia's labor attributes in SMEs and enhances understanding of the relationships between job satisfaction, work-life balance, and employee retention, emphasizing the influence of organizational, cultural, and economic factors on employee experiences. The strong correlations among these variables challenge the empirical gap and provide recommendations for organizations seeking to improve employee satisfaction and retention, thereby strengthening the theoretical base of employee retention relationships.
Keywords: Job Satisfaction, Work-Life Balance, Employee Retention, Ethiopian SMEs, Mixed-Methods, Strategic HRM.