Factors Affecting Employee Retention: A Case Study of Two International Organizations in Addis Ababa
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Date
2021-03
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Addis Ababa University
Abstract
Employee Retention and turnover has become the top workforce management challenge in
today’s dynamic business environment. Global trends indicate that talent shortage has become a
prominent issue globally and caused a serious competition in the labor market. Therefore, it is
crucially important for companies to retain their top performers even though it is a challenging
issue encountered by many organizations. Thus, the purpose of this study is to identify and
analyze the major factors that affect employee retention in international organization in Addis
Ababa – A case study of two organizations.
The objective of the study was to explore the relationship between employee retention and Six
commonly identified factors; compensation, work-life-balance, organizational culture, Health
and wellbeing programs, personal development and superior-subordinate relationship. A
quantitative approach was used and data were collected through questionnaires and analyzed
using STATA after coding and cleaning. Data were analyzed using frequency, correlation, and
regression analysis. Multiple regression model was applied to determine the cause and effect
relationship between the dependent and independent variables. The findings revealed that
Demographic variables are important in explaining retention rate. Marital status and age are
statically significant determinants that affect retention rate the most important variables that
contributes to employee retention are compensation structure, organizational culture and
personal development programs are identified as the major in order of importance
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Keywords
Employee Retention, workforce management, Business environment