The Effect of Performance Appraisal on Employee Retention: a Case Study in Metropolitan Real Estate Plc
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Date
2025-03-20
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A,A,U
Abstract
This study is conducted to explore the effect of performance appraisal practices on employee
retention at Metropolitan Real Estate Plc. Employing a quantitative research approach, data
was collected through a comprehensive survey questionnaire. The study focused on the entire
population of 150 Metropolitan Real Estate employees, and a total of 140 employees was used
in this analysis. Regression Analysis and Correlations were utilized to thoroughly analyze the
data collected using SPSS version 27 to analyze the data meticulously gathered. The findings of
the study clearly showed that among the main findings of the study was that from the four factors
of effective PA, which are Clarity, Performance appraisal includes continuous feedback,
fairness, and transparency, 360-degree feedback in the appraisal has a significant positive effect
on employee retention. Based on the model summary, the R square value indicated that the
independent variables explained the dependent variable by 0.662. This result implies that
continuous feedback, fairness and transparency, and 360-degree feedback accounted for 66.2%
of the variance in employee retention. The real estate PA is susceptible to several mistakes and
prejudices that can greatly aggravate employee discontent and ultimately result in their
resignation. The study has important implications for employee retention in corporate
management. The findings of this study can help global managers focus on the specific
characteristics that significantly influence employee satisfaction and loyalty when they design
and implement effective performance appraisal systems, thereby minimizing the risk of employee
turnover and fostering a more committed workforce.