The Effect Of Employee Retention Strategies On The Performance Of Critical Job Position Holder‟S: (In The Case Of Commercial Bank Of Ethiopia)

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Addis Ababa University


The success of any organization depends on the existence of committed and talented employees but now a day; Organizations are facing problems in retaining its valuable, skilled workforce. Hiring knowledgeable people for the job is essential for an employer. This study aims at examining the effect of employee retention strategies on the performance of critical job position holder’s in Commercial Bank of Ethiopia. The study reviews the employee retention strategies from five perspectives, related to training and career development, Compensation, reward/recognition, supervisor-employee relation, work-life balance/working environment, and employee participation in decision-making/communication and finally the dependent variable employee performance which can be measured by composing items of the above variables. The study was employed through using mixed-research approach and explanatory research design by using questionnaire and interview as a data collection tool. The Sample populations of the study is 184 from the selected four critical job position categories, which comprising of Executive Level Management (ELM), Senior Level Management (SLM), Middle Level Management (MLM) and Operational Level Management (OLM) were used.Both probability and non-probability sampling were used to select the study respondents. Descriptive statistics like frequencies, percentages were used to analyze the various differences in population demographics. Means and standard deviations were used in the study to determine the strength of various employee retention strategies. Correlation and regression analysis were used to determine the strength of the relationship of the study variables. The study was proven to the fact that employee retention strategies had a significant influence on the performance of critical level job holders’. Generally this study asserts that CBE employee retention strategies specifically to high position employees should consider these three important dimensions so as to increase employee’s performance. The employee’s retention strategy includes supervisor-employee relation, work-life balance/work environment and employee participation in decision-making/communication. However, the result shows moderate concern is given to those important dimensions by CBE’s. Therefore, from the findings, the study recommends that the bank should need to in-place appropriate retention strategies throughcontinuously assessing the competitive labor market in the industry in order to enhance and build the employees morale and motivate them to increase in performance.



employee retention, employee performance, critical job position