Factors Affecting Employee Retention In G-Global Gas & Chemical Plc

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Addis Ababa University


Human resource is the most important resources in the organization. Making an effort to retain is very essential for the achievement of the given objective. However, the issue of employee retention exists in most of the organization throughout the world. To prevent an excessive employee turnover rate, an organization has to set an effective retention mechanism by identifying affecting factors. The main objective of this study was to assess factors effects employee retention in GGG & C. The specific objectives were to examine their relationships, and to measure the level of influence or effect on employee retention. An explanatory research design with survey method is applied in this study. The total number of population was 220.Out of total population142 sample size were drawn using Taro Yemani’s statistical formula and then stratified followed by purposive sampling technique was used. The study used both primary and secondary source of data. Data was collected using structured questionnaires and the data was analyzed using Statistical Package for Social Sciences (SPSS). The data was presented using tables, percentage, frequency and graphs From statistical tools, Pearson product-moment correlation and multiple regression were used to investigate the relationship and effect of identified variables on employee retention. The correlation result implied that supervisor support has strong positive relationship (r=.892, p<0.01), training & development (r=.672, p<0.01), work environment (r=.736, p<0.01), and compensation & reward (r=.661, p<0.01) with employees' retention. The major finding of this study is that the independent variables, which are supervisor support, training & development, work environment and compensation & reward have strong positive relationship and significantly high association and effect on employee retention. From the study, it is concluded that the 99.8% of variation in employee retention is explained by supervisor support, training & development, work environment and compensation & reward. All this variables have strong positive effect on employee retention. Among these independent variables, supervisor support has a greatest rate of influence. Concerning the existing employees' level of intention, the findings indicated that there is a neutral level of retention intention in the company. In order to minimize and control the existing retention intent of employees', the researcher recommended that the concerned company authorized parties have to revise and improve the identified four factors that have strong influence to retain its employee for long period.



employee retention, supervisor support, training