Effects Of HRM Practices On Employee Retention: The Case Study Of Commercial Bank Of Ethiopia And Awash Bank
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Date
2018-05-10
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Addis Ababa University
Abstract
The main purpose of this study was to see the extent of the effects of HRM practices on employee retention of in CBE and Awash banks. To achieve this, some specific objectives were set. The research followed an explanatory cross-sectional design because it explains the relationship between the dependent and the independent variables. This study follows the hypothetic deductive model which presents social research as an interaction between empirical observation and reason or induction and deduction (Sarantakos, 2005).This approach assumes that knowledge is produced deductively from a theory or hypothesis, hence theory are tested by deriving hypothesis from which the theories are either rejected or accepted. Data for the study was collected through triangulation method of qualitative and quantitative. A mixed of sampling techniques were used to select the targeted population. Totally 300 employees (consensually) were sampled to participate in the study. In all, a total number of 283 questionnaires out of the 300 representing a response rate of 94.3% were used for the analysis. Primary and secondary data was used as a source for the data, questionnaire and interview for the primary and review of litterateurs and documents for the secondary data. Descriptive statistics (frequency, mean and standard deviation) and inferential statistics like correlation and regression is used for analysis. Logistic regression analysis were used to test the strength and direction of relationship been the independent variables and the dependent variable. The result of the correlation tests revealed a strong positive and significant relationship with employee retention except for job security which came up as weak but positive relationship. A binary logistic regression was employed to test the hypothesis and a result was that except job security all the rest practices effect on employee retention. Finally banks are recommended to invest on employees to stay in the organization especially on compensations and incentives, communication and information sharing and needs to review the practice of job security and suggested to new researchers to take a longitudinal study on this topic by adding other HR practices
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communication, information sharing, social research