Factors determining employee retention of development banks in Nepal
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Management
Abstract
Retaining valuable employees has become crucial for organizations to thrive, grow, and
succeed in today's competitive and rapidly changing business environment. These
employees are often seen as the backbone of the organization, playing a vital role in its
destiny. However, employee retention has become a major challenge due to the increased
mobility of talent facilitated by globalization. This phenomenon has accelerated the rate
at which employees switch jobs or leave organizations, creating a pressing need for
companies to address this issue effectively. The study focuses on the problem of
employee retention in development banks in Nepal. High employee turnover rates can be
costly and pose challenges for organizations in terms of productivity, knowledge loss, and
recruitment and training expenses. The research endeavors to achieve the following
research questions:
What are the factors determining employee retention in development banks? What is the
overall perception of employees regarding the employee retention practices of the banks?
Is there a relationship between leadership approach, salary and wages, learning
opportunities, employee satisfaction, and employee retention? Does leadership approach,
salary and wages, learning opportunities, and employee satisfaction have an effect on
employee retention in development banks in Nepal?
The study's objectives include assessing employee retention practices in development
banks, investigating employee perceptions of retention practices, examining the
relationship between various factors and employee retention, and analyzing the effect of
these factors on retention. The research hypotheses propose that leadership approach,
learning opportunities, salary and wages, and employee satisfaction significantly impact
employee retention. The rationale for the study lies in the importance of retaining key
employees for organizational stability and growth. Development banks play a crucial role
in Nepal's economic development, and employee retention is vital for their success.
Factors such as leadership approach, salary and wages, learning opportunities, and
employee satisfaction can influence employees' decision to stay with an organization. By
understanding these factors, the study aims to inform strategies and interventions to
improve employee retention in development banks.
It also only examines selected factors related to retention, and the findings may not be
applicable in an international context. The sample size and data collection techniques may
xi
affect the generalizability of the findings as well. The research design includes descriptive
and analytical approaches. The population consists of permanent employees in
development banks in Nepal, and the sampling technique is purposive sampling. Data is
collected through questionnaires and interviews, with a combination of primary and
secondary sources. Data analysis involves descriptive and inferential statistical tools,
including correlation analysis and regression analysis. The reliability of the instruments is
tested using Cronbach's alpha, indicating high reliability. Validity is established through a
thorough development process and expert feedback. The study aims to provide insights
into the factors determining employee retention in development banks in Nepal and guide
the formulation of effective retention policy and guidelines.
The study conducted in development banks in Nepal included 388 employees, with the
majority being in the age group of 20-29 and a higher representation of males. Factors
such as leadership approach, salary and wages, learning and opportunity, and employee
satisfaction were found to have a significant positive impact on employee retention in the
development banks.
Keywords: Employee Retention, Employee Satisfaction, Employee Turnover, Learning
and Opportunity and Descriptive Statistics.