The Factors Influencing on Employee Retention in Service Organization. A Study on Financial Institutions in Northern Province

Abstract

The purpose of this study is to explain the factors to retain the employees in financial institution in Northern Province.The employee retention is essential for all businesses to achieve its ultimate goals.Currently the organizations face the challenges in retaining their key employees.The key employees are important to each and every organization as they reflect the quality of service and product provided by the organization.The service-oriented organizations are highly depended on the performance of its employees to satisfy their customers.The quantitative method was used and a structured questionnaire with Five-likert scale was issued to collect the data.In this study, a sample of 70 employees were selected from various financial institutions by random sampling.The factors such as employee training and development, compensation, opportunity for advancement, empowerment, supervisory support, appraisal system and working environment are considered highly influencing on the decision of employees whether to stay with the current job or look for other job.The SPSS was used to analyze the data.Co-efficient of simple and multiple correlations have been calculated in this study to measure the relationship between independent variables and dependent variables.And linear regression technique also used to know the influencing factors of employee retention in financial institution.The study confirmed that all seven independent variables such as employee training and development, compensation, opportunity for advancement, empowerment, supervisory support, appraisal system and working environment will improve employee retention positively and vice versa.Further, concluded that compensation, opportunity for advancement, and empowerment are highly influence on employee retention of finance companies in Northern Province.The implication of this research is the that top management of financial institution should introduce the appropriate strategies considering the above factors for employee retention and corporate world practitioners.

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