Employee retention in banking industry of Nepal

Abstract

Retention of key employees is essential for survive, growth and development of organization. They are considered as destiny of the organization. The retention of such employees is one of the significant issues in this competitive and dynamic world. Globalization has tremendously enhanced mobility of talents, which accelerates the rate of employee turnover. This study aims to solve some issues relating to employee retention such as: Are the responses of employees positive on retention factors and employee retention in banking industry of Nepal? Is there a relationship between demographic characteristics and employee retention? Is there a relationship between retention factors and employee retention in the banking industry of Nepal? Do retention factors practiced by the banking industry of Nepal affect employee retention? Are the employees satisfied with the existing retention practices in the banking industry of Nepal? This study is based on quantitative research design. The data were gathered with the help of a well structured questionnaire. Data were collected through simple random sampling technique. The SPSS Version16.0 for Windows was used to analyze the data. Cronbach's alpha was used to test the reliability of the questionnaire. Additionally, interviews had been conducted with Chief Executives, Human Resource Managers and employees to collect relevant qualitative information that were unobtainable in the survey questionnaire. The results revealed that there was relationship between employee retention and demographic characteristics like age, marital status, experience, post and job status but there was no relationships between employee retention and demographic characteristics like gender, mother language/tongue and education. Similarly, there was a positive relationship between employee retention and all seven retention factors such as employee benefits, recruitment and selection, job assignment and opportunities, performance appraisals, training and development, work environment and leadership support. The study also revealed that, all these retention factors could predict employee retention except recruitment and selection and the employees of banking industry of Nepal were satisfied with the existing retention efforts. This research contributes empirical evidence about the employee retention practices for key employees in the banking industry of Nepal. Thus, the results of this study will be beneficial to managers and policy makers.