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Major Factors Of Employee Retention

Decent Essays
1.3 Statement of the Problem
Employee retention refers to policies and practices organizations used to prevent valuable employees from leaving their jobs (Ahlrichs, 2000).Knowing employee perception and appraising their retention factors are very important to an organization‘s achievement. Conversely, each employee in an organization constructs his or her own understanding of an event and assumptions (Argyris and Schon, 1978). It is the understanding of the situation that provokes an action (Weick, 1979; 1995).
Retention of employees is becoming a real challenge in today’s operating environment as employers begin to realize the value of people that make up the bank. According to results of a recent nation-wide employee survey (Kenexa, 2011).the
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• To identify the major factors that influence employee retention
1.6 Definition of Terms
For clarity and understanding throughout this thesis the following terms were defined.
Bank: - is an establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers.
Compensation:-Refers to all the extrinsic rewards employees receive in exchange for their work.
Employee Retention: -refers to policies and practices companies use to prevent valuable employees from leaving their jobs. It involves taking measures to encourage employees ‘to remain in the organization for the maximum period of time.
Employee Turnover:-This term is used to describe the ending of a relationship between an organization and a person who received monetary compensation from the organization.
Employee:-refers to a person working in Development bank of Ethiopia rendering professional
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