ST MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

ÀSSESMENT OF EMPLOYEE RETENTION PRACTICES IN DEVELOPMENT BANK

OF ETHIOPIA

BY:

ABEBE SHAREW

JANUARY, 2018
ADDIS ABABA ETHIOPIA
 ST MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

ÀSSESMENT OF EMPLOYEE RETENTION PRACTICES IN DEVELOPMENT BANK

OF ETHIOPIA

BY:

ABEBE SHAREW

A THESIS SUBMITTED TOSCHOOL OF GRADUATE STUDIES ST.MARY’S

UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

DEGREE OF MASTER OF BUSINESS ADMINISTRATION

ADVISOR:

GOITO ABRAHAM (Ass. Professor)

JANUARY, 2018
ADDIS ABABA ETHIOPIA

i
 ST MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

FACULITY OF BUSINESS

ÀSSESMENT OF EMPLOYEE RETENTION PRACTICES IN DEVELOPMENT BANK

OF ETHIOPIA

BY

ABEBE SHAREW

APPROVED BY BOAORD OF EXAMINERS

______________________ ___________
Dean, Graduate studies Signature & date

_____________________ ____________
Advisor Signature & date

_____________________ ____________
Internal Examiner Signature &date

_____________________ _____________
External Examiner Signature &date

ii
 TABLE OF CONTENTS
TABLE OF CONTENTS................................................................................................... i
Acknowledgements ....................................................................................................... iii
List of Acronyms/Abbreviations ..................................................................................... iv
List of Tables ................................................................................................................... v
Abstract ......................................................................................................................... vi
CHAPTER ONE: INTRODUCTION ............................................................................... 1
1.1. Background of the Study....................................................................................1
1.2. Statement of the Problem ...................................................................................4
1.3. Basic Research Questions ..................................................................................5
1.4. Objectives theStudy ...........................................................................................5
1.5. Definitions of Terms ..........................................................................................5
1.6. Significance of the Study ...................................................................................6
1.7. Delimitations of the Study .................................................................................7
1.8. Organization of the Research Report .................................................................7
CHAPTER TWO: REVIEW OF RELATED LITRATURE ............................................ 8
2.1. The Concept ofEmployee Retention ..................................................................8
2.2. Concepts of Employee Turnover .....................................................................10
2.3. Job Satisfaction to Retain Employee................................................................11
2.4. Basic Strategies/Schemesand Programs to Retain Employees ........................12
2.5 SuccessfulImplementationand Employees Perceptions on Retention..............23
2.5. Stability of Workforce......................................................................................24
2.6. Conceptual Framework ....................................................................................25
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY ........................ 26
3.1. Research Design ...............................................................................................26
3.2 Population and Sampling Techniques ..............................................................27
3.3. Source of Data and Data Collection Tools Used .............................................29
3.4. Procedures of Data Collection .........................................................................30
3.5. Data Analysis Method ......................................................................................30
3.6. Reliability and Validity of Instruments ............................................................31
3.6 Ethical Considerations .....................................................................................32
CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND
INTERPRETATION ..................................................................... 33
4.1 Introduction ......................................................................................................33
4.2 Demographic Information of Respondents ......................................................33
4.3 Analysis of Data Collected for the Study .........................................................36

i
 4.3.1 Quantitative Data Analysis ....................................................................... 36
4.3.2 Qualitative Data Analysis ......................................................................... 50
4.3.2.2 Analysis of Data Collected Through Interview .................................... 51
CHAPTER FIVE: SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .... 54
5.1. Summary of Major Findings ............................................................................54
5.2. Conclusions ......................................................................................................56
5.4. Limitations of the Study ...................................................................................59
REFERENCES ....................................................................................................... 60
APPENDICES ......................................................................................................... a
Appendix-A: Questionnaire Distributed to Respondents (Employees) ............................ a
Appendix-B: Interview Check List. .................................................................................. g

ii
 Acknowledgements
First of all I thank the Almighty God for giving me all the strengths to boldly face all
the challenges of life during my studies.

I am particularly profoundly grateful to my advisor Assistant Professor Goitom

Abraham for his useful and constructive comments and suggestions.

I would also want to express my heartfelt thanks to Development Bank of Ethiopia for
allowing me to pursue my studies. Special thanks go to all Development Bank of
Ethiopia‟s employees who provided me with the required information for the
completion of the study.

Finally, I would like to thank all those who volunteered wholeheartedly to facilitate the
accomplishment of this study. Let God bless you and give you abundant wisdom.

iii
List of Acronyms/Abbreviations

BSC: Balanced Scorecard

DBE: Development Bank of Ethiopia

HR: Human Resource

HRMD: Human Resource Management Director

NBE: National Bank of Ethiopia

PM: Performance Management

SPSS: Statistical Package for the Social Sciences

iv
 List of Tables

Table 3.2.1 Population and Sampling Techniques 27

Table 3.6.1.1 Cronbach‟s Alpha 31

Table 4.1.1 Demographic information of respondents 34

Table 4.2.1.1 Stability of the Bank‟s workforce 36

Table 4.2.1.2.Employee‟s Retention Strategies/Schemes and Programs of the

Bank 40

Table 4.2.1.3 Successful Implementation of strategies/schemes and programs 43

Table 4.2.1.4 Perception of Employees on the Employee Retention Practices

in the Bank 46

Table 4.2.2.1 Document Analysis on Employee Retention Practice at DBE 50

v
 Abstract
The objective of the study was to assess employee retention practice in Development

Bank of Ethiopia. The study implemented a descriptive research design to evaluate the

employee retention practices and the researcher used both quantitative and qualitative

approaches to collect data through the utilization of a questionnaire and interviews.

The respondents were selected from currently employees of the Bank similarly the

sample of the study consists of 158 respondents, 143of them responded to the

questionnaire. Primary and secondary data were used to find out the research output.

To generate the output of the study results, the statistical software version 20.0 was

used. The data were processed by using descriptive statics which includes frequency

distribution, percentage, mean score and standard deviation. The findings of the study

revealed that there are no employee retention strategies and programs in place in the

Bank. The researcher concluded that, the Bank’s workforce is unstable and will incur

high recruitment, selection cost and unable to meet the objectives of the Bank. The

study recommended that the Bank should enact employee retention strategies and

programs through involving employees in creating positive employee perception by

establishing conducive work environment and by making opportunities available for

training and career development via need assessment, use of effective appraisal system,

provide fair rewarding system and competitive benefit package to the financial sector.

The Bank also should have a constant communication between top management and all

employees of the Bank to retain valuable employees and to achieve the strategic goal of

the Bank.

Key words: Development Bank of Ethiopia, program, Retention, Strategy, Employee

turnover

vi
 CHAPTER ONE: INTRODUCTION

1.1. Background of the Study

The prevailing development agenda of Ethiopia is poverty reduction. Development

Bank of Ethiopia is among the institutions which contribute to the development of the
country‟s economy by providing project finance and technical support to viable projects
that contributes for the economy in saving/generating foreign currency, improving
consumption of local raw materials, creating employment opportunity for the society,
generating tax revenue to the government and conveying new technologies & systems
to the local economy. It is well known that economic role of the Development Bank of
Ethiopia is paramount important in financing government development priority areas
which are believed as engine of growth like Manufacturing Industry, Agro-Processing,
Commercial Agriculture, and Mining & Energy. The Bank has been offering medium
and long term loans to different kinds of viable projects (www.dbe.com.et).

Since its establishment in 1909, the Bank has been playing a significant role in
promoting overall economic development of the country. According to the Commercial
Code of Ethiopia 1960, the Bank has an authorized capital Birr7.5 billion; the Bank has
now so many different borrowers, 107 branches, and 2,206 numbers of employees at
head office and branches. The audit report of the Bank states that by the fiscal year
2015/16 it earned total revenue of 366,149,724 million birr before tax and net profit of
373,520,416 million birr; its total asset has reached to Birr 49,475,946,645(Audit
Report on June, 2016).DBE is a public financial Institution supervised by a Board of
Directors composed of nine members appointed by the Government. The Bank‟s
President manages the overall activities of the Bank with the assistance of five Vice
Presidents who are in charge of different functions. The Bank is recently restructured in
the form of Directorates, Offices, Districts and Branches (www.dbe.com.et).

Currently, Development Bank of Ethiopia (DBE) is demanded its lease financing

directives, which was adopted in March 2016 in a bid to support small and medium
enterprise (SMEs and financed by DBE in the form of capital goods (Development
Bank of Ethiopia revised credit policy 2016).

1
Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs Christine Ruth Nyanjom, (2013). According to
Ahlrichs, (2000), cited by Ali Hussein Alkahtani(2015) an effective retention program
is one that embraces a variety of policies and practices to create a work environment
where employees feel comfortable. Whatever the employee retention strategy adopted,
an organization must ensure that the action align with the mission, vision, culture,
objectives, and values of the Bank. It must as well be a realistic measure to meet
employees‟ needs and expectations. In line with this, studies show that an employer can
increase employee retention and engagement through a number of practical people –
focused strategies (Aguenza, 2012).On the study of motivational factors of employee
retention and engagement in organizations; they contended that any organization should
concern its capacity to attract, engage, and retain the right employee. Extending their
retention, they indicate that certain factors are crucial in influencing the employees‟
decision to either leave or remain in the Bank.

Today we are living in a dynamic world, advancement of information technology has

brought to centre stage the importance of human resource, more than ever before Jyothi
and Venkatesh, (2006, p. 1), and retention of valuable employees is one of the most
critical issues confronting leaders Mayfield, (2008:41).Talented employees who have
competencies that are critical for the survival of an organisations are difficult to retain
because they often attach more importance to their own career path than to
organisational loyalty, which, in turn, can result in voluntary turnover De Vos &
Meganck, (2009:45-46).

Employee retention refers to policies and practices companies use to prevent valuable
employees from leaving their jobs Christine Ruth Nyanjom (2013). Porter and Steers
(1973) ,cited by (Aman Racho Fursso, 2015) suggested that the issue of met
expectations was central to the individual‟s decisions to leave an organization. Each
employee has his or her own set of expectations upon entering an organization. Should
these expectations not be met, the individual will become dissatisfied and leave.

According to Mobley (1977) cited by Asmara Argeta(2011),suggested that a negative

evaluation of the present job leads to job dissatisfaction, thoughts of quitting, and an
evaluation of job seeking expectation utility and cost of quitting.

2
The retention of such employees are shown to be significant to the development and the
accomplishment of the organization‟s goals and objectives especially in building
competitive advantage over similar organizations in the phase of increase globalization.
An employee's decision to resign from an organization is rarely due to a single event.
Most employees leave because of multiple factors-such as less employee compensation
package, the work itself, less training and career development opportunity,
inappropriate performance management, weak governance and leadership, a stressful
work environment and better advancement opportunities elsewhere. As turnover is a
symptom of a larger systemic problem such as ineffective retention management, an
organization should understand what causes professional employees to commit
themselves to being productive and loyal (Bhawana Ahuja, 2016). Fostering
commitment means an understanding that employee need to have a stake in their work,
and that employees respond when Bank pay attention to their needs and involve them.
Development Bank of Ethiopia (DBE) has been the main strategic governmental Bank
for the last hundred years, specialized in project financing. In line with this the Bank
needs very professional and qualified employees in order to carry out the duties and
responsibilities vested on it by the government to attain the maximum customer
satisfaction through efficient service delivery and achieve its vision and mission and it
needs to retain its qualified and experience staff. Therefore, to achieve quality retention
programs, the Bank needs to determine the retention factors relevant to its employees
and then focus strategies on these factors.

3
 1.2. Statement of the Problem

According to (Ahlrichs, 2000), cited by Christine Ruth Nyanjom, (2013) Employee

retention refers to policies and practices organizations used to prevent valuable
employees from leaving their jobs. 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 Christine Ruth
Nyanjom, November,(2013).According to results of a recent nation-wide employee
survey (Kenexa, 2011).the main cause of employee retention in the organizations is
Lack of Opportunities for Professional Development (30%), Inadequate Compensation
(28%), and Lack of Challenge (27%), Poor Work/Life Balance (20%), Job Stress and
Unfair Treatment (20%).

In addition to the above researcher, a number of valuable research studies also

conducted in locally such as Biruk Walelgn BOA (2013), Kirubel Arega at
DBE(2014), Ayalikbet (2013)and Bekalu (2006)analysis of the causes consequences,
and management of employee turnover in the commercial Bank of Ethiopia and
practices of promotion and strategies of staff retention in private college in Ethiopia
respectively and Egigu Mekonnen on employee retention strategies and organization
performance at Awash Tannery (2014).

As Bernadette Kenny reports in "Forbes" magazine, any rate above 85 percent annually
is considered healthy and no cause for retention alarm, similarly the Bank‟s standards of
strategic plan is 85% and above.
However, the bank‟s HRM five years annual BSC performance report indicated that on
average of 83% of employee are retained. So it is a cause of employee retention
problem.

Therefore, the researcher motivated to assess the employee retention practice in the case
of DBE.

4
 1.3. Basic Research Questions

The study seeks to answer the following basic research questions:

I. To what extent the Bank‟s workforces stable?

II. What employee‟s retention strategies/scheme and programs are currently in
place by the Bank?
III. To what extent are those strategies and programs implemented successfully?
IV. What is the overall perception of employees on the employee retention
practices of the Bank?

1.4. Objectives theStudy

1.4.1. General Objective

The general objective of the study was to assess employee retention practice in DBE.

1.4.2. Specific objective of the study

 To determine the stability of the bank‟s workforce.

 To assess the practice of employee‟s retention strategies and programs
 To find out the implementation of employee retention strategies
 To determine employee perception on the employee retention strategy and
program
 To identify the major factors of employee retention in bank practices

1.5. Definitions of Terms

To simplify and recognize throughout the study the following terms were used 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 (Egigu Mekonnen, 2014).

Compensation:-Refers to all the extrinsic rewards employees receive in exchange for

their work (www.kau.edu.sa)

Employee Retention: -refers to policies and practices companies use to prevent valuable
employees from leaving their jobs.

Employee Turnover:-The terminations of relationship between an organization and

hired employees who receive monetary and other compensations from the organization.

5
Employee:-refers to a person working in Development Bank of Ethiopia rendering
professional service

Job satisfaction:-is an employee‟s general attitude toward the job.

Professional employees:-refers to employees who possess diploma and above in the

area of business and Banking and holding at least clerical position.

Retention: -The condition of retaining (keeping) something.

Human Resource Practices- Organizational practices implemented to motivate,

discipline, hire, and train employees (Robbins & Judge, 2007).

1.6. Significance of the Study

Professional employee retention is a universal problem and can challenge any
organization in any part of the world. It depends not only on the internal dynamics of
the Development Bank of Ethiopia but also on external environment and job market
factors. The study will be useful for Bank striving to increase job satisfaction and
institutions which are concern with keeping their staff. Government and private
organizations will benefit from the study alike. The study will also serve as useful
resource for researchers in the area of employee retention.

The study of this research will help management of the Banks, particularly human
resources practitioners to have a clear understanding on the causes of employee
retention in the Banks and this will help them to design the appropriate strategies to
maximize employee retention mechanisms. According to Chiboiwa, (2010), cited by
Christine Ruth Nyanjom, (2013) the main purpose of retention is to prevent the loss of
competent employees from leaving the Bank as this could have adverse effect on
productivity and profitability.

For the practical contributions, this study is expected to provide new solutions and
evidence on the usefulness of segmentation techniques for human resource management
at Development Bank of Ethiopia.

6
 1.7. Delimitations of the Study
The scope of this study is delimited due to time and budget constraint in the
geographical location of Development Bank of Ethiopia at head office and the sample is
restricted in different head office departments were selected from Addis Ababa as of
December 31, 2016.The respondents were choosing from the sample Bank at head
office, which were working present and to make precise research. This research is also
delimited to the data collection tools use. There are data collection tools such as
questionnaire, interview, observation and experiment. But, the researcher used only
questionnaire and interview types of data collection tools for this thesis and also the
gathered data were only analyzed by means of descriptive statistics that included
frequencies, percentages, means, and standard deviations.

1.8. Organization of the Research Report

The research report was organised into five chapters. Chapter one contains background
of the study, back ground of the company, statement of the problem, research questions,
objectives of the study, definition of terms, significance of the study, scope of the study
and Chapter two contains a gap in the literature relate to employee retention practice in
Development Bank of Ethiopia. Chapter three stated description of research design,
population and sampling techniques, type of data and tools or instruments of data
collection employed, procedures of data collection, methods of data analysis used, data
reliability, validity and ethical considerations of the study. The fourth chapter includes
findings of the study, interpretations and analysis of findings. The last fifth chapter
consists of summary findings, conclusions, recommendations, and limitations of the
study.

7
 CHAPTER TWO: REVIEW OF RELATED LITRATURE
This provides an outline of literature review on employee retention, the relevant
retention theory, employee retention strategies/schemes and programs, stability of work
force and factors influencing employee retention. The specific areas covered here are
employee retention and factors influencing employee retention. The chapter is basically
concerned with discussing literature by other scholars on the factors influencing
employee retention.

2.1. The Concept of Employee Retention

According to (Ahlrichs, 2000), cited by Ali Hussein Alkahtani, (2015), employee

retention refers to policies and practices companies use to prevent valuable employees
from leaving their jobs. Hiring knowledgeable people for the job is essential for an
employer but retention is even more important than hiring and this true as many
employers have underestimated costs associated with turnover of key staffs Turnover
costs can be incur through issues such as reference checks, security clearance,
temporary worker costs, relocation costs, formal training costs and induction expenses
(Kotzé and Roodt, 2005). Other invisible and hidden costs such as missed deadlines,
loss of organizational knowledge; low morale and client‟s negative perception of
company image may also take place. Organizations should develop human resource
policies and strategies, including selection and recruitment, training and development
and performance management that reflect their beliefs and principles as well as
maintaining acceptable relationships between management and employees. However,
some human resource departments merely devise policies that deal with current
problems or requirements (Oakland & Oakland, 2001). Retaining good employees is
critical to a firm‟s long term success. One of the major drivers for investing in a
retention program is the financial impact of recruiting and training valued employees
(Abraham, 2007). Job dissatisfaction can be a cause for labour turnover. Labour
turnover levels can be very high in organizations with poor working conditions,
undesirable jobs, pay inequities and limited opportunities for advancement (Nzuve,
1997). According to (Glen, 2007), Cited by (Christine Ruth Nyanjom, 2013) good
managers‟ help people stay engaged; bad ones push them towards disengagement.

8
As stated by Christine Ruth Nyanjom, (2013) main purpose of retention is to prevent
the loss of competent employees from the organisation, which could have an adverse
effect on productivity and service delivery. This is achieved by providing these
managers with information on retention and retention strategies that will ensure that the
goals and objectives of the Bank are realised.

Creating a retention strategy means placing the employees‟ needs and expectations at
the centre of the organisation‟s long-term agenda in order to ensure the professional
satisfaction of the employee and create a trusted relationship. In this stable relationship,
the employee remains in the organisation by personal choice based on free will and
considered decision. Retention of employees is crucial to the overall success of any
organisation. Talented and high performing employees should be encouraged to remain
in the organisation by designing retention policies that will provide individual
employees with opportunities to demonstrate their skills and ensure that they are
matched with the right jobs. Such retention policies should, in the view of Nyoka (2006:
2) also include strategies that will enable employees to balance their work life demand
with their family life by establishing family friendly policies and enabling flexible work
arrangements to accommodate essential personal commitments. With such effective
retention policies in place, managers are able to keep the employee turnover at a
manageable rate. Phillips and Connell (2003) stated that employee retention involves
being sensitive to employees‟ needs and demonstrating the various strategies in meeting
those needs. These strategies, according to Czakan (2005: 8) include career growth and
development, competitive compensation benefits, opportunities for training and
supportive management. Apart from the strategies mentioned above, employers should
use a flexible approach to encourage retention and this approach should consider a
number of value-adding components. Such components, Brown (2006: 2) contends
include mentoring/coaching, opportunities for skill and career development, as well as
flexibility around the frequency and size of performance rewards and incentives. The
whole process of retention is to ensure that employees are retained in the organisation,
especially employees with valued or needed skills or experience in a scarce/critical field
(where recruitment is difficult) competitive advantage. Turnover is a costly expense and
a huge concern to employers and must be avoided. Organizations to continue working
with their current employees than to encourage labour turnover by hiring new
employees. This is may be similar with the Amharic proverb the devil you know is
better than the angel you do not know.
9
It is generally accepted that the quality of an organization human resources represents
critical factor for business success. One human resource challenge is how to attract,
retain, motivate and develop individual talent and if that is not a challenge, consider the
impact of a confused business environment presents, the difficulty of managing a
diverse and ever changing legal climate and government regulation. business grows, it
often increasingly necessary to attract and retain good employee (Carrell,
1995).Employee retention encompasses talent management which is the use of an
integrated set of activities to ensure that the organization attracts, retains, motivates and
develops the talented people it needs now and in the future. It is assumed that talent
management is only concerned with key people – highfliers. Smolensk, 2005 stated that
it is aimed at improving, the ability, availability and flexible utilization of exceptionally
capable (high potential) employees who can have a disproportionate impact on business
performance (Armstrong, 2006). According to (Deane, 2004), cited by (Christine Ruth
Nyanjom, 2013), Retention rate measures what is wanted rather than what is
undesirable Effort to Retain Employees. To be effectively retaining workers, employers
must know what factors motivate their employees to stay in the organization and what
factors cause them to leave. So, reducing employee turnover is a primary goal for
almost every human resource professional (Catherine, 2002).According to
Irshad,(2009),retention of employees is one of the most important on-going practices of
human resource management, efforts to increase employee retention start with
improving the recruitment and training process, but continue on to providing
challenging, interesting work, a cooperative work environment, and comparable
compensation programs Therefore, it is always important to keep professional
employees in any organization in order to improve the kind of service that is provided
to the relevant customers (Nadeem et al. 2011).

2.2. Concepts of Employee Turnover

According to Rion (2009:8) and Beam (2009) had defined employee turnover as a ratio
comparison of the number of employees an organization must replace in a given time
period to the average number of total employees. According to Robbins (2003)
definitions turnover is the voluntary and involuntary permanent withdrawal from an
organization, and a high turnover rate results in increased recruiting, selection, and
training costs. However, this study will focus on voluntary turnover.

10
Type of Turnover

The two general types of turnover which different researchers classified are voluntary
and involuntary (Morrell, Loan-Clarke & Wilkinson, 2001).

Voluntary turnover –It is an occurs when employee chooses to leave his/her

organization for whatever reason at their own will (Dess & Shaw, 2001: 446).

Involuntary turnover-It is also arises when an employer decides to terminate the

employment contract by layoffs and similar actions where the decision for an employee
to leave is made by the company and not the employee. Allen (2000) states that
involuntary turnover generally occurs for reasons which are independent of the
concerned employee such as when organizations incur losses or unavoidable expenses,
and perceive the need to cut costs, re-structure or downsize.

2.3. Job Satisfaction to Retain Employee

According to Steyn & Van Wyk (1999), defined as the degree to which individuals feel
positively and negatively about their jobs. Job satisfaction occurs when a job meets the
expectations, values and standards of an individual and will influence their commitment
and performance Gordon, (1999). According to Bateman and Snell (1999), and
mentioned by Abuduaini Wubuli, (2009), staff will be satisfied if they are justifiably
treated by the outcomes they receive or the processes that are implemented. However,
they also warn that a satisfied worker may not necessarily be a productive worker.

McShane and Von Glinow (2005) also claims that, job satisfaction is a multi-faceted
concept, that‟s made up of past and present oriented pleasurable feeling that results
when one evaluates his or her work role. According to Robbins (2001:447-449),
Hackman and Greg Oldham developed the Job Characteristics Model (JCM). Their
research was based on work redesign, which is defined as altering jobs to increase both
the quality of employees‟ work experience and their productivity. As stated by Gordon
(1999:439), goals are set jointly with management and workers, and workers are liable
for attaining these goals.

11
 2.4. Basic Strategies/Schemes and Programs to Retain Employees

To retain employees in the organization requires having strategies and program.

Employee Retention Strategies/Schemes

All employees are an investment. Some bring a good return while others are less
worthwhile. Either way, their departure means that the opportunity to obtain any return
in future is forfeited (Hakett, 1996). The first few weeks in a new environment are
generally very difficult and it is during the first three or four months of employment
that the highest proportion of resignation occurs. Therefore, the first few months of
employment can be the most critical in determining whether a new recruit will stay with
the organisation. The reception he or she is given on their first day and the help and
guidance they receive while settling in may be very important.

Managers need to have a clear understanding of the needs, abilities, goals and
preferences of the workforce (Pendulwa, 2011). According to, Rehman, (2012)
&Achoui and Mansour,(2007)to improve retention by taking in to consideration of the
many factors such as better recruitment effort, review job content, compensation
practices, leadership and supervision, career planning and development, alternative
work schedule, working conditions, non-work factors, team building, centralization,
organization communication and commitment, counselling leavers, flexible working
hours, compressed work week, employee involvement, proper exit interview policies
for turnover, and recognitions In addition to the above, given the growing needs for
organizations to retain best employees they face a competition. Samuel and Chipunza
(2009) in their findings suggest that, certain variables are crucial in influencing
employees‟ decision to either leave or remain in an organization. Such variables include
training and development, recognition/reward for good performance, a competitive
salary package and job security. Nonetheless, the importance of other variables should
not be under estimated when formulating a retention policy. It is only a comprehensive
blend of intrinsic and extrinsic motivational variables that can enhance retention and
reduce the high rate of employee turnover in various organizations (Nadeem et al.
2011). So, for those organizations who are struggling of retaining employees they must
understand the requirements of the employees and the factors discussed below. This
could help in retaining the best professional employees for the long run success.

12
According to Kim et al. (2005), empirical evidence suggests that the establishment of
well-defined organizational goals and objectives influence employee retention and
study on corporate orientation found that organizational direction and support had a
significant impact on employee job satisfaction and overall commitment. Results of
empirical studies of lodging properties in Central Florida confirmed that hourly
employees' retention was predicted by self-fulfilment and working conditions, even
over monetary rewards (Milman& Ricci, 2004). Other studies posit that retention
practices such as job enrichment, workspace characteristics and socialization can reduce
turnover and its effects (Boles et al., 1995).

Numerous like Becker and Huselid, 1999; Huselid, 1995; Milman and Ricci, 2004
studies examine the impact of hiring and promotion practices on retention; made a case
that firms wishing to succeed in today's global environment must make adequate HR
investments and build employees who possess better skills and capabilities than their
competitors. As mentioned by Huselid (1995) and Becker and Huselid (1999), selective
hiring procedures are necessary to ensure effective retention of the most qualified
employees while lowering employee turnover in the long term. One tool that can assist
with ensuring proper screening of candidates is pre-employment tests. Cho et al. (2006)
theorize that the practice of reemployment testing and the result of candidates passing
such skill-based tests can heighten new hires' sense of organizational commitment.
However, their research also found that once employees are on-board and seek upward
mobility, promotions can actually increase turnover rates of non-managerial employees
if not practiced appropriately. For example, in instances in which inadequate employee
training and development exist, employees can become frustrated and stressed by
assuming greater responsibility for which they are ill-equip. The research study by
Dienhart , (1992), found that there were positive relationships between customer
centeredness and the employees' constructive views of job involvement, job security
and satisfaction. If employees feel the company takes good care of them, they are, in
return, likely to take time to provide a better service to meet and/or exceed customers'
expectations. This will likely lead to higher satisfaction among those customers and to
better employee performance, thereby making them less likely to leave (Arnett et
al.,2002), positively impacting employee retention.

A study by Kim et al. (2005) also revealed that employers with strong customer-
centeredness and employee focus have a positive impact on employees' job satisfaction

13
and overall organizational commitment, thus significantly reducing employee turnover.
Several studies show that training activities are correlated with retention (Walsh and
Taylor, 2007; Becker and Huselid (1999), argue that the economic returns of extensive
training are more likely to be captured by the firm if employees are motivated to stay
and contribute to the firm's success fostered in part by selective hiring, competitive pay
packages and team-orientated work environments. Youndt et al. (1996) theorize that
human resource practices designed to develop talented and team-oriented workers
improve employee productivity and customer satisfaction. According to Shaw et al.
(1998), organizations with substantial training opportunities should experience lower
turnover rates. But, an interesting finding by these researchers included a positive
relationship between training and the discharge rate. They theorize that companies that
provide more training are concerned about employee skills and performance and thus
experience a high percentage of employee terminations. Conversely, companies that
experience a high discharge rate initiate training programs because of lower workforce
skill levels (Shaw et al., 1998). In a recent study of young professionals, respondents
rated formal and professional job training lower on their challenging work scale,
indicating that the type of learning that respondents sought occurs through actual work
experience (Walsh & Taylor, 2007).According to (Huselid,1995),prior empirical work
has consistently found that use of effective human resource management initiatives
enhances employee retention. Specifically, selective recruitment and training
procedures, working environment, labour-management participation programs and
performance Management, promotion and incentive compensation systems that
recognize and reward employee merit have all been linked with valued firm-level
outcomes (Huselid,1995).

Retention factors are utilized as an important topic for managers, organizations and
organizational researchers (Abbasi and Hollman, 2000). Consequently, retention of
talented employees can be a source of advantage for an organisation. However, there
are challenges in attempting to retain these employees. Compensation, job
characteristics, training and career development opportunities, leadership, the work
environment and Performance management were identified as the top six retention
factors. Companies try to keep valuable employees with their cutting edge knowledge
and skills, but the demand for high technology employees with skills have qualified
(Murphy, 2000).

14
Employees who succeed in changing dissatisfying work situations will lower their
dissatisfaction and with intent to leave changed to intent to remain, the likelihood
increases that these employees will ultimately remain with their organization (Steers
&Mowday, 1981). It is the primary responsibility of the management to identify
talented and high performing individuals in the first place and they should be
recognized on merit in every aspect including monetary rewards (Sigler, 1999). Many
of the condition that causes people to leave are unable to attract new applicant
(Susan&Schuler, 2000). Employee turnover can be extremely costly to an organization
as the company loses incur for every professional or managerial employee who leaves
(Torrington et al, 2008). Specific employee retention strategies are reviewed below.

Employee Retention Programs

As stated by (Montgomery, 2006) cited by International Journal of Economics and

Financial Issues Vol 5 Special Issue 2015,Training and development programs can
increase retention when they meet the needs of the employees and meeting employee
needs through training programs occur when the information provided is perceived as
useful, applicable and desirable by them. He further suggests that the keys to employee
retention are skills development, competence of management, and rewards both
psychological and financial. A successful retention strategy must include training
(Roberts and Outley, 2002). Training helps to create an urge among the employee to
stay in the organization for a longer period. Professional training and career
development programs should be an essential part of the organization policies. The
organizations should encourage employees to participate in training programs.
According to Baer, Flexer, Luft and Simmons (2008) an individual‟s career
development is a lifetime process that encompasses the growth and change process of
childhood, the formal career education at school, and the maturational processes that
continue throughout a person‟s working adulthood and into retirement. Executive
coaching is a one-on-one relationship in which a (typically external) coach works with
an executive-level employee in order to facilitate behavioural change by in-creasing
self-awareness (Joo, 2005).According to Jeromey Boettcher (2009) onboard is a process
of spending time with an employee to help them understand the inter-working of the
company, and allow them to get a sense of belonging.

15
 Major Factors that Affecting Employee Retention under the Bank
Strategies and programs
2.4.1. The Work Itself

The factors involved are interesting and challenging work, responsibility (feeling that
the work is important and having control over one‟s own resources), autonomy
(freedom to act), scope to use and develop skills and abilities, the availability of the
resources required to carry out the work, and opportunities for advancement.

The most significant influence over employee retention appears from the nature of the
work given to them. Sharma and Bhaskar (1991). Whether a person enjoys performing
the work itself has a major effect on overall employee retention. People who view their
jobs as boring, dull, or unchallenging tend to have low levels of job satisfaction
(Lussier, 1990). Supporting this Lock, as cited by Muchinsky (1990), generalized the
following: Tiresome work is dissatisfying, personally interesting work is satisfying, and
mentally challenging work that the individual can successfully accomplish is satisfying.
Three of the most important aspects of the work itself, as considered by Feldman
&Arnold (1983) as sources of job satisfaction were: workers who were permitted to
decide how that job should be done found to be more satisfied than who were not given
such chances. Workers who had chances to use valued skills and abilities were found to
be more satisfied than others who didn‟t have such chances. And an employee who
works on a whole piece of work or if his personal contribution to the whole is clear and
visible, was found to be more satisfied.

Other studies emphasized that besides the work situation, personality of the individual
contributes for employee retention. For example, Miner (1992) pointed out that some
people continue to seek out situations where they will be satisfied, while others are
drawn toward situations where they will not. Despite this difference, forces internal to
the individual and external forces do operate to determine job satisfaction. Moreover,
Spector (1996) stated that job satisfaction is partly caused by underlying personality of
the individual. Some people are predisposed to like their jobs, whereas others are
predisposed not to like their jobs.

16
 2.4.2. The Work Environment

According to Luthans (2006) employees are highly motivated with good working
conditions as they provide a feeling of safety, comfort and motivation. On contrary,
poor working condition brings out a fear of bad health in employees. The more
comfortable the working environment is more productive will be the employees. These
include work processes, equipment and facilities, and the physical conditions in which
people work. A supportive environment will be one in which proper attention is paid to
achieving a satisfactory work–life balance, emotional demands are not excessive,
attention is paid to providing healthy and safe working conditions, job security is a
major consideration and personal growth needs are taken into consideration. An
inspirational environment will be where what John Purcell and his colleagues (2001)
refer to as „the big idea‟ is present – the organization has a clear vision and a set of
integrated values that are „embedded, collective, measured and managed‟.

The environment is affected by the organization‟s climate, which, as defined by French

et al (1985), is „the relatively persistent set of perceptions held by Bank members
concerning the characteristics and quality of organizational culture‟. It is also directly
influenced by its work and HR practices. As Purcell (2001) points out, the way HR
practices are experienced by employees is affected by organizational values and
operational strategies, such as staffing policies or hours of work, as well as the way they
are implemented. He also emphasizes that work climate (how people get on in the
organization) and the experience of actually doing the job (pace, demand and stress) all
influence the way employees experience the work environment. This has an important
effect on how they react to HR and reward practices and how these influence
organizational outcomes. Employees react in a number of different ways to practices in
their organization, and this affects the extent to which they want to learn more and are
committed and satisfied with their jobs. This, in turn, influences engagement – how
well they do their jobs and whether they are prepared to contribute discretionary effort.

17
 2.4.3. Opportunity For Training And Career Development

According to Latham (1988), Employee training is defined as the systematic acquisition

and development of the knowledge, skills and attitudes required by employees to
adequately perform an assigned job or task to boost performance in the job
environment. If the training is relevant and if it is efficiently and effectively designed
and delivered, it should impart new knowledge and skills as well as meet the
employees‟ and organizational needs. When the results of training is reflected by
improvements in relevant knowledge and the acquisition of relevant skills, employee
job performance should also improve provided that the skills learned in training transfer
to the job (Salas, 1999).

Improvement in performance such as productivity, quality and services are the training
outcomes provided that the job is strategically aligned to the organization‟s needs. For
an individual employee, if their desired needs are fulfilled through the training
programs provide, there is no doubt that the desired outcome by the organization,
retention on employees, will be reached. Huselid (1995) suggested that perceptions of
HR practices such as providing training and job security by the company are important
determinants of employee retention. Moreover, some studies also state that HR
practices such as benefits and training are positively related to retention because the
practices motivate employees and lock them to their jobs which is so called employee
retention. According to Landsman (2004), he suggested that training is a valuable
activity for enhancing skills and improving staff performance and that training can
address some of the factors contributing to staff retention, such as perceived support
from the supervisor, the agency and community. Training can define roles more clearly
to employees thereby minimizing job stress. Organizations with sufficient training
opportunities should thus have a higher retention rate. Training alone, however, cannot
address all of the factors contributing to staff retention such as excessive caseloads and
promotional opportunities within the organization. It is therefore reasonable to say that
training can play a role in improving retention but it may not be sufficient to improve
retention if other systematic barriers are not addressed. The level of promotion has a
stronger impact on job satisfaction as compared to recognition and achievement. The
promotion to the next level will result in positive changes such as pay, autonomy and
supervision, Arnold and Feldman (1996).

18
However, Hoy and Miskel (1991), warns that those top achievers promoted too quickly
can result in dissatisfaction amongst loyal, intelligent but less creative senior workers.
The human resources department, at most times, is constantly asked the question does
the job position entails opportunity for advancement (promotion).

Locke (1976) advocates that the wish to be promoted stems from the desire for
psychological growth, the desire for justice and the desire for social stays. Management
should therefore bear in mind, that promotion can serve as a very positive motivating
tool in ensuring that the employee attains goals at a higher level. Martensen and
Gronholdt (2001) also found that the development of individual competencies through
various training programs has a positive impact on employee satisfaction. When
employees attended to training programs, they achieve self-confidence of making their
jobs, they observe career development opportunities and they think that their companies
make investment in them. As result of this positive situation, employee satisfaction
increases Jun.M. (2006).

2.4.4. Leadership

The degree to which jobs encourage engagement and positive discretionary behaviour
very much depends upon the ways in which job holders are led and managed. Managers
and team leaders often have considerable discretion on how jobs are designed, how they
allocate work and how much they delegate and provide autonomy. They can spell out
the significance of the work people do. They can give them the opportunity to achieve
and develop, and provide feedback that recognizes their contribution. Although there is
no ultimate definition of leadership exists Yukl, (2002), the majority of definitions of
leadership reflect some basic elements include, group, influence, and goal Bryman,
(1992). Leadership is associated with management, although the emphasis in leadership
is on development, strategy, vision and adapting the organization to a changing
environment.

Management is about planning, organizing and controlling, both human and non-
human, to achieve the goals and objectives Riggs, (1997). As leadership focuses on the
social exchange relationship between leaders and employees, possible outcomes such as
subordinate satisfaction, supervisor satisfaction, performance, commitment, role
conflict, role clarity and turnover intentions et. al.2011); Yukl, 2002) can be observed.
Staff-related tasks like delegating, informing and communicating also correlate
positively with employee retention.
19
Howell and Avolio (1993), suggest that an awareness of the role of leaders and the
effect of leadership style provides a partial explanation for developing organizational
effectiveness.

This is consistent with the findings of leadership theorists who suggest that the presence
of certain leadership styles may significantly influence employee motivation and
ultimately company performance.

2.4.5. Employee Compensation

Compensation is something, typically money, rewarded to someone as compensation

for injury, loss or suffering or money received by an employee from an employer as a
salary or wage. Compensation is not only in the form of money (Reville, Boden &
Biddle, 2003). It can also be in non-cash form. Benefits, such as pension, life and health
insurance, retirement plans and allowances that include company cars or subsidized
transportation, all represent a significant pay element in many large firms. In addition,
for organizations where tax advantages and economies of scale of purchasing that make
it economically advantageous for the firm to provide these elements, the compensation
and benefits are always viewed as tools for attracting and retaining desired employees
(Hauser & Baggett, 2002).

As mentioned by McNamara (2008), compensation includes issues regarding wage and/

or salary programs and structures accruing from job descriptions, merit-based programs,
bonus-based programs, commission based programs and so on, while benefits typically
refers to retirement plans, health life insurance, disability insurance, vacation, and so
on. In addition as Werner (2001) and Martineau T and colleagues (2006) indicated
compensation and benefits packages entail some basic features that tend to make
employees satisfy on their job. The importance of how payment determines job
satisfaction varies among different studies. For example, Lawer&Porter, as cited in
Feldman & Arnold (1983), indicated that amount of payment in the form of wages and
salaries were found to be very positively related to job satisfaction. Moreover, Dyer
&Theriault (1976) revealed that keeping other things equal, level of payment correlate
well with payment and job satisfaction. Organ & Bateman (1991) suggested that the
most satisfied groups typically earn higher salaries than do other occupational groups.
But, they noted that money is not the only source, or even the most important source of
job satisfaction. Extending their explanation, they pointed out that insufficient pay or
the perception of inequitable pay is a more decisive determinant of job dissatisfaction
20
than sufficient or fair pay to determine job satisfaction. Moreover, Deci &Rayonas cited
in Devoretzky (1994) stated that increasing a person‟s salary and reward doesn‟t always
increase job satisfaction.

In addition, researchers have agreed that rewards offered by organizations may have a
powerful impact on employees‟ attitudes towards their jobs and the company for which
they work (Lincoln &Kallerberg 1990). Moreover, Cole (2002) infers compensation as
strategic to the organization‟s goals and thus should be able to ensure employee
satisfaction. Even though research findings vary how strong the relationship between
payment and job satisfaction is, they support the idea that payment is one key
determinant of job satisfaction. First, money is a means of satisfying several important
needs of individuals such as food, shelter, clothing, and to pursue value - leisure
interests outside of work. Secondly, pay serves as a symbol of achievement and as a
source of recognition. Employees often see pay as a reflection of management's concern
for them (Feldman & Arnold, 1983). Supporting this idea, Lussier (1990), Organ &
Bateman (1991), and Spector (1996) indicated that money has a rich and complex
symbolic meaning to most people.

Research has shown those employees‟ positions and length of employment traditionally
determine wages in most companies. A number of studies have shown evidence that
compensation satisfaction plays an important part in employee retention.
DiPietroandCondly (2007) used the Commitment and Necessary Effort (CANE) model
of motivation to find out how hospitality employees are motivated. They discovered
that non-financial compensation or the quality of the work environment played an
important part on employee turnover intentions. Companies are in danger of creating an
unsatisfactory working environment if there is no any compensation planning. There are
also numbers of researchers who demonstrate that there is a great deal of inter-
individual difference in understanding the significance of financial rewards for
employee retention (Woodruffe, 1999).

2.4.6. Performance Management

Performance Management is a process of inspecting and evaluating an individual‟s

performance in his or her duty to facilitate the decision of career development of the
individual. It evaluates the individual‟s overall contribution to the organization through
assessment of his or her internal characteristics, working performance and his or her
capability to pursue higher positions in organization (Gruman& Saks, 2011). In order to
21
enhance organizations‟ ability to survive through turbulent environment, most top
corporations take great care in managing the performance measures of their employees.
It is common understanding that top talents are keys to business success today, but how
accompany manages its talents or human resources would be fundamental to the
success where the effective structure of performance measurement would ensure that a
company fully utilizes its competitive resources to a maximum. As extracted from the
literature review, performance Management plays the role as a medium of
communication between management and employee. An effective appraisal would
result in enhanced employee development from feedback as well as better employee
satisfaction comprehension by company.

However, if appraisal is simply applied as a tool of measurement and monitoring,

problems would arise where tension would overwhelm both the evaluator and
respondent. Webster,

Beehr and Love (2011) studied how work stressors cause role ambiguity and conflict
and subsequently increased job dissatisfaction and turnover. It is mentioned in the
literature review that appraisal can be stressful to both evaluator and respondent if both
parties do not take its importance seriously or a confusing message is produced from the
appraisal. Similar to a negotiation, stress can affect an employee‟s job performance
where he or she might be too concerned with the effect of the appraisal to career
development or compensation (O‟Connor, Arnold & Maurizio, 2010).

22
2.5 Successful Implementation and Employees Perceptions on
Retention
These HR practices can help the employee in deciding the intentions of an employee
whether to stay in the organization or not (Chew and Chan, 2008).As stated by
Armstrong, (2006) cited by Mariam Kathini Maliku (2012), employee retention refers
to how an organization keeps their employees from leaving the organization thus
coming up with retention strategies to ensure that employees remain in the company
and HR practices can be especially powerful in enabling an organisation to achieve its
retention goals. As stated by International Journal of Economics and Financial Issues
Vol 5 Special Issue 2015, the organizations should encourage employees to participate
in training programs. Retention of good employees in an organization is one of the
biggest challenges, which the companies‟ now-a-days are facing. Management, top-
level executives and HR departments of the companies are splitting their sweat and
blood, spending their time, effort, and money to stop turnover and to retain key
employees. There are innumerable reasons regarding voluntarily good-bye of the people
from their organizations in which they work. Recruitment and Selection are the
activities that are at the origin of human resource management. In other words,
recruitment and selection are the main activities of human resource management.
Recruitment is the process of looking for suitable candidates willing to offer services to
an organisation. Organisations usually invite a good number of aspiring employees
judged as qualified from which the best candidates are then selected to fulfil the job
requirements. Selection has to do with the collection of details concerning the
background of the candidate to evaluate and choose suitable candidate to be employed
for the job (Nde, Martin Nche, 2012.P)

According to (VanMaanen&Schein, 1979, p.209-264), cited by Jeromey Boettcher

(2009), Socialization is broadly defined as "a process in which an individual acquires
the attitudes, behaviours and knowledge needed to successfully participate as an
organizational member" Similarly according to (Bassi & Van Buren, 1998) cited by
(Sean Albert McSherry Foley Fall, 2010), socialization training can take numerous
forms, including orientation training, job skill training, or legal liability training.
However, the most common form of socialization training employed by organizations is
orientation training orientation training is a form of socialization training intended to
introduce new employees to their jobs, organizations, and the people with whom they
will work (Klein & Weaver, 2000).
23
 2.5. Stability of Workforce
According to the five consecutive fiscal years of DBE‟s HRMD employee retention
trend report the number of employee retention in the Bank in 2011/2012 is 84%,
2012/2013 is 83%, 2013/2014is 84%, 2014/2015 is 82%and 2015/2016 is 83%. As
observe from DBE five years HRMD employee records, DBE face professional
employee‟s retention problem or unstable workforce. Besides, the data shows that the
average number of employees retains the Bank under review periods is 83% employees
per annum Retention rate measures what is wanted rather than what is undesirable
(Deane, 2004).Similarly, the researcher conducted interview question about the reasons
employees leaving the Bank, the Bank‟s director replay as employees are left the Bank
due to various reasons but majority of them are left the Bank due to salary and benefits
since new Banks offers higher salary and benefits which is beyond the scale of DBE.

In the strategic planning of the Bank the tolerable retention rate is 85% and above.
However, the data reflects that the professional employee‟s retention rate is less than
the tolerable retention rate set by the Bank. This shows that the Bank faces professional
employees‟ retention problem. Stability of work force is a degree to which workers
remain employed with an organization and it has a number of advantages for the Bank's
health, for workers, for customers, for suppliers, for investors, for the industry, and for
the economy at large.

24
 2.6. Conceptual Framework
The thesis conducted conceptual framework which was more emphasis between
independent variables and dependent variable. A conceptual framework is not merely a
collection of concepts but, rather, a construct in which each concept plays an integral
role. According to Miles and Huberman (1994), a conceptual framework lays out the
key factors, constructs, or variables, and presumes relationships among them
Under the figure 2.7.1 below given emphasis to the independent variables for this study
that was stability of the Bank‟s workforce, successful implementation of
strategies/schemes and programs (the work itself, performance management, employee
compensation, leadership and training & career development) and perception of
employees on the employee retention practices and employee Retention in the Bank
which was dependent variables.

Independent variables Dependent variable

Stability of Workforce

Employee retention strategies and

programs
Employee Retention
Practices
Successful implementations of
Strategies and Programs

Employee Perception on Retention

Figure 2.7.1 Researcher’s own construction

25
 CHAPTER THREE: RESEARCH DESIGN AND
METHODOLOGY

These sections include an outline of the research methodology and comprise of the
following sub sections:

3.1. Research Design

Research design refers to the overall strategy that researcher choose to integrate the
different components of the study in a coherent and logical way. A research design is a
plan or a blueprint of how to design conducting the research (Babbie and Mouton,
2001). Since this research contains clear objectives derive from basics research
questions and specifies the source. This method was also used to measure and use some
qualitative information to know the current conditions of Development Bank of
Ethiopia with regard to employee‟s retention factors.

Descriptive research examines a situation as it was and enables us to understand the

way things were Welman and Kruger (2004). Therefore, a descriptive research survey is
employed to conduct the study and to assess employee retention practice in the
Development Bank of Ethiopia.

Both quantitative and qualitative data is utilized to conduct this study. The quantitative
approach was applied to identify the trend factors of employee retention practice in
Development Bank of Ethiopia. Some qualitative information was gathered from the
organization by using interview check lists.

26
 3.2 Population and Sampling Techniques

For this study, the population were permanent professional employees of Development
Bank of Ethiopia who were working in Addis Ababa and the target population of this
research refers to the 705 professional employees out of those 158 employees includes
in the sample frame from Head Office different departments in a city of Addis Ababa as
of December 31, 2016

Under probability sampling the researcher grouped the population into five (5) thematic
groups/Vice Presidents namely; VP Customer relationship Management, VP project
Appraisal &Portfolio Management, VP Branch Lease &Project Financing, VP Banking
& Finance and VP corporate service. There searcher used simple random sampling
techniques by using lottery method from each strata for current employees. Stratified
sampling is used to achieve representation of the respondents. The respondents were
stratified on the basis of their thematic groups (Vice presidents) the stratified sampling
was applied in order to identify the number of sample employee selected by self-
administered from each head office Vice Presidents.

Table 3.2.1 Population and Sampling Techniques

Random Sampling of the Study Target Sample Sampling

Population(kinds of respondents) Population Size Design

VP Customer Relationship Management 133 35 Strata

VP Project Appraisal & Portfolio 153 33 Strata

Management
VP Branch Lease & Project Financing 43 19 Strata
VP Banking & Finance 162 56 Strata
VP Corporate Service 204 15 Strata
Total 705 158

Source: DBE HRMD Data Base December 31, 2016

27
The stratified random sampling was used to identify the employee of each Head office
VPs 158 employees fill the questionnaires. Therefore, the sample from each thematic
group obtained by using the method of proper allocation proposed by Kothari (2007) in
which the size of the samples from each Vice Presidents kept proportional to the total
sample size of the study population. Finally random selection carried out from each site
to select representatives among the study population. Even if, a total of 158 respondents
were selected from the employee or non-management staff, at the same time the
researcher also include management staffs by the method of judgemental sampling
techniques through interview.

The researcher used Yamane‟s (1967:886) simplified formula to calculate sample sizes.
This formula was used to calculate the sample sizes

n= ( )

Where:-

n: is the sample size-------------?

N: is the population size --------705

e: is the level of precision------7%

Therefore, representative sample of population is determined at 93% degree of
confidence.

Hence at 93% degree of confidence,

n=705/ (1+705(.072))

n=705/ (1+ 3.4545)

n= 158.26 which was approximately equal to 158

According to table of sample size determination developed by Yamane‟s (1967:886), at
93 present degree of confidence, the representative sample size for 705 populations was
equal to 158. This was similar with the above-calculated result. Therefore, 158
employees were participated on survey.

Source: Yamane’s (1967:886)

28
 3.3. Source of Data and Data Collection Tools Used
For this study both primary and secondary data sources were used. Managers and
Employees of the Bank used as the primary sources of data because this gathering in a
survey were personal interviewing, telephone interviewing and self-administered
surveys data was collected by a questionnaire. The questionnaires were develop by the
researcher on the basis of literature review and distributed for current working
employees to collect quantitative data which, used to fulfil the objectives of the study.
Whereas annual reports of DBE, Bank‟s website, documents, minutes, Strategic
Planning document and unpublished materials that the personnel management kept for
administrative purposes were used as secondary source of data because it tends to be
readily available and inexpensive to obtain. Questionnaires were used as primary data
collection method and helpful instruments for observed data beyond the physical reach
and allow large area coverage; therefore, the researcher employed this instrument to
gather information and views from employees and managers.

Document review of annual reports of the DBE, previous research, minutes,

unpublished materials and strategic planning document of the Bank are also used to
collect secondary data‟s to reference the study with actual and support facts.
Quantitative data analysis involved because of computation of descriptive statistics
mostly percentage and qualitative data analysis on the other hand involved factual and
logical interpretation, comparison and explanation of study findings. The researcher
narrated the findings in words especially the data that were obtained through
documentary sources and observation.

29
 3.4. Procedures of Data Collection
The following procedures were strictly followed by the researcher to collect the data
required for the study.
Data collection tools that were questionnaires and interview check list were prepared
and develop for current employees of the Bank at head office. The questionnaires was
delivered by hand to the respondents at their duty stations during working hours, after
questionnaires stayed for one week the respondents were filled data then collected by
researchers, respondents and his friends. The researcher after collected and amended
the questionnaire he was made Correction from the total distributed questionnaires
based on the feedback obtained from the respondents of the Bank. Interview session
was also conducted with the management staff, HRM directorate and the information
obtains was compiled accordingly.
Finally, researcher used Statistical Package for the Social Sciences (SPSS) software for
processing data.
3.5. Data Analysis Method
Data analysis means the categorizing, ordering and summarizing of data to get answers
to research questions (De Vos, AS, Strydom, H, Fouche, CB &Delport, CSL, 2005).
Hence, the researcher obtained data through responses of questionnaires was organize
into MS-Excel spread sheets and compiled at first. Then the data was summarized,
edited, coded, tabulated and analysed. Descriptive research can be either quantitative or
qualitative. It involves collections of quantitative information that can be tabulated
along a continuum in numerical form. Therefore, for this study, combinations of both
qualitative and quantitative analysis were employed. The qualitative analysis used to
describe the existing scenarios regarding employee retention in the Bank in comparison
against the given theoretical framework. In addition, in this research descriptive
statistics techniques were used. Frequency count, percentage, mean and standard
deviation were employed to analyse the responses of the respondents on the assessment
of employee retention practice. Descriptive statistics data analysis method was applied
to analysed quantitative data where data was scored by calculating the number and
percentages. Qualitative data analysis method was also employed to analyse qualitative
data gathered used the interview check list and documents from the department
Furthermore, to assess employee retention practice Likert-type scale ranging from
strongly disagree =1, disagree=2, neutral=3, agree=4 and strongly agree=5 are use.

30
 3.6. Reliability and Validity of Instruments
Data qualities were explored through reliability and validity of the information
collected through the field.
3.6.1. Reliability
Reliability is the degree of consistency measurements of the same thing (Mehrens and
Lehman, 1987). The measure of how stable, dependable, trustworthy, and consistent a
test is in measuring the same thing each time is reliable (Worthen et al., 1993). The
researcher can use suitable method for reliability of research. Wolf and Pant (2007)
suggest the reliability of the measurement be obtain by- Spilt-half or dividing a
measurement into at least two equivalent parts (p. 153). Gib (2007) suggests the
procedures.
Reliability is defined as the accuracy or precision of an instrument and also the extent to
which the independent administration of the instrument will yield a similar or same
result under comparable situation De Vos, Strydom, Fouche and Delport (2011).
The reliability of the instrument was checked by using Cronbach‟s alpha. It was tested
by using SPSS. The standard value of reliability is 0.7 and results indicate the value of
0.89 which is well above of the standard value 0.7 and thus is reliable.
Table 3.6.1.1 Cronbach’s Alpha

No of Cronbach's
Employee retention practice Items Alpha
Availability of employee retention strategy & program 13 0.89
Implementations of retention strategy & program3 15 0.88
Perceptions of employee on retention practices 24 0.88
Stability of workforce 17 0.92
Total 0.89

31
 3.6.2. Validity of Instruments

Before the data collection made, researcher developed the questionnaire based on the
literature review by addressing the basic research question and tested the data collection
tools via pilot test and also properly incorporate experts and the research Advisor‟s
comments, suggestions and all required information to valid the study.
Validity indicates the soundness or extent to which an instrument measures the
construct was aiming to measure Goodwin (1995).According to Trochim, (2005) cited
by Mary Calist Irema, (2015) data validity refers to empirical measurement which
adequately reflects the real meaning of the concept under study. Churchill, (2007)
defined validity as the extent to which the instrument accurately measures what was
intended and supposed to measure.

3.6 Ethical Considerations

This study would fully consider the ethical matters of the Development Bank of
Ethiopia. The study would observe the non-negotiable value of honesty and fairness.
The researcher also enables the respondents to make a voluntary consent to participate
in the study and without disclose the name of employee to the third parties. In addition,
the researcher distributed the questioner without any discrimination and provide free of
personal opinion. Similarly, the researcher gave proper acknowledge or cited the source
that used during the study and the respondents became more open to provide better
information needed to be gathered for the study. There are also several reasons why it
was important to adhere to ethical norms in research. Such as norms promote the
research, a great deal of cooperation and coordination among many different Bank
employee‟s in different disciplines and managements, help to ensure that researcher can
be held accountable to the organization, the research also help to build Bank support for
research.

32
 CHAPTER FOUR: DATA PRESENTATION, ANALYSIS
AND INTERPRETATION
4.1 Introduction
This chapter presents analysis and interpretation of the study result. The questioners
were distributed to the 158 respondent. While 143 responses were collected (i.e 91%) of
the questioners were analyzed. This implies that the responses were put in place at
excellent and representative of the sample. According to Mugenda and Mugenda
(1999) stipulation that a response rate of 50% of the questioner is adequate for analysis
and reporting; a rate of 60% is good and a response rate of 70% and above is excellent.
For the data analysis the statistical software version 20.0 was used to input the collected
data and to find out the output information. The collected data were analyzed by means
of descriptive statistics that included frequencies, percentages, means, and standard
deviations.

4.2 Demographic Information of Respondents

The reviews of literature of demographic factor variables that have been found to have
stable relationship with retention like age, gender, education, experience , position, and
income levels. These have influenced employee retention overtime. Demographic
factors have been chosen because they have an influence on employee retention
strategies. Several studies in which demographic factors have been employed to
investigate work environment, work itself, opportunities and career development,
leadership and compensation package have shown that they are strong predictors of
retention (Furnham et al. 2009; Kavanaugh et al. 2006;and Sorensen 2008; Schroder
2008).

33
Table 4.2.1 Demographic information of respondents Vs Employee Retention
(F=Frequency, P=Percentage)
Variable F P
Gender Female 37 25.9
Male 106 74.1
Total 143 100.0
Age of the respondents <26 years 87 60.8
26 up to 35 years 54 37.8
36 up to 45 years 2 1.4
Total 143 100.0
Education level of the Technical school graduate 1 .7
respondents
BA Degree 123 86.0
MBA Degree 19 13.3
Total 143 100.0
The Position of the respondents Trainee junior officer 76 53.1
Officer 21 14.7
Sr. Officer 42 29.4
team manager 4 2.8
Total 143 100.0
The salary range of the 10759 up to 14115 35 24.5
respondents
2935 up to 10759 107 74.8
14115 up to 26110 1 .7
Total 143 100.0
The experience of the 0 up to 5 years 114 79.7
respondents
6 up to nine years 26 18.2
10 up to 20 years 2 1.4
21 up to thirty years 1 .7
Total 143 100.0
Source: Survey, 2017

Table4.2.1reveals that the breakdown of the sample respondents selected from the DBE
in terms sex composition, range of age, educational qualification, position, salary range
and length of services. A total of 143 respondents participated in this study.
34
It can be observed from table4.2.1 shows that the gender distribution of the selected
sample. The male respondents are taken a lion share of the respondents which is
(n=106), 74%. The female respondents (n=37) encompass 26% of the sample. The most
studied and the most consistent in its relationship to retention is the employee‟s age
supported by Ahuja, (2007) on the IT industry in India. They found that age had a
modest but significant effect on employee retention. There are different perceptions of
job satisfaction and motivation across the age spectrum. In their separate studies on
retention of healthcare professionals, they found younger nurses had lower levels of job
satisfaction while the older age group of 40 and above had higher levels of job
satisfaction (Griffeth. 2000; Kavanaugh. 2006; Wilson et al. 2008).

Table4.2.1 reveals that the respondents whose age is younger than 26 years old
accounted (60.8 %, n=87) and (n=54 or 37.8%) of the respondents was between the
ages of 26 and 35 years old. n= 2 or 1.4% of the respondents fell between the ages of 36
and 54 years old. This implies that most of the experienced employees were released, as
a result the Bank is recruited the fresh graduated. This also indicates that there is less
knowledge transferring between the superior and subordinates as a result the Bank
might not able to discharge the duties and responsibilities in effective and efficient
manner. The result of the study is also supported by (Griffeth et al. 2000).According to
Crawly (2005) Level of education or qualification is found to be positively associated
with retention suggesting that the more educated employees are, the more likely they‟re
to quit. As can be seen from table4.2.1 majority of the respondents have BA degree
which is 123 (86%). 19(13.3%) have a master‟s degree and technical school graduate
were taken a share of 1 (0.7%) from the total respondents. This indicates that the
majority of the Bank employees have BA degree holders.

As indicated in table4.2.1also the position of respondents ranges from trainee junior

officer to Team manager. From the total number of respondents 76 (53.1%) are trainee
junior officer, 21 (14.7%) are officer, 42 (29.4%) senior officer and 4 (2.8%) are team
managers which are lower level management members. This implies that the Bank do
not have strategies to retain the experienced employees. Higher income levels are
significant for employees to be retained.

35
A large number of studies have examined the relationship between pay and retention
and have found a consistent association between larger salaries and lower rates of
attrition (Kelly, 2004; Stockard and Lehman, 2004; Johnson and Birkeland, 2003;
Ingersoll, 2001).As indicated in table4.2.1 a majority of the respondent 107 (74.8%)
earned a salary range between birr 2935-10,759. Following to that birr 10,759-14,115
salary range take a share of 35 (24.5%) from the total respondents. The remaining
respondent‟s salary range between 14,115 and 26,110 takes a share 1(0.7). The finding
of the study is also supported by the above author.

It can be viewed in table4.2.1shows that the majority of the respondents (n = 114 or

79.7%) had 0-5 years of experience, (n=26 or 18.2%) of respondents had 6-9 years of
experience, (n=2 or 1.4%) of respondents had 10-20 years of experience, (n=1 or 0.7%)
of respondents had 21-30 years of experience at the Bank. This reveals that majority of
the Bank employee have less than five years of experience.

4.3Analysis of Data Collected for the Study

The study basic questionnaires comprise of the Bank‟s workforce stability, employee
retention strategies and programs, successful implementations of existing strategies and
the overall employee perception on employee retention practices in the Bank.

4.3.1 Quantitative Data Analysis

Table 4.3.1.1 Stability of the Bank’s workforce

(F=Frequency, SD=strongly disagree, D=Disagree, N=Neutral, A=Agree,
A=strongly Agree)

Response Category n=143

Std.
Items SD D N A SA Total Mean Dev.

F 34 61 32 14 2 143 0.97
Bank Creates an
2.22
inspiring vision
P 23.78 42.66 22.38 9.79 1.40 100

F 53 40 29 19 2 143 1.10
Motivates and inspires
people to engage with 2.14
that vision.
P 37.06 27.97 20.28 13.29 1.40 100

36
 Std.
SD D N A SA Total Mean Dev.

F 56 34 32 20 1 143 1.11
Good results to attract
2.13
rewards
P 39.16 23.78 22.38 13.99 0.70 100

Employees satisfied by F 36 71 31 4 1 143 0.80

responds of 2.04
management. P 25.17 49.65 21.68 2.80 0.70 100

Top management treats F 54 48 25 13 3 143 1.05

& respect their 2.04
employee. P 37.76 33.57 17.48 9.09 2.10 100

F 37 66 29 10 1 143 0.89
Workers'resistance to
2.10
change is recognize
P 25.87 46.15 20.28 6.99 0.70 100

The Bank management F 56 37 23 17 10 143 1.27

takes long time to take 2.22
appropriate solutions P 39.16 25.87 16.08 11.89 6.99 100

1.32
The physical working
F 54 38 15 27 9 143
conditions are very 2.29
good.
P 37.76 26.57 10.49 18.88 6.29 100

F 31 57 14 36 5 143 1.19
Individual differences
2.49
are respected
P 21.68 39.86 9.79 25.17 3.50 100

DBE has convenient 1.27

F 51 35 21 30 6 143
and economical 2.34
workable employee.
P 35.66 24.48 14.69 20.98 4.20 100

F 53 39 16 34 1 143 1.20
There is job security 2.24
P 37.06 27.27 11.19 23.78 0.70 100

F 27 60 19 28 9 143 1.19
There is no too much
2.52
conflict and fighting
P 18.88 41.96 13.29 19.58 6.29 100

37
 Std.
SD D N A SA Total Mean Dev.

DBE has built a legal &

2.21 1.16
more stableworkforce. F 51 40 26 23 3 143

Mean
P 35.66 27.97 18.18 16.08 2.10 100

Employee F 56 46 22 17 2 143 1.07

believesworking up to 2.04
retirement. P 39.16 32.17 15.38 11.89 1.40 100

I recommend the Bank F 56 38 27 16 6 143 1.18

as a career to my 2.15
friends. P 9.16 26.57 18.88 1.19 4.20 100

F 8 19 41 70 5 143 0.95
I‟m atisfied with my
3.31
current salary
P 5.59 13.29 28.67 48.95 3.50 100

Readily available loan F 13 22 56 47 5 143 0.99

3.06
facilities P 9.09 15.38 9.16 2.87 3.50 100

There is a consistent F 35 66 23 14 5 143 1.04

2.22
system of rewards P 24.48 46.15 16.08 9.79 3.50 100

I feel satisfied with the F 51 40 24 24 4 143 1.18

2.23
Bank‟s Bonus incentive P 35.66 27.97 16.78 16.78 2.80 100

I receive adequate F 59 47 21 12 4 143 1.07

training and 1.99
P 41.26 32.87 14.69 8.39 2.80 100
development
The Bank has sufficient F 33 69 25 13 3 143 0.96
opportunities for 2.19
P 23.08 48.25 17.48 9.09 2.10 100
advancement
Management F 57 43 30 10 3 143 1.04
participate employees 2.01
in planning and 100
P 39.86 30.07 20.98 6.99 2.10
decision making
Training, career F 60 50 22 8 3 143 0.99
development and 1.91
promotions are
unbiased. P 41.96 34.97 15.38 5.59 2.10 100

38
 Std.
SD D N A SA Total Mean Dev.

Opportunities for career F 35 63 15 24 6 143 1.14

progression in the Bank
2.32
is critical for me to stay
for a long term P 24.48 44.06 10.49 16.78 4.20 100

Employee training and F 57 46 25 13 2 143 1.03

career development 2.00
programs offered P 39.86 32.17 17.48 9.09 1.40 100

F 59 44 14 25 1 143 1.13
I am satisfied with my
2.06
chances for promotion
P 41.26 30.77 9.79 17.48 0.70 100

Employees are F 52 66 22 3 143 1.08

motivated to continue - 2.01
working or stable in P 100
Bank in the coming 36.36 46.15 15.38 2.10 -
years. number of
Average
143 1.09
respondents 45 48 25 21 4 2.24
Average 32% 33% 18% 15% 3% 100%

Source: Survey, 2017

Stability of work force is a degree to which workers remain employed with an

organization. Without a sufficient qualified and productive workforce, employers are
vulnerable to competitive forces as well as the impact of negative relationships with
their customers. Stability in the Bank's workforce has a number of advantages for the
Bank's health, for workers, for customers, for suppliers, for investors, for the industry,
and for the economy at large. According to Chaminade (2007: 1), this attachment
relationship should be durable and constant and link the employee to the organisation
by common values and by the way in which the organisation responds to the needs of
the employees. As a result of no better salary and benefit paid to the employee, the
work environment, the work itself is not as per their expectation employee volatility of
employee retention is questionable. In consequence, as depicted the current employee
response rate on table4.3.1.1 93(65%) of the respondents feel that there is no stable of
workforce in the Bank. 25(18%) of the respondents are remain in neutral. While the rest
39
25 (18%) of the respondents are believed that there is stable of workforce in the Bank.
This revels that the Bank has no Stability of workforce. To retain employees, the
organizations must review their career plans and reorganize those plans according to the
market so that intelligent and talented employees could serve more and would
beneficial in the long run (Nadeem et al, 2011).Besides, for organizations to continue
working with their current employees than to encourage labor turnover by hiring new
employees

Table 4.3.1.2.Employee’s Retention Strategies/Schemes and Programs of the Bank

Response Category n=143

Description
Std.
SD D N A SA Total Mean Dev.

The Bank‟s HRM F 37 67 17 18 4 143

policy, rules and
procedures are clear 2.20 1.05
and make sense to
P 25.87 46.85 11.89 12.59 2.80 100
employee.
DBE has best strategy F 54 52 27 6 4 143
to retain valuable
1.98 1.00
professional
employees. P 37.76 36.36 18.88 4.20 2.80 100

The Bank has F 52 45 26 19 1 143

preferable 2.10 1.07
organizational culture P 31 18 13 1 100
36.36
Flexible work F 52 47 23 18 3.0 143
schedules that 1.10
2.11
recognize their need
for work life balance P 36.36 32.87 16.08 12.59 2.10 100 1.17
Coaches and builds a F 28 65 15 27 8 143
team, so that it is more
2.45
effective at achieving
the vision of the Bank P 19.58 45.45 10.49 18.88 5.59 100

40
 SD D N A SA Total Std.
There is job F 53 45 21 20 4 143
Mean
enlargement(horizontal) 2.14 1.15
redesigned by core P 37.06 31.47 14.69 13.99 2.80 100
HRMD
There isto
jobemployee's F 53 45 22 20 3 143
enrichment(vertically) 2.17 1.26
redesigned by HRMD P 37.06 31.46 15.38 13.99 2.10 100

There is job rotation F 34 75 12 19 3 143

redesigned by HRMD 2.17 1.01
to employee's P 23.78 52.45 8.39 13.29 2.10 100 Dev.
Well defined Job F 59 57 14 12 1 143
design, descriptions and
1.87 0.95
specifications are assign
to employees P 41.26 39.86 9.79 8.39 0.70 100

There is good upward F 57 44 29 11 2 143

employee
2.00 1.02
communication in the
Bank. P 39.86 30.77 20.28 7.69 1.40 100

There is good F 6 26 68 39 4 143

downward employee
3.06 0.86
communication in the
Bank. P 4.20 18.18 47.55 27.27 2.80 100

Average number of 43 51 23 21 4
respondents 143 2.24 1.09
Average 30% 36% 16% 14% 3% 100%

Source: Survey, 2017

It can be observed in Table4.3.1.2 the employee‟s retention strategies and programs

currently in place in the Bank. The respondents‟ opinion on the existence of employee
retention strategies and program in the Bank reveals that 30% and 36 % said that
strongly disagree and disagree and they believed that believed that there is no employee
retention strategy in the Bank. 16% of them are in between. While 14% and 3% of the
respondents‟ are agree and strongly agree the existence of employee retention strategy
and program in the Bank. Some of the major indicators of not existence of employee
retention strategy and program in the Bank shown in the above table are: Bank‟s
Human resource management policy, rules and procedures are not clear and not make
sense to employee;there is no defined Job design, descriptions and specifications are
assign to all employees by HRMD; no strategy to handle or retain valuable professional
employees;there is no upward employee communication in the Bank; There is job
41
rotation(alternate job) redesigned by HRMD to employee's to employee‟s; job
enlargement(horizontal) redesigned by core HRMD to employee‟s; no defined goals
and objectives to retain employee set by the Bank. This revels that the Bank has no
strategy and program to retain their employee. retention policies should, in the view of
Nyoka (2006: 2) also include strategies that will enable employees to balance their
work life demand with their family life by establishing family friendly policies and
enabling flexible work arrangements to accommodate essential personal commitments.

The mean value concerning the Bank‟s Human resource management policy, rules and
procedures are clear and make sense to employee, strategy to handle or retain valuable
professional employees, the code of professional conduct that employees are expected
to follow, organizational culture to retain employee, code of professional conduct that
employees are expected to follow ,the defined goals and objectives to retain employee
,Coaching and building a team, job enlargement, defining Job design, descriptions and
specifications, downward employee communication ranges from 1.87 to 2.45 which
point out the respondents disagreed with the idea. It deduces that employees are not
satisfied concerning these aspects of working conditions. The mean value of the code of
professional conduct that employees are expected to follow and downward employee
communication in the Banks 2.62 and 3.06 respectively which indicates that the
respondents are neutral on these aspects. The study as reflected in the table Stability of
work force is a degree to which workers remain employed with an organization. As the
labor market continues to tighten, employers are increasingly concerned about
maintaining a stable workforce. They need competent, dedicated, and effective workers
to serve their customers to fulfil their missions. Without a sufficient qualified and
productive workforce, employers are vulnerable to competitive forces as well as the
impact of negative relationships with their customers. Stability in the Bank's workforce
has a number of advantages for the Bank's health, for workers, for customers, for
suppliers, for investors, for the industry, and for the economy at large and respondents
are disagree that the Bank has employee‟s retention strategies and programs in place
with a mean value of 2.24 which appears to be lower. This shows that they generally
disagree about the existence of employee‟s retention strategies and programs take in
place. By taking a proactive approach to developing an effective employee retention
program, the anxiety of high turnover can be reduced. True employee retention takes
time, effort and resources, but the rewards can prove valuable. Employee retention
requires people strategic plan. (Abraham, 2007).
42
Table4.3.1.3 Successful Implementation of strategies/schemes and programs

Response Category n=143

Description Std.
SD D N A SA Total Mean
Dev.

F 11 19 42 67 4 143 0.99
There is no adequate 3.24
training and development P 7.69 13.29 29.37 46.85 2.80 100

Opportunities for career F 7 44 9 74 9 143

3.24 1.11
progression is critical P 4.90 30.77 6.29 51.75 6.29 100

Job rotation area implement F 10 27 23 80 3 143

3.27 1.02
unsuccessfully P 6.99 18.88 16.08 55.94 2.10 100

Sufficient opportunities for F 10 14 72 43 4 143

3.12 0.88
advancement P 6.99 9.79 50.35 30.07 2.80 100

Employees not satisfied by F 12 29 40 61 1 143

3.07 1.00
promotion P 8.39 20.28 27.97 42.66 0.70 100

Employee career F 11 33 20 76 3 143

development programs 3.19 1.06
offered P 7.69 23.08 13.99 53.15 2.10 100

Employee satisfied with F 35 82 20 6 - 143

1.98 0.75
management efforts P 24.48 57.34 13.99 4.20 - 100

Employee satisfied with the F 8 44 69 21 1 143

2.74 0.80
quality of orientation P 5.59 30.77 48.25 14.69 0.70 100

I‟m satisfied with F 35 46 44 15 3 143

mentoring from my senior 2.34 1.03
P 24.48 32.17 30.77 10.49 2.10 100
peers.

43
 Total Std.
SD D N A SA
Dev.
Mean
I‟m satisfied with the health F 1 54 35 23 30 143
care benefits and insurance 3.19 1.17
coverage P 0.70 37.76 24.48 16.08 20.98 100

The rewards and benefits F 33 47 37 22 4 143

offered are comparable with 2.42 1.09
the market P 23.08 32.87 25.87 15.38 2.80 100

It is difficult to stay under the F 8 31 40 36 28 143

positions of Trainee and junior 25.17 3.31 1.18
position P 5.59 21.68 27.97 19.58 100

Employees‟ career goals are F 10 40 51 41 1 143

established and supported by
2.88 0.93
the performance P 6.99 27.97 35.66 28.67 0.70 100
Managements.

Feedback from performance F 6 37 28 69 3 143

3.18 0.98
Managements P 4.20 25.87 19.58 48.25 2.10 100

Performance Management F 7 45 50 39 2 143

system encompassing 2.89 0.91
mentoring and coaching P 4.90 31.47 34.97 27.27 1.40 100

Bank honour F 8 53 17 35 30 143

3.18 1.29
recognition/reward P 5.59 37.06 11.89 24.48 20.98 100

The Bank has no responsible F 5 16 46 72 4 143

employee to discharge their 3.38 0.85
duty P 3.50 11.19 32.17 50.35 2.80 100

Average number of
13 40 38 45 7 143
respondents 2.96 1.00
Average 9% 28% 27% 32% 5% 100%

Source: Survey, 2017

44
As can be seen from Table4.3.1.3shows that the extent of successful implementation of
employee retention strategies and programs. (n=13)9% of the respondents are strongly
disagree that there is successful implementation of employee strategy and program.
(n=40) 28% of the respondents are disagree that there is successful implementation of
employee strategy and program. (n=38) 27% of the respondents are in between. While
(n=45)32% of the respondent opinion agrees that there is successful implementation of
employee strategy and program. The rest (n=7)5% of the respondents are strongly agree
that there is successful implementation of employee strategy and program. This shows
that the Bank has no strategy and program to retain employee but some components of
employee retention strategies are implemented successfully in the Bank.

The majority (n=33)23% respondents agreed that rewards and benefits offered are not
comparable with the market and (n=36)25% believed that it is difficult to stay under the
positions of Trainee and junior position, similarly large (n=67) 46% number of
employees believed that there is no adequate training and development.
The study as reflected in the above Table4.3.1.3the mean value reveals that the extent
of successful implementation employee retention strategies and programs in place in the
Bank. This also shows that the majority of the respondents are not satisfied on adequate
training and development, Job rotation area implement successfully based on the settled
strategy, sufficient opportunities for advancement of their employee profession, chances
for promotion, health care benefits and insurance coverage provided by the Bank and
Feedback from performance Managements leads to enhanced employee development.
In order to in effect the retention strategies, the employees, and their managers or
supervisors need to be actively involved in the development and implementation of the
strategies. Managers need to have a clear understanding of the needs, abilities, goals
and preferences of the workforce (Pendulwa, 2011).

45
Table4.3.1.4 Perception of Employees on the Employee Retention Practices in the
Bank

Response Category n=143

Std.
Items SD D N A SA Total Mean Dev.

Management encourages F 31 68 29 11 4 143

employee creativity & 2.22 0.97
innovation P 21.68 47.55 20.28 7.69 2.80 100

F 54 39 28 17 5 143
Good or healthy
2.16 1.16
competitions.
P 37.76 27.27 19.58 11.89 3.50 100

F 56 42 24 16 5 143
There is an environment of
2.30 2.82
transparency and trust
P 39.16 29.37 16.78 11.19 3.80 100

F 34 70 23 12 4 143
Conflict of interest is very
2.17 0.98
low in DBE.
P 23.78 48.95 16.08 8.39 2.80 100

F 56 40 34 11 2 143
There is no discrimination. 2.04 1.03
P 39.16 27.97 23.78 7.69 1.40 100

F 55 40 27 19 2 143
Employee are satisfied with
2.11 1.11
their current job
P 38.46 27.97 18.88 13.29 1.40 100

The Bank work is fully F 34 70 17 20 2 143

supported by latest 2.20 1.00
Technology P 23.78 48.95 11.89 13.99 1.40 100

F 54 42 24 21 2 143
Management do not create
2.13 1.12
stress
P 37.76 29.37 16.78 14.69 1.40 100

Employee feel a sense of F 4 16 77 43 3 143

3.17 0.76
pride P 2.80 11.19 53.85 30.07 2.10 100

46
 Std.
SD D N A SA Total Mean Dev.

F 30 62 24 23 4 143 2.36
The Bank has too much
100 1.07
paperwork,
P 20.98 43.36 16.78 16.08 2.80

F 57 51 24 10 1 143
The Bank has given 0.95
1.93
appreciation
P 39.86 35.66 16.78 6.99 0.70 100

F 25 56 17 32 13 143
My work activities are
2.66 1.26
personally meaningful to me.
P 17.48 39.16 11.89 22.38 9.09 100

F 52 53 17 15 6 143
This job adds significant
2.09 1.13
pressure and anxiety
P 36.36 37.06 11.89 10.49 4.20 100

F 52 39 15 29 8 143
I am generally satisfied with
2.31 1.30
the kind of work I do.
P 36.36 27.27 10.49 20.28 5.59 100

Management believes that F 34 61 23 18 7 143

employees are asset of the 2.32 1.12
Bank. P 23.78 42.66 16.08 12.59 4.90 100

F 58 58 11 14 2 143
There is enough career
1.91 1.00
advancement to all
P 40.56 40.56 7.69 9.79 1.40 100

F 12 15 71 41 4 143
There is professional
learning and growth 3.07 0.92
opportunities in the Bank
P 8.39 10.49 49.65 28.67 2.80 100

F 31 71 31 9 1 143
Employees are recognized
and rewarded for their 2.15 0.86
commitment.
P 21.68 49.65 21.68 6.29 0.70 100

47
 Std.
SD D N A SA Total Mean Dev.

Employees are satisfied F 47 43 18 29 6 143

with the number of 2.33 1.24
annual leave. P 32.87 30.07 12.59 20.28 4.20 100

The employees are F 64 46 18 11 4 143

satisfied with the
1.92 1.06
educational and
financial assistance P 44.76 32.17 12.59 7.69 2.80 100

Average number of
respondents 42 49 28 20 4 143 2.28 1.14
Average 29% 34% 19% 14% 3% 100%

Source: Survey, 2017

As can be observed from table4.3.1.4the overall perception of employees on the

employee retention practices of the Bank. 91(63%) of the respondents are confirmed
that there is no employee retention practice in the Bank. On the other hand 28(19%) of
the respondent remain neutral. Moreover, 25(17%) of respondents confirm that there is
existence of employee retention practice. According to the finding in item (1) of
table4.3.1.4reveals that a majority (21.68% + 47.55%) of the respondents had strongly
disagreed or disagreed on the employee encouragement by management for creativity,
innovation, and continuous improvement. More than fifty percent of the respondents do
not believed that there is good or healthy competitions with employee to employees are
available in the Bank;no transparency and trust in the Bank to retainand
moreover;Conflict of interest is very low;discrimination. The Bank has too much
paperwork, as a result the employee have stressed;The Bank has given appreciation to
their employee;The job adds significant pressure and anxiety to thıer life;employeeS
are generally satisfied with the kind of work they do in the job;Management believes
that employees are the most important asset of the Bank.;There is enough career
advancement opportunities to all employee;There is enough career advancement
opportunities to all employee;Employees are recognized and rewarded for their
commitment and dedicated service to the organization;Employees are satisfied with the
number of annual leave days given by the Bank;The employees are satisfied with the
educational financial assistance in domestic and foreign country given by the Bank.

48
This indicates that the Bank do not in place employee retention strategy. Empirical
evidence suggests that the establishment of well-defined organizational goals and
objectives influence employee retention. Kim, (2005) in their study on corporate
orientation found that organizational direction and support had a significant impact on
employee retention and overall commitment. Findings from Susskind, (2000) research
also suggest that perceived organizational support strongly influences strategies and
programs their organizations.

In the table4.3.1.4the researcher set out to assess the perception of employees on the
employee retention practices in the Bank. The assessment statements were equally
ranked in terms of their mean and standard deviation as a way of interpreting the
results. The details of the study in this regards are discussed as follows:

The study as reflected in the above table found that the respondents seen to disagree
that there was employee retention practices in the Bank with a mean value of 2.28
which is lower. This shows that they generally disagree about the existence of employee
retention practices in the Bank like, management encourages employee to creativity,
innovation, and continuous improvement, healthy competitions, transparency and trust
in, conflict of interest is very low, the Bank work is fully supported by latest
technology,management do not create stress to their employees, the Bank has too much
paperwork, the Bank has given appreciation to their employee,the job adds significant
pressure and anxiety to thıer life, career advancement opportunities to all
employee,there is enough career advancement opportunities to all employee, employees
are recognized.

49
 4.3.2 Qualitative Data Analysis

Based on the data that was obtained for this study through the available documents from
the Bank HRMD department annual report document analysis was carried out to
determine the employee retention magnitude and trend of the Bank. The findings are
presented in the table below.
4.3.2.1 Document Analysis
Table 4.3.2.1Document Analysis on Employee Retention Practice at DBE

Category Fiscal year( July 1to June 30)

2011/ 2012/ 2013/ 2014/ 2015/2016

2012 2013 2014 2015
Professional and 594 656 713 820 933
High Level Team Manager
Total Leaving Employees in 93 114 115 145 157
DBE
Total Retain Employee in DBE 501 542 598 675 776
Professional employees retention
84% 83% 84% 82% 83%
rate

Source: DBE HRMD Document

The data in the above table shows that the practices of employee retention and the trend
what it looks like from the period under review, i.e. from 2011/2012 to 2015/2016.
Accordingly, as it was indicated in the table4.3.2.1the number of employee retention the
Bank in 2011/2012 was 84%, 2012/2013 was 83%, 2013/2014 was 84%, 2014/2015
was 82%and 2015/2016 was 83% supported by Deane, (2004) retention rate measures
what was wanted rather than what was undesirable

In the strategic planning of the Bank the tolerable retention rate was 85% and above.
However, the data in table4.3.2.1above reflects that the professional employee‟s
retention rate is less than the tolerable retention rate set by the Bank. This shows that
the Bank faces professional employees‟ retention problem.

50
 4.3.2.2 Analysis of Data Collected Through Interview

The Bank‟s Director pointed out that employee retention is a natural occurrence and
that retention can also be positive as the Bank can separate itself from poor performer
and make way for capable employees continue in the Bank. However, the management
of the Bank is happy if qualified and trained employees not living the Bank. To handle
the continuity of the retention unreserved efforts has been done from the top
management up to other line manager as per their levels.

For the interview question about the reasons employees leaving the Bank, the director
replied as employees are left the Bank due to various reasons but majority of them are
left the Bank due to salary and benefits since new Banks offers higher salary and
benefits which is beyond the scale of DBE. If DBE provides the offer to employees and
tries to retain them it might bring priority with other competent employees in the Bank.
He also mentioned that retention strategy is a non-stop phenomenon in a dynamic
environment; hence, the Bank tries to set a system which the current or the new comers
of employee should follow. According to him, employees are not stay lifelong.
However, as a management, the top management of the Bank cultivates and upgraded a
substitute through via incorporating strategies, program and procedures like different
training and developments provide better compensation package, creating conducive
work environment and influence the employee by better leadership. He emphasis that
unless the needs arise and some vacant positions demands higher qualification, the
Bank is not look for competent employees externally. According to him, currently the
Bank has enough staffs which are qualified and experienced that can substitute their
next positions. In addition, as a retention mechanism the Bank review the salary scale
and released very soon. According to the HR Director, exit interviews have been
conducted to gather information on the assessment of employee‟s retention in the Bank.
The HR department is aware of the trend of retention that is the decreasing of employee
retention practice especially for the last two years which more experienced and
qualified staffs are quit from the Bank due to the Bank‟s HR policy. This information is
needed in order to gain an understanding of how to address the problems that lead to
employee retention practice.

51
On the question regarding career development, the Director stated that DBE lacks
career development which is inconsistent with the existence of the policy on career
development. According to him, professional employees leave as a result of the policy
not being implemented. Employees reach a point of frustration after they have set
measurable goals and have received the necessary training or intervention, and are
unable to progress as inadequate attention is given to advancing employees.

He also pointed out that, at this time the Bank resolve the career advancement problems
by not recruited and selected from outside instead the Bank focuses on the internal
employees since DBE has spent time and money on training and supporting for those
staffs. According to the responses of the Director, undoubtedly indicated that the Bank
recognizes human resource training and development as one of its most important
organizational activities to bring a desirable change in employees‟ behaviour and attain
organizational effectiveness and efficiency. Besides, the Bank attaches great importance
to effective human resource planning in order to ensure sustainable and efficient
staffing Bank -wide and achieve its business objectives and corporate plans. For the
proper execution of continuous training and development the Bank has policies and
procedure manual. Hence, training specific to the need of the employee is conducted
without fail and the Bank implements the training and development based on
assessment as of the Bank human resource planning and development policy and
procedure manual. In this manual Bank‟s support scheme is mentioned linked to career
advancement. The Bank has supports their employees to have higher education. Based
on the Bank support Employees obtain their diploma and degrees through the education
program. For the diploma holder the Bank arrange exam to select from those employees
when there is vacant positions whereas for degree holders no exam for screening rather
the Bank arranges on job training and assign or promote those staffs as per their
qualifications.

52
About the Bank‟s workforce stability the Director said that as the labor market
continues to tighten, employers are increasingly concerned about maintaining a stable
workforce. They need competent, dedicated, and effective workers to serve their
customers to fulfil their missions. Without a sufficient qualified and productive
workforce, employers are vulnerable to competitive forces as well as the impact of
negative relationships with their customers.

But in our Bank workforce stability is inefficient because of different reasons like less
compensation package when compared to other financial institutions, Opportunities to
use skills and abilities, weak performance Management, Opportunity for training and
career development, Overall corporate culture, lack of by Management‟s recognition of
employee job performance, Offering less flexibility of work and weak participation in
Corporate social responsibility (CSR).

The director also mentions that there are no documented programs that the Bank
designed to maximize professional employees‟ retention. However, the Bank has
different benefits package gives to employees used as retention mechanisms such as
loans for various purposes, school fee, cover medical expenses and the like.

Finally, the Director pointed out that, the Bank gives due attentions to its employees
since the success of the Bank is directly related with the contribution of the employees.
It is obvious that without the qualified, competent and experienced employee it is very
difficult to achieve the objective of the Bank.

53
 CHAPTER FIVE: SUMMARY, CONCLUSIONS AND
RECOMMENDATIONS
5.1. Summary of Major Findings

The survey as presented on this work assessed the employee retention strategies in
Development Bank of Ethiopia. The assessment has been made using survey, document
analysis and interview methods. The findings are evaluated against the literatures and
previous related researches.

 Most of the current employee respondents (74%) are males and the majority of
respondents below the age of 26, have BA/BSC, those who have the position of the
employees are trainee junior officer, the majority respondent‟s salary range between
2,935 to 10,759 and has been in the Bank below 5 years.

 A large of the employee (64%) opinion indicated that there is instability of

workforce in the Bank

 The most of the respondents‟ (66 %) said that strongly disagree and disagree
opinion on the existence of employee retention strategies and program has been
designed to retain professional employees.

 The most respondents (64%) agreed that there is no implementation of employee

strategy and program.

 In general the majority of the employee perceived that (63%) of the respondents are
confirmed there is no employee retention practice in the Bank

 Under the document analysis of the Bank‟s five consecutive years of HRM annual
reports of employee retention trends indicates that DBE is facing frequent
professional employees retention problem. The reports shows that the average rate
of employees retention in the five years is 83% employees per annum which is
below the Bank‟s standard employee retention rate.

 The Bank HRM Director believed that the existence of professional employee
retention problem due to lack of employee retention strategies and program on the
salaries and benefit packages, working environment, inefficient performance
Management system, lack of inspirational leadership, lack of constant
communication between top management and all employees.

54
 HRM Director added that , the Bank workforce is unstable because of different
reasons like less compensation package when compared to other financial
institutions, opportunities to use skills and abilities, weak performance
Management, opportunity for training and career development, Overall corporate
culture, lack of Management‟s recognition of employee job performance, offering
less flexibility of work schedule and weak participation in Corporate social
responsibility (CSR)

Finally, the Director pointed out that, the Bank try to create strategies and programs and
implement successfully to retain valuable employees for the long time and gives due
attentions to its employees since the success of the Bank is directly related with the
contribution of stable workforce. It is obvious that without the stable workforce it is
very difficult to achieve the objective of the Bank.

55
 5.2. Conclusions

The study aims to assess the practice of employee retention in Development Bank of
Ethiopia. To achieve the proposed objectives, the researcher has used survey,document
analyis of the Bank and interview and reached the following conclusion.

The researcher has employed bothquantitative and qualitative data to conduct the
study.The data collection techniques were questionnaires and interview. The
quantitative and qualitative data have been analyzed by descriptive statistics and
qualitative analysis method respectively. The result of the study findings is based on
the survey,document reviewd and the interviews. Accourdingly, the researcher comes
to a conclusion based on the interpreted results and discussions of findings. Finally, the
following conclusions are drawn by the four component of employees retention
practice:

5.2.1. Stability of the Bank’s Workforce

Staff Stability of the Bank‟s would positively affect both access to services, and the
level and quality of service being delivered. The study result reveals that majority of
respondents feel that there is no stable of workforce so the Bank vulnerable to unwanted
employee turnover because of this the Bank lose its productivity, unable to accomplish
the Bank‟s objective,frequently incurs high recruitment , selection and training costs.

5.2.2. Employee’s Retention Strategies and Program of the Bank

The finding of study reveals that most of the respondents disagree about the existence
of employee‟s retention strategies and programs in the Bank like un conducive work
environment, more of stressful work, inefficient performance management, training and
career developments take in place according to those problem it was very difficult to
achieve the objective of the Bank.

5.2.3 Successful İmplementetion of Strategies/Schems and Programs

When we come to successful implementation employee retention strategies and

programs the study result reveals that the Bank do not successfully ımplımented
employee retention strategies and programs because of Bank cannot measure how well
strategic plan implementations was inprogress via key factors such as the work
itself,work environment,leadership style, performance managment and employee
56
compensasion packages due to those factors the Bank employees disatisfied and leave
the organization similarly the organization leads to low organizational performance and
exposed to new recruitment and selection process via incurring huge costs.

5.2.4 The overall Perceptions of Employee Retention in the Bank

With regars to the response rate of overall perceptions of Employee Retention in the
Bankreveals that the majority of the respondenta are belived that there is no job
rotation(alternate job) redesigned by HRMD to employee's to employee's;job
enlargement(horizontal) redesigned by core HRM;no defined goals and objectives to
retain employee set by the Bank. This revels that the Bank has no strategy and program
to retain their employee. Hence, most of the employees are not retained especially in the
position of trainee/junior in the Bank and employee are searching better offer by the
compitators employer..As a result of no better salary and benefit paid to the employee,
the work environment, the work itself is not as per their expectation employee the
volatility of employee retention is questionable. This is also confirmed by the research
output depicted that most of the respondents feel that there is no stable of workforce in
the Bank. This is also explained by the response items rate of lack encouragement of
managment for thier subordinate to be creative, innovative, healthy competitions with
employee to employees,transparency and trust, job satisfaction of the employee using of
latest technology, creating of stress to their employees, too much paperwork, lack given
appreciation to their employee. To improving employee retention the bank should have
culture of providing on boarding and orientation, mentorship programs, employee
compensation, recognition and rewards systems, work-life balance, training and
development, communication and feedback, dealing with change, fostering teamwork
and team celebration.

Further to the survey result the resercher has made document reviewd and indicated that
the professional employee‟s retention rate is less than the tolerable employee retention
rate set by the Bank. Result obtainined from the interview of HRM Director reveald
that the top management of the Bank awareness was insufficient on cultivates and
upgraded a substitute incorporating strategies, program and procedures because
Employee retention strategy is a non-stop phenomenon in a dynamic environment;
hence, the Bank tries to set a system which the current or the new comers of employee
should follow, Like different training and developments provide, better compensation

57
package, follow good performance Management system, creating conducive work
environment and influence the employee by better leadership

Lastely but no least the researcher concluded that, the Bank have low organizational
performance, inefficient productivity and unable to met organizational objectives and
goals(vision,mission and values of the Bank) due to lack of properemployee retention
strategies , programs ,ineffective implementions of those strategies and programs
practices ,lack of concern for stability of workforce to retain valuable employees for
the long time and there was no good exit employee interviews would be conduct to
gather valuable information to help how to retain employee‟s in the Bank and weak
attentions to its employees since the success of the Bankwas directly related with the
contribution of the employees.

5.3. Recommendations

Based on the major summary findings and conclusions of the study, the researcher
forwards the following recommendations to the management of Development Bank of
Ethiopia to retain their experienced and qualified employees.
 The Bank should enact strategies and programs through participating employees,
create positive employee perception and stable workforce by establishing conducive
work environment and the work itself, facilitate opportunity for training and career
development via need assessment, use an effective appraisal system, provide fair
rewarding system and competitive benefit package to the financial sector to retain
for the long time than previous practice of the Bank.
 To Successful Implementation of employee retention strategies the bank should
have a culture of providing on boarding and orientation, mentorship programs,
employee compensation, recognition and rewards systems, work-life balance,
training and development, communication and feedback, dealing with change,
fostering teamwork and team celebration.
 The Bank should design or customize HRM practices in order to retain the valuable
employees, the Bank be safe from unnecessary recruitment and selection cost, the
Bank to achieve their strategic goal and gain competitive advantage by establishing
a fair rewarding system and provide equitable and competitive benefit package from
the other Banking industry.

58
 The Bank‟s Human resource management policy, rules and procedures are clear and
make sense to employee.
 The HRMD maintain transparent leadership.
 The Bank evaluates the work itself by establishing job descriptions whether the
employee fit with job or not.
 Management should encourage employee to creativity, innovation, and continuous
improvement.
 The Bank management takes short time to take appropriate solutions of workers
Complain
 Opportunity for adequate training & career development should be provided to all
employees to improve the ability of workforce to perform their duties and
responsibilities accurately and timely.
 The Bank HRM should redesign job rotation, enlargement and enrichment
according to employee performance and the job needs the profession.
 Management should support the working system of the Bank with various latest
technology to minimize too much paper work at the Bank which adds significant
pressure and anxiety to employees‟ life
 The bank should assess their employee retention strategies at least once a year and
conduct review of market salary rates and benefits, and best practices in developed
workplace culture and manager-employee relations and accordingly make
subsequent action based on the company performance.

5.4. Limitations of the Study

Since professional employee retention is a sensitive issue, to feel that some respondents
may be unwilling to participate in the survey or may be suspicious about intentions of
the management. They may feel reluctant to disclose their true opinions on satisfaction
and motivation, fearing negative impact on their jobs or on their relationships with their
managers.

Only existing employees were selected as respondents, key informant interview were
conducted and it did not include employee who have left the Bank. It is also suspect
that some employees may exaggerate the situation than it exists in reality based on their
negative experience with the Bank. Due to this may i receive bias responses from some
of the employees‟ survey?

59
 REFERENCES
Abbasi, S. M., And Hollman, K. W. (2000), Turnover: the Real Bottom Line. Public Personnel
Management, 29(3), 333–343.
Abraham S (2007). Employee Retention Requires People Centered Plan.
AbuduainiWubuli, (2009). A Study on the Factors Affecting Job Satisfaction amongst
Employees of Fast Food Restaurants University Utara Malaysia
Achouiand Mansour (2007).Employee Turnover and Retention Strategies: Evidence from
Saudi Companies. International Review of Business Research Papers, Vol. 3 No.
3.Pp.1-16
Ahlrichs, N.S. (2000). Competing for Talent. Key Recruitment and Retention Strategies for
Becoming An Employer of Choice: Palo Alto, Ca: Davies-Black Publishing.
Ahuja, M., (2007)., IT Road Warrior: Balancing Work-Family Conflict, Job Autonomy and
Work Overload to Mitigate Turnover Intentions. MIS Quarterly, 31(1), 1-17.
Allen, R. K. (2000), Lean and Mean: Workforce 2000 in America, Journal of Workplace
Learning.Vol. 9 (1), 34-42.
Aman Racho Fursso, (2015), the Causes and Effects of Employees‟ Turnover the Case of
Oromia Water Works Design and Supervision Enterprise
Argyris, C.; Schön, D. (1978). Organizational Learning: A Theory of Action Perspective.
Reading Ma: Addison-Wesley.Isbn 0-201-00174-8.
Armstrong, M. (2006): “A Handbook Of Human Resource Management Practice” 10th Ed.
Koganpage :London,[33]
Arnold, H.J. & Feldman, D.C. 1996. Organizational Behaviour: Mcgraw Hill
Arnold, H.J.&Feldman, D.C. 1996. Organizational Behaviour: Mcgraw Hill
Asmamaw Arleta, (2011). Professional Employees Turnover and Retention Practices of
Ethiopian Public Sector Organizations of Ministry of Finance and Economic
Development (MOFED)
Ayalikbet. (2013), Analysis of the Causes consequences, and Management of Employee
Turnover in TheCommercial Bank of Ethiopia
Babbie, E. & Mouton, J. 2001, the Practise of Social Research: South African Edition. Cape
Town: Oxford University Press.
Bateman, T.S. & Snell, S.A. 1999. Management – Building a Competitive Advantage .Boston.
McGraw – Hill.
Beam, J. (2009), What Is Employee Turnover?.Http://Www.Wisegeek.Com/What-Is-
Emplovee-Turnover.Htm.Retrieved November 13, 2012, From Wise GEEK
60
Becker, B., and Huselid, M. (1999), An Interview With Mike Losey, Tony Rucci, and
Daveulrich: Three Experts Respond to Hrmj's Special Issue On HR Strategy in Five
Leading Firms, Human Resource Management, Vol. 38 No.4, Pp.353-65.
Beehr & Love (2011). Extending the Challenge-Hindrance Model of Occupational Stress: The
Role of Appraisal. Journal of Vocational Behaviour
Bekalu. (2006), Practices of Promotion and Strategies of Staff Retention in Private College in
Ethiopia
Benjamin Balbuenaaguenza Nov.-Dec. 2012 Vol.1 Issue 688-95. 88. Motivational Factors of
Employee Retention and Engagement in Organizations.
BhawanaAhuja, (2016), An Empirical Study Of Private Sector Banks Employee Retention
Volume 2
Birukalelgn Boa. (2013), Assessment of Professional Employees Turnover Causes At Bank of
Abyssinia
Boles, J., Lawrence, and E., Johnson, J. (1995), Reducing Employee Turnover through The Use
of Pre-Employment Application Demographics. Hospitality Research Journal,Vol. 19
No.2, Pp.19-30.
Brown, H. (2006). Lack Of Proper Retention Strategies Can Hurt You, Www.Hrfuture.Net.
Accessed, 10 July, 2007. Business Dictionary.
Carrell, M.R. (1995) Human Resources Management: Global Strategies for Managing a
Diverse Workforce Prentice Hall, International, Inc
Catherine M. Gustafson (2002). “Staff Turnover: Retention”. International J. Contemp. Hosp.
Manages. 14 (3):106-110.
Chaminade, B. (2007). A Retention Checklist: How Do You Rate? Retrieved on 11th March,
2012,
Chew, J., Chan, C.C. (2008), Human Resource Practices, Organizational Commitment and
Intention to Stay. International Journal of Manpower, 29(6), 503-522.
Chiboiwa, W. M., Samuel, M.O., & Chipunza J. (2010). An ExaminationOf Employee
Retention Strategy in A Private Organisation in Zimbabwe: African Journal of Business
Management, 4 (10), 2103- 2109.
Cho. (2006), measuring the Impact of Human Resource Management Practices on Hospitality
Firm‟s Performances International Journal of Hospitality Management, Volume: 25,
Issue: 2, Pp.262-277.
Christine Ruth Nyanjom, (2013), Factors Influencing Employee Retention in the State
Corporations in Kenya
61
Churchill, G. A. and Brown, T. J (2007), Basic Marketing Research, 6th Edition, Mason,
Thomson-South Western.
Cole G., Personnel and Human Resource Management. New York, Thompson Learning, 2002,
Crawley, V., (May 2, 2005). Juggling Family, Work Can Prompt Separation, Panel Says. Navy
Times.
Czakan, T. Talent Scouting the Dynamics of Top Talent, Journal of the South African Institute
of People Management, 23(3), 2005
De Vos, A. &Meganck, A. What Hr Managers Do Versus What Employee‟s Value: Exploring
Both Parties
De Vos, A. S., Strydom, H., Fouche, C. B., &Delport, C. S. L. (2011). Research at Grass Roots
for the Social Sciences and Human Service Professions (4th Ed.). Pretoria, South
Africa: Van Schaik
De Vos, A.S. &Strydom, H. 2011.Intervention Research. In De Vos, A.S., Strydom,H., Fouché,
C.B. &Delport, C.S.L. (Eds).Research At Grass Roots:
De Vos. A.S. 2005c. Qualitative Data Analysis and Interpretation. In De Vos, A.S. (Ed.),
Strydom, H., Fouché, C.B. &Delport, C.S.L. Research at Grassroots: for the Social
Sciences and Human Service Professions. 3rded.Pretoria: Van Schaik Publishers.
Deane . J Waldman,Sanjeevarora;(2004),Human Resource Planning,Vol.27
Dess, G. D., & Shaw, J. D. (2001).Voluntary Turnover, Social Capital and Organizational
Performance. Academy Of Management Review, 26 (3), 446-456.
Development Bank of Ethiopia Revised Credit Policy 2016.
Devoretzky, J. P. (1994). Psychology Fifth Edition.Usa: West Publishing Company.
Dienhart, J. (1992), "Service Orientation of Restaurant Employees”. International Journal of
Hospitality' Management, Vol. 11 No.4, Pp.331-46.
Dipietro R. B. and Condly (2007), Employee Turnover in the Hospitality Industry: an Analysis
Based on the Cane Model of Motivation. Journal of Human Resources in Hospitality &
Tourism, 01; 6:1-22.
Dyer, L. &Theriault, R. (1976). The Determinants of Pay Satisfaction. Journal of Applied
Psychology, 61, (5), 596-604.
Egigu Mekonnen.(2014), Employee Retention Strategies and Organization Performance at
Awash Tannery
Feldman, D. C. &Arnold, H. J. (1983). Managing Individual and Group Behaviour in an
Organization. Auckland: Mcgraw-Hill Co.

62
Feldman, D. C. &Arnold, H. J. (1983). Managing Individual and Group Behavior in an
Organization. Auckland: Mcgraw-Hill Co.
French, W L, Kast, F E AndRosenzweig, J E (1985) Understanding Human Behaviour in
Organizations, Harper & Row, New York
Furnham, A., Eracleous, A.,and Chamorro-Premuzic, T., (2009). Personality, Motivation and
Job Satisfaction: Herzberg Meets the Big Five. Journal of Managerial Psychology, Vol.
24, No. 8, Pp. 765-79.
Gib-010 Reliability-Centered Maintenance (Rcm) Handbook, Apr 2007
Gibson, L.J., Donnelly, J.H&Ivancevich, J.M. 2000.Fundamentals of Management. Chicago:
Irwin.
Glen P (2007), How to Manage and Lead People Who Deliver Technology: - You Can‟t
Outsource Retention, Computerworld. Pp; 63-98
Goodwin (1995).P.62 Aljandro Marcel Schonhoffberlin,Germany
Gordon, J.R. 1999. Organsiational Behaviour: A Diagnostic Approach.New Jersey. Prentice
Hall Inc.
Griffeth R., W., (2003), The Role of Perceived Organizational Support and Supportive Human
Resource Practices in the Turnover.
Griffeth, R., (2000). A Meta-Analysis of Antecedents and Correlates of Employee Turnover:
Update, Moderator Tests, and Research Implications for the Next Millennium. Journal
of Management, 26(3), 463-488.
Gruman & Saks (2011).Performance Management and Employee Engagement. Human
Resource Management Review 21 (2011) 123–136
Hackett,P ( 1996). Success in Managing People. New Edition.Biddlesltd, Great Britain.
Hackman, J. R. &Oldham, G. R. (2005). How Job Characteristics Theory Happened. The
Oxford Handbook Of Management Theory: The Process of Theory Development, 151-
170.
Hauser, A.H. and Baggett, M. S. (2002), "Workers' Compensation: The Statutory Framework
for Defending A Claim. Trial Advocate Quarterly 21 (Fall).
Herzberg, F., Mausner, B., &Snyderman, B.B. ([1959], (1987)).the Motivation to Work. New
York: John Wiley& Sons
Howell, J. M., &Avolio, B. J. (1993). Transformational Leadership, Transactional
Hoy, W.K. &Miskel, C.G. 1991.Educatoinal Administration Theory, Research and Practice.
New York: Ramdon House

63
Huselid, M. (1995), “The Impact of Human Resource Management Practices on Turnover,
Productivity, and Corporate Financial Performance”, Academy Of Management
Journal,Vol. 38, No. 3, Pp. 635–672.
Ingersoll, R., M., (2001). Teacher Turnover and Teacher Shortages: An Organizational
Analysis. American Educational Research Journal, 38(3), 499-534.
International Journal of Economics and Financial Issues Vol5 Special Issue 2015, the Impact of
Human Resource Practices on Employee Retention in the Telecom Sector
International Journal of Indian Psychology Volume 3, Issue 4, No.56
Irshad M. (2009). Factors Affecting Employee Retention, Abasyn Journal of Social Science.
Vol.4no. 1
Jeromey Boettcher May (2009) A New New-Hire Orientation Process University Of
Wisconsin-Stout
Johnson, S., M., And Birkeland, S., E., (2003). Pursuing a Sense of Success: New Teachers
Explain their Career Decisions. American Educational Research Journal, 40, 581–617.
Joo.B.K. (2005).Executive Coaching: a Conceptual Framework from an Integrative Review of
Research and Practice .Human Resource Development Review, 4,134-144
Jun, M., Cai, S. and Shin, H. (2006), “Tqm Practice In Maquiladora: Antecedents of Employee
Satisfaction and Loyalty”, Journal of Operations Management, Vol. 24, Pp. 791-812
Jyothi, P. and D. N. Venkatesh. 2006. Human Resource Management. New Delhi: Oxford
University Pre
Kallenberg,A. and Moody, J. (1994), “Human Resource Management and Organisational
Performance”, American Behavioural Scientist, Vol. 37, No. 7, Pp.94862.
Kavanaugh, J., Duffy, J., A., And Lilly, J., (2006). The Relationship between Job Satisfaction
and Demographic Variables for Healthcare Professionals. Management Research News,
29(6), 304-325.
Kelly, S., (2004). an Event History Analysis of Teacher Attrition: Salary, Teacher Tracking,
and Socially Disadvantaged Schools. Journal of Experimental Education, 72(3), 195–
220.
Kim, W., Leong, J. and Lee, Y. (2005), Effect of Service Orientation on Job Satisfaction,
Organizational Commitment, and Intention of Leaving in a Casual Dining Chain
Restaurant. International Journal of Hospitality Management, Vol. 24 No.2, Pp.171-93.
KirubelArega. (2014), Factor Affecting Employee Job Satisfaction in the Case of Development
Bank of Ethiopia

64
Koch, M.J. & Mcgrath, R.G. (1996), „Improving Labor Productivity: Human Resource
Management Policies Do Matter‟, Strategic Management Journal, Vol.17, Pp.335-354.
Kothari C. R. (2007), Research Methodology Methods and Techniques, 2nd Revised Edition,
New Age International P. Limited, New Delhi
Kotzé, K. &Roodt, G. (2005) Factors That Affect the Retention of Managerial and Specialist
Staff: an Exploratory Study of an Employee Commitment Model. SA Journal of Human
Resource Management, 3(2), 48-55.
Landsman .2004 “Legitimacy and Justice Perceptions” Social Psychology Quarterly 67
189:202
Latham,G. P. (1988).Human Resource Training and Development. Annual Review of
Psychology, 39, 545−582
Lawler, E. E., Iii (1973).Motivation in Work Organizations. Brooks/Cole Publishing Company:
Monterrey, Ca. Leadership, Locus of Control and Support for Innovation: Key
Predictors of Consolidated-Business Unit Performance. Journal of Applied Psychology,
78, 891-902.
Lincoln, J, & Kallerberg, A. (1990). Culture, Control and Commitment: A Study of Work
Organization and Work Attitudes in the United States and Japan. New York:
Cambridge University Press.
Locke, E. A. (1976). The Nature and Causes of Job Satisfaction in M. D. Dunnette (Ed.),
Handbook of Industrial and Organizational Psychology (Pp. 1297 – 1349). Chicago:
Rand Mcnally.
Locke, E.A. 1976.The Handbook of Industrial and Organisational Psychology. New York:
Wiley.
Lusser, R. N. (1990). Human Relations in Organizations: A Skill – Building Approach. Boston:
Richard D. Irwin Inc
Lusser, R. N. (1990). Human Relations in Organizations: A Skill – Building Approach. Boston:
Richard D. Irwin Inc
Luthans, F. (2006).Organizational Behavior. (11 Th Ed.). Irwin: Mcgraw-Hill.
Mariam KathiniMaliku(2012) the Perceived Relationship Between Employee Retention and
Organizational Performance at National Oil CorporationOf Kenya
Martensen, A. And Gronholdt, L. (2001), “Using Employee Satisfaction Measurement to
Improve People Management: an Adaptation of Kano‟S Quality Types”, Total Quality
Management, Vol. 2 Nos 7/8, Pp. 949-57

65
Martineau T., Lehman U., Matwa P., Kathyola J., Storey K., Factors Affecting Retention of
Different Groups of Rural Health Workers in Malawi and Eastern Cape Province, South
Africa, 2006
Mary CalistIrema, (2015) Assessment of Factors Influencing Employee Retention in
Tanzania‟s Non-Governmental Sectors:
Mayfield, J.; Mayfield. The Creative Mayfield Environment‟s Influence on Intent to Turnover,
Management Research News 31(1) (2008)41-56
Mc Shane, S.L., & VonGlinow, M. 2005. Organisational Behaviour: Emerging Realities for the
Workplace Revolution: Irwin- McGraw- Hill.
Mcnamara, C. (2008). Employee Benefits and Compensation: Basics about Employee
Motivation: Nuts-And-Bolts Guide To Leadership and Supervision In Business.
Minneapolis, Minnesota: Authenticity Consulting Llc.
Mehrens, W.A. &Lehmann, I. J.(1987).Using Standardized Tests in education (4th
Ed.).Newyork:Longman.
Michael O. Samuel and Crispen Chipunza, (2009), Employee Retention and Turnover
Department of Industrial Psychology, University of Fort Hare, South Africa.
Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded source book
(2nd ed.). Newbury Park, CA: Sage.
Milman,A.,&Ricci.P. (2004). Predicting Job RetentionOf Hourly Employees in the Lodging
Industry. Journal of Hospitality and Tourism Management, 11, 28-41.
Miner, J. B. (1992). Industrial and Organizational Psychology. New York: Mcgraw-Hillinc
Montgomery, J.D. (2006), the Relationship between Training and Retention in a Volunteer
Organization.
Morrell, K., Loan-Clarke, J., & Wilkinson, A. J. (2001).Unweaving leaving: The Use of
Models in the Management of Employee Turnover. International Journal of
Management Reviews, 3 (3), 21 9-244.
Muchinsky, P. M. (1990). Psychology Applied to Work: an Introduction to Industrial and
Organizational Psychology. (3rd Ed). California: Brooks/Cole Publishing Co.
Mugenda, M. and Mugenda, G. (2003), Research Methods, Quantitative and Qualitative
Murphy, P. K., (2000).A Motivated Exploration of Motivation Terminology. Contemporary
Educational Psychology, 25,3–53.
Nadeems.,Aysham.,Yasirt.,Hussain T.(2011).Losing Your Best Talent: Employee Retention
the Dilemma of Textile Industry A case of Textile Sector. Inter displinary Journal of
Contemporary Research Business, December 2011, Vol3
66
Nation-Wide Employee Survey (Kenexa, 2011)
Nayoka (2006) Retention Strategies Notako Publisher
Nde, Martin Nche,(2012)Strategic Recruitment, Selection And IntegrationOf International
Labour Force. Laurea University of Applied Sciences Case Study: Company X,
Finland, .P 11
Nzuve S (1997), Management of Human Resources a Kenyan Perspective 4st Edition, Nairobi,
Kenya. Basic Modern Management Consultants. Pp. 43-51.
O„Connor, Arnold&Maurizio(2010). The Prospect of Negotiating: Stress, Cognitive Appraisal,
and Performance. Journal of Experimental Social Psychology 46 (2010) 729–735.
Oakland,S. and Oakland, J. S. (2001) Current People Management Activities in World-Class
Organizations, Total Quality Management, 12(6), 773–788.
Ogilvie, J. R. (1986) the Role of Human Resource Management Practices in Predicting
Organizational Commitment. Group & Organization Studies, Vol. 11, No. 4, 335 359
Sage Publication, Inc.Mu
Organ, D. W. &Bateman, T. S. (1991).Organizational Behavior. Boston: Richardd.Irwininc.
Ostroff, C., &Bowen, D. E. (2000). Moving Hr to A Higher Level: Hr Practices and
Organizational Effectiveness. In K. J. Klein & S. W. J. Kozlowski (Eds.), Multilevel
Theory, Research, and Methods in Organizations: Foundations, Extensions, and New
Directions (Pp. 211–266). San Francisco: Jossey–Bass.
PendulWaguma (2011).Organizational Factors Impacting on Employee Retention, Unpublished
Master Thesis, Nelson Mandela Metropolitan University.
Philips, J.J., & Connell, A.O (2003) Managing Retention: a Strategic Accountability Approach.
Butterworth: Heinemann.
Pinder, C. (1984). Work Motivation: Theory, Issues, and Applications. Glenview:
Scottforesman& Co.
Porter, L.W., & Steers, R.M. (1973). Organizational, Work, and Personal Factors in Employee
Turnover and Absenteeism. Psychological Bulletin, 80,151–176.
Purcell, J (2001) the Meaning of Strategy in Human Resource Management, In (Ed) J Storey,
Human Resource Management: A Critical Text, Thompson Learning, London
Rehman S. (2012), Employee Turnover and Retention Strategies: Empirical Studies of Public
Sector Organizations of Pakistan.Global Journal of Management and Business
Research.Vol.12 Issues.
Reville, R. T., Boden, L. and Biddle, J. (2003), Comparing Compensation Adequacy:

67
Riggs, D.J. (1997). “What‟s In Store for Academic Libraries? Leadership and Management
Issues”. Journal of Academic Librarianship. 23. Pp. 2-8.
Rion, J. (2009). Professional Development: The Key to Retention.71 (2).Ronline1. Available:
Http://Researchpro.Seals.Ac.Za.
Robbins, S.P. & Judge, T.A. (2007).Organizational Behavior. (12thed.). Upper Saddle River,
NJ: Prentice Hall.
Robbins, S.P. 2001.Organisational Behaviour. New Jersey. Prentice Hall. P 447- 449
Roberson, L., &Ellis, A. (2008). Challenging Conventional Wisdom About Who Quits:
Revelations from Corporate America. Journal of Applied Psychology, 93(1), 1-34
Roberts, N., Outley, C. (2002), InnovationAnd Resourcefulness: Recruit and Retain a Diverse
Staff in The21st Century. Parks and Recreation Magazine, 37(5), 39-46.
Salas, E., Cannon-Bowers, J. A., Rhodenizer, L., & Bowers, C. A. (1999).Training in
Organizations. Research In Personnel and Human Resources Management,17, 123−161.
Samuel M. and Chipunza C.(2009), Employee Retention and Turnover: Using Motivational
Variables as a Panacea. African Journal of Business Management Vol.3 (8), Pp. 410-
415.
Schermerhornjr., J. R. Hunt, J. G., Osborn, R. N., & Uhl-Bein, M. (2011). Organizational
Behavior (11th Ed.). John Wiley& Sons Inc. Pennsylvania Usa.
Schroder, R., (2008). Job SatisfactionOf Employees at a Christian University. Journal of
Research on Christian Education, 17, 225-246.
Sean Albert Mcsherry Foley Fall (June, 2010) New Employee Orientation San Diego State
University
Sharma, B. R., &Bhaskar, S. (1991). Determinants of Job Satisfaction among Engineers in A
Public Sector Undertaking. Asci Journal of Management, 20(4), 217-233.
Shaw (1998), an Organization-Level Analysis of Voluntary and Involuntary Turnover, Acad.
Manag. J.; 41(5):511-26
Siggler K (1999), Challenges of Employee Retention Management; Research News Parrington:
1999. Vol 22 Iss, 10 pg 1.
Smilansky J. (2005): The Systematic Management of Executive Talent, Hydrogen, London.
Sorensen, K., L., 2 (008). Toward A Further Understanding of the Relationships between
Perceptions of Support and Work Attitudes - A Meta-Analysis. Group and Organization
Management, 33(3), 243-268.
Spector, P. E. (1996). Industrial and Organizational Psychology: Research and Practice. New
York: John Wiley& Sons, Inc.
68
Steers, R. M., &Mowday, R. T. Employee Turnover and Post-Decision Accomodation Process.
In L. Cummings & B. Staw (Eds.), Research in Organization Behavior (Vol. 3).
Greeenwich, Connecticut: Jai Press, 1981, Pp. 235-281.
Steyn& Van Wyk. (1999). Job Satisfaction: PerceptionOf Principals and Teachers in Urban
Black Schools In South Africa. South African Journal of Education, 19(1), 37–44.
Stockard, J., and Lehman, M., (2004). Influences on the Satisfaction and Retention of 1st-Year
Teachers: The Importance of Effective School Management. Educational
Administration Quarterly, 40(5), 742–771.
Susskind, A.M., (2000), “Customer Service Employees‟ Behavioral Intentions and Attitudes:
An ExaminationOf Construct Validity and A Path Model”, International Journal of
Hospitality Management, Vol. 19 No. 1, Pp. 53-77.
Torrington, D., Hall, L. & Taylor, S. (2008). Human Resource Management. Prentice Hall:
Essex.
Trochim, W. M (2006).The Research Methods Knowledge Base (2nd Ed.). Retrieved October
20, 2006, From
Tsui,A. S., Pearce, J. L, Porter, L. W., &Tripoli, A. M. 1997.Alternative Approaches to the
Employee-Organization Relationship: Does Investment In Employees Pay Off?
Academy Of Management Journal, 40:1089-1121
Uk Essays (March,2015).
W. Mobley's (1977, Journal of Applied Psychology, 62, 237-240) Original Turnover Model
Wambugu, D. M. (2013). Determinant of Successful Completion of Rural Electrification
Projects in Kenya: A Case Study of Rural Electrification Authority. International
Journal of Social Sciences and Entrepreneurship, 1(2) 549-560
Wayne, S. J., Shore, M., &Liden, R. C. (1997). Perceived Organizational Support and Leader-
Member Exchange: A Social Exchange Perspective. Academy of Management Journal,
40,82–111.Whitener, E. M. (1997). The Impact of Human Resource Activities on
Employee Trust. Human Resource Management Review, 7,389–404.
Weick, K. E. (1979). The Social Psychology of Organizing (2nd Ed.). Reading
Ma:Addisonwesley.
Weick, K. E. (1995). Sense Making In Organizations Thousand Oaks, Ca: Sage.
Welman, J.C, Krugers.J. 2004. Research Methodology. Cape Town, South Africa: Oxford
University Press.
Werner A., Motivation in Human Resource Management, Cape Town: Oxford University
Press, 2001, P. 587
69
Wilson, B., (2008), Job Satisfaction Among A Multigenerational Nursing Workforce. Journal
of Nursing Management, 16(6), 716-723.
Wolf, H. K. And Pant P.R. (2007) .Social Science Research and Thesis Writing. Kathmandu:
Buddha Academic Publishers.
Wood Ruffe, C. (1999). Winning the Talent War: A Strategic Approach to Attracting,
Developing and Retaining the Best People. Chichester, Uk: John Wiley& Sons.
Workers' Compensation Permanent Disability Benefits In Five States. Santa Monica, Calif.:R
and.
Worthen, B. R., Borg, W .R. and W Hite, K. R. (1993). Measurement and Evaluation in the
Schools White Plains, Ny: Longman
Www.Dbe.Com.Et
Yamane, Taro. (1967).Statistics: An Introductory Analysis, 2nd Edition, And And New York:
Harper and Row.
Youndt M, (1996).“Human Resource Management, Manufacturing Strategy, and Firm
Performance”, Acad. Manag. J.; 39(4):836-66.
Yukl, G. (2002), Leadership in Organizations, 5th Ed., Prentice-Hall, Englewood Cliffs, Nj.

70
 APPENDICES

Appendix-A: Questionnaire Distributed to Respondents (Employees)

St’ Marry University College
School Of Graduate Studies
MBA Program
Questionnaire to be filled by Employee of Development Bank of Ethiopia

Dear Respondents:-
I would like to express my earnest appreciation for your generous time, honest and prompt
responses.
Objective:
This questionnaire is designed to collect data about the assessment of employee retention
practice in the Development Bank of Ethiopia (DBE). The outcome of the study will be used
in order to suggest possible solutions for problems identify to DBE while conducting the study.
The information that you offer me with this questionnaire will be used as a primary data in my
case research which I am conducting as a partial requirement of MBA Degree at ST. Marry
University under the School of Business Administration.
NB.
 There is no need of writing your name.

 In all cases where answer options are available please tick (√) in the
appropriate box.

 For questions that demands your opinion, please try to honestly describe as
per the questions on the space provided
Confidentiality
I want to assure you that this research is only for academic purpose authorized by the St.
Marry University. No other person will have to access this collect data.
Therefore, your genuine, frank and timely responses are quite vital to determine the success
of this study. So, I kindly request your contribution in filling the questionnaire honestly and
responsibly.
Thank you in advance for your kind co-operation in this regard

a
Section I: Demographic Information

1. Sex:
Female Male
2. Which of the following age categories describes you?

Under 26 26-35 36-45 46-55 and above 56

3. Number of years you have worked in the Bank (in years):

0-5 6-9 10-20 21-30 30 years or more

4. Your Educational Qualification:

High school graduate (12+2) Technical school graduate

College Diploma BA/BSc Degree Master‟s Degree (MSC/MA)
PhD
Other (please state) _____________________
5. Your Current Position:

Trainee Junior Officer Senior Officer

Team Manager Director and above
6. Your current salary range between

Less than Birr 2,935 between Birr 10,759-14,115

Between Birr 2,935-10,759 between Birr 14,115-26,110
Above 26,110

b
 Section II: Assessment of Employee Retention Practice in DBE
7. Rate the extent to which each of the statements in the matrix represented below
assessment of employee retention practice in your Bank.
Directions: using the key below, please tick (√) your best responses to the following statements
on a scale of 1 to 5
□ Where; 1.Strongly Disagree2. Disagree 3-Neutral 4- Agree 5- Strongly agree
1. Stability of the Bank’s workforce 5 4 3 2 1
Creates an inspiring vision of the future to employees
Motivates and inspires people to engage with that vision.
The expectation that good results lead to attractive rewards or incentives to
retain valuable employees
Employees are satisfied by the solutions or responds of management.
Top management treats respect their employee.
Workers' resistance to change is recognized or appreciates by management.
The Bank management takes long time to take appropriate solutions of
workers Complain.
The physical working conditions (e.g., heating, airing, noise, space,
cleanliness) are very good.
Individual differences are respected here (e.g., gender, race educational
background, etc.)
DBE has convenient and economical workable employee.
There is job security which encourages employees to stable in the Bank
There is no too much conflict and fighting at work.
DBE has built a legal & more stable workforce.
Employee believes that working up to retirement.
I would recommend the Bank as a career to my friends.
I‟m well satisfied with my current salary to stay in the organization
Readily available loan facilities(staff, house and car) are fair to all
employees
There is a consistent and equitable system of rewards
I feel satisfied with the Bank‟s Bonus and incentive programs to stay in the
Bank
I receive adequate training and development to do my job well.
The Bank has sufficient opportunities for advancement of their employee
profession.
Management participate employees in planning and decision making in the
Bank

c
 Training, career development and promotions are offer to all employee or
unbiased way and employees are satisfied.
Opportunities for career progression in the Bank is critical for me to stay for a
long term
Employee training and career development programs offered are linked to
each employee‟s career needs or skill gap
I am satisfied with my chances for promotion

2. Employee’s retention strategies/schemes and programs of the Bank

5 4 3 2 1
The Bank‟s Human resource management policy, rules and procedures are clear and
make sense to employee.
DBE has best strategy to handle or retain valuable professional employees.
The Bank has preferable organizational culture to retain employee.
Flexible work schedules that recognize their need for work life balance
Coaches and builds a team, so that it is more effective at achieving the vision of the
Bank
There is job enlargement(horizontal) redesigned by core HRMD to employee's
There is job enrichment(vertically) redesigned by HRMD to employee's to
employee's
There is job rotation(alternate job) redesigned by HRMD to employee's to employee's
Well defined Job design, descriptions and specifications are assign to all employees
by HRMD
There is good upward employee communication in the Bank.
There is good downward employee communication in the Bank.

d
 3. Successful Implementation of Retention strategies/schemes and
programs 5 4 3 2 1

There is no adequate training and development to do my job well.

Opportunities for career progression in the Bank is critical for employee to stay
for a long term
Job rotation area implement unsuccessfully based on the settled strategy.
The Bank has sufficient opportunities for advancement of their employee
profession.
Employees not satisfied with their chances for promotion
Employee training programs offered are linked to each employee‟s skill gap.
Employee career development programs offered are linked to each
employee‟s career needs.
Employee satisfied with management efforts to identify their strengths and
weaknesses.
Employee satisfied with the quality of orientation and training received from
my senior peers
I‟m satisfied with the mentoring that I currently received from my senior
peers.
The rewards and benefits offered are proportionate to the volume and quality
of service given by the employee
I‟m satisfied with the health care benefits and insurance coverage provided by
the Bank
The rewards and benefits offered are comparable with what the market offers.
It is difficult to stay in the Bank under the positions of Trainee and junior
position
Employees‟ career goals are established and supported by the performance
Managements.
Feedback from performance Managements leads to enhanced employee
development.
Performance Management system encompassing mentoring and coaching of
employees is in place.
Bank honour recognition/reward for good performance
The Bank has responsible employee to discharge their duty
Immediate supervisor has given positive recognition to the employee.

e
 4. Perception of employees on the employee retention practices of the
Bank 5 4 3 2 1

Management encourages employee to creativity, innovation, and continuous

improvement.
Good or healthy competitions with employee to employees are available in the
Bank.
There is an environment of transparency and trust in the Bank to retain.
Conflict of interest is very low in DBE.
I observed or experienced some forms of discrimination or harassment (e.g.
racial discrimination, sexual harassment, age discrimination, gender
discrimination, Sexual orientation discrimination etc.) at the Bank.
Employee are satisfied with their current job to stay in the Bank
The Bank work is fully supported by latest Technology
Management do not create stress to their employees.
Employee feel a sense of pride in doing their job
The Bank has too much paperwork, as a result the employee have stressed
The Bank has given appreciation to their employee
My work activities are personally meaningful to me.
This job adds significant pressure and anxiety to my life.
I am generally satisfied with the kind of work I do in this job.
Management believes that employees are the most important asset of the Bank.
There is enough career advancement opportunities to all employee
There is professional learning and growth opportunities in the Bank
Employees are recognized and rewarded for their commitment and dedicated
service to the organization.
Employees are satisfied with the number of annual leave days given by the Bank.
The employees are satisfied with the educational financial assistance in domestic
and foreign country given by the Bank.

f
Appendix-B: Interview Check List.

1. Is the management of the Bank aware about the factors influencing employee retention?
2. What is the current trend of the employee retention strategy taken by HRMD?
3. Do you feel that employee retention is a serious issue/problem in Development Bank of
Ethiopia?
4. What are DBE‟s strategy, policy and programs towards employee retention?
5. Do you feel that those strategies and policies are support each other?
6. To what extent strategies and polices successfully implemented and what are there outcomes?
7. How do you evaluate the workforce commitment and stability in the Bank?
8. If you aware of factors influencing of employee retention, how did you overcome the problem
to take the possible solution by the Bank? And if your solution have negative impacts what is
your alternative solution?
9. Do you feel that employees of DBE earn adequate financial compensation as compared to
other Banking industry?
10. Does the Bank conduct exit interview, when employees resign?
11. What are the main reasons the Bank identifies that make employee to resign?
12. Does the Bank use the information obtained from exit interview?
13. What are the mechanisms the Bank use to retain its experienced and qualified employee?
14. How DBE does recognize employee contribution to the success of the Bank?
15. What retention mechanism the organization made proactive to retain existing employees?
16. What is the view of current employees to stay in the organization?

g
 DECLARATION
I, Abebe Sharew, declared that this thesis is my original work, prepared under the guidance of
Assistance Professor Goitom Abraham unless the words have been placed in inverted commas
(“„‟) and referenced with the original source. All sources of material used for the thesis have
been duly acknowledged. I further confirm that the thesis has not been submitted either in part or
in full to any other higher learning institution for the purpose of earning any degree.
______________________ ____________________
Name Signature & date

St. Mary‟s University College, Addis Ababa January, 2018

h
 ENDORSEMENT
This Thesis has been submitted to St.Mary‟s University College School of graduate studies for
examination with my approval as a University advisor.

___________________________ _______________________
Advisor Signature & date

St.Mary‟s University College, Addis Ababa