EFFECTS OF EMPLOYEES RETENTION STRATEGIES ON EMPLOYEES PERFORMANCE (IN THE CASE OF COMMERCIAL BANK, WOLKITE CITY)

Abstract

Employee performance is the concern of the study is the employee’s actual contribution to the productivity of the organization, in terms of volume or personal capacities and quality of output of the employee or the intensity of their effort that reflects the productivity of Employee. The main objective of this study is to examine the effect of employees’ retention strategies on employees’ performance. To arrive at an appropriate conclusion about the issue, the researcher has used explanatory research design. For the need of achieving the stated objective of this study, quantitative research approach has been utilized to meet the overall objective of the study. Data were gathered from both primary and secondary sources. The primary data were collected by using questionnaire with both open ended and close ended questionnaires from permanent employees of the institution. Secondary data collection tools include assessing the institution’s annual report, regulations, magazines and articles. All permanent employees of Ethiopian commercial bank, Wolkite city are the study's target group. Sample size of this study was303 respondents they were used to collect and analyze primary. In order to make data analysis, primary data that were collected from respondents and it is tabulated and analyzed using statistical package software for social sciences (SPSS) V.25. For this study, the researcher may use multiple regression models. According to multiple regression model of the study, five determinant variables (Training opportunity, employees’ recognition, employees’ salary, level of bonus, financial reward) have significant positive effect on employees’ performance. Finally, the researcher has recommended that the bank better to develop good incentive schemes to employees. Incentive schemes also play an important role in increasing the performance of employees.