Factors Contributing to Employee Retention in Banks: A Case of Iringa Municipality Tanzania

Abstract

This study sought to determine factors contributing to Employee Retention in Banks in Iringa Municipality Tanzania. The study specifically assessed the contribution promotion opportunities, financial incentives and work environment on employees’ retention. The researcher employed quantitative research approach, and research design was descriptive cross-sectional research. Data was obtained from 93 respondents. Data were collected using structured questionnaire and analyzed using descriptive (frequencies and percentages) and inferential statistics (regression analysis). Regarding promotion opportunities, the study found that there is positive and significant relationship between promotion opportunities and employees retention. Furthermore on financial incentives were found to have positive and significant relationship with employees’ retention and the study reveal banks provide bonuses and other benefits; however majority of the employees are not satisfied with salaried offered. Also the study also found there is positive and significant relationship between work environment and employees retention. As it was also revealed that work environment is very impressive as there are teamwork, support from management, and enough working tools but in terms of fair treatment the study there is a mixed opinion on this. All in all regression findings cemented that all the three determinants (work environment, promotion opportunities and financial incentives) have significant influence on employee retention. The study therefore concludes that there is significance influence between promotion opportunities, work environment and financial incentives on retention. Lastly the study recommends management of these banks to review salary and enhance fair treatment to all employees in the banks since most of employees had concerns on these two issues.