FACTORS INFLUENCING EMPLOYEE RETENTION IN PUBLIC ORGANIZATIONS IN ETHIOPIA: THE CASE OF ADDIS ABABA INSTITUTIONS

Abstract

Employee retention is a concern for organizations in this competitive job market because there are a great number of employment opportunities for talented professionals, the higher skilled the employees, the greater the demand for their services. In order to retain the best talents, strategies aimed at satisfying employee’s needs are implemented, the problem remains on how great is the effect of each strategy having toward overall employee’s retention. The primary aim of this study was to examine the major objective of retention strategies and factors influencing employee retention of public institution in Addis Ababa and The specific objectives are to assess employee retention strategies in public organizations and to identify major factors influencing employee retention in public organizations. The data was collected using survey questionnaire from random sampling of150 respondent and analyzed descriptive analysis and inferential analysis like Pearson correlation and regression analysis. The results of the study shows that job security, training opportunities, salary amounts, working environments, participative decision making, availability of allowances, relationships at work place and promotion opportunities are some of the factors that basically influence employee retention at Addis Ababa. The main finding of the study is that while training opportunity and working environment are the main employee retention strategies, the level of allowance, monthly salary and age are the most promising factors that affect the employee retention in the studied institutions. Finally the higher officials in public institutions should give an attention for retention strategies like training & opportunity, working environment and Good working relationships as well as the important factors like Allowance, job security, reward and compensation organizational commitment, salary and age when devising a plan for employee retentions.