THE EFFECT OF EMPLOYEE DEVELOPMENT PROGRAM ON EMPLOYEE RETENTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The main purpose of this study was to see the effects of employee development program on employee retention of Commercial Bank of Ethiopia. To achieve this, some specific objectives were set. The research followed an explanatory cross-sectional design because it explains the relationship between the dependent and the independent variables. Data for the study was collected through triangulation method of qualitative and quantitative. A mixed of sampling techniques were used to select the targeted population. Totally 293 employees (consensually) were sampled to participate in the study. In all, a total number of 279 questionnaires out of the 291 representing a response rate of 95.8% were used for the analysis. Primary and secondary data was used as a source for the data, questionnaire and interview for the primary and review of litterateurs and documents for the secondary data. Descriptive statistics (frequency, mean and standard deviation) and inferential statistics like correlation and regression is used for analysis. Logistic regression analysis were used to test the strength and direction of relationship been the independent variables and the dependent variable. The result of the correlation tests revealed a strong positive and significant relationship with employee retention except for enrichment which came up as weak but positive relationship. A binary logistic regression was employed to test the hypothesis and a result was that except job enrichment all the rest practices effect on employee retention. Finally banks are recommended to invest on employees to stay in the organization especially on training and development, and job rotation and needs to review the practice of job enrichment and suggested to new researchers to take a longitudinal study on this topic by adding other EDP practices.