THE ROLE OF EMPLOYEE RETENTION MECHANISMS ON ORGANIZATIONAL PERFORMANCE: THE CASE OF COMMERCIAL BANK OF ETHIOPIA, NORTH ADDIS ABABA DISTRICT

Abstract

The purpose of this study was to assess employee retention and organizational performance in Commercial Bank of Ethiopia north Addis Ababa district. Also assessing employee retention strategies being implementing in CBE north Addis district, exploring contribution of employee retention for organizational performance, assessing employees’ satisfaction with the retention strategies in place, exploring factors that affect the employee retention strategy, identifying solutions to further improve the retention strategy. A descriptive survey design was used and a purposive sample of two respondent groups was involved. Interview questions conducted for officials and experts of human resource management of Commercial Bank of Ethiopia and questionnaires were filled by employees of CBE. The purpose of the interviewing of the first respondent group was to discover what retention strategies are being practiced at commercial Bank of Ethiopia north Addis district and its contribution to achieve organizational goals and other related issues as they are responsible for designing and implementing the retention strategies. Questionnaire filled by employees of Commercial Bank of Ethiopia north Addis district to learn how the retention strategies are designed and implemented, its role in achieving organizational goals and employees satisfaction with the retention strategy. The result shows that there is a well-designed employee retention strategy in Commercial Bank of Ethiopia which made CBE north Addis district successful in meeting its objectives. More than seventy percent of the participants were satisfied with the overall employee retention strategy of their organization. However, both employees and officials of CBE north Addis still believe that there are some retention factors that affect employees on which CBE as a whole has to work. Both respondent groups believed that there is a direct relationship between employee retention and organizational performance and having effective employee retention strategies is vital for the success of the organization. It’s recommended that the bank should give concern about the retention strategy and should make amendments if necessary.