EFFECT OF MOTIVATIONAL PRACTICES ON EMPLOYEE RETENTION: THE CASE OF COMMERCIAL BANK OF ETHIOPIA, ADDIS ABABA, KOLFE KERANIYO DISTRICT.

Abstract

Employees are essential to an organization's success. The accomplishment of organizational objectives depends on staff retention in the contemporary, competitive work environment. It is impossible to overstate the significance of motivation in keeping key personnel. Retaining top talent is still a struggle for most managers. This study's primary goal was to determine how motivating techniques affect employee retention. The kolfe keraniyo district of the Commercial Bank of Ethiopia, Addis Ababa, was chosen as the case study location. Samples of 146 CBE workers’ questionnaire response were analyzed using an explanatory research design in order to meet the goal. Stratified random sampling, Solvin's sample size determination algorithm, and Taro Yamane's 1967 methodology were used in the selection of these respondents. For the study, both primary and secondary data were employed. With the use of statistical methods including mean, standard deviation, correlation, and regression analysis, the data obtained from a questionnaire were examined using SPSS (Statistical Package for Social Science) software version 24. As a result, the descriptive analysis's findings also showed that respondents' average levels of opinion on compensation, reward and recognition, and availability of training and development were low, and they had moderate levels of opinion on promotion. The findings of the correlation study showed that employee retention was positively and moderately correlated with training and development, reward and recognition, job security, working environment, salary and promotion. This suggests that CBE's use of these incentive techniques was insufficient to keep its staff members. Therefore, it is recommended that Commercial Bank of Ethiopia should set up suitable selection standards to guarantee that every employee receives a promotion on schedule; and that the Commercial Bank of Ethiopia puts aside funds to give diligent workers incentive bonuses.