Impact of Employee Motivation on Employee Retention at Reputed Financial Company

Abstract

This research focuses on Employee motivation and its impact on employee retention. In addition to explaining why employee retention is important, researcher has also explained how to retain employees through motivational theories. In today’s competitive environment retaining the best talent has become a challenge to all the companies. Most scholarly articles point out the reason as poor motivational practices has made employees leave the organization. This research aimed at following objectives to achieve: To identify the factors affecting employee retention, to identify the reasons that led Marketing staff leave, and to provide recommendations to improve employee motivation and retention. This research targeted the Marketing staff at ABC Financial Company. Out of 180 non-executive Marketing employees a sample of 123 employees were selected using stratified sampling technique. Data collection methods are questionnaire and interviews. Questionnaire had a Cronbach Alpha of 0.746 that suggest the instrument is reliable. Employee retention is dependent variable and Employee motivation is independent variable. Rewards, career development, job security, employee recognition are the selected independent variables for this research. Based on data gathered using questionnaire and interviews the data was analyzed and presented. Hypotheses were tested using ANOVA test, Correlation, Regression and found out that all four independent variables have a significant impact on employee retention.