ASSESSMENT OF EMPLOYEE RETENTION PRACTICES IN DEVELOPMENT BANK OF ETHIOPIA

Abstract

The objective of the study was to assess employee retention practice in Development Bank of Ethiopia. The study implemented a descriptive research design to evaluate the employee retention practices and the researcher used both quantitative and qualitative approaches to collect data through the utilization of a questionnaire and interviews. The respondents were selected from current employees of the Bank similarly the sample of the study consists of 158 respondents, 143of them responded to the questionnaire. Primary and secondary data were used to find out the research output. To generate the output of the study results, the statistical software version 20.0 was used. The data were processed by using descriptive statics which includes frequency distribution, percentage, mean score and standard deviation. The findings of the study revealed that there are no employee retention strategies and programs in place in the Bank. The researcher concluded that the Bank’s workforce is unstable and will incur high recruitment, selection cost and unable to meet the objectives of the Bank. The study recommended that the Bank should enact employee retention strategies and programs through involving employees in creating positive employee perception by establishing conducive work environment and by making opportunities available for training and career development via need assessment, use of effective appraisal system, provide fair rewarding system and competitive benefits package to the financial sector. The Bank also should have constant communication between top management and all employees of the Bank to retain valuable employees and to achieve the strategic goal of the Bank.