Review of Public Administration and Management

Abstract

Factors Influencing Employees? Retention in the Banking Industry of Ghana

Gabriel Dwomoh and Evelyn Owusu Frempong

It cost organizations twice to engage the services of new workers than to maintain the existing ones. The study looked at the factors influencing employees’ retention by selecting eight factors after a comprehensive literature review and their significance in terms of helping banks in Ghana to retain their existing employees. The researchers adopted convenience sampling because of confidentiality and the busy nature of employees who work in banks to obtain the one hundred and six (106) employees for the study. The appropriate data collection instrument used was mainly questionnaires. The results of the Probit regression model adopted for the study based on the eight selected factors showed that employees retention in the banking industry of Ghana depends on how banks design and implement their compensation and reward systems to meet employees expectation, how they are able to deal with issues regarding work life balance, build good image and create favorable working environment, provide permanent jobs, ensure that the values and beliefs of these banks are aligned with that of their employees, ability of banks to ensure fairness in the management of their staff and encouraging managers and supervisors to develop good relations with subordinates. Based on the limitation of the research in terms of its scope, the study recommends for future research on how employee demographic characteristics influence employee retention in the Ghana’s banking industry.