Anda di halaman 1dari 4


Employees are critical in todays business environment. In this research employee

retention is the dependent variable, reward, and appreciation, workplace environment,
training opportunities and employee participation are the independent variables. And
employee satisfaction is used as a mediator and independent variables there are
various statements related to this topic such as, studies dating back to Herzberg's5 have
shown that there is strong relationship between high morale and high productivity, and
it is very logical that if the workers will be more satisfied they will definitely add more
value to an organization. A recent study by Raikes and Vernier (2004) analyzed that to
retaining the employees is very beneficial for the organizations they are considered as a
key strategy for the organization to accomplish financial targets. However, Abbasi and
Hollman (2000) identified employee turnover as a very important factor for achieving
the organizational objectives. There are also some others factors like management
attitudes towards employees may also be favorably influenced by participative activities
under which managers and supervisors by allowing employees to participate in the
organizational activities can increase the percentage of retention of employees
(Marchington, 2000). Employee turnover considered as monetary costs for employee
replacement as well as many hidden costs and consequences. Regarding monetary
costs, losing employees can cost a company as much as six (6) months salary for hourly
employees and eighteen (18) months salary for professionals (Thornton, 2001). (Galunic
and Anderson, 2000) states that in todays competitive business environment, it is
important for the companies to concentrate on retention, gain the commitment of their
employees, and manage employee turnover. Research by Ernst and Young said that
attracting and retaining the employees are two of the eight most important things
investors use when they are judging the value of any company. Numerous surveys have
been conducted to determine what are the factors which can influence on the retention
of employees, and the results have varied among surveys. Culture of Organization also
have affect on the employee retention. Organizational culture, defined as the beliefs,
cornerstone values, norms, standards, and assumptions concerning work that members
of an organization share in common, has a basic effect on the motivation of employees
to continue working for their employers (Mainiero, 1993). Autry (2003) also found a
relationship between personal-organizational fit, job satisfaction and intent to stay. In a
time where pay and benefits are expected, an organizations culture play very important
role it can be the deciding factor in an employees decision that he has to remain with
their employer or to leave. The importance of the study for the audience will be, they
will find more search on this topic related to Pakistan. The purpose of my study is to
identify the factors which can affect the retention of employees of the organization.
Different people said about the factors which affect the employee retention for example
about reward the reward is something which is given by the organization to the
employees in response of their contributions and exillent achievements and also
something which is desired by the employees stated by (Agarwal, 1998). It is very
important that the rewards have always long lasting impression on the mind of
employee and it always create the perception in the mind of employees that they are
being recognize by the company and valued (Silbert, 2005).and some people said about
the importance of work place environment like, Work place environment is one of the
most important factors that affect employees decision to stay or to leave the
organization (Zeytinoglu & Denton, 2005). Milory (2004) said people always enjoy
working in those organizations, and strive to work in those organizations that provide
positive and healthy work environment where they feel they are making difference.
Now about the training opportunities, Bartel (1995) find that if employee gets more
chances to get training it will definitely in favor of the organization because employee
training increases greatly the employee retention for a firm. Employee retention is very
important in todays organizations and most of the organizations are facing the problem
how to retain the employees. If any company that wants strong and long lasting
relationship with its employees must invest in the development of their employees (Hall
& Moss, 1998; Hsu, Jiang,Klein & Tang, 2003; Steel et al., 2002; Woodruffe,
1999).employee participation is also important factor for the retention of employees
and in the past research people said about the participation . Employee Participation is
generally defined as a process in which company allow those employees to participate
in the company decisions who are otherwise hierarchically unequal so that they feel
themselves part of the company and it create positive affect in their minds(Locke and
Schweiger, 1979; Wagner, 1994). Employee Participation increase the job satisfaction of
the employees (Cotton et al 1988; Norton 1989).all these factors leads to job
satisfaction, Dawis and Lofquist (1984) defined job satisfaction as the result of the
worker appraisal of the degree to which the work environment fulfills the individuals
needs. And job satisfaction leads to employee retentions. This study shows the affect of
different factors on employee retention in educational sectors. And the factors which
are going to study are affecting of reward, workplace environment, training
opportunities and employee participation on employee retention. Different studies have
been done on this topic but I want to do this in Pakistan in Lahore and in educational
sectors. And the importance of my study will be for employees of educational sectors in
Pakistan. Possible use of research will be different organizations will get to know that
what are the major factors which will help them to retain their employees. Main focus
of the study will be the employee of educational sectors. This research will contribute
towards a contemporary issue of human resource management that is factors affecting
on employee retention in educational sectors. The research will analyze the factors
related to employee satisfaction and its impact on retention of employees in
educational sector. This study provided an opportunity to broaden the knowledge on
employee retention by including a complex model of employee retention with the
mediation variables of employee satisfaction. This study will also give the conceptual
meaning of the relationship between employee satisfaction and employee retention in
educational sectors. This study will helpful for that organization which are still not giving
attention to those factors which can affect the employee retention.