An Inter-Services Comparative Study on the Diversification of the Factors of Employee Retention in Bangladesh: Application of Structural Equation Modeling

Nigar Sultana, Mohammad Tauhidul Islam, Md. Mahedi Hasan

Abstract


Despite a significant number of researches for finding the factors of employee retention and its short- and long-run impact on the organizations, a comprehensive comparison of the factors of employee retention among different types of organizations is yet to be undertaken in Bangladesh. The findings of those researches on the factors of employee retention rarely explicate their specification on different types of organizations, which is assumed to be different. Thus, we argue that a comprehensive study to find the factors of employee retention of the employees in different types of organizations is relevant and necessary. Such a study would allow reaching more explicit and comprehensive understanding on the specification of the factors of employee retention among different types of organizations and will help to make efficacious policy for employee retention in the organizations. We would like to address the research by means of a systematic and conceptual analysis of the responses on employee retention from the employees working in different types of organization such as “Private Universities,” “Private Banks” “readymade garment sector,” and “information technology” sector. In that regards, data have been collected from 270 employees, at least 50 from each type of organization by stratified random sampling technique with proportional allocation. This study has applied structural equation modeling to find the common and specific factors of employee retention among the studied organizations. We have found that the factors of employee retention are notably different in varying nature of organizations. Those identified factors of employee retention for each type of organization can be addressed to put into effect to reduce bad turnover (competent employees leaving) in the organizations. The contribution of this paper will also help the policy makers to devise an effective plan for the organizations to ensure retention of employees.

Aus. Aca. Busi & Eco. Rev Vol 3(3), July 2017, P 166-176

Keywords


Employee Retention; Turnover; Structural Equation Modeling; Bangladesh

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