Effect of Work Environment on Employees’ Retention in Banking Sector: A case of Commercial Banks in Mwanza City
The purpose of this study was to examine the effect of work environment on employee retention in Tanzania banking sector particularly in Mwanza City. Mwanza City was purposively pinpointed as area of the study because being the capital and commercial center for the lake zone comprise almost all commercial banks situated in Tanzania with high labour movement and turnover. The independent variable was to examine effect of work environment including workload, supervisory support, and company’s culture. Dependent variable used in the study was employee retention. The study was guided with specific objectives developed namely (i) to examine the effect of workload on employee retention (ii) to examine the effect of company culture on employee retention and (iii) to examine the effect of supervisory support on employee retention. Quantitative research design using close-ended questionnaire with 5-likert scale was used to collect data. Random sampling was used to draw a sample size of 125 employees from the four (4) commercial banks which were purposively selected. A total of 125 questionnaires were distributed to the respondents but only 116 (93%) was duly filled and returned. The data was analyzed using descriptive statistics (frequencies, percentages) and inferential statistics (regression) analysis, specifically, mean values and multiple regression analysis with the help of SPSS. The 116 employees involved from 4 selected commercial banks, majority of them were male 83 (7.6%), female 33 (28.4%), aged between 21-30 years (32.8%) followed by age group of 31-40 years (31%), majority employees were educationally degree holders 62 (53.5%) followed by diploma holders 37(31.8), many employees had worked along the interval period of 1-2 years (38.8) followed by 3-5 years (27.6%). This study found that workload with mean score value 4.2 affect the stay of employees in banks by long work hours and overtask , Company culture with mean score 3.9 affect employees retention in rules of conduct, collaboration which bring bond relationship, creativity of new ideas among employees. Supervisory support affects employees’ retention through supervision follow-up, and motivation as they feel concerned and valued hence attributing to their stay in banks. The examined work environment dimensions (Workload, Supervisory support, and Company’s culture) were found significant predictors of employees’ retention in banks drawing a useful insight to the banks’ management and other organizations to consider them as mileage that contributes for employees’ job satisfaction to stay with the current employer (company) for long period of time consistently toward the strategic goals mainly to commercial banks in Mwanza City.
Keywords: Work environment, Employees retention, Banking sector.