A Comparative Study on Factors Affecting Employee Retainability

Abstract

Human resources of an organization are the main asset of any organization. They are unique in character and dynamic in nature. The key challenge for any organization is to manage and retain them. The main motivation of employee retention is the prevention of the loss of the right employees from an organization as it can negatively affect productivity and service delivery. This study aims to identify key influential factors that affect employee retention of two competitive organizations in apparel industry. Also,this study investigated the impact of training, superior-subordinate relationship, working environment, motivation, and benefits on employee retention. A sample of 172 employees from both apparel organizations was considered in the study. The multistage cluster sampling technique was used to select the cooperative offices of two organizations in Colombo district and the simple random sampling was utilized to select the middle level managers from the selected two apparel organizations. The results were obtained using the Structural Equation Modeling technique, revealing that organizational goodwill and benefits have a significant impact on employee retention. One organization has shown a high positive impact on employee retention due to an attractive benefit package, whereas the other has demonstrated a comparatively lower positive impact on retention. However, the overall retention level of both the organizations was 49.74%.