Improving staff retention and motivation retention management

Abstract

Employee retention has become an important topic when organizations are faced with skills shortages. Voluntary turnover is a huge problem for many organizations today and there are many reasons why people voluntarily leave their organizations. However, with the high cost associated with replacing the outgoing workers, employers must deliberately engage in retention activities. Therefore, this research attempts to explain the importance of employee retention and motivation, in Magasins Generaux du Rwanda, with the focus on retention management. The background of the thesis presents a few materials that discuss the importance of retaining employees in the organizations, its effect on remaining staff and the rationale of managers to work hard with the turnover. The public warehouse of Rwanda (MAGERWA) is used as the case study. Many writers argue that although every one works for money, the later is the least motivator. The purpose of the research is to identify strategies of improving employee retention in Magerwa and the role that the management plays in improving staff retention and motivation. Furthermore, this research also attempts to find out the extent at which motivation can influence a person to leave or stay in the company. The theoretical framework used is based on organizational culture, motivation, and job satisfaction with staff retention as the result; assuming that these three factors (organizational culture, motivation and job satisfaction) can lead or influence one‘s decision to stay or leave the company. The data were collected through questionnaire addressed to all staff of Magerwa and to some leavers depending on their availability; and interview conducted with 3 out of 15 managers and to the rest of Magerwa employees to get a broader view on retention management, job satisfaction and motivation. The research is qualitative as well as quantitative and data was analyzed using SPSS software. The research found that communication and feedback, recognition and opportunity to learn were perceived to be the most important job motivation and satisfaction drivers and hence loyalty drivers regarded by employees; followed by respect, social activities and pay factors with equal importance. However, communication & feedback, and opportunity to learn were found to be lacking in operations department but the researcher believes that there will be a positive change overtime as Magerwa has changed the management and being acquired by a new big company from Singapore. The researcher argues with Don et al (2006) that job that job satisfaction is linked to organizational performance, because organizations with satisfied employees tend to be effective than those with unsatisfied employees and Mitchell et al (2001) say that people who are satisfied with their job will stay, while those who aren‘t will leave. The researcher found that Motivation and job satisfaction would influence employee‘s decision to stay or leave because the study found that employees have stayed for more than 10 years only because of the salary. The researcher believes staffs would be more motivated and more satisfied if other factors, like communication, job recognition, opportunity to learn, etc, are taken into account and improved. However, it would be interesting to conduct another study after four or five years from now to find out at what extent staff of Magerwa are motivated comparing to the current situation.