The effect of employee retention on organizational performance: case study Lira district local government

Abstract

The study on effects of employee retention and organizational performance was conducted in Lira District Local Government, It was guided by the following specific objectives; to examine the employee retention strategies used in Lira district local government, To analyze the determinants of organizational performance in Lira district local government and to explore the relationship between employee retention and organizational performance in Lira district local government. A case study design was used in the study because it provided a narrowly focused, high level of detail, and was able to combine both objective and subjective data to achieve an in-depth understanding. Both Quantitative and Qualitative approaches were used in determining methods and analysis process. A sample size of 132 respondents were selected from a study population size of 306 respondents, classified as 80 respondents for structured questionnaire, 10 for Key informant interview and 40 for Focus group discussion; Questionnaire, Key Interview and Focus Group Discussion Guides were the key data collection tools used. The study findings showed significant effects of positive work culture among staff on organization performance, strong effects of staff training and staff development on organization performance, significant effect of effective communication and feedback on organization performance and lastly strong effects of staff salaries and compensations on organization performance. The study concluded that Organizations that adapt strategies that entail effective communication and feedback will always ensure improve trust and employee engagement; increases proficiencies of service. The study recommends; strategies to remunerate and compensate workers if they are to improve staff retention need to improve on the budget for training and staff development that is increase access to staff development programs; operationalize staff development and training policy and encourage staff to enroll for further studies accompanied with financial support. And finally Lira District Local Government to exploit strategies to propagate the positive work Culture among staff.