IMPACT OF DEVELOPMENT OPPORTUNITIES AND COMPENSATION ON EMPLOYEE RETENTION: A COMPARATIVE STUDY ON BANKING INDUSTRY OF BANGLADESH

Abstract

This descriptive study investigated the relationship between development opportunities and compensation with employee retention. Analyzing two turnover determinants, development opportunities, and compensation, and their impact on the banking sector and comparing them to find a more effective retention factor is the main goal of the study. Data were collected from national, foreign, private, and specialized banks employee throughout Bangladesh, and 234 employees were chosen from the population of 197,599 using the convenience sampling method. The study questionnaire was prepared using a five-point Likert scale and which sent to the respondent online and personally. To examine the primary data IBM SPSS version 23 (Statistical Package for the Social Sciences) was used and the result of the independent sample t-test was found that statistically there is no significant difference in the case of different gender on employee retention. Coefficient correlation finds that development opportunities and compensation are significantly correlated with employee retention but multiple regressions find that compensation is more significant than development opportunities on employee retention. Managers need to project compensation plans perceived by employees at different levels so that the organization's goal can be easily reached. Previous studies that are on employee retention measured the impact of development opportunities and compensation. But this study considers the comparative impact regarding the use of which one is most significant for employee retention. Article visualizations: