Determinants of employee retention in Nepalese commercial banks

Abstract

Employee retention remains a critical concern for Nepalese commercial banks amidst increasing competition and a rapidly evolving labor market. This study investigates the determinants of employee retention, focusing on compensation, career opportunities, training and development, work-life policies, and organizational prestige. The research employs a descriptive and causal-comparative design, analyzing data collected from 226 officers and assistants across two major banks using structured questionnaires. Findings indicate that compensation, career opportunities, and organizational prestige significantly influence retention, underscoring the importance of fair pay, career advancement prospects, and a positive organizational image. Conversely, training and development programs showed a negative impact on retention, suggesting misalignment with employee expectations. The study also highlights the moderating effects of demographic variables, such as age, gender, and job position, on retention outcomes. These results provide strategic insights for policymakers and practitioners, emphasizing the need for competitive compensation packages, effective career development programs, and supportive work environments to enhance employee retention. The study's findings offer a foundation for addressing retention challenges and promoting long-term stability and growth in Nepal's banking sector. Future research should expand to diverse industries and regions, integrating longitudinal studies for deeper insights into retention strategies' long-term impacts.