Effect of Demographic Factors on Employee Retention in Nepalese Commercial Banks

Abstract

: Human resource management is an indispensable area in the field of management. It is carried out in order to maximize the efficiency of both employees as well as organization. It is a process, which comprises of the acquisition, development, motivation and maintenance of human resource in the organization. Retention of skillful and experience employees is crucial for survive, growth and development of an organization. Retention issues is the hot issues especially in Nepalese banking sector. This study examines the impact of demographic factors on retention of employees in Nepalese commercial bank. Commercial banks of Nepal were selected for the research, which is progressive and growing market for financial institutions. The primary data were collected through questionnaire from 400 respondents selected through simple random sampling. The study is based on dichotomous sand 5-point Likert scale questionnaire. Employees gender, age, income level, marital status, current position, job status, residential status, income level, academic qualification is taken as an independent variable whereas employee retention as dependent variable of the study. The collected data were analyzed through SPSS. Chi-square test is used to know the relationship between the independent and dependent variable. It is concluded that demographic factors such as age, marital status, academic qualifications, numbers of earning family members, residential status, monthly income, current position, experience, have relatively significant relationship with employee retention. However, only two demographic variables i.e. job status and gender did not have relationship with employee retention. Furthermore, the study contributes to the formulation of appropriate policies and guidelines to retain employees in Nepal's commercial banks.