Assessing the effect of motivation on employee retention in Zambian Microfinance Institutions, a case of EFC Zambia Financial Services
DOI:
https://doi.org/10.47941/ijf.2253Keywords:
Motivation, Employee Retention, Microfinance, and EFC Zambia Financial ServicesAbstract
Purpose: This study aimed to assess the impact of motivation on employee retention, specifically focusing on the mediating role of perceived organizational support.
Methodology: The research was conducted at EFC Zambia Financial Services in Lusaka, Zambia, using primary data collected from the company's employees. A mixed-method research approach was adopted, combining both quantitative and qualitative data. A total of 109 employees participated in the study. Quantitative data were analyzed using statistical methods through SPSS, while qualitative insights were obtained via narrative analysis.
Findings: More than 50% of respondents identified several key factors contributing to retention challenges, including limited career development opportunities, inadequate skills training, insufficient compensation, poor work-life balance, and a lack of recognition. These issues were highlighted as major barriers to retaining employees at EFC Zambia. It found that employees recognized various initiatives that contributed to their motivation, such as engagement activities, recognition programs, perks, and reward packages. These programs were acknowledged as positive influences on employee motivation within the organization. The research revealed that a positive work environment plays a significant role in job satisfaction and retention. Supportive workplace conditions were found to be critical in maintaining employee engagement and encouraging long-term commitment to the organization.
Unique Contribution to Theory, Practice and Policy: Based on the findings, the study offers several recommendations. It suggests that EFC Zambia should implement comprehensive recognition and rewards programs to enhance employee motivation. Additionally, providing career development opportunities would foster growth and retention. Regular, constructive feedback for performance improvement is also recommended, as is the promotion of work-life balance initiatives to support employee well-being and reduce burnout. This structured approach is expected to improve both employee motivation and retention, ultimately contributing to the organization's overall success.
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