Abstract

This study assessed “The effects of Satisfaction on Employee’s Retention”. To investigate the impact of job satisfaction on employee retention, Data used for the study were collected through questionnaires from 50 employees of CDC TIKO,. The study has used both descriptive and inferential statistics using simple regression analysis. Findings of the study: This study explored the relationship between job satisfaction (motivation system, job content, supervisor’s support) and employee retention at CDC Tiko. Key findings: Motivation system had a negative impact on retention (contrary to expectations), Job content positively influenced retention, Supervisor’s support also positively affected retention. The study used questionnaires (50 valid responses) and simple regression analysis.

These findings can help CDC Tiko improve employee retention strategies. Recommendations of the study: The study suggests CDC Tiko’s management to Focus on improving job content and supervisor support to enhance employee retention,  Review and refine motivation systems due to their negative impact, Conduct further research with larger sample sizes for more accurate results, Expand studies to different sectors (e.g., health, technology) and regions for broader insights. These recommendations aim to improve employee retention and job satisfaction at CDC Tiko and beyond.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Due to competition for scarce skills, the attraction and retention of quality employees has emerged as the biggest challenge in human capital management. This has resulted in a high turnover rate in most organisations especially in public institutions. Many skills shortages have been reported especially in South Africa`s public health sector (Pillay, 2009). Nurse turnover has been linked to nurse shortages (Goodwin, 2003).The retention of highly skilled employees is now the major concern for many of South Africa`s public institutions. To attract, retain and be profitable, organisations need novel reward systems that satisfy employees.

Managing turnover is proving to be a challenge to many organizations. Organizations incur very high costs as a result of voluntary turnover. According to Gering and Conner (2002) retaining good workers is critical to any organization. If an organization is not able to retain its employees, it will not be able to capitalize on human assets developed within the organization. Literature and best practices indicate that, to some extent, if employers treat their employees as valued contributors, they tend to remain in the organization (Frost, 2001). It is therefore of great importance that organizations keep their employees satisfied to improve employee retention.

DeYoung (2000) reveals in his studies that many organisations are facing challenges in the development of an employee retention strategy, Turnover rates are increasing in various organisations; if employees are unhappy with their organisations they tend to leave the organisation (Schuler & Jackson, 2006). This becomes a costly exercise, especially if a valuable employee exits resulting in lost production.

In addition, the cost of recruiting another employee is very high and usually takes time. Therefore, the responsibility lies with the employer to ensure that they have the right quality and quantity of employees in an organisation. This can be achieved through devising an efficient reward system which addresses employees` needs. Employee rewards mainly in the form of salary are one of the most identified factors when employees describe their employer of choice.

The relationship between employee retention and job satisfaction at work has been one of the most researched areas in the field of management in relation to different professions. Moreover, employee retention is a major concern in an organization’s competitive advantage since it would have an impact on the organization’s efficiency, productivity, and sustainability of the organization. Particularly, employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period or until the completion of the project. Even though Employee Retention has now become a tough task, it is beneficial for the organization as well as for the employee.

In addition, employee job satisfaction also is significant to an organisation’s performance. Hoppock defined job satisfaction as any combination of psychological, physiological and environmental circumstances that cause a person truthfully to say I am satisfied with my job (Hoppock, 1935). According to this approach although job satisfaction is under the influence of many external factors, it remains something internal that has to do with the way how the employee feels. That is job satisfaction presents a set of factors that cause a feeling of satisfaction.

At the same time, the task of the human resource management in an organization is done flawlessly if it places a right person for a right job at a right place in a right time. However, retention is more important than hiring. A skilled and talented employee will never fall shortage of the opportunities, since he or she has numerous options to choose from different organizations to be with. If a person is not satisfied with his or her present job, he or she may shift over to another, of his choice. The top organizations are on the top because they care for their employees and they know how to keep them glued to the organization.

Employees stay or leave organizations for many reasons the reasons may be personal or professional. Employees who are satisfied and happy with their jobs are more dedicated and work for organization’s growth. If employees are satisfied at their job then they will stick and work for the organization. This may be translated to employees that are satisfied with their job will stay with the organization. The purpose of this study is to investigate the relationship between job satisfaction and employee retention.

1.2 Statement of the problem

In today’s competitive global economy, sustained organisational success is increasingly dependent on the stability and expertise of a committed workforce. High employee turnover is a critical operational problem, imposing significant direct and indirect costs on organisations, including expenses for recruitment, training, and the loss of institutional knowledge, which ultimately undermines productivity and competitive advantage (Abbasi and Hollman, 2000). While this is a universal challenge, it is particularly acute within the vital agro-industrial sectors of developing economies like Cameroon, which form the backbone of national employment and economic stability.

The Cameroon Development Corporation (CDC), as one of the country’s largest state-owned enterprises and employers (Worldfolio, n.d.), is not immune to these pressures. The organisation operates in a demanding sector where retaining skilled agricultural technicians, operational staff, and managers is essential for maintaining crop yields, operational efficiency, and long-term sustainability. The failure to retain key employees can lead to tangible negative outcomes, including disruptions in production cycles, a decline in quality control, and an erosion of the deep, context-specific expertise required for large-scale plantation agriculture. This situation presents a significant and persistent business problem for the management of CDC Tiko.

Despite the clear organisational need to mitigate employee turnover, there is a significant knowledge gap in how to effectively address this problem within the specific context of Cameroon’s agro-industrial sector. Much of the dominant management literature on employee retention is based on studies from Western, industrialised nations, which often prioritise factors that may not be directly transferable (Kamoche, 2004). Consequently, there is a marked scarcity of empirical research that investigates the specific, localised drivers of employee retention at a major Cameroonian enterprise like CDC Tiko. It is currently unclear whether the primary drivers of retention at CDC Tiko are traditional monetary rewards, or if non-monetary factors such as the nature of the job content and the quality of supervisor support play a more critical role.

Without a clear, evidence-based understanding of why its employees choose to stay or leave, CDC Tiko’s management is forced to rely on assumptions and generic strategies that may be both costly and ineffective. Therefore, this study aims to address this critical gap by systematically investigating the precise impact of the motivation system, job content, and supervisor support on employee retention at CDC Tiko. The findings are essential for developing a targeted, context-specific retention strategy that can enhance workforce stability, improve organisational performance, and provide a model for other major enterprises in the region.

1.3 Research Objectives

The general objective of this study is to investigate the influence of key workplace factors on employee retention at the Cameroon Development Corporation (CDC) in Tiko.

1.3.2 Specific Objectives

1. To examine the relationship between the perceived effectiveness of the motivation system and employee retention at CDC Tiko.
2. To analyse the influence of job content, including aspects of autonomy and task significance, on employee retention at CDC Tiko.
3. To evaluate the impact of supervisor support on an employee’s intention to remain with CDC Tiko.

Check out: Management Project Topics with Materials