COLLEG OF BUSINEES AND ECONOMICS

DEPARTMENT OF COOPERATIVES

EFFECTIVENESS OF EMPLOYEE RETENTION MECHANISMS OF

HAWASSA UNVERSITY SUPPORTIVE STAFF IN CASE OF MAIN
CAMPUS

A RESEARCH FOR FINAL DRAFT SUBMITTED IN PARTIAL

FULFILMENT FOR THE REQUIRMENT OF BACHELOR OF ART (BA)
DEGREEE IN COOPERATIVE (BUSINESS MANAGEMENT)

By: Tesfaye Morka

Id No: 590/04

Advisor: Jarso Jaldessa

HAWASSA, ETHIOPIA JUNE, 2014

HAWASSA, ETHIOPIA

Acknowledgment
First and for most I should like to thanks the almighty God for giving us everything.

Next, I would be for ward my special gratitude to my advisor Jarso Jaldessa for his constructive advice,
comment, suggestions, correcting my mistake and improving the paper which makes this works reality.

Lastly, I would like to thanks my family and friends who give us suggestions, also would like to thanks to
Agegnuesh for her immense contribution in writing paper neatly.

Abstract
 This research paper emphasizes on the effectiveness employee retention mechanisms in
hawassa university supportive staff in the case of main campus.

The general objective of this research is to assess the effectiveness of employee

retention mechanisms in hawassa university supportive staff in the case main campus.

They successfully meet this objectives, the investigators used both primary and
secondary source of data. For primary data, questionnaire were prepared and
distributed to some selected employees. The researcher used simple random sampling
technique to select 40 respondents out of 1804 employees. The collected data were
analyzed using table. Finally, the finding were summarized and the researchers gave
own suggestions based on the conclusions. The researchers depending on the response
of employees got findings and conclusions as well as put their own recommendation
that may help the organization to solve the problem.

Table content
Title Page

Acknowledgment-……………………………………………………………………….

Abstract………………………………………………………………………………………

Chapter one

1. Introduction
Back ground of the study…………………………………………………
1.1 Statement of the problem………………………………………………
1.2 Objective of the study………………………………………………………
1.3.1General objective of the study………………………………….
1.3.2 Specific objective of the study………………………………….

1.4 research questions ……………………………………………………………..

1.5 Significance of the study ……………………………………………………..

1.6 scope of the study …………………………………………………………………..

1.7 Limitation of the study…………………………………………………………

1.8 organization of the paper………………………………………………………

Chapter two

2. Literature review
2.1 What is retention…………………………………………………………..

2.2 purpose of employee retention…………………………………….

2.3 theories of retention ………………………………………………….

2.4 methods of employee retention ………………………………….

2.5 factors affecting compensation decision ………………………

Chapter three

3. Research methodology
3.1 source of data …………………………………………………………

3.2 methods of data collection …………………………………………………………………

3.3 target population………………………………………………………………………………

3.4 sampling technique and size …………………………………………………………….

3.5 study methodology ……………………………………………………………..

3.5.1 Method of data collection ………………………………………………..

3.5.2data management and analysis ………………………………………….

Chapter four

4. Data Analysis and Interpretation

4.1 materials and presentation…………………………………………………………………...

4.2 demographic characteristics of respondents ………………………………………….

4.3 Mechanisms that help employee retention …………………………………………..

4.4 performance appraisal of employee in Hawassa ……………………………………….

4.5 compensation system to retain and utilization of employees ……………………

4.6 effects of employee retention …………………………………………………………………..

Chapter five
5. Summary, Conclusion and recommendation
5.1 conclusion ………………………………………………………………………………………………….

5.2 recommendation……………………………………………………………………………………….

References

Appendix

List of Tables
Table page

Table 4.1 Sex distribution of Respondents ……………………………………………

Table 4.2 Age distribution of Respondents…………………………………………….

Table 4.3 marital Status of Respondents………………………………………………..

Table 4.4 Educational back ground of Respondents………………………………..

Table 4.5 Employment level of respondents……………………………………………..

Table 4.6 Respondents response about the purpose of employee retention…

Table4.7 Respondent response about employee promotion ……………………………………

Table 4.8 Respondents response about improvement of employee’s needs …………….

Table 4.9 the Respondents response the fringe benefits …………………………………………

Table 4.10 the Respondents response about employee satisfaction with fringe benefits…

Table 4.11 Respondents response about the method of employee retention …………….

Table 4.12 Respondents response about appraisal problem ………………………………………..

Table 4.13 Respondents about existing performance appraisal …………………………………….

Table 4.14 Bodies who appraise employee performance ………………………………………………

Table 4.15 periodic salary and bonus ……………………………………………………………………………..

Table 4.16 factors that affect compensation system to utilize ……………………………………..

Table 4.17 Respondents response about compensation system ………………………………..

Table 4.18 Respondents response about on extent of satisfying employee retention ….

Table 4.19 Respondents response about the effect of employee retention ……………….

Table 4.20 Respondents response about motivation of employee by forwarding benefit …..

Table 4.21 Respondents response about the degree of employee retention ……………………

Chapter one
1. Introduction
1.1, background of the study
Effectiveness of employee retention mechanismsplays an important role in
organizationbecause it affects the workers performance. The study was investigates various
employee retention strategy and its effectiveness on workers performance success good of the
organization is possible when there is employees retention in the organization. Retention is the
condition of retaining or keeping something.
It is the act of the retaining the state of being retained. Examples the recruitment and retention
of good employee.(Fourth edition 2000houghtion Mifflin Company).Employee retention refers
to the ability of the organization to retain its employees. It can be presented by a simple
statistic for example retention rate of 80% usual indicate the organization kept 80% of its
employees a given period. However, manyconsider employee retention as relating the efforts.
In this sense retention becomes the strategies rather than the outcomes. (Vroom, v, H and
yoga, G 1978, on the validity of the vroom yet ton model).

Employee retention is very important for the function and competitiveness of a company.
Ideally employee retention is keeping the employee that have already be hired when you have
hired goodpeople trained them, builtthem, in to high performance teams, you do not want to
lose them ( HERMAN 1999). Employee retention is simple to understand, but at the sometime
it can be difficult to achieve. Knowing that employees want and need it step in the right
direction employees today are difficult. As soon as they feel dissatisfied with the current
employee or the job, they switch over to look for another job. It is the responsibility of
employers to retain best employees. Management should give attention in employee retention
because retention has positive impact on the overall aspect the organization that is when the
organization isretained. The would satisfied and become more active and to accomplish their
duties and responsibility effectively.

1.2, statement of the problem

Employee retention is keeping employees that have already been hired. There are many
methods or mechanisms use to retain employees in the organizations. The basic purpose of
these mechanisms is to increase employee’s satisfaction, boost employee morale, and achieve
retention. In any organization, retention creates conducive or environment to employees and
the organization at large.Because, employee retention has many positive impacts on employees
in achievingthe goal of the organization in work places. Careless handling compensation and
benefit matter which has adverse effect on employer retention. (Bantieworkie, 2006).
Hawassa University is one of the rapidly expanding public institutions in Ethiopia. Because the
development of higher education is among the highest national priorities and is viewed as the
major supportive staff rather than academic staff and social and technological problem. The
purpose of this is to identify and analysis the effectiveness of employer retention mechanisms
in hawassa university supportive staff.This study was there for to try to investigate mechanisms
areas in the employee retention and their effectiveness so that the finding of the study is
useful.

1.3 objective of the study

1.3.1, general objective of the study
The main objective of the study is to assess the effectiveness of employee retention
mechanisms in Hawassa University supportive staff only in main campus.
1.3.2, specific objective of the study
The following are the specific objectives of the study:
1, to identify mechanisms that help to employee retention.
2, to examine compensation system to retain and intuition employees in Hawassa
University.
3, to analysis the performance appraisal of the employee in Hawassa University.
4, to know the effect of employer retention in Hawassa University.
1.4, research questions
1, what are the mechanisms that help to employee retention in HWU?

2, How to analysis the performance appraisal of employee in HWU?

3, How to examine compensation system to retain and utilize employees?
4, what are the effects of employee retention in HWU?
1.5, SIGNIFICANCE OF THE STUDY
The study would have been the following significance. This are the result of the study
would be investigates the mechanisms of employee retention and recommending
alternatives for the useful of the organization. The effectiveness of employee retention
mechanisms study helps as more about the current employees.
The outcome of the study would help employee retention to understand the strength
and the weakness of its retention actively. One of the fundamental revelations of the
study was that frequent application of employed retention strategy affects workers
performance positively.These mechanismscontribute to havegreatrole for the
effectiveness of employee retention mechanisms in general as well as in Hawassa
university supportive staff only main campus. And also when employee would be
retained the knowledge they have acquired would facilitate development of operation
the organization they work for employee retention.When the employee are retained
through employee retention mechanisms they Are encourage by the organization to the
development of health relationship with them attractiveness of business. These study
also reveals lack of clear plans for career progression and development of human
resource management would be understand the effectiveness of employee retention
mechanisms that the organization needs to retains its competent employees that the
organization would be retained its recommended that favorable working condition and
good personal relations in an organization was promote and encourage to motivate
employees to stay in their organizations. Training employees to entrance their skills in
an organization will motivate workers to stay in their organization. It is there for
recommended that management must establish attractive policies training and career
development for worker in the in origination. One of the finding studies was that
workers would become boring and repetitive when they work at one place for along
time.it is recommended that work schedules was that adjust from time to time and job
rotation and job enrichmentwas effectively pursues in the organization to receive
workers from boredom. These good mechanisms to encourage workers to enjoy their
stay in the organization.
1.6, scope of the study
The study was focused on the effectiveness of employee retention mechanisms in HWU
supporting staff.
It trays to include the varies retention mechanisms such as compensation, employee
relation, performance appraisal, recruitment and development of the employees. The
effort was to bring the effectiveness of employee retention mechanisms of HWU
supportive staff. The effectiveness of employee retention in side of supportive staff to
give the awareness of HWU employersin the study of human resource information
system.
1.7, limitation of the study
The major limitation of the study that faced to the researcher would be explained in the
following:
 Limited the study only in Hawassa university main campus supportive staff only.
 In adequate information regarding the study, key document of the effective,
relevant figures and other related process, related document may not be
accessible which can affect the conclusion make by the researcher.
 The other internal and external problems like stem, lack of time, lack of
reference book, the respondent not give appropriate information.
 1.8, organization of the paper
The study will be includes five (5) chapters. Among these
 Chapter one (1)study about general background and introduction of the study.
 Chapter two (2) study about related literature review of the study.
 Chapter three (3) study about research design and methodology of the study.
 Chapter four (4) deals about data analysis and presentation.
 Chapter five (5) deals about summery, conclusion and recommendation of the

Chapter two
Literature review
2.1, what is retention?
Retention is defined as the act of retaining something, holding or keeping possession owner
ship, the act of having and controlling organization. It is a condition of being retain, the capacity
of retaining. The American heritage dictionary of English language, fourth edition copy writes
2000 HOUGHTION MIFFLIN Company.

Retention is the ability of to retain what is learned obviously relevant to the effectiveness as a
training program.Many factors have been found to increase retention. If the material presented
is meaning full to trainees, they should have an easier time understanding and remembering it.
Trainers can make the content meaning full by;

1, presenting trainees with an over view of what to be learned so that they will be able to see
the over al picture,

2, using examples concepts and terms familiar to the trainees (example use medical terms and
examples when training doctors and nurses).

3, organization the material from simple to complex (e.g. teach someonehow to serve before
you teach he /her strategy’s in tennis) (H, Johnbernrandinpage, 172).

Retention also can be enhanced by rehearsal or requiring trained to periodically recall what
they have learned through tests.(Johnbernrandin, page, 172).

Employee retention refers to the ability of an organization to retain its employee. It will be
represented by simple statistics, however many consider employee retention as related to the
efforts by which employers attempt to retesting employee in this work force.

In this sense, the retention will become mechanisms rather than outcome. In business setting
the goal of employers usually to decrease employee turn over their by decrease training cost,
recruitment cost and lose of talent and organizational knowledge. (Human resource Adams
equity theory).

Decisive factor for success of organization to retain and develop this vital resource (employee)
in order to upgrade and sustain competitive advantages. In this contemporary time as
economic keep on changing companies should be able to anticipate technological innovations
and to compute with other compactors worldwide. Employee retention is keeping employees
that have already been hired. (Herman,1)

2.2 purpose of employee retention

Employee retention is a financial gain fir the organizations. Employees are an organization
intellectual asset that is responsible for the day, today business operation. Recruitment and
development of employees is larger burden for companies in most organization. Due to this
there is clear organization competitive to attract and retained talented worker since
employeeconstitute an important resource especially for knowledge intensive organization. A
decisive factor for success is to retain and develop employees in order to upgrade and sustain
competitive advantage.Securing and retaining skill employees to plays an importance in this
process because employees knowledge and skills central to organizations.Ability to be
economically competitive. Employee retention is Avery important for the functioning and
competitiveness of haired good people training them, built them in high performing team, you
do not want to lose them.(Herman, 1999).

2.3, theories of retention

Perspective on retention mechanisms has been identified. Motivation theory model such as
masllows hierarchy of needs is an effective way of identifying effective retention protocol
(Armstrong, 2001). These are physiological needs, safety, social, esteem and self-fulfillment.
Each of the five theories of masllawos hierarchy of needs related to optimal retention strategy.
When applied to the organizational models, meeting the self-actualization and esteem needs of
an employed tends to correlate to the batter retention.

Other perspective identified is Herzberg motivator hygiene theory. Herzberg’s finding indicated
that factors gathering job satisfaction are separated from factors. Leading to poor job
satisfaction and employed turn over (Armstrong, 2001). Herzberg’s system of need is
segmented in to motivators and hygiene factors like masllows hierarchy. Motivators or often un
expected bones that together the desire to excel. Hygiene factors include expected conditions
that if missing will create dissatisfaction (Breanghand strake, 2000). E.g. of hygiene factors
include room, lightning and the appropriate tools for given job.

Moreover, equity theory states, in effect the people will be batter motivated if they are treated
equitably and demotivated if they are treated in equitable. It realized the humanitarian concern
with fairness and equality. While one party may be given motivational rewardsand
opportunities, the individual will assess the work related ratio based on similar external position
so if individual feel the rewards and motivators do not meet the standard, the employee will
lose the motivation request more compensation and or leave their current position in search of
more favorable benefits (Armstrong, 2001).

2.4, methods of employee retention

There are varies methods and employee retention. Which includes:-
 Promote and increase salary:-offer the employee promotion and a salaryincrease wiled
an over worked employedmay not be looking for more responsibilities, a promotion up
the career ladder with more salary and benefits may attempt an employee to stay
.sometimes just an impressive job title may tip the scale in your favor.
 Improve work place environment :- explore option such as flextime and committing to
encourage an employee to stay when an employee lens the option to increase a flexible
work schedule or even work from home or part of a work weak , it may be difficult to
leave job.
 Recognize employees: - want to know that their work is valued and that they will make
contribution to organization. Type and extent of the recognition need to be specific for
each employee and situation. This means that mangers must find out what motivate
their workers.
 Provide development opportunists: - is employees need opportunities to work on new
challenging projects or learn new skills. They need to be included in the decision making
process.
 Provide competitive pay; - pay and benefit play an important part in the employee
satisfaction and productivity. (Salary. Com. Employed job satisfaction and reaction
survey. 2007/ 2008(pdf).
 Compensation; - is adequate and equitable remained remuneration of personnel for the
contribution to the achievement of the organizational objective (Banteworkie, 2006,
page, 118). For the employee, compensation constitutes the lion share of costs about
50%) is the major means of attracting and retaining employees, it can provide on image
to the organization.
Compensation is the human resource management function that deals with every type
of rewardsindividuals perceive in exchange for performing organizational task.
Compensation on refers to all forms of pay or reward gong to employees and arising
from their employment and it has to main components. Those are: direct financial
payment it includes wages, salary, incentive, commissions and bones in direct payment
like employer paid insurance and vacation.
2.5, factors affecting compensationdecision
A, External factors
1, governments: - government rules, regulations, executive organ order and laws have
their influence on an organizations compensation policy. Every government provides
laws for compensation in area like, minimum wage rete, equal pay provision to avoid
pay different air based on sex in job requiring substantially equal skill, effort,
responsibility, and working conditions.
 2, cost of living: - cost of living as measured in terms of consumer price index may affect
the organizations compensation policy as it tries to adjust its employees earning to the
rate of inflation. This process is called cost of living adjustment.
3, comparable wage rate; - the wage pattern in the industry and community could an
impact on the compensation policy and the practice of the organization. Comparing
wage and salary in give area may help in insuring that the organization is offering a
salary that is not substantially higher or lower than those paid by other in some area.
4, the market condition: - regardless other factory involved. The dapple and demand
relationship in the labor market will determine the wage and salary level in organization.
5, union influence for batter pay and batter working condition. (bantieworkie, 2006).
B, Internal factors:-
1, the size and age of organization; - it’s argued that large and new organization tends
pay higher pay wage compared to small and old ones.
2, the labor budget (resource allocation strategy).
3 managerial philosophy and strategy; - at the top level MGT has a finale say pay level
decision, their views and strategies affect payment. (bantieworkie, 2006,page 118).
 Fringe benefit ( supplementary compensation)

It refers to benefit given to an employee in addition to salary and wage. Wage and salary
payment represent only part of the total package of the compensation. Fringe benefit
constitutes significant portion of the employee pay (some time up to 40% payroll expense).

Those are broadly classified in to two types; - they are

A, time of pay:- this are payment for the time not worked and include paid vacation , paid
holidays, paid sick level.

B, non-pay benefit;- this are not paid in case but include expediters on items such as;- medical
service ,transportation, accommodation insurance, cafeteria service , educational program,
child care facilitates (bantieworkie, 2006, page 119).

 Performance appraisal:-it can be defied as human to which an employee is performing

the job effectively.

Performance is said to be result of employee efforts, abilities, and role perception

(bantieworkie, 2996, page 119).

Performance apprises is the process of determining and communicational to an employee how

he /she is performing the job and, ideally, establishing plan of improvement,
Other term of performance appraisal include;-performance re view, personal rating, merit
rating, performance evaluation, employee appraisal and employee evaluation (lioydl, byars,
page, 251).

2.6, who appraises employee performance?

The individual and group of individual who usually do the appraisal includes;-

 Immediate supervisor:- appraisal of employee performance by their supervisors is their

rational and most frequently used approach. In fact, this one of the major responsibility
of all managers. This approach is used because it is assumed that the supervisor has
greatest opportunity observe the subordinates behavior
 Employees peers;-in an organizational setting, peer is the person working with and the
same level of employee.
 The peer appraisal is frequently called mutual tasting system. Performance feedback
from peers, based on observational data provides employee with the view of this level
of performance.
 Employee self-appraisal; - in many organization self-appraisal is used for development
purpose. Self-parasail helps an employee to analysis his or her actual current level of
performance in the light of desire performance competence
 Subordinate appraisal;- here by employee appraise their superiors. This is used fail in
trying to develop batter superior subordinate relation and improving the human relation
of manager.

 Employee relation

Employee relation is one of the importance areas of human resource MGT. it is mainly
concerned with the relation shop existing between employers and employees.

The content ofemployee and employer relations are expressed in an employment contract
which may include element such as amount and method of pay means, hours of work, holy
days and holiday pay, provision for sickness, injury and entitlement to pay, tem and condition of
pension right disciplinary rules and procedures, institutional rights of unions and managements,
turn and condition of organizational others.

Employee relation deals with the administration of discipline and grievance handling procedure.
When the management takes action many invest again an employee foliating an organizational
work rule or for poor performance, he/she user the organizations disciple procedure to resolve
the problem. (lioyd,l, byars, page, 393,).
2.7, what is effectiveness?
Effectiveness is the capability of producing a desire result. When something deemed effective it
means it is an intended or expected outcome or produce a deep, vivid impression. The origin of
the word effective is stems from the Latin word effectives which means creative, productive or
effective.(dictuionary,com.llc).

In MGT effectiveness relates to sating the right thing done. Peter drunker reminds is that
effectiveness can and must be learned. Effectiveness of employee retention is benefit for both
employee and employers, for workers sating of the job leads to greater opportunities for wage
gain and promotion sate work as well as increase the overall stability in their lives.

;-

CHAPTER THREE

3. RESEARCH METHODOLIGY
3.1 source of data
The study uses primary and secondary sources. The primary data would be collected from
Hawassa university supportive staff. The secondary data would be collected from the university
library like books, human resource management, internet and other books written materials.

3.2 methods of data collection

Both primary and secondary data would uses to achieve the study.

The primary data is important to get new information from the respondents. Questionnaire
would prepare in which a set of both open and closed questions are arranged in logical order.
The questionnaire to be distributed are self-administered. The respondents would give the
response for all types of questions to the right time. Open question would be uses because it
help the respondents to give their own intention freely and help research to generalize the
respondents and they are easy to process.

3.3 Target population

The target population for this study includes all supporting staff of Hawassa University only in
main compass. The list of all the employees in the organization will serve as sampling frame out
of the sampling frame units are 40 identified. The study population is 1804n from this
population 1169 are males and 635 are females. Also 1736 are permanent and the reminder 68
are temporary employees in supporting staff.

3.4 Sampling techniques and size

The sampling technique would be used in this research was simple random sampling
techniques in order to gather data from employees. It is also important when the population
that is often available.

In addition to this, sampling methods is simple and easy predictable procedures of selecting
sample and save time, money and labor.

The total number of the employees is 1804. The researcher has 40 selected respondentsfrom
the total number of the employees by using simple random techniques. The reason why the
researcher uses simple random sampling techniques is easy to get the list of employees from
the organization. The researcher will also uses proportional random sampling techniques In
order to determine to select individual respondents from each selected employees by using the
following formula.
 A = Ai xCi where, Ai = total sample size

C A = stratum simple size

C = total population size
Ci = stratum population size

From females A=40x635 = 15

1804

Frommales A = 40x1169=25
1804

A = 15+25=40 individual respondents 15 and 25 from females and males respectively.

3.5 study methodology

3.5.1 Method of data collection

The data collection instruments are used to collect relevant data were questionnaires
and direct personal observation.

3.5.2 Data management and analysis

After collection data using questioners, the researcher would be interprets, presents
and analysis of a given data. To do this task, the researcher was used table to present
the data and finally it would be interpreted and analyzed data using percentage.

CHAPTER FOUR

Data analysis and interpretation

4.1 material and presentation

In this chapter the researcher present, analysis and interprets the data collected. The data were
gathered through questionnaires. The questioners were distributed to 40 respondents for
supporting employee of Hawassa University. Among the (40) questionnaires only 35 of them
were completed and returned properly but, 5 of them failed to returned.

The result of the questionnaires was analyzed under this chapter. But, the result of
questionnaireswas presented one by one by using table and percentage tools.

4.2 Demographic characteristics of respondents

Table 4.1 sex distribution of respondents

No Sex Number Percentage

1 Male 23 65.7%
2 female 12 34.3%
Total 35 100%

Source:- questionnaires, 2014

As it can be observed from table 4.1, out of 35 respondents 23 of them are male (65.7%)
and the remaining 12 (34.3%) of the respondents are female. This implies that the
majorities of employees of Hawassa University are male.

Table 4.2 age distribution of respondents

No age Number percentage

1 < 20 - -
 2 21-30 29 83
3 31-40 6 17
4 >41 & above - -
total 35 100
Source:- questionnaires,2014

From the above table 4,2. 29(83%) of respondent are in 21-30 age groups that is young
generation and contribute a lot for the university where as 6(17%) of the respondent fall
under the age group of 31-40 years.

Table 4.3 marital status of respondent

No Marital status Number Percentage

1 Married 15 43
2 Unmarried 20 57
3 Divorced - -
4 Widowed - -
total 35 100
Source:- questionnaires, 2014

From the above table, 15(43%) of respondent are married and 20 (57%) of respondents
are unmarried.

Table 4.4, educational back ground of respondents.

No Educational Number Percentage

background
 1 Certificate -
2 Diploma 6 17
3 BA degree 29 83
4 Master and above - -
Total 35 100
Source; questionnaire 2014
Regarding the respondents education background in table 4.4 impliesthat 6(17%) ofthe
are diploma, 29(83%) of them are BA degree. From this table we understand that the
majority of them are in BA degree. For those diploma holders, the university should
train those in order to increase theirknowledge to know about this perform this their
work could in order to achieve the organization goal and vision.

Table 4.5, employments

No Employment Number Percentage

1 Permanent 25 71
2 temporary 10 29
total 35 100
Source; questionnaire of 2014
This table shows that the majority of respondent that means 25(71%) are permanent
And the remaining 10(29%) of the respondents are temporary.
4.3 mechanisms that help employee retention

Employee retention mechanism splays an important role in organization because it

affects workers performance. It includes; performance appraisal compensation,
employee relation, fringe benefit, promotion and increase salary etc.

Table 4.6 respondent response about the purpose of employee retention.

 No Do you know the purpose of Number of Percentage
employee retention in HWU respondent
1 Yes 12 34.3
2 No 23 65.7
Total 35 100

Source;questionnaire 2014
As the above table indicates most respondent that means 23(65.7%) respond negatively
to wards the purpose of employee retention. However there are some individuals i.e.
12(34.3%) are who responds positively. Therefore, the researcher conclude that there is
less understanding of employee retention in Hawassa university.
As gathered information’s from some respondents the purpose of employee retention is
to facilitate its operations, to increase the financial gain for the organization, helps for
seniority of employee and to facilitate the organization, job carefully and to achieve the
organizational goal.

Table 4.7 respondent’s response about promotion

No How do you thing employee of HWU Number Percentage

get promotion?
1 Based on friend ship 11 34.4
2 Based on political affairs 6 17.14
3 Based on qualification 19 54.3
4 Based on their performance 14 40
5 Others
Source; questionnaire 2014
Table 4.7 indicates that the universitystaff gets promotion based on qualification. It
means 19(54.3%). The next based on performance which have 14(40%) and based on
their friend ship 11(34.4%). Generally, from this we observe that the majority of
employees of HWU can get promotion based on qualification and performance.
Note; as we observed from this table, the number of response is grater that 35 because
one respondent gives more than one response.
Table 4.8 respondent’s response about improvements of employees needs in HWU

N What improvement does HWU need?

o
Item Number Percentage
1 Benefit plans 15 43
2 Supervisory practice 12 34
3 Compensation program 6 17
4 Employee relation plan 9 25
5 Others - -

Source; questionnaire, 2014

From this table, understand that majority of employs improvement needs in HWU
focuses on benefit plans 15(43%), supervisory practices 12 (34%).
This table also shows that the improvements of employees needs is based on employee
relation plan and compensation program accounts for 25 %(9) and 17% (6) respectively.
Generally from this table understand that the majority of employees in HWU get
improvements based on benefit plans and supervisory practice.
Note; as understand from the above table the number of respondents exceeds 35.
Because one respondent replied more than one response.Because it percentage is
greater than 100%.

Table 4.9 the respondent’s response on fringe benefits

N Item number Percentage

o
Do you think that the fringe benefit
of the HWU free from bias?
1 Yes 7 20
2 No 28 80

Source; questionnaire 2014

As the above table shows, from total respondents 7(20%) of them said yes, whereas
28(80%) of them responds no about the fringe benefit of employees in HWU.
This conclude that the majority of respondents replied there is bias or discrimination on
fringe benefits.
 Table 4.10 the respondent response about employee’s satisfaction with fringe benefit.

N Are you satisfied with fringe Number Percentage

o benefit in HWU?
1 Yes 7 20
2 No 28 80
Total 35 100
Source; questionnaire 2014

Fringe benefit refers to benefits giving to an employee in addition to wage and salary.
According to table 4.10 above most of the respondents (80%) replied that they are not
satisfied with friend benefit while 7(20%) of respondent are dis satisfied with fringe
benefit. This implies that the majority employers are dis satisfied with all aspect of
fringe benefit.
Table 4.11 the respondents’ response about the methods of employee retention

N Item Number Percentage

o
Which methods of employee
retention is conducted in HWU?
1 Promotion and increase salary 17 48.6
2 Compensation 12 34
3 Performance appraisal 12 34
4 Provide development opportunity 4 11.4
Source; questionnaire 2014
Data presented in table 4.10 shows the methods of employee retention in HWU. As the
respondent response that uses to retain by promotion and increases salary 17(48.6%) as
well as by provide compensation and performance appraisal 12 (34%). As this indicates
that the employee Of HWU is mostly retained through promotion and increase salary,
compensation and performance appraisal.
Note; as understand from the above table, the number of respondent exceeds 35.
Because, one respondent replied more than one response. For this reason, its
percentages are greater than 100%.
4.4 performance appraisal of employee in HWU
 Performance appraisal is the process of determining and communicational to an
employee how he or she is performed the job and, ideally establishing plan of
improvement( LIUOIDL, BYARS, PAGE 251 ).

Table 4.12 the respondent’s response about appraisal problem

N Is their employee appraisal problem in Number Percentage

o HWU?
1 Yes 26 74
2 No 9 26
Total 35 100
Source; questionnaire 2014
This table indicates that the majority of respondents i.e. 26(74%), said that appraisal
problem prevails in HWU and the remaining 9(26%) of the respondent replied that there
is no appraisal problem in their organization. Generally, the researcher conclude that
depend on the above table appraisal problem is higher in this organization.

Table4.13 respondent response about existing performance appraisal

N Do you believe that the existing number Percentage

o performance appraisal is better in
hawassa university?
1 Yes 14 40
2 No 21 60
Total 35 100
Source: questionnaire, 2014.

From the above table, researcher conclude that the majority of respondents 21(60%) argued
that the existing performance appraisal in the organization is not better and the remaining
14(40%) of respondents argued that the existing performance appraisal is better generally.
Based on the respondents response, the researcher conclude that the existing performance
appraisal is not better for employees the in organization.
 Table4.14 bodies who appraise employee performance

NO Who appraise employee number Percentage

performance in your department?
1 Immediate supervisors 15 43
2 Employee peers 7 20
3 Employee self-appraisal 12 34.3

4 Subordinate appraisal 8 22.7

5 Others _
Source: Questionnaire 2014

As indicated from the above the researcher understand that most of the respondent 15(43.5)
of them replied that the performance of the employees appraised by immediate supervisor,
12(34.3%) of the respondent replied the performance of employees was appraised by
employee self-appraised. and the remaining 8(22.9%) of the respondents and 7(20%) of them
said sub ordinates appraisal and peer appraisal are carried out respectively.

Note;-the researcher understand from the above table, the number of respondent is more than
35 respondents because one respondent replied more than one response and the percentage
become over.
4.5 compensation system to retain and utilization employees in Hawassa
University

Compensation is adequate and equitable remuneration of personal for their contributions to

the achievement of organizational objective (Bantieworkie 2006, page, 118).
Table 4.15 periodic salary

No Is there periodic Number Percentage

salary increment and
bans in Hawassa
university?
1 yes 15 43
2 no 20 57
total 35
100
Source; questionnaire 2014

As this table shows, the majority 20(57%) of the replied that there is no periodic salary
increment. The remaining 15(43%) of respondents replied that there is periodic salary
increment. Generally, from this to conclude that the majority of respondent replied that there
is no periodic salary increment in the organization.
Table 4.16 factors that affect the compensation system to utilize employees

No. What are the Number Percentage

factors that affect
the compensation
system to utilize
employees in
hawassa university
1 Government 20 57
2 Cost of living 11 31.4
3 Comparable wage 5 14
rate
4 Market condition 6 17
5 Labor budget 7 20
6 Managerial 14 11
philosophy and
strategy
Source: questionnaire, 2014.

As table4.16 shows, the factor that affect the compensation system to utilize employees in the
organization mostly include: government 20 (57%), cost of living 11(31%), the labor budget
7(20%), market condition 6(17%), comparable wage rate 5(14%), and managerial philosophy
and strategy which accounts for 4(11%), of the respondents. Generally, as the above table
indicates, the compensation system to utilize employee is dominantly affected by government
and cost of living.

Note: as the researcher understands from the above table, the number of respondents is more
than 35. Due to the fact that one respondent responded more than one response and the
percentage becomes over.
Table 4.17 respondent’s response about compensation system.

NO. Dom you think that the compensation Number Percentage

system in hawassa university is
effective?
1 YES 8 23
2 NO 27 77
TOTAL 35 100
Source: questionnaire, 2014.

Table 4.17 indicates that the majority of respondents 27 (77%) replayed that the compensation
system is not effective and some respondent 8(23%), agreed that the compensation system in
hawassa university is less effective.

4.6 The effect of employee retention in Hawassa University.

Table 4.18 respondent’s response on extent of satisfied employee retention

No To what extent are you satisfied with Number Percentage

employee retention appraisal
university?
1 Highly satisfied 9 25.71
2 Satisfied 2 5.71
3 Dissatisfied 22 62.85
4 Highly dissatisfied 2 5.71
Total 35 100
Source: questionnaire, 2014

Accordingly to the above table, out of 35 respondents, 2(5.71%0. Of them are highly satisfie4d
and 9(25.71%), of them are satisfied ion the app4roach of Hawassa University to retain its
employees.
But the majority that 22(62.9), said that they are dis satisfied and remaining 2(5.71%), of
respondents are highly dissatisfied. From this, the researcher unde4rstand that evil employees
are dissatisfied with the university approaches to retain its staff.

Employee satisfaction is the key for an organizations long run existences so the organization
must work on its employees satisfaction because if the employee is not satisfied they don’t
work their job properly they do the job with carelessness which 8interm leads to the fairer of
the organization and also decrease the performance of employees.

Table 4.19 the effect of employee retention.

No What are the effects of employee Numb3er Percentage

. retention in hawassa university?
1 To increase productivity 16 46
2 To improve social status 10 27
3 Attract capable to the organization 11 34
4 Motivate employee towards superior 10 27
performance.
5 Other - -
Source: questionnaire, 2014.

Table 4.19 shows the effects of employee retention in Hawassa University. In this table the
majority of respondents 16(46%), agreed on the point that employed retention increase
productivity and 11(34%) of the respondents said that e4mployee retention attracts capable
employees to the organization. The remaining two, improve social status and motivate
employees towards superior performance where replayed by the same percentage,.

The researcher conclude that increase productivity is the dominant effects of employee
retention.

Note;as indicates in the above table, the numbers of respondent is greater than 35 because,
one respondent gives more than one response. Due to this reason its percentage is higher than
100%.

Table 4.20 Motivation of employee by forwarding benefit

N Do you think that hawassauniversity Number Percentage

o motivate its employee by forwarding
benefit?
1 Yes 11 31.4
 2 No 24 68.6
Total 35 100
Source: questionnaire, 2014.

As the above table indicates that the most of respondents 24(68.6%), responded negatively
towards the hawassa university motivate its employee by forwarding benefit. However, there
are some individual 11(31.4%) who responded positively. Therefore, the researcher conclude
that Hawassa University does not motivate employees by forwarding benefit.

Table 4.21 Respondents response on the degree of employee relation

No. Is there good Number Percentage

employee relation in
hawassa university?
1 yes 16 46
2 No 19 54
Total 35 100
Source; questionnaire,2014.

The above table shows that out of total employees 16946%0 of respondent said that employee
relation in hawassa university is good, whereas the majority of re4spondents 19(54%) said that
there is no good employee relation.

Generally, the researcher can conclude that employee relation in Hawassa University is partially
good and partially bad. Furthermore, the respondents justifies their response 19(54%) of them
replayed there is no good employee relationship because of discrimination between employees
there is no fair treatment between employee at work places, division by religion, place of birth
and weak contact with each other.
Chapter five
5. Summary, Conclusion and recommendation

5.1 conclusions
The aim of the study was to know the effectiveness of employee retention mechanisms in
Hawassa University in case of supporting staff. The result of the analysis of data collected
through questionnaires .nowadays, the effectiveness of employee retention mechanisms in the
organization is one of the most important ways to make the organization more profit able and
competitive.in order to make the organization more competitive, there must be proper
retention and development program to the employees. However, according to the finding
obtained from this study, the weakness and strengths of hawassa university contribution
towards the effectiveness of employee retention mechanisms are mentioned below.

 Most of the employees of Hawassa University supporting staff are male and most of
them are found between 25 -35 ages.
 Most of the employees of Hawassa University supporting staff have BA degree and the
majority of them are permanent.
 The majority of the employees in Hawassa University supporting staff have less
understanding of the purpose of employee retention.
 The employees of Hawassa University in supporting staff got promotion based on
political affairs, friendship and also the employeesHawassa University got improvement
based on benefit plan and supervisory practices.
 The most method of employee retention in hawassa university ispromotion, increase
salary and also provide development opportunities.
 The university gives icesconsideration on employee retention methods or mechanisms.
 According to the findings the existing performance appraisal is not better for employees
in the organization.
  Mostly the employees of hawassa university are appraised by immediate supervisory
and also employees self-appraisal.
 According to the researchers finds that there is less periodic salary increment for
employees and also compensation is mostly affected by government and cost of living.
 According the findings the majority of employees in Hawassa University supporting staff
are dissatisfied.
 Increase productivity is the most effect of employee retention in the organization.

5.2 Recommendation
Even through retention programs fulfills some of the employees and the organization need, it
does not mean that is free from problems and undergoes monthly. Based on the findings, the
following recommendations are forwarded.

 The university should consider the purpose of retention not only to performance
evaluation but also to retain employees to increase productivity of the organization.
 It also better that the university has to increase the number of its employees benefits.
 The university should be free bias and problems.
 The university should allocate enough budgets for retention programs.
 The university should provide good retention condition and should fulfill facilities
required.
 The university should increase periodic salary and bonus to retain employees.
 The university should give adequate compensation system.
Reference
 Adams Human resource enquiry theory
 Armstrong .m, (2006), Human Resource Management practice, bath, United Kingdom.
 Ban tieworkie(2006) introduction management.
 Breallght J.A and stroke Research on employee recruitment.
 Herman, RE (1999) holds on the people you need, HR focus (http/www request).
 H.JhonBernard in human resource management.
 Houghton Mifflin Company, human resource management, Boston, New york.
 L.Ioudlboyar’s human resource management.
 Vroom.vh and yoga (1978) on the validity of vroom Ayton model.
 W.w.wdictionary com LLC.
 w.w.w, fourth edition copy right 2000 Houghton Mifflin Company.
 w.w.w .salary com employees satisfaction and reaction survey 2007/2008(PDF).
APPENDIX

HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF COOPERATIVE
Questionnaires
This questionnaire is prepared to Hawassa university supportive staff.

This questionnaire is prepared by 3 rd year cooperative management students who are currently
working on senior essay on the effectiveness employee retention mechanisms .it is prepared
only for academic purpose, so please currently fill in the space provided the appropriate
response.

Instruction: -please given appropriate response.

-circle your choose among alternative

-No need of writing your name
-you can give more than one response
Part one: personal Information
1. SEX:- A:male B; female
2. Age; A; <20 years C; 31-40 years
 B; 21-30 years D; 41 and above
3. Marital status;- A; married c; divorced

B; unmarried D; widowed

4. Educational level; A:certificates C:Diploma

B: Degree D: master and above

5. Employment :- A:Permanent B:Temporary

Part two: write objective one (employee retention mechanisms)

1. Do you know the purpose of employee retention in Hawassa University?

A, Yes B, No

2. If you answer in number 1 is yes for what purpose the employee retention is
used? Write potential purpose for yourself

3. How do you think the employees of Hawassa University get promotion? (You can
give more than one response).
A: Based on friend ship
B: Based on political affairs
C: Based on their performance
D: Based on qualification
Other specify it ______________________________

4. What improvement do in hawassa university need?(you can give more than one
response) C:Compensation programs
A: Benefit plans
B: supervisory practices D: Employee relation plans

Other specify it _____________________________

5. Do you think that the fringe benefits of employee in Hawassa university is Free
from bias
A, Yes B, No

6. Which method of employee retention is conducted in Hawassa University?(You can give

more than one response)

A: promotion and increase salary

B: provide development opportunity

C: Employee relation

D: Performance appraise

Other specify it ______________________________________

7. is there employee appraisal problems in Hawassa university ?

A, Yes B, No
8. If your answer is yes, what are problems?
A: Bias
B: poor feed back
C: poor performance
D: other

9. Who appraise employee performance in your department?(you can give more

than one response)
A: Immediate supervisor C: employee self-appraisal

B: employee`s peers D: subordinate appraisal

10. Is there periodic salary increment and bonus in Hawassa University?

A, Yes B, No

11. What are the factors that affect the compensation system to utilize
employees in Hawassa University? (You can give more than one response)
A: Government D: Market condition
B: Cost of living E: the labor budget
C: Comparable wage rate F: Managerial philosophy and strategy
Others specify it _________________________________
12. Do you think that the compensation in Hawassa University is effective?
A, Yes B, No

13. To what extent are you satisfied with employee retention approach in
Hawassa University?
A: Highly satisfied C: Dissatisfied
B: Satisfied D: Highly Dissatisfied

14. What are the effects of employee retention in Hawassa university?(you can
give more than one response )

A: To increase productivity
B: It improves employee social status
C: Attract capable employees to the organization
D: Motivate employees to wards superior performance level
Others specify it _________________________________________

15. Do you think that Hawassa University its employee forwarding benefit?
A, Yes B, No

16. Is there good employee relation in Hawassa University?

A, YES B, No
17. if you answer in number 17 is no why ?please mention it.

_______________________________________
________________________________________

18. Are you satisfied with fringe benefits in Hawassa University?

A, Yes B, no