Predicting staff retention from employee motivation and job satisfaction

Abstract

This study investigated the role of employee motivation and job satisfaction as predictors of staff retention in a foreign exchange bank. Participants were 341 employees of a South African foreign exchange bank division (female = 62.8%; black = 31.1%; managers = 37%, mean years of experience = 10 years). The employees completed the following self-report measures: Work Preference Inventory, Job Satisfaction Survey, and Employee Retention Questionnaire. Structural equation modelling was applied in the analysis to test the prediction effect of employee motivation and job satisfaction on staff retention. The findings of the model fit revealed that the model (employee motivation and employee job satisfaction) explained an estimated 46% of the variance in the employee retention construct. The job satisfaction construct in the model explained an estimated 66% of the variance in the employee retention construct; while the employee motivation construct explained only 8% of the variance. Organisational talent management should seek to identify employee motivation and job satisfaction interventions that might help to retain talented staff.