The Mediation Effect of Job Satisfaction between Reward System and Training and Development on Employee Retention in Yemen’s Banking Sector

Abstract

This study was conducted to determine the effect of rewards systems and training and development on employee retention, mediated by the effects of job satisfaction, in Yemeni commercial banks. The study used cross-sectional data collection methods. Data was collected from the headquarters of 15 commercial banks. A set of questionnaires using a 5-point Likert scale was distributed to employees; the data was analyzed using the Structured Equation Model (SEM) by IBM SPSS AMOS 25.0. The results indicated that both the rewards system and training and development significantly affect job satisfaction, while job satisfaction has a significant positive effect on employee retention. Training and development themselves have no statistically significant effect on employee retention. The results showed that job satisfaction plays a mediating role because the indirect effect is significant. The mediation is complete because the direct impact is not significant. The result indicates that job satisfaction is an important variable that links the reward system and training and development to employee retention in Yemeni banks. This study is expected to make significant theoretical, practical, and methodological contributions to this field of research due to the development of a model of the effects of the reward system and training and development on employee retention through job satisfaction.