Factors influencing employees’ retention in the microfinance institutions (MFIS) in Tanzania

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Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
University of Dar es Salaam
Abstract
Employee retention in micro-finance institutions in Tanzania has been of serious concern to managers in the face of ever increasing high rate of employee turnover. Today’s MFIs subsector has become very competitive thus making skilled employees the major differentiating factor for most institutions. The aim of this study was to assess factors influencing employees’ retention in the Microfinance Institutions in Tanzania. The objectives were to study the extent to which supervisory support, compensation, work environment and career advancement affect employee retention in MFIs. The study was conducted in Dar es Salaam, Tanga, Morogoro and Mwanza, and it involved 8 MFIs, which are VFT, FINCA, OPPORTUNITY, EFL, FANIKIWA, SB FINANCE, VICTORIA and Makazi Bora. Quantitative data were collected using self-administered questionnaire distributed to a randomly selected sample of 94 employees from the mentioned MFIs. Descriptive statistics were conducted. The study found out that MFIs employees are somehow satisfied with the level of supervisory support, compensation, work environment and career advancements but not to greater extent. This is due to level of competition and labour mobility within the industry where everyone is keeping eyes open on what a competitor is doing. The study shows that supervisory support, compensation, work environment and career advancements have almost equal level of attribute on MFIs employee retention. Employee retention is a must for MFIs growth and sustainability hence need to strengthen the issues of supervisory support, compensation, work environment and career advancements to ensure employees satisfaction, which is most important for employees retention. From the findings of the study, the researcher has recommendations on a need for MFIs to issue competitive compensation and provide chance for career advancements to staff. Also letting employee retention be party of overall business strategy hence a need for management to perform exit interview to get insight of voluntary turnover.
Description
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG187.5.T34M854)
Keywords
Microfinance, Employee retention, Tanzania
Citation
Mwingizi, T. A (2014) Factors influencing employees’ retention in the microfinance institutions (MFIS) in Tanzania, Master dissertation, University of Dar es Salaam. Dar es Salaam.