ASSESSING EMPLOYEE RETENTION STRATEGIES IN NON-PROFIT ORGANIZATIONS IN CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Employees represent a vital resource for organizations, and their retention, along with appropriate reward, is closely tied to a company's success or failure (Barney, 1991; Pettman, 1975; Wernerfelt, 1984). However, organizations both profit and non-profit are laser-focused on retaining highly talented employees, recognizing human resource management (HRM) as pivotal for gaining a competitive edge (Naz et al., 2020). When fully trained employees depart, they take invaluable organizational knowledge with them, including insights into customers, company history, and ongoing developments (Choudhary, 2018). While, considerable resources are invested in training new hires to bring them up to par with the existing team. Nevertheless, retaining skilled employees can be seen as a significant competitive advantage (Gering & Conner, 2022). Furthermore, the overarching objective of retention strategies is to uphold employee satisfaction and minimize staff turnover rates, a critical concern for contemporary organizations seeking to establish a positive image and attract and retain top talent (Hassan and Govindhasamy, 2020). Moreover, Hassan and Govindhasamy (2020), asserts that employee retention is imperative as turnover adversely impacts morale and, consequently, organizational performance, affecting customer service, production efficiency, and overall productivity.  According to Ayinde et al. (2021), organizations employ various methods to achieve employee retention, aiming to prolong employees' tenure and minimize voluntary departures. This practice is particularly prevalent in performance-driven organizations that prioritize human capital investment. Motivation factors such as competitive salaries, benefits, training and career development opportunities, recognition programs, and organizational justice as strategies for retaining employees (Ayinde et al., 2021). On the other hand, the departure of employees results in the loss of skills, experience, and corporate memory, which significantly impacts performance, profitability, product and service quality (Ayinde et al., 2021). Consequently, the costs associated with replacing staff, including recruitment and training expenditures, can be substantial, underscoring the importance of effective retention strategies. Generally, efforts are made to retain creative and high-performing employees, while those with low productivity may be encouraged to leave. Ideally, companies should prioritize retaining employees who contribute positively to value and profits (Gering & Conner, 2022). This is because retaining productive employees is crucial for leveraging human assets in the organization (Gering & Conner, 2022). While extensive research has focused on customer retention and its benefits (Alshurideh, 2017; Kurdi et al., 2020), there is relatively limited research on the topic of employee retention and their value as organizational assets (Alshurideh, 2016a). However, in non-profit organization, where turnover rates are increasing due to job dissatisfaction  (Schuler & Jackson, 2018), the importance of employee retention becomes even more pronounced. It is against this backdrop, a survey will be conducted in order to assess employee retention strategies in non-profit organizations in Cameroon.

1.2 Statement of the Problem

Low remuneration packages such as welfare, compensation, bonus, allowances hinders employee performance and increased dissatisfaction of work, and encouraging the employee turnover(Zikanga et al., 2021). While, employee turnover has become a widespread concern in different organizations, organizations fight to maintain their skilled human resources. A high turnover rate has been found as a common trait among employees in organizations (Akafo and Boateng, 2018). It was also discovered that maintaining skilled human capital has become a big challenge for 21st-century organizations (Ohunakin et al., 2018). However, employee retention emerged as a crucial determinant of performance for organizations, particularly non-profit organizations in Cameroon. Non-profit organization have a lot of issues when it comes to employee retention, highly skilled professionals with the ability to improve the performance of an organization in Cameroon are in higher demand, both in the public and private sectors. Highly experienced employees are needed to improve the quality of the sector, service delivery performance and accessibility, and finance management (Lydia, 2020). Furthermore, employee retention is a significant concern for organizations and managers. The expenses related to recruiting, selecting, and hiring a new employee often surpass 100% of their annual salary (Allen, Bryant, and Vardaman, 2020). Beyond that, high turnover rates incur substantial costs for organizations, impacting both expenses and performance. While recruiting itself is costly, losing skilled workers amplifies these expenses further. Studies indicate that offering rewards, avenues for career growth, supportive management, and a meaningful work environment enhances an organization's ability to attract and retain skilled employees (Yousuf and Siddqui, 2018; Al Kurdi, Alshurideh and Al afaishat,2020). Implementing such effective systems encourages employees to stay, thereby fostering productivity and organizational development. Thus, it is in the light of these that the study seeks to assess employee retention strategies in non-profit organizations in Cameroon.

1.3 Objectives of the Study

The main purpose of this study is to assess employee retention strategies in non-profit organizations in Cameroon. Specifically, the study will;

Identify the factors that influence employee retention in non-profit organizations.

Assess how effective employee retention strategies impact the overall performance of non-profit organizations.

Examine the retention strategies implemented by non-profit organizations in Cameroon

1.4 Research Questions

The following questions have been prepared for the study:

What factors influence employee retention in non-profit organizations?

How does the effectiveness of employee retention strategies impact the overall performance of non-profit organizations?

What are the retention strategies implemented by non-profit organizations in Cameroon?

1.5 Research Hypotheses

Ho: There is no significant relationship between effective employee retention strategies and the overall performance of non-profit organizations.

Ha: Effective employee retention strategies significantly impact the overall performance of non-profit organizations.

1.6 Significance of the Study

The study results will assist leaders and managers in non-profit organizations  them to develop policies and initiatives that support employee engagement, job satisfaction, and long-term commitment to the organization's vision and mission. Also, it will  empower human resource professionals to develop and implement programmes that cater to the specific needs and interests of employees.  Furthermore, with the help of the study donors and funder will have the ability to increase the effectiveness of their donations and promote the sustained prosperity of non-profit organizations.Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to employee retention strategies in non-profit organizations in Cameroon.

1.7 Scope of the study

The scope of this study is to employee retention strategies in non-profit organizations in Cameroon. Empirically, this study will identify the factors that influence employee retention in non-profit organizations, assess how effective employee retention strategies impact the overall performance of non-profit organizations and examine the retention strategies implemented by non-profit organizations in Cameroon

Geographically, the study will be delimited to some selected non-profit organizations in Douala, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Employee retention: is the ability of an organization to keep its employees engaged and committed to their jobs for an extended period. It involves implementing strategies and practices to retain talented and skilled employees within the organization, thus reducing turnover rates.

Organizational performance:  how well an organization achieves its goals and objectives, including financial performance (profitability, revenue growth, cost management), operational performance (efficiency, productivity, quality of service), customer satisfaction, employee satisfaction, and overall market competitiveness.

Employee turnover: the rate at which employees leave an organization and need to be replaced. 

---

---