Employee retention and organizational performance in private Businesses in Uganda

Abstract

The study examined the influence of employee retention on organizational performance in private businesses in Uganda. A case of Ntake bakery. It was guided by three research objectives which were; to examine the effect of Leadership style on Organizational Performance; to examine the effect of Communication on Organizational Performance and to assess the effect of Remuneration on Organizational Performance. The study used a cross sectional survey design with both qualitative and quantitative results. The study population involved employees, managers, assistant managers and drivers. Data was collected using questionnaires and interviews. In data analysis, Means and Standard Deviations, correlations and regressions were used to show the magnitude of the effect the independent variables have on the dependent variable. The study findings revealed that leadership had a positive significant relationship on organizational performance with (r=.962**, p=.000). Findings also revealed that communication significantly affects organizational performance (r=.934**, p=.000). Also it was found out that there is a positive significant relationship between remuneration and organizational performance (r=.973**, p=.000). It was therefore concluded that: generally private businesses in Uganda have endeavored to put in place ways of how to retain employees at different levels in their businesses. However this is not sufficient enough to enable them to fully deploy their participation at work. Most employees do not feel their self-worthiness as a result of working in private businesses. It was therefore recommended that organizations should prioritize leadership development programs to cultivate effective leadership skills among managers and supervisors. Training in authentic and transformational leadership styles can help create a positive work culture and drive organizational success.