Factors affecting the retention of employees in a global markets division of an investment bank

140 Pages·2014·1.09 MB·English

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How to cite this thesis
Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/
M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved
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FACTORS AFFECTING THE RETENTION OF EMPLOYEES IN A
GLOBAL MARKETS DIVISION OF AN INVESTMENT BANK

a dissertation in fulfilment of the requirements for the degree

MASTER OF COMMERCE

in

LEADERSHIP, PERFORMANCE AND CHANGE

in the

FACULTY OF HUMAN RESOURCES MANAGEMENT

UNIVERSITY OF JOHANNESBURG

Supervisor: Professor Pierre Gerber

Student: Shirmila Kuvarjee

June 2013
ACKNOWLEDGEMENTS

To the Almighty for precious life and the meaning HE gives to life.
To my supervisor, Professor Pierre Gerber for his wisdom, guidance and patience through
this learning experience.
To my amazing husband for being the most loving, supportive and tenacious person I
know. Always challenging me to greater heights.
To my angel, Aryana, for giving me HOPE.
My parents, family and friends for their love, encouragement and support.
Special thanks to my work colleagues and most amazing employer.
To Dr Liezel Korf for guiding me through the statistics.

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ABSTRACT
This research focuses on the factors affecting retention of employees in a global markets
division of an investment bank comprising 500 employees. The research is quantitative in
nature. Five factors are discussed and used as basis to see which factors contribute the
most to retention of employees. These factors are remuneration, the job, the profile of the
organisation, organisational processes and leadership style. Sub-factors relating to these
factors were identified and discussed by way of a literature review. A questionnaire was
compiled based on the five factors and the sub-factors in relation to the retention of
employees. A statistical analysis was done using factor analysis, reliability analysis
(Cronbach alpha) and descriptive statistics.
From the results it can be concluded that employees are satisfied with the physical work
environment, the company’s employer brand in the market and the opportunity to learn
new skills and develop themselves for further advancement. Employees also feel
confident about the leadership team; are satisfied that their co-workers share their
expertise and there is teamwork. The one area about which employees differ, is related to
remuneration.
Based on the results of this study, it is recommended that the employer use its positive
employer brand more aggressively to retain employees since overall most employees
seem to be happy with the current employment practices.

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Contents Page

ACKNOWLEDGEMENTS ii

DECLARATION iii

ABSTRACT iv

LIST OF FIGURES viii

LIST OF TABLES ix

APPENDICES xi

CHAPTER 1: INTRODUCTION TO THE RESEARCH STUDY 1 
1  INTRODUCTION  1 
1.1  Key focus of the study  2 
1.2  Background and settings of the problem  4 
1.3  Definition of the problem  6 
1.3.1  Factor 1 – Remuneration  7 
1.3.2  Factor 2 – The job  9 
1.3.3  Factor 3 – The profile of the organisation  11 
1.3.4  Factor 4 – Organisational processes  12 
1.3.5  Factor 5 – Leadership style  13 
1.3.6  Factor 6 – Working experience  15 
1.3.7  Factor 7 – Conviction  15 
1.3.8  Factor 8 – Social systems  16 
1.4  Motivation for the study  17 
1.5  Current level of knowledge  17 
1.6  Value the proposed research add  18 

CHAPTER 2 – Critical success factors 19 
2.1   Introduction  19 
v
2.2   Factor 1 – Remuneration  20 
2.2.1  Compensation  20 
2.2.2  Benefits  27 
2.2.3  Conclusion  28 
2.3  Factor 2 – The job  29 
2.3.1  Introduction  29 
2.3.2  Degree of autonomy and level of authority in a job  29 
2.3.3  Formal recognition  32 
2.3.4  Work‐life balance  34 
2.3.5  Conclusion  37 
2.4   Factor 3 – The profile of the organisation  37 
2.4.1  Introduction  37 
2.4.2  Employer branding  38 
2.4.3  Employee Value Proposition (EVP)  42 
2.4.4  Conclusion  45 
2.5   Factor 4 – Organisational processes  46 
2.5.1  Physical environment  46 
2.5.2  Career opportunities  47 
2.5.3  Training and development  49 
2.5.4  Conclusion  51 
2.6   Factor 5 – Leadership style  52 
2.6.1  Introduction  52 
2.6.2  Types of leadership  52 
2.6.3  Leadership pipeline  56 
2.6.4  Conclusion  59 

Chapter 3: RESEARCH DESIGN 62 
3.1   Research approach  62 
3.2   Research methodology  62 
3.2.1  Population  63 
3.2.2  Sampling  63 
3.3   Measuring instruments  64 
3.3.1  Questionnaire  64 
3.3.2  Survey  66 
3.4   Research procedure  66 
3.5   Statistical analysis / treatment of data  66 
3.6   Ethical issues  68 
3.7   Conclusion  69 
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CHAPTER 4: STATISTICAL ANALYSIS 70 
4.1   Introduction  70 
4.2   Research Procedure  70 
4.2.1  Statistical analyses  71 
4.2.2  Frequencies per question  77 
4.2.3  Descriptive statistics per question  101 
4.2.4  Factor analysis  103 
4.2.5  Descriptive statistics  106 
4.2.6  Correlations  107 
4.2.7  ANOVA table  109 

CHAPTER 5: FINDINGS AND RECOMMENDATIONS 110 
5.1  Introduction  110 
5.2   Interpretation  111 
5.3   Conclusion  112 
5.4   Recommendations  113 
5.4.1   Individual engagement  113 
5.4.2   Organisational engagement  113 
5.2.3   Reward  114 
5.5   Limitations of the study  114 
5.6   Suggestions for further research  115 

REFERENCES 116 

ANNEXURE A – LETTER 123 

ANNEXURE B - QUESTIONNAIRE TO EMPLOYEES 124 

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LIST OF FIGURES

FIGURE 4.1 Screen Plot 102

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LIST OF TABLES

Table 1 Pay Philosophies 8
Table 4.1 Length of service 70
Table 4.2 Race 71
Table 4.3 Qualification 72
Table 4.4 Location 73
Table 4.5 Role 74
Table 4.6 Function 75
Table 4.7 Gender 76
Table 4.8 The nature of investment banking attracted me to join my current
employer 77
Table 4.9 The level of reward (salary) I receive at my current employer is a
reason I have not left the organisation 77
Table 4.10 The potential to earn performance bonuses influences my
decision to stay with my current employer 78
Table 4.11 Bonus and other incentive payments must be linked to individual
performance 79
Table 4.12 Individual recognition of the work I perform is important to me 80
Table 4.13 My current employer provides the opportunity of me to have a
work-life balance 81
Table 4.14 I work with colleagues who share their knowledge and expertise 82
Table 4.15 I am challenged and motivated by the work I perform 83
Table 4.16 The organisational culture of my current employer is one reason
I have not left the organisation 84
Table 4.17 My current employer has a strong brand in the marketplace 85
Table 4.18 My current employer’s brand in the marketplace is one of the
main reasons I have not left 86
Table 4.19 The work I perform is stimulating and rewarding 87
Table 4.20 The physical work environment is appealing to me 88
Table 4.21 My work give me a sense of satisfaction 89
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