A model of employee motivation and job satisfaction for staff retention practices within a South African foreign exchange banking organisation

Abstract

Foreign exchange banking organisations afford individuals great career opportunities, and therefore endeavour to attract high-caliber employees who are self-motivated and create the dynamic, innovative and professional culture characteristic of the organisation. Retaining key talent characterised by skills shortages has become an imperative for sustaining competitive business performance in a fast-changing economic environment. The general aim of this research was to develop a model of employee motivation and job satisfaction for staff retention practices in a foreign exchange banking organisation. The concepts of employee motivation, job satisfaction and employee retention were discussed with regard to their history, conceptual foundation, theoretical approaches, types, variables and consequences. The theoretical model was developed accordingly on the basis of the literature review, and revealed the factors that could influence employee retention. The main purpose of the empirical research was to operationalise the theoretically derived motivation and job satisfaction concepts, statistically determine the underlying variables of motivation and job satisfaction that influence employee retention and develop a structural equation model to verify the theoretical model. A quantitative empirical research paradigm using the survey method was followed. Explanatory and descriptive research was used in this study, with a sample of 341 foreign exchange banking individuals drawn from a financial institution. Three questionnaires and a biographical questionnaire were adapted and administered to employees. The Work Preference Inventory (WPI) measured employee motivation, the Job Satisfaction Survey (JSS) measured job satisfaction, and the Employee Retention Questionnaire (ERQ) measured employee retention intention. A structural equation model development strategy produced a new best-fitting retention model based on the new constructs postulated in the factor analysis. The model indicated that job satisfaction explained the highest variance of retention when compared to motivation. The research should contribute towards a comprehensive understanding of the factors that influence employee retention. The new model of employee motivation and job satisfaction for staff retention practices in a South African foreign exchange banking organisation could assist organisations in retaining skilled and talented staff. The study should encourage practitioners to take cognisance of the fact that organisations are different and that the motivation and job satisfaction factors for employee retention need to be considered.