Relationship Between Employee Retention And Customer Satisfaction In The Banking Industry In Tanzania: A Case Of Finca Microfinance Bank

ABSTRACT

The study has investigated the relationship between employee retention and customer satisfaction in the Tanzanian banking industry, FINCA Microfinance Bank as the case study. The specific objectives were, to examine the level of employee retention, to assess the level of customer satisfaction and to examine the relationship between employee retention and customer satisfaction. The study has employed an explanatory cross-section survey design. Data were collected by using a questionnaire survey whereby, 117 respondents were involved in the study. Ninety nine respondents were bank customers and twenty were bank employees. Data were analyzed by using SPSS, correlation analysis was done to examine the relationship between employee retention and customer satisfaction. Findings of the study have revealed that, the retention of employees at FINCA Microfinance Bank was low, majority of customers were not satisfied with the service. The study also has revealed that there was a significant moderate positive relationship between employee retention and customer satisfaction at FINCA Microfinance Bank. This study, recommends that FINCA Microfinance Bank should periodically conduct exit, engagements and culture surveys, to understand the changing expectations of the critical workforce, from time to time and take all these inputs to have a holistic understanding of factors influencing the retention of employees, and also should create as well maintain the pace of training their employees to better discharge their tasks. Managers should make conscious efforts to improve and enhance the quality of products and services, to meet the satisfactions of customers by engaging in more research work and to better serve their customers, FINCA Microfinance Bank should upgrade their standards and invest more in training and retention of employees.