Abstract:
This study examines the impact of employee retention policies on retaining experienced personnel, as well as their effect on the overall performance and competitiveness of financial institutions in Albania. As entities within the financial sector strive to maintain a competitive advantage, retaining skilled employees emerges as a critical factor for organizational success. The study examines the key factors that influence employee retention, including benefits, work environment, opportunities for professional development, work-life balance, and training. Using a range of statistical methodologies, this study examines the relationship between these factors and employees’ decisions to stay or leave their organizations. The findings indicate that retention policies, including performance-based incentives and career development programs, contribute significantly to employee retention. Significant correlations have also been identified between retention decisions and various factors, including employee benefits, work environment, and professional development opportunities. The study establishes a distinct correlation between retention policies and improved organizational performance and competitiveness.
Financial institutions that effectively retain their experienced employees are better positioned to thrive in a competitive market. The study also highlights the importance of cultivating a supportive organizational culture, offering competitive compensation packages, and facilitating career advancement opportunities as essential strategies for mitigating attrition and increasing employee satisfaction.
The findings underscore the necessity for Albanian financial institutions to prioritize strategies aimed at employee retention in order to cultivate a committed and skilled workforce, thereby ensuring sustainable organizational success in the long term.
This study increases understanding of employee retention dynamics within the Albanian financial sector and provides important insights for managers and policymakers seeking to refine retention strategies and enhance organizational performance. Future research efforts could broaden their focus to include other industries and investigate the impact of leadership styles and organizational culture on employee retention.