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The Impact of Workplace Culture on Employee Retention: An Empirical Study from Lebanon

  • USHAKOV, Denis (College of Hospitality Industry Management, Suan Sunandha Rajabhat University) ;
  • SHATILA, Khodor (IProCares International Research Center)
  • Received : 2021.08.30
  • Accepted : 2021.11.15
  • Published : 2021.12.30

Abstract

One of the most important aspects of any firm is to motivate its employees to go the extra mile. In order to do work properly, people must be motivated. The total effectiveness and efficiency of workers, as well as a company's performance, is directly related to the degree of motivation of those who work there. On the other hand, demotivated personnel do not put much effort and, when they get a better opportunity, leave their places of employment. For Survey, this study used online Google forms to collect data from September 2021 to October 2021. The target demographic for the research was those who worked for Lebanon's private businesses. The poll was conducted in English, the second language of Lebanon. Furthermore, 179 workers (N = 179) were utilized for this research. The research suggests that fun events and support for fun managers enable workers to connect informally and help people know each other better, creating an environment that promotes friendship building. Based on these connected reasons, fun activities and the support of managers for fun are considerably linked to turnover.

Keywords

1. Introduction

One of the most important aspects of any firm is motivating its employees to go that extra mile. In order to do work properly, people need to get motivated. The total effectiveness and efficiency of workers, as well as the company’s performance, are directly related to the degree of motivation of those who work there. Demotivated personnel, meanwhile, do not put out any effort and, when receiving a chance, go from their places of employment. In the same way, when employees lack motivation, they become more likely to leave. There are two types of motivation: intrinsic and extrinsic. When it comes to jobs that make people happier at work, intrinsic motivation is the key. This includes things like recognition, new work challenges, and soft conduct on behalf of the employer. It also includes things like job succession. Extrinsic motivation, on the other hand, as suggested by Vasquez (2014) comes from things like money, bonuses, promotions, and job stability. An essential factor in increasing employee motivation and their desire to remain with the company is intrinsic motivation. All workers in any field, including those in the banking sector, need both intrinsic and extrinsic motivation. Organizational productivity and employee performance will improve if management pays more attention to motivating people organically or extrinsically. A big problem for businesses in Pakistan is retaining their best employees, as this proves expensive for companies and banks. Employee retention is one of the major problems in Pakistan’s banking industry because of the industry’s fast growth and the nature of the positions itself. Employee retention has been shown in studies to be positively impacted by motivation, although Salman et al. (2014) says the retention percentage fluctuates according to a variety of circumstances.

It is clear that intrinsic and extrinsic motivation both help to keep employees happy and productive. This obviously reveals ambiguity and indicates the fact that this connection is being disrupted by some intervening element. Perceived Organizational Support (POS) is critical for workers, as is motivation. POS refers to the degree of commitment workers have for their company and the conviction that their organizations are worth their dedication.

Similarly, several studies have shown that employers favor highly motivated workers. As a result of this, POS contributes to employee loyalty. Researchers have employed POS in a similar way as a mediating variable in their studies. The Study has not yet examined the interaction between intrinsic and extrinsic motivation on employee retention, as well as the mediating function of perceived organizational support systems (POS). This research vacuum is particularly evident when it comes to banking sector personnel. To find out whether POS plays a moderating role in employee retention, this research will look at the relationship between intrinsic motivation and extrinsic incentive. Because both Organizational Support Theory and Two Factor Theory are incomplete on their own, this research will fill in the theoretical vacuum in the field by looking at the combined impact. Because of the significant personnel turnover in the banking industry, the research is beneficial to the sector’s executives and decision-makers.

2. Literature Review and Hypotheses

2.1. The Impact of Motivation on Retention of Employees

Royle and Hall (2012) claimed that common wordings such as objectives, incentives, requirements, purposes, or wishes are part of motivation. According to Soni and Soni (2016), the intrinsic motivation provides people with the energy to achieve organizational and personal objectives. The motivation for the job was therefore referred to as the process that leads to the start and maintenance of goals (Kurdi, 2016). The significance of motivated work in performance is considered to concentrate on internal motivation, to reach the degree of ‘motivation in which people are drawn and energized by the job itself.

Alshurideh (2017) stated that individuals might be inspired by the nature of the job itself. Ammari et al. (2017) report that motivation may influence people’s development of skills and talents. According to Alshurideh (2017), motivation thus focuses on the person and not on the work by means of achieving objectives. As shown by Balakrishnan (2014), the motivation of employees may be of two kinds, extrinsic is the first kind while inherent motivation is the other. Those who are motivated externally are the ones who never want to perform any sort of tasks not associated with their work profile but are only prepared for additional incentives, such as money or promotion, some praise and recognition (Hair et al., 2017).

Whereas the individuals with intrinsic motivation are internally driven or self-motivated, and they are not required to be given additional salaries or incentives to accomplish their work effectively. They love performing tough tasks and effectively fulfilling their objectives (Fountoulakis, 2014). While it has a long-term and significant impact on workers and is one of the best motivations as explained by Davis (2013), the management cannot force intrinsic motivation on employees as they have been legally employed. Thus, motivation tends to increase employee retention and minimize employee turnover in the workplace, and can be concluded as the following hypothesis:

H1: There is a positive relationship between motivation and retention.

2.2. Impact of Workplace Culture on Retention

To explain the work culture, several studies have been carried out with different variables such as the organizational commitment and its impact on employee retention and engagement. The working environment is the most significant element in employee retention according to Hanif et al. (2013). The difference in work environment in the manufacturing and service industries is very fascinating since employees are directly involved with the clients or consumers in the service sector. Interaction with consumers may grow or decrease appropriately, depending on the nature of the company or profession.

As for as relationships between workers and customers are concerned, it eventually changes from the physical to the psychological dimension. The environment of psychological work includes choice and freedom, stress, support and workload. It is extremely important to identify an employee’s needs and provide them with a healthy work environment in a company to retain them.

Alshurideh (2017) said that if employees believe that they contribute to the organization’s success, they remain in an organisation for a long time due to its good working environment. These organisations’ skilled workers work together to achieve corporate objectives. According to the research by Thanh et al. (2018), staying or leaving the workplace is an essential element in the decision-making process, which has a significant influence on retaining employees.

Due to a lack of the required workplace culture, the employees look forward to new opportunities. The employees need to have a liking for the culture linked to the organisation. The employees require a constant learning environment, need to upgrade their academic and other types of qualifications. The work-life balance comprises employee well-being, free holidays, changes in the working schedule and flexible hours that the company may offer. This leads us to the following hypothesis:

H2: There is a positive relationship between workplace culture and retention.

2.3. Mediating Effect of Perceived Organizational Support Between Motivation and Retention

Motivation is important for employee retention. There are two variables to study motivation: one is financial and another non-financial. When we examined the impacts of incentives on employee retention, we found that simply cash rewards are not sufficient to satisfy workers. Both intrinsic and extrinsic incentives play an important role in employee retention. In addition, intrinsic and extrinsic motivation has an important role to ensure that company appreciates its workers. This assessment by the company provides the POS to enhance the retention of employees (Kampkötter, 2014).

Extrinsic incentive such as recognition, promotion and relationships with employees connect to co-operation with employees. Likewise, the non-financial incentive has a smaller effect on employee retention and management has to provide more appealing retention packages. Satisfied employees tend to work with the organization for long. In contrast, financial rewards are more essential than the non financial rewards for motivation and retention of workers (Mahmoud & Grigoriou, 2017).

In addition to the significance of financial incentives, such as wages, bonuses and insurance, non-financial motivation also improves employee morale. Companies utilize financial incentives, job characteristics, training and career development as instruments for increasing employee retention. POS has a major effect on employee retention within the same field (Dahkoul, 2018). Chouhan et al. (2016) further stressed that POS explains not only organizational support theory but also exchange theory of the leading member. Efficient engagement, regulatory commitment and constant engagement have a good effect on the retention of POS and employees (Danaeifar et al., 2016). It is thus evident that POS is essential for retention of employees. Based on the mentioned studies, the following hypothesis can be validated:

H3: Perceived Organizational Support positively mediates the relationship between motivation and retention.

2.4. Mediating Effect of Perceived Organizational Support Between Workplace Culture and Retention

Firms that create a culture of mutual respect through successful living not only keep their workers engaged, but may also transfer the moral culture of work to the newcomers. Employees are also eager to grow an organization, enhance their performance to reach the goals established by a company to compete globally (Zeffane & Melhem, 2017).

Working engagement, commitment, and enthusiasm influences employee performance in the workplace, where the existence of these characteristics increases workers’ commitment to their job. Another study by AKBAR on the impact on employee retention of an organisation’s culture indicates that an effective contribution of 2.6 percent of the factors of organization culture influences employee retention (Utami et al., 2021).

Therefore, corporate culture is an essential element to improve retention of employees. Ashraf et al. (2018) said that the variables affecting retention of employees include work features, awards, recognition, organizational support felt, supervisor support as well as distribution and procedural fairness.

Organizational support is regarded as one of the effects of employee participation. POS is the reaction of employees through the organization, which is shown by a high degree of dedication and participation in the accomplishment of organizational goals (Abuhashesh et al., 2019). Anesukanjanakul et al. (2019) have shown in their study that POS has an effect on employee engagement, which increases employee participation, increases the POS level and vice versa. This can lead us to the following hypothesis:

H4: Perceived Organizational Support positively mediates the relationship between workplace culture and retention.

2.5. Mediating Effect of Workplace Fun among the Relationship Between Motivation and Retention

Workplace fun includes productivity competitions, social gatherings, team-building, and public celebrations of professional and personal accomplishments. Manager support for fun is also designed as the degree to which managers enable workers to have fun at work and encourage them to have fun. Similar to the construction of the personal freedoms of Kampkötter (2017), this kind of assistance involves a casual corporate approach and gives workers the chance to have fun at work.

The employee turnover is perhaps one of the largest management problems in the hotel business. The turnover rate of entrance workers in hotel and restaurant businesses may easily be more than 50% yearly (Lin & Kellough, 2019). In addition, given their high turnover and the necessity to fill up positions rapidly, managers are frequently subjected to warm recruitment, regardless of their credentials. Workplace Fun may be an antidote to the problem of turnover since most people desire employment rather than monetary reward.

Besides enough salary, workers strive for inner satisfaction, excellent connections, and fun (Nair & Salleh, 2015). In addition, given the long working hours, people wish to have an enjoyable work experience.

H5: Workplace Fun positively mediates the relationship between motivation and retention.

2.6. Mediating Effect of Workplace Fun Between Workplace Culture and Retention

Kar and Misra (2013) investigated the beneficial mediation effects of employee engagement and employee retention on the quality of work life. The direct effect of the organizational culture on job quality was explored via studies such as Alshurideh (2019). Some researchers have investigated the direct effect on employee retention concerning the quality of working life. There was no notable research investigating the QWL as a mediator between organizational culture and the retention of employees.

Each company has a distinct culture, which provides the foundation for the intended conduct of its workers. This works as a guide to establish behavioral patterns inside the organization in order to accomplish the desired organizational objectives. Studies indicate that the corporate culture and retention of employees are significantly linked (Kar & Misra, 2013). According to Alshurideh (2019), the retention of employees has a significant connection with Organizational Culture.

It has been noted that companies with a strong organizational culture have a high retention rate and organizations may achieve a competitive position in the market by retaining their staff members (Kurdi, 2016).

H6: Workplace fun positively mediates the relationship between workplace culture and employee retention.

3. Methodology

3.1. Sample

A survey was conducted using online Google forms between September 2021 and October 2021. The target demography for the research was those who worked for Lebanon’s private businesses. The poll was conducted in English, the second language of Lebanon. A total of 179 workers (N=179) were utilized for this research. The next sections describe the various tools utilized to measure the research variables.

3.2. Instruments

The first component includes a permission form that gives respondents the option to whether or not to reply to the questionnaire to ensure preserving research ethics and confidentiality. The identity of the respondents was kept anonymous. The Institutional Review Board (IRB) authorized it before the questionnaire was distributed.

The questionnaire aimed to investigate the mediating impact on the connection between employee involvement and employee intention to break-up and turnover by the supervisor support. Please note that eight parts were included in the survey. After the approval form 10 demographic questions were added in the second section. These questions covered gender, age, matrimonial status, education level, years of experience, industry, job status, work status, number of employees in the business and whether or not the responder is the primary provider of his family.

In the third section, employee involvement was assessed using Alshraideh et al. (2017) questions. Answers ranged from 0 (never) to 6 (Always). Their involvement activity was evaluated on a 6-point Likert scale.

In addition, the third part of the questionnaire related to the intentional scale for turnover using the scale of Huynh and Nguyen (2019). Six questions with 5-point scale ranging from 1 (never) to 5 (Always) were addressed to the participants. Examples of questions included questions like: ‘How often do you think you have left your job?, ’ ‘To what degree does your present employment meet your personal requirements’ and ‘How often are you dissatisfied if you do not have a work opportunity?’

The fourth section of the survey comprises a 9-point scale focusing on retention measured by Kurdi et al. (2020). The items ranged from 0 (Never) to 6 (Everyday) on a 6-pit Likert scale. The sample items included: “I’m doing the issue of our consumers very successfully.” “I feel as if I’m treating certain clients as impersonal objects”

Three measuring items were covered by the fifth section of the survey and were accepted by Alshraideh et al. (2017). The items were evaluated using a Likert scale of 5 from 1 (Very Disagreeable) to 4 (Strongly Agree). Example items are “I think my supervisor is extremely helpful in my work” and “I depend significantly on my supervisor while doing my work.”

3.3. Reliability and Validity of Constructs

In order to assess the reliability of the sample variables, Cronbach’s alpha was measured and also considered for validity purposes. In particular with the use of Likert scales, this instrument is used to test how accurate the constructs are (Table 1).

Table 1: Reliability Statistics

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Referring to the above table which represents the validity and reliability analysis before proceeding to statistical analysis, it can be noted that:

• Workplace Culture measured by WF1, WF2 and WF3 scored a Cronbach Alpha of 0.787 which is higher than 0.7 meaning that the data is valid and reliable.

• Motivation measured by M1, M2 and M3 scored a Cronbach Alpha of 0.812 which is higher than 0.7 meaning that the data is valid and reliable.

• Workplace fun measured by WF1, WF2 and WF3 scored a Cronbach Alpha of 0.764 which is higher than 0.7 meaning that the data is valid and reliable.

• Perceived Organizational Support measured by POS1, POS2 and POS3 scored a Cronbach Alpha of 0.798 which is higher than 0.7 meaning that the data is valid and reliable.

• Employee Retention measured by ER1, ER2 and ER3 scored a Cronbach Alpha of 0.801 which is higher than 0.7 meaning that the data is valid and reliable.

4. Results

4.1. Between Motivation, Workplace Culture and Employee Retention

Table 2 showed a direct significant relationship between motivation scored P-value (0.00)), T-Test (6.111) and B (0.408), workplace culture scored P-value (0.00), T-Test (6.11) and B (0.376) with employee retention. Since all the variables scored a significance level lower than 0.05. The following can be validated:

Employee Retention = 0.00 + 0.408 Motivation + 0.376 Workplace Culture

Table 2: Relationship Between Motivation, Culture and Employee Retention

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aDependent Variable: Employee Retention.

This means that:

• For every one unit increase in motivation, retention tends to be affected by 40.8 units.

• For every one unit increase in workplace culture, retention tends to be affected by 37.6 units.

Furthermore, it can be noted that the R in this model is 70.2% which means that the independent variables represent 70.2% of the variables that impact employee retention and that 29.8% of the variables had not been addressed throughout the model. However, the R2 scored 49.3% which means that the relationship between the variables is 49.3%.

4.2. Perceived Organizational Support Mediates the Relationship Between Motivation, Workplace Culture and Employee Retention

Table 3 showed a direct significant relationship between motivation scored P-value (0.00)), T-Test (4.703) and B (0.353), workplace culture scored P-value (0.00), T-Test (5.669) and B (0.377) and Perceived Organizational Support scored P-value (0.015), T-Test (10.050) and B (0.100) with employee retention. Since all the variables scored a significance level lower than 0.05. The following can be validated:

Employee Retention = 0.002 + 0.353 Motivation + 0.377 Workplace Culture + 0.100 Perceived Organizational Support

Table 3: Mediating Effect of Perceived Organizational Support

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aDependent Variable: Employee Retention.

This means that:

• For every one unit increase in motivation, retention tends to be affected by 35.3 units.

• For every one unit increase in workplace culture, retention tends to be affected by 37.7 units.

• For every one unit increase in Perceived Organizational Support, retention tends to be affected by 10 units.

Furthermore, it can be noted that the R in this model is 70.7% which means that the independent variables represent 70.7% of the variables that impact employee retention and that 29.3% of the variables had not been addressed throughout the model. However, the R2 scored 50.0% which means that the relationship between the variables is 50.0%.

It can be noted that the R increased slightly from 70.2% in regression one to 70.7% in regression two, which means that perceived organizational support mediates slightly the relationship between motivation and workplace culture.

4.3. Workplace Fun Mediates the Relationship Between Motivation, Culture and Employee Retention

Table 4 showed a direct significant relationship between motivation scored P-value (0.00), T-Test (6.080) and B (0.407), workplace culture scored P-value (0.00), T-Test (5.682) and B (0.381) and workplace fun scored P-value (0.005), T-Test (4.446) and B (0.447) with employee retention. Since all the variables scored a significance level lower than 0.05. The following can be validated:

Employee Retention = 0.012 + 0.407 Motivation + 0.381 Workplace Culture + 0.447 workplace fun

Table 4: Mediating Effect of Workplace Fun

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aDependent Variable: Employee Retention.

This means that:

• For every one unit increase in motivation, retention tends to be affected by 40.7 units.

• For every one unit increase in workplace culture, retention tends to be affected by 38.1 units.

• For every one unit increase in workplace fun, retention tends to be affected by 44.7 units.

Furthermore, it can be noted that the R in this model is 81.4% which means that the independent variables represent 81.4% of the variables that impact employee retention and that 18.6% of the variables had not been addressed throughout the model. However, the R2 scored 59.6% which means that the relationship between the variables is 59.6%.

It can be noted that the R increased significantly from 70.2% in regression one to 81.4% in regression three, which means that workplace fun significantly mediates the relationship between motivation and workplace culture.

4.4. Structure Equation Model Results

The structure equation model in Figure 1 was implemented to study the mediating effect of perceived organizational support and workplace fun on the relationship of motivation and workplace culture on employee retention. The following variables had been measured:

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Figure 1: Structure Equation Model

• Motivation measured by three factors named M1, M2 and M3

• Workplace culture measured by three factors named WC1, WC2 and WC3

• Perceived Organizational Support measured by three factors named POS1, POS2 and POS3.

• Workplace fun measured by three factors named WF1, WF2 and WF3.

• Employee retention measured by three factors named ER1, ER2 and ER3.

Referring to Figure 1, it can be noted that motivation tends to affect perceived organizational support by 3.54 units and workplace culture tends to influence perceived organizational support by 0.53 units, which in turn influences employee retention by 0.48 units. Furthermore, it can be noted that motivation affects workplace fun by 3.06 units and culture affects workplace fun by 0.25 units which in turn affects employee retention by 1 unit.

Table 5 showed that the indirect (mediated) effect of POS on Workplace culture is 0.251. That is, due to the indirect (mediated) effect of POS on Workplace Culture, when Workplace Fun goes up by 1, Workplace Culture goes up by 0.251.

Table 5: Indirect Effect Model

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POS tends to impact motivation by 3.544, which means that POS mediates motivation and employee retention by 3.544, for every one unit increase in POS, the motivation of employees will increase by 3.544 units. However, the table shows that workplace fun tends to have an indirect and mediated effect on workplace culture which means for every 1 unit increase in workplace fun, the workplace culture will increase by 0.525 units. At last, workplace fun mediates the relationship between motivation and employee retention, which means for every 1 unit increase in workplace fun, motivation tends to increase by 3.980.

Referring to Table 6, it can be noted that hypothesis one which states that there is a direct relationship between motivation, workplace culture and employee retention since the R scored 70.2%. However, it can be noticed after using perceived organizational support as a mediator, the R increased from 70.2% to 70.7% meaning that perceived organizational support mediates slightly the relationship between motivation, culture and employee retention. It can be noticed that after using workplace fun as a mediator, the R increased from 70.2% in regression 1 to 81.4% in regression 3, which means that the impact of workplace fun on employee retention in the workplace is much higher than the impact of perceived organizational support on the independent variables. Thus, based on the above results, workplace fun tends to have a stronger mediator effect on the relationship between workplace culture, motivation and employee retention.

Table 6: Summary Table

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5. Findings and Discussion

5.1. Impact of Workplace Fun on the Relationship between Motivation, Culture and Employee Retention

Workplace fun tends to impact the retention in the workplace since both are characterized by positive psychological and high energy levels. As the findings indicate, committed workers see work as pleasure. The retention of employees is able to promote client happiness and business success since the research showed that the requirement for retention of workers is closely linked to the financial success of a company. Employee retention may thus be accomplished if companies consider their workers as a source of competitive advantage.

A pleasant work atmosphere may thus assist in reducing stress, increasing productivity and retention of employees. There is also some evidence that a little pleasure during work helps workers to be more cooperative, more empathetic and more dedicated to their jobs. Engaging staff in enjoyable activities is an excellent method to bring them a refreshing break that may have a beneficial impact on both the person and the company.

If the employee wants fun at work, it doesn’t necessarily mean “play time, ” where everyone can go out to the backyard and play a game; instead, it means incorporating a variety of activities into the weekly schedule that can help maintain the stress levels and increase employees’ engagement and enthusiasm for their jobs. For the sake of this definition, fun includes any action including enjoyment or pleasure, being unforced or casual, performing surprises, or even just having a good time. However, having fun at work is still a challenge since diverse people’s viewpoints mean that what one person finds amusing may not be the same for another. This leaves the workplace with a muddled and confusing environment where no clear outcomes can be achieved.

It’s safe to infer, given their administrative image, that these organizations gain a lot by encouraging employees to have fun at work. However, academic research hasn’t looked into this. There is evidence that making the workplace entertaining helps reduce stress, absenteeism, and turnover, as well as keep customers happy, retain employees and recruit new ones. Despite this, everything is linked to one central idea: employee participation.

5.2. Impact of Perceived Organizational Support on the Relationship Between Motivation, Culture and Employee Retention

The relationship between perceived organizational support and employee behavior is influenced by employees’ views on essential processes. The research showed that management with high levels of POS showed high degrees of work fulfillment compared to managers with a lower level of support. POS may enhance the confidence of the people and their convictions that their company identifies and recompenses their efforts to get a better performance.

Research shows POS is launching a process of social exchange in which people may assist the organization, which leads to higher benefits. When employees work and organize constructively, it reinforces their connection within the spheres of social exchange theory. Employees with POS are inherently compelled to commit themselves socially and emotionally to the job and organization.

Retaining workers requires a high level of motivation. There are two ways to look at motivation: monetary reward and non-monetary reward. According to research on the effect of rewards on retention, only financial incentives were found to be insufficient to satisfy people with their jobs. Both intrinsic and extrinsic motivation plays an important role in keeping workers happy and productive. Motivating workers with both intrinsic and extrinsic factors is important since it shows the company values. The organization’s value results in POS, which helps to keep the employees around for a long time. This section includes a comprehensive overview and critical analysis of the available material. Another important component in motivating workers is the culture of a company. This includes things like remuneration, acknowledgement of achievement, advancement chances, and the work environment.

Financial incentives tend to depress intrinsic motivation, but verbal praise and constructive criticism are effective in raising it in companies where they are utilized as incentives. Intrinsic factors including job stability, importance of the work, feedback, diversity of tasks, autonomy, and authority have been linked favorably to higher employee retention. While intrinsic motivation is linked to employee collaboration, external motivations like recognition, development, and relationships with coworkers are not.

Since non-financial incentives have little effect on employee retention, management must provide more enticing benefits packages to retain their best workers. Employees who are happy with their jobs are less likely to leave. On the other hand, some believe that the financial incentives are more essential than non-financial incentives in encouraging and retaining people. According to research on the value of non-financial benefits for employee happiness, employee retention is predicated on work satisfaction. Employee morale is boosted by non-financial incentive in addition to money motivation, such as a raise or bonus. Organizations, on the other hand, utilize a variety of strategies to keep their employees happy and productive, including financial incentives, job qualities, training, career advancement, and recognition. Extrinsic motivation literature is equivocal, as shown by this finding. More study is needed to arrive at precise conclusions. Employee retention has been proven to be impacted significantly by Perceived Organizational Support (POS). POS also covers the principle of organizational support as well as the exchange of leadership members as well. As a result, the theory of leader member exchange and the theory of social trade are distinct ideas. In the minds of workers, employers that care about their well-being and are actively involved in corporate citizenship practices are more likely to reward their employees for their efforts, which in turn helps keep them loyal to the company. When it comes to POS and employee retention, effective commitment, normative commitment, and persistent commitment all play a role. It is clear, therefore, that POS is critical for retaining employees.

6. Conclusion and Recommendations

The following suggestions are taken into account while considering the main results of the study. These suggestions, if followed, will assist both the employees and the management of the company to enhance their retention. First, since the majority of employees view their pay and fringe benefits as little to write about, management should establish mechanisms to increase the wages of employees. The connection between pay increases and greater productivity may be achieved. Other advantages should also be given, such as free medical care, transportation, cafeteria services, office equipment supply and working tools. In addition, management should encourage their staff to attend courses such as remote learning, correspondence and paid study leave. This will contribute to improving work satisfaction and achieving greater productivity. It is also advisable to allow employees to take part in the decision-making process. Participatory processes may make a major contribution in improving efficiency and quality of services. This may also contribute to improved job security, as employees become more involved in the very problems that are important to employees. The communication between employees and managers or supervisors may be done. For complaints and disagreements to be resolved quickly, good frameworks should be put in place. The arrangement of frequently used interdepartmental and interdepartmental barriers between management and employees may accomplish this. These durbars should be established as platforms to identify and provide employees with answers to issues, as well as to contribute ideas which may be of relevance to the business operation, by discussing and exchanging ideas. Moreover, employees should clearly define the means of communication for whom a problem should be reported, and information should be effectively disseminated throughout the company. This will assist to prevent rumors between company employees.

Factors such as organizational culture, reward, award, promotion options, workplace and corporate justice play a significant part in encouraging workers to better retain personnel. Intrinsic motivation often decrease when money is used as an external incentive, while intrinsic motivation increases where verbal compliments are employed and where constructive feedback is utilized. Effective motivation such as safety, importance of the job, feedback, diversity of work, autonomy and authority were shown to improve retention of employees.

Although a good amount may improve workers’ quality of life, too much fun can be a negative thing. In one sense, fun may be essential to reduce turnover for workers in hospitals, since fun is one reason why people are firstly looking for jobs in the hospitality sector.

This gives workers hope that their improved performance will be noticed and their well-being will be protected. Because of POS, motivated workers are more devoted to the company and are less likely to leave. Employee absenteeism is reduced and retention is improved when the POS is high. POS has the advantage of discouraging negative reactions, which reduces turnover and absenteeism while increasing productivity and building long-term relationships.

The research suggest that fun events and support for fun managers enable workers to connect informally and help persons get to know one other better, creating an environment that promotes friendship building. Based on these connected reasons, fun activities and the support of managers for fun are considerably linked to turnover.

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