To Stay or Not To Stay: Can Organizational Culture Provide the Staying Power? Evidence from the Ghanaian Banking Sector

Abstract

The study investigated the influence of organizational culture on employee retention using four (4) selected banks in the Ghanaian service industry. In addition, the researchers sought to find out the impact of four subcultures, namely; innovative, competitive, bureaucratic and community on employee retention. Predictive correlational research design was used to examine the problem in this study. A convenient sample of 301 participants from four (4) banks was involved in the study. Predictive correlational design was used to investigate the link between the variables in the study. Standard regression and hierarchical regression analysis was conducted to test the hypotheses in the study. It was observed that organizational culture significantly and positively predicted employee retention in the Ghanaian banking sector. The researchers also observed that, innovative culture significantly and positively predicted as well as accounted for the greatest amount of variance in employee retention. Consistent with the predominant culture, community culture was found to significantly and positively predict employee retention. In terms of variance, community culture accounted for 2.5% of the variance in employee retention. Bureaucratic culture was found to significantly and positively predict employee retention. However, competitive culture did not significantly predict employee retention in the banking sector of Ghana. The findings obtained in the Ghanaian Banking sector shows that organizational culture particularly one involving strong innovative, community and bureaucratic cultures were capable of making employees stay with their current organization than one with competitive culture.

Keywords: Organizational culture, Employee retention, Banking sector, Ghana