A Model for Determinants of Employees' Attraction and Retention in the Banking Industry of Tanzania : Employees' Perspective

Abstract: Since the liberalization of the economy in early 1980s, Tanzania has witnessed an increased labour mobility in its various sectors and industries of the economy including the banking industry. This situation has been partly contributed by the rapid growth of the private service sector. The rapid growth of the private sector in general and the banking industry in particular has been the response to the advice advanced by the World Bank (WB) and the International Monetary Fund (IMF) through the Structural Adjustment Programmes (SAPs); to facilitate the market oriented economy with less state intervention.  As a result a number of privately owned financial institutions have emerged. Similarly, the government privatized the formerly publicly owned banks. The cumulative impacts of this situation have been the increased demand for qualified employees in the banking industry and hence leading to fierce competition for highly qualified employees among the banking institutions.The major objective of this study was to develop a conceptual framework/ model for studying the determinants of employees’ attraction and retention in the banking industry of Tanzania. The developed conceptual framework was based on the review of various relevant theories, empirical studies and the empirical findings gathered from two case studies.The findings of this study revealed that there are three categories of determinants of employees´ attraction and retention in the banking industry which include; individual employee factors, organizational constructed factors and external critical business environment factors as depicted in figure 8-1 of this thesis.