The role of strategic performance management in employee retention : a case of company X

Abstract

The study was conducted within company X, a telecommunication company, with the assistance of a commissioner. The objective was to examine the role of strategic performance management in em-ployee retention. The aim of this thesis was to investigate the effectiveness of strategic performance management practices in enhancing employee retention within company X and to examine their in-fluence on employee retention strategies, given the challenges faced by the dynamic telecommuni-cation sector. Employee retention is crucial for companies to reduce higher expenses, lower produc-tivity, knowledge loss, and disrupted customer relations. Strategic performance management offers an effective approach by fostering a positive workplace culture, encouraging staff development, and providing opportunities for promotion and acknowledgment.

A quantitative research method was utilised, employing convenience sampling to collect data via a structured questionnaire distributed through the Webropol web-based survey tool. The collected data were analysed to derive the findings of the study. The results of the survey showed that strategic performance management has an influence on employee engagement and work performance. Thus, it affects employee retention. If the company aligns the strategic performance management practices with the employee needs and organisational goals, it can enhance employee satisfaction and long-term retention.