The effect of employment terms of service on employee retention of selected Seventh-Day Adventist Institutions in Botswana

Abstract

The purpose of this research was to investigate the relationship between employment terms of service and employee retention, and possible mediating effects of job security, job satisfaction and organizational commitment on the relationship between employment terms of service and employee retention in selected Seventh-day Adventist institutions in Botswana. Although contract employees receive gratuities at the end of each contractual period, it appears that contract employees desire to opt out of contract employment to join government civil service. A seven (7) point interval Likert scale self-administered questionnaire was used to collect data from a population of 215 and a participation of 140 was achieved through a census study. Data collected was analysed using the Statistical Package for the Social Sciences (SPSS) through descriptive, and multiple regression analysis methods to establish cross-sectional causal relationship between the independent and the dependent variables with and without mediator models. Results indicated that there is significant effect of employment terms of service on employee retention. Affective and cognitive job satisfaction, and affective and continuance organizational commitment have significant mediating effects on the relationship between employment terms of service and employee retention. However, affective and cognitive job security and normative organisational commitment do not have mediating effects on the relationship between employment terms of service and employee retention. It appears that an assurance of a stable retirement plan is a factor for employee retention. Thus, contact employees express disengagement and a desire to opt out of contract employment to government civil service.