Role of Performance Appraisal Systems in Employee Retention: Evidence from a Cross-Sectional Study in Bangladesh
This paper discusses the higher or lower perceived performance appraisal systems and retention intention among the employees in a Bangladesh oriented survey data. A total of 207 employees in the fields who had undergone a performance appraisal cycle were surveyed using an online questionnaire. The 12 Likert items used to measure performance appraisal perceptions related to clarity, transparency, evidence use, quality of feedback, support of development as well as linkage of rewards. Two items were used in retention intention measurement (a reverse coded item of quitting intention). The appraisal perceptions had a high level of reliability (Cronbachs alpha = 0.911) and the retention intention had an acceptable reliability (Cronbachs alpha = 0.868). The descriptive results indicated the appraisal perceptions (M = 2.923, SD = 1.051) and retention intention (M = 2.971, SD = 1.281) on a five-point scale. Perceptions of appraisal were positively related to retention intention (r = 0.256, p <.001). Regression findings revealed that the appraisal perceptions had a significant predictive value on the retention intention (B = 0.313, p < .001) but the explained variation was low (R 2 = 0.066). There were no significant differences in sectors and gender. The priority improvements in open ended responses were the importance of timely feedback, better criteria and increased transparency. The results indicate that appraisal quality can be used to facilitate retention, although it needs to be combined with wider talent management.