Background of the Study
Employee retention is a critical challenge for small businesses, particularly in the hospitality industry. Restaurants in Kaduna State often experience high employee turnover rates, which can disrupt operations, increase costs, and affect service quality (Aliyu & Sani, 2023). Retaining skilled employees is vital for maintaining consistency, fostering customer satisfaction, and enhancing organizational performance.
Retention strategies such as competitive compensation, career development opportunities, and a positive work environment have been shown to reduce turnover rates. However, small businesses, including restaurants in Kaduna State, often struggle to implement these strategies due to resource constraints (Yusuf & Bello, 2024). This study seeks to explore effective employee retention strategies within the local restaurant industry, providing insights into addressing workforce challenges.
Statement of the Problem
High employee turnover rates among restaurants in Kaduna State pose significant challenges for small business owners. Many restaurants face difficulties in retaining staff due to low wages, limited growth opportunities, and demanding work conditions. These issues lead to increased recruitment costs and diminished productivity (Abdullahi & Musa, 2025).
Despite the importance of employee retention, research on effective strategies for small businesses in Kaduna State remains limited. This study aims to address this gap by investigating retention strategies and their impact on the performance of local restaurants.
Objectives of the Study
To identify current employee retention strategies used by restaurants in Kaduna State.
To analyze the impact of retention strategies on employee turnover rates.
To recommend practical retention strategies tailored to small businesses in the restaurant industry.
Research Questions
What employee retention strategies are used by restaurants in Kaduna State?
How do retention strategies affect employee turnover rates?
What practical strategies can improve employee retention in the restaurant industry?
Research Hypotheses
Effective retention strategies significantly reduce employee turnover rates.
Competitive compensation enhances employee retention in restaurants.
A positive work environment improves employee satisfaction and retention.
Scope and Limitations of the Study
The study focuses on restaurants in Kaduna State and their employee retention strategies. Findings may not apply to other industries or regions. Limitations include variability in restaurant sizes and employee demographics.
Definitions of Terms
Employee Retention: The ability of an organization to retain its workforce over time.
Turnover Rate: The percentage of employees who leave an organization within a specific period.
Retention Strategies: Practices and policies designed to reduce employee turnover and enhance workforce stability.