Performance Appraisal and Employee Retention: A Study at Insurance Institutions in Nepal

Abstract

It is a systematic assessment of individual workers with respect to their performance on the job and their potential for development. Talent management is defined as identifying, attracting, engaging, providing training, developing, advancing, and keeping up with qualified people. The objective of the study is to assess the relationship between performance appraisal and employee retention in insurance companies in Nepal. This study adopted a descriptive research design. The semi-structured interview technique was applied for qualitative analysis. The population of the study consisted of managerial and operating level of employees in insurance companies. The interviewees/participants were contacted through personal networks. The types of interviews were face-to-face and telephone. The purposive sampling technique was applied in this study. Themes were applied for analysis. The study found that there is a relationship between performance appraisal and retention of employees in insurance companies in Nepal. Both monetary and non-monetary rewards attract employees to stay in the organization. Bonus, salary, allowances, and further facilities attract and engage employees. Recognized, responsible, and meaningful work influences employee retention. Reference-based appraisals do not motivate employees to retain the companies; it should be fair. The insurance industry, aiming to boost employee retention need to adopt fair performance appraisal techniques while appraising the performance of employees.