Impact of Herzberg’s Two-Factor Theory and Its Influence on Employee Retention: A Sectoral Comparative Study in Bangladesh

This study investigates the influence of Herzberg’s Two-Factor Theory on employees’ retention across four key industries in Bangladesh manufacturing, banking, telecommunications, and services selected for their economic significance and diverse organizational structures. Focusing on full-time employees in non-executive to mid-level positions, the research examines how motivator factors (e.g., achievement, recognition, advancement) and hygiene factors (e.g., pay, job security, working conditions) impact retention decisions. A quantitative research design was adopted, utilizing a structured questionnaire administered to a randomly selected sample of 500 respondents. Descriptive statistics and multiple regression analysis were employed to assess the relationships among variables. The findings reveal that both hygiene and motivator factors significantly influence employees’ retention, with job security and recognition emerging as the most impactful predictors. Additionally, sectoral comparisons highlight notable variations in how these factors affect retention, underscoring the need for industry-specific human resource strategies. This study contributes to the literature by contextualizing Herzberg’s theory within Bangladesh’s evolving employment landscape and offers practical guidance for developing targeted retention policies. Future research could examine the role of leadership style and organizational culture in moderating these relationships.