##plugins.themes.bootstrap3.article.main##

  •   Amos Ephraim Hanai

  •   William Amos Pallangyo

Abstract

This paper explores the influence of compensation on employee retention of the banking institutions in Tanzania. The stratified sampling technique was used to ensure representativeness of each bank category. Eleven banks were purposely selected and simple random sampling was applied to draw a sample of 370 employees. The quantitative data were collected using questionnaire and analyzed using Binary logistic regression. The results indicated that compensation is significantly influencing employee retention with a ‘p’ value of 0.001. It was further revealed that compensation attribute (fair salary) has significant influence on employee retention. The study recommends to the bank managers to develop and implement retention policies that contemplate fair salaries as this is a most valued compensation attribute. Furthermore, the bank managers need to pay great attention to right retention policies in order to improve retention of employees.

Keywords: Employee retention, Compensation, Bank institutions

References

Adzei, F.A. and Atinga R.A. (2012). “Motivation and retention of health workers in Ghana's district hospitals: Addressing the critical issues". Journal of health organization and management. 26(4): 467 - 485.

Agresti, A. (1990). Categorical Data Analysis. John Wiley and Sons. New York.

Agresti, A. (2013). Categorical Data Analysis (3rd Ed). John Wiley & Sons Inc. Hoboken.

Agyeman, C.M. and Ponniah, V.M. (2014). Employee Demographic characteristics and Their Effects on Turnover and Retention in MSMEs. International Journal of Recent Advances in Organizational Behaviour and Decision Sciences. 1(1): 12 – 29.

Ahmada, N., Tariqb, M.S. and Hussain, A. (2015). Human resource practices and employee retention, evidences from banking sector of Pakistan. Journal of Business and Management Research. 7:186 - 188.

Anis, A., Rehman, K., Rehman, I., Khan, M.A. and Humayoun, A.A. (2011). Impact of organizational commitment on job satisfaction and employee retention in pharmaceutical industry. African Journal of Business Management. 5(17): 7316 – 7324.

Anter, C. and Lapian, S.L.H.V.J. (2016). Analyzing the Effect of Employee Compensation on Employee Intention to Stay (Study in Bank SulutGo Head Office). Journal EMBA. 4(2): 39 – 45.

Babyak, M.A. (2004). What you see may not be what you get: a brief, nontechnical introduction to overfitting in regression-type models. Psychosomatic Medicine. 66: 411- 421.

BoT (2017). Directorate of banking supervision Annual Report.Government Printer, Dar es Salaam, Tanzania. [https://www.bot-tz.org/BankingSupervision/BankingSupervision.asp] site visited on 20/01/2019.

Chen, Y.S., Rasdi, R.M., Ismail, M. and Asmuni, A. (2017). Predictors of Intention to Stay and Moderating Role of Gender among Executives in the Malaysian Manufacturing Organizations. International Journal of Academic Research in Business and Social Sciences. 7(special issue). 4th International Conference on Educational Research and Practice,Malaysia. [http://hrmars.com/hrmars_papers/Predictors_of_Intention_to_Stay_and_Moderating_Role_of_Gender_among_Executives_in_the_Malaysian_Manufacturing_Organizations.pdf] site visited on 12/05/2017.

Chiekezie, O.M., Emejulu, G. and Nwanneka, A. (2017). Compensation management and employee retention of selected commercial banks in Anambra state, Nigeria. Archives of Business Research. 5(3): 115 – 127.

Drost, E.A. (2011). Validity and Reliability in Social Science Research. Education Research and Perspectives. 38(1): 105 - 124.

Eberendu, A.C. and Okere, R.K. (2015). An empirical review of Motivation as a Constituent to Employees’ Retention. International Journal of Engineering and Science. 5(2): 6 – 15.

Ejaz, S. and Akbar, W. (2015). An Effectiveness of Human Resource Management Practices on Employee Retention Findings from Insurance Companies of Karachi. European Journal of Business and Management. 7(7): 27 – 33.

Gayathri, R., Sivaraman, G. and Kamalambal, R. (2012).Employee retention strategies in BPO's- An empirical investigation. Interdisciplinary Journal of Contemporary Research in Business. 3(12): 572 - 583.

Harrell Jr, F.E and Slaughter, J.C. (2008). Introduction to Biostatistics for Biomedical Research. [ http://biostat.mc.vanderbilt.edu/wiki/pub/Main/ClinStat/ci2.biostat1.pdf] site visited on 22/09/2019.

Herzberg, F. (1966). Work and the nature of man. Thomas Y. Crowell Company. New York.

Hirpara, N., Jain, S., Gupta, A. and Dubey, S. (2015). Interpreting research findings with confidence interval. Journal of Orthodontics & Endodontics. 1(8): 1 – 4.

Hong, E.N., Hao, L.Z., Kumar, R., Ramendran, C. and Kadiresan, V. (2012). An effectiveness of human resource management practices on employee retention in institute of higher learning: - a regression analysis. International Journal of Business Research and Management. 3(2): 60 - 79.

Ibidunni, S., Osibanjo, O., Adeniji, A., Salau, O.P. and Falola, H. (2016). Talent Retention and Organizational Performance: A Competitive Positioning in Nigerian Banking Sector. Social and Management Sciences. 24(1): 1 – 13.

Ihantola, E. and Kihn, L. (2011). Threats to Validity and Reliability in Mixed Methods Accounting Research. Qualitative Research in Accounting and Management. 8(1): 39 - 58.

Johari, J., Yean, T.F., Adnan, Z., Yahya, K.K. And Ahmad, M.N. (2012). Promoting Employee Intention to Stay: Do Human Resource Management Practices Matter? International Journal of Economics and Management. 6(2): 396 – 416.

Kajungu, T.M. and Mugisha, J.F. (2015). Role of remuneration in retention of health workforce in a rural district setting in Uganda. International Journal of Public Health Research. 3(1): 10 - 16.

Kanwal, A. and Majid, M. (2013). Retention Management in Banking System: An Evidence from Multan, Punjab Pakistan. Interdisciplinary Journal of Contemporary Research in Business. 5(1): 795 – 804.

Kassa, T. (2015). Employee Motivation and its Effect on Employee Retention in Ambo Mineral Water Factory. International Journal of Advance Research in Computer Science and Management Studies. 3(3): 10 - 21.

Kavitha, S.R., Geetha, S.R.and Arunachalam, V. (2011). An empirical study on employee retention strategies in a biscuit manufacturing company in India. Interdisciplinary Journal of Contemporary Research in Business. 3(4): 762 - 772.

Khoshnevis, M. and Gholipour, A. (2017). Exploring the Relationship between Employer Brand and Employees’ Retention. International Journal of Scientific and Engineering Research. 8(10): 141 – 151.

Kimberlin, C.L. and Winterstein, A.G. (2008). Validity and reliability of measurement instruments used in research. American Journal of Health-System Pharmacists.65: 2276 - 2284.

Kossivi, B., Xu, M. and Kalgora, B. (2016). Study on Determining Factors of Employee Retention. Open Journal of Social Sciences. 4: 261 - 268.

Kumar, J.S. and Benitto, J.J. (2015). Employee Retention Strategies -A Case Study on Garment Industries in Tirupur. Asia Pacific Journal of Research. 1(33): 91 – 96.

Kweka, N.A and Sedoyeka, E. (2014). Labor Turnover in Tanzania – Telecom vs Banking Sectors. International Journal of Computing and ICT Research. 8(2): 65 - 82.

Lancaster, G. (2005). Research Methods: A Concise Introduction to Research in Managements and Business Consultancy. Butterworth-Heinemann. London.

Mabaso, C. and Moloi, K.C. (2016). The Influence of Compensation on Talent Retention at a TVET College. [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2851760] site visited on 26/12/2018.

Mamahit, N.I., Worang, F.G. and Rumokoy, F.S. (2019). Factor Analysis on Employee Retention at Ibis Hotel Manado. Journal EMBA. 7(1): 121 – 130.

Manogharan, M.W., Thivaharan, T. and Rahman, R.A. (2018). Academic staff retention in private higher education institute - case study of private colleges in Kuala Lumpur. International Journal of Higher Education. 7(3): 52 – 78.

Mathimaran, B. and Kumar, A.A. (2017). Employee Retention Strategies - An Empirical Research. Global Journal of Management and Business Research: E Marketing. 17(1): 17 - 22.

Mboya, W.J. (2012). Model for Determinants of Labour Mobility in the Banking Industry of Tanzania. The African Journal of Finance and Management. 21(2) [http://journal.ifm.ac.tz/index.php/AJFM/article/view/51] site visited 22/06/2016.

Mehrez, A. and Bakri, A. (2019). The impact of human resource practices on job satisfaction and intention to stay in emerging economies: Model development and empirical investigation among high caliber governmental employees in Qatar. Management Science Letters. 9 (2019): 425 – 442.

Motlou, R.G. and Karodia, A.M. (2016). An evaluation of the impact of job satisfaction on employee retention at Lonmin Rowland Shaft North West province. Kuwait Chapter of Arabian Journal of Business and Management Review. 5(10): 15 – 49.

Mrope, G. and Bangi, Y.I. (2014). Examining the Influence of Management Practice and Attitudes on Employee Turnover: A Case of Kibaha District Council. The International Journal of Business and Management. 2(9): 11 – 18.

Msengeti, D.M. and Obwogi, J. (2015). Effects of Pay and Work Environment on Employee Retention: A Study of Hotel Industry in Mombasa County. International Journal of Scientific and Research Publications. 5(4): 2250 – 3153.

Msisiri, P. R. and Juma, D. (2017). Relationship between non-financial rewards and retention of employees in banking industry: Case of Commercial Rural Development Bank-Arusha Tanzania. International Journal of Economics and Finance. 5(2): 1-38.

Muindi, F. and Odandi, C.A. (2016). Factors that influence the Retention of Rural Health Workers in Siaya County, Kenya. DBA Africa Management Review. 6(3): 27 – 41.

Muhoho, J.M.E. (2014). Assessment of factors influencing employee retention in Tanzania’s work organizations. International journal of innovation and applied studies. 9(2): 687 - 697.

Mutiria, J.K., Rukangu, S. and Kubaison, K. (2015). Factors Influencing Employee Retention at Meru University of Science and Technology. IOSR Journal of Business and Management. 17(11): 75 – 82.

Nasir, S.Z. and Mahmood, N. (2016). Determinants of Employee Retention: An Evidence from Pakistan. International Journal of Academic Research in Business and Social Sciences. 6(9): 182 – 194.

Nnabuife, E.K., Chiekezie, O.M. and Elom, M.E. (2017). Rewards and Employee Retention in Ebonyi State Public Corporations: Focus on Ebonyi State Broadcasting Corporation and Ebonyi State Water Corporation. Journal of Business and Management. 19(12): 56 - 63.

Osibanjo, O.A., Adeniji, A.A., Falola, H.O. and Heirsmac, P.T. (2014). Compensation packages: a strategic tool for employees' performance and retention. Leonardo Journal of Sciences. 13(25): 65 - 84.

Oyagi, N.B. and Kembu, S.A. (2014). To assess the relationship between motivation and retention of academic staff in selected public higher institutions of learning in Dar es-Salaam. International journal of advancement in engineering technology, management and applied science. 1(4):54 – 61.

Palwasha, B., Faizuniah, P., Johanim, J. and Ashfaq, A. (2017). The Impact of Compensation and Promotional Opportunities on Employee Retention in Academic Institutions: The Moderating Role of Work Environment. International Journal of Economic Perspectives. 11(1): 378 – 391.

Patil, Y.V. and Sharma, D.S. (2014). An Analytical Study of Role of Compensation & Exit Interview on Employee Retention in Plastic Manufacturing Industry in Jalgaon District. DMIETR International Journal on Human Resource Management.1: 6 -10.

Ponnuru, K.R. and Gupta, R. (2018). Employee Retention: Important factors to be considered by Human Resource Professionals while creating retention. [https://www.igi-global.com/chapter/employee-retention/200002] site visited on 12/01/219.

Rakhra, H.K. (2018). Study on factors influencing employee retention in companies. International Journal of Public Sector Performance Management. 4(1): 57 – 79.

Reddy, K. and Govender, K.K. (2014). Retaining knowledge workers: a case study of a leading South African bank. Mediterranean journal of social sciences. 5(23): 2768 - 2776.

Regina, C. Dy. and Rosalia, T.C. (2015). A Strategic Employee Retention Model Based on Employee Perception. European Journal of Business Management. 2 (5), 25-35.

Salisu, J.P., Chinyio, E. and Suresh, S. (2016). The Impact of Compensation on Public Construction Workers’ Retention in Jigawa State of Nigeria. International Journal of Engineering Sciences and Management. 6(2): 17 – 30.

Samuel, M.O. and Chipunza, C. (2009). Employee retention and turnover: Using motivational variables as a panacea. African Journal of Business Management. 3(8): 410 - 415.

Sarmad, M., Ajmal, M.M., Shamim, M., Saleh, M. and Malik, A. (2016). Motivation and Compensation as Predictors of Employees’ Retention: Evidence from Public Sector Oil and Gas Selling Organizations. Journal of Behavioural Sciences. 26(2): 175 – 188.

Shahin, N. (2017). A Study of Employee Retention in the Pharmaceuticals Sector in Ranchi City. International Journal of Engineering Technology Science and Research. 4(9): 292 – 301.

Silva, M.R.A., Carvalho, J.C.A. and Dias, A.L. (2019). Determinants of Employee Retention: A Study of Reality in Brazil. [https://www.igi-global.com/chapter/determinants-of-employee-retention/221181] site visited on 20/01/2019.

Streiner, D.L. (2003). Statistical Developments and Applications, Starting at the Beginning: An Introduction to Coefficient Alpha and Internal Consistency. Journal of Personality Assessment. 80(1): 99 – 103.

Thirupathy, A. and Dhayalan, C. (2016). Employee retention and turnover using motivational variables at India. International Journal of Research. 4(8): 1 – 9.

Uitzinger, D., Chrysler-Fox, P. and Thomas, A. (2016). Retention Strategies for Top and Middle-level Managers. Proceedings of the 28th Annual Conference of the Southern African Institute of Management Scientists, Johannesburg, South Africa. September 2016. [https://www.researchgate.net/publication/307811720_Retention_strategies_for_top-and_middle-level_managers] site visited on 20/01/2019.

Waweru, S.W. and Kagiri, A. (2018). Effect of Human Resource Management Strategies on Employee Retention: A Survey of Agriculture sector Ngo’s based in Nairobi, Kenya. The Strategic Journal of Business & Change Management. 5(2): 2340 – 2360.

Zareen, M., Razzaq, K. and Ramzan, M. (2013). Impact of employee retention on performance: the moderating role of employee psychological perception towards retention plan. Interdisciplinary journal of contemporary research in business. 4(10): 822 - 830.

Downloads

Download data is not yet available.

##plugins.themes.bootstrap3.article.details##

How to Cite
Hanai, A., & Pallangyo, W. (2020). The Contribution of Compensation in the Employee Retention of the Banking Institutions in Dar es salaam, Tanzania. European Journal of Business and Management Research, 5(4). https://doi.org/10.24018/ejbmr.2020.5.4.223