The Contribution of Compensation in the Employee Retention of the Banking Institutions in Dar es Salaam, Tanzania

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Date

2020

Journal Title

Journal ISSN

Volume Title

Publisher

European Journal of Business and Management Research

Abstract

This paper explores the influence of compensation on employee retention in the banking institutions in Tanzania. The stratified sampling technique was used to ensure the 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 a 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 the compensation attribute (fair salary) has a significant influence on employee retention. The study recommends to the bank managers 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 the right retention policies in order to improve the retention of employees.

Description

Keywords

Employee retention, Compensation, Bank institutions

Citation

Hanai, A. E., & Pallangyo, W. A. (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).