Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt

Abstract

Workers are considered as strategic assets in any organization because the accomplishment of an organization's objectives largely depends on the employees, so employers always strive to ensure that they retain their best employees. However, such employees can only become strategic assets if they are motivated to deliver on their tasks and specific assignments. Therefore, it is important to identify factors which motivate employees for the achievement of set organisational goals. The objective of this study is to investigate the extent to which organisational reward systems impact on employee retention in the banking industry in Port Harcourt, Nigeria. To achieve this objective, this study has examined the relationship between remuneration, promotion and recognition as the dimensions of reward systems and employee retention. In terms of methodology, the survey research design was utilized, with the structured questionnaire used as the primary data collection method. The generated data was analyzed using descriptive and inferential statistics as well as the spearman's test statistics. The results revealed that there is a positive relationship between remuneration, promotion, and recognition as dimensions of reward systems and employee retention. The conclusion reached is that for banks in Port Harcourt to retain their best employees, they would need to improve their reward systems, specifically the remuneration, promotion and recognition that they offer their employees. It is recommended that there should be further empirical research to test the applicability of the findings of this study in other sectors of the Nigerian economy as well as the relationship between other dimensions of reward systems and employee retention.

Employee perception about performance appraisal and staff performance effectiveness among private health facilities in Ghana: The moderating role of aligned rewards

“…Multiple-item measures (five-point Likert scales) from prior studies were utilized to measure the variables. The measurement scales to measure employee perception of PA, staff performance effectiveness, and aligned rewards were developed through adaptation and modification of previous studies (Canet-Giner, 2020; Aliu, 2020; Sihombing et [18,7,72,39,69,74,1,31] . In all, staff performance effectiveness had eight scale items, aligned rewards had eight scaled items, and employees' perception of PA had fifteen scaled items.…”

The Effects of Career Development, Compensation and Engagement on Employee Retention: A Survey of Entry-Level Employees in Nigeria Commercial Banks

“…Such deployment entails, adopting human resource practices which motivate the employees to stay longer with the organization (Fahim, 2018;Renaud et al, 2015). While many Nigeria banks have invested heavily in relevant technologies to improve their competitive position (Akpan et al, 2022;Amadi et al, 2021), without adequate and performance-driven human resource practices to engage the employees; long-term sustained performance, service delivery, business innovation and profitability will be difficult to achieve. In the Nigerian banking industry, there is insufficient empirical information on the role of career development, compensation and engagement as human resource practices needed to retain entry-level employees.…”

“…Retaining top-performing talents requires improved human resource practices which align employee interests with that of the organization Opadeyi & Akpan, 2021). Nigeria's banking sector is bedevilled with rising skill shortages due to a lack of adequate career development paths (Amadi et al, 2021). Many talented and committed entry-level employees hardly reach the pinnacle of their careers due to poor career paths occasioned by organizational climate, nepotism and discrimination (Anekwe et al, 2020).…”

“…Career development as a human resource practice is usually designed to encourage employees to be in charge of their careers by offering providing opportunities for training, advancement, feedback, coaching and mentoring to prepare the employees for current and future job requirements (Febriko et al, 2019). An organization with well defined and integrated career development path would be favourably disposed to attract talented employees, retain them and deliver innovative business solutions competitively (Akpan et al, 2022;Amadi et al, 2021;Harney & Alkhalaf, 2020;Houghton, 2019). Opadeyi and Akpan (2021) found with a sample of 419 employees of four commercial banks in Nigeria (Access Bank, UBA, Zenith Bank and GT Bank) that career development has a positive and significant influence on employee engagement and retention.…”

The cultural influence on employees' preferences for reward allocation rules: A two‐wave survey study in 28 countries

“…New business opportunities align with new challenges for management (Adamovic, 2018; Caprar et al., 2022; Qin et al., 2022). An important and challenging task for organisations is the design of reward systems (Amadi et al., 2021; Bayo‐Moriones et al., 2022; Nyberg et al., 2016, 2018; Park & Sturman, 2016). This task is particularly challenging for multinational organisations because employees in today's globalised business world often have different cultural backgrounds and therefore different expectations about reward allocations (Frank et al., 2015; Načinović Braje et al., 2019; Olsen, 2015; Prince et al., 2020; Scott et al., 2015).…”