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

Hanai, Amos Ephraim; Pallangyo, William Amos

doi:10.24018/ejbmr.2020.5.4.223

Cited by 11 publications

(15 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…It was also found in other contexts that R&C practices have significant and positive effects on employee retention (Hanai & Pallangyo, 2020;Khalid & Nawab 2018). This means the perceived fairness of R&C practices by the management enhances employee retention (Kalyanamitra, Saengchai, & Jermsittiparsert, 2020;Malik, Baig, & Manzoor, 2020;Hanai, & Pallangyo, 2020;Khan 2020). Thus, we propose the following hypothesis:…”

Section: Human Resource Management Practices and Employee Retentionmentioning

confidence: 76%

“…Hygiene factors such as basic wages or salaries are factors that influence employee retention (Almaaitah et al, 2017). Under the compensation practices as a part of HRM practices, salary and wage strategies were determined and applied to influence employee turnover intention (Hanai & Pallangyo, 2020). Moreover, recognition, advancement and personal growth are considered as motivators that have significant effects on employee retention (Murtiningsih, 2020).…”

Section: Human Resource Management Practicesmentioning

confidence: 99%

“…Moreover, recognition, advancement and personal growth are considered as motivators that have significant effects on employee retention (Murtiningsih, 2020). HRM practices such as reward and compensation, career and development, as well as training and development are being applied to improve employee retention (Hanai & Pallangyo, 2020;Burnette et al, 2020). Therefore, HRM practices that were implemented in the organization to improve employee retention are well aligned with the Two-Factor theory (Fahim, 2018).…”

Section: Human Resource Management Practicesmentioning

confidence: 99%

“…The only study that has been carried out in Maldives showed that reward and compensation practices (R&C) cause to increase employee retention among the employees in the retail sector of Maldives (Imna & Hassan, 2015). It was also found in other contexts that R&C practices have significant and positive effects on employee retention (Hanai & Pallangyo, 2020;Khalid & Nawab 2018). This means the perceived fairness of R&C practices by the management enhances employee retention (Kalyanamitra, Saengchai, & Jermsittiparsert, 2020;Malik, Baig, & Manzoor, 2020;Hanai, & Pallangyo, 2020;Khan 2020).…”

Section: Human Resource Management Practices and Employee Retentionmentioning

confidence: 99%

See 3 more Smart Citations

Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system

Hassan¹

2022

JEMI

View full text Add to dashboard Cite

PURPOSE: The purpose of this study is to examine the effects of human resource management (HRM) practices on employee retention mediated by reward and compensation. Also, this study has examined the moderating role of performance appraisal, and training and development on the relationship between HRM practices and employee retention. METHODOLOGY: A sample of 250 respondents among the employees working in the retail sector in Capital City of Maldives was selected using the random probability sampling technique. A structured questionnaire was distributed, and data was collected. Structural equation modeling analysis was carried out to examine the causal effect of HRM practices on employee retention. FINDINGS: The results showed that reward and compensation (R&C) practices had significant and positive effects on employee retention. However, the study found no significant effect of career development, training and development, and performance appraisal on employee retention. In terms of mediating effects, R&C had significantly positive mediating effects on the relationship between training and development (T&D) and employee retention as well as on the relationship between performance appraisal and employee retention. However, there were no moderating effects between performance appraisal as well as T&D and employee retention. Therefore, it was concluded that increasing the positive perception towards HRM practices, particularly R&C practices in the retail sector of Maldives, causes an increase in employee retention (ER). Also, it was concluded that HRM practices such as R&C mediate the relationship between Training and Development (T&D) and Employee Retention along with the relationship between Performance Appraisal (PA) and ER. This means, indirectly PA and T&D can increase ER in the retail sector of Maldives. Similarly, we conclude that there is no moderating effect of PA and T&D in the relationship between HRM practices and ER. The overall conclusion is that R&C has a partial mediating effect on the relationship between HRM practices and ER. IMPLICATIONS: This study contributes to the current knowledge of HRM by confirming that reward and compensation is a key determinant and a significant mediator for employee retention. This study contributes to developing new knowledge in the theoretical domains of HRM practices. In particular, the findings of the study strengthen Hertzberg‘s Two-Factor theory by confirming that career growth opportunities, advancement and salary significantly determine employee retention. This showed that both motivators and hygiene factors are crucial in retaining employees. In practice, the findings also enable managers to make new organizational and HRM policy decisions on improving and enhancing employee retention. This study can be useful for organizational management to formulate effective reward and compensation policies. This study signifies the importance of training and development and performance appraisal by linking these with reward and compensation practices. ORIGINALITY AND VALUE: This could be one of the pioneering studies carried out in the retail sector of Maldives by examining the four constructs of human resource management practices to shed light on how retail sector business organizations in Maldives make decisions on improving employee retention. Furthermore, the current study indicated that reward and compensation have full mediating effects on the relationship between employee retention and training and development as well as performance appraisal. This filled the existing research gaps by adding value to the existing literature. Moreover, the current study adds practical values by confirming that reward and compensation should be emphasized to retain employees through other human resource management practices in the retail sector of Maldives.

show abstract

Section: Human Resource Management Practices and Employee Retentionmentioning

confidence: 76%

Section: Human Resource Management Practicesmentioning

confidence: 99%

Section: Human Resource Management Practicesmentioning

confidence: 99%

Section: Human Resource Management Practices and Employee Retentionmentioning

confidence: 99%

See 2 more Smart Citations

Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system

Hassan¹

2022

JEMI

View full text Add to dashboard Cite

show abstract

“…Given the conflicting findings in the literature and the reality of the problem of retaining employees, which affects negatively the performance of banks, it is not clear which specific factors could help to ensure and promote employee retention in Tanzanian banks. This study therefore aimed at filling the gap by investigating the factors that contributing to employee retention in the Tanzanian banking institutions particularly in the Iringa Municipality [25][26][27][28][29]. The study also shed light on the conflicting conclusions drawn in previous studies on factors contributing to employee retention.…”

Section: Introductionmentioning

confidence: 99%

Factors Contributing to Employee Retention in Banks: A Case of Iringa Municipality Tanzania

Bwana

Kisawike²,

Golyama³

2022

ARJASS

View full text Add to dashboard Cite

This study sought to determine factors contributing to Employee Retention in Banks in Iringa Municipality Tanzania. The study specifically assessed the contribution promotion opportunities, financial incentives and work environment on employees’ retention. The researcher employed quantitative research approach, and research design was descriptive cross-sectional research. Data was obtained from 93 respondents. Data were collected using structured questionnaire and analyzed using descriptive (frequencies and percentages) and inferential statistics (regression analysis). Regarding promotion opportunities, the study found that there is positive and significant relationship between promotion opportunities and employees retention. Furthermore on financial incentives were found to have positive and significant relationship with employees’ retention and the study reveal banks provide bonuses and other benefits; however majority of the employees are not satisfied with salaried offered. Also the study also found there is positive and significant relationship between work environment and employees retention. As it was also revealed that work environment is very impressive as there are teamwork, support from management, and enough working tools but in terms of fair treatment the study there is a mixed opinion on this. All in all regression findings cemented that all the three determinants (work environment, promotion opportunities and financial incentives) have significant influence on employee retention. The study therefore concludes that there is significance influence between promotion opportunities, work environment and financial incentives on retention. Lastly the study recommends management of these banks to review salary and enhance fair treatment to all employees in the banks since most of employees had concerns on these two issues.

show abstract

The Role of Transformational and Transactional Leadership on Turnover Intentions in Tanzanian Commercial Banks: The Moderating Effect of Perceived Organizational Support

Mwita,

Ndikumana,

Ringo

2023

EJMI

View full text Add to dashboard Cite

Purpose: This study is aimed at examining the role of transformational and transactional leadership on turnover intentions in Tanzanian commercial banks. Further, the study scrutinizes the moderating effect of perceived organizational support. Design/Method/Approach: The study used a quantitative approach. Data were collected from 231 employees working in head offices of three commercial banks in Tanzania. Data were analyzed by using descriptive and inferential statistics. Findings: The study found that both transformational and transactional styles of leadership are used in commercial banks. Further, each leadership style plays a significant role in reducing turnover intentions. Perceived organizational support was also found to be a significant moderator of the relationship between each leadership style and turnover intentions. Theoretical Implications: This study extends the literature on the role of a relationship between transformational and transactional leadership styles on turnover intentions in Tanzanian commercial banks. Practical Implications: Commercial banks have to make use of both transformational and transactional leadership styles in order to obtain positive outcomes in retaining their employees. Moreover, better results could be achieved once employees perceive the presence of organizational support. Originality/Value: As per the existing empirical literature, it is the first study to be conducted in the Tanzanian context. Research Limitations/Future Research: This study used a quantitative method only. Future studies may consider using a mixed approach to get more insights from respondents. Data collection was done in three commercial banks in Tanzania. A more comprehensive study to be done in bank branches is therefore recommended. Paper Type: Empirical JEL Classification: M12, M19, M53

show abstract

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

Cited by 11 publications

References 15 publications

Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system

Employee retention through effective human resource management practices in Maldives: Mediation effects of compensation and rewards system

Factors Contributing to Employee Retention in Banks: A Case of Iringa Municipality Tanzania

The Role of Transformational and Transactional Leadership on Turnover Intentions in Tanzanian Commercial Banks: The Moderating Effect of Perceived Organizational Support

Contact Info

Product

Resources

About