Keywords
Employee Retention
Financial Compensation
Non-Financial Compensation
Private Secondary Schools
Abstract
The Inability to maintain and retain talented employees has contributed to major setbacks confronting private organizations in recent years, especially in private secondary schools in Nigeria where workers terminate their employment contract from their job for better offers. This study therefore, examined the impact of compensation management on employee retention in private secondary schools in Ibadan, Oyo State. The study population was limited to private secondary schools in Egbeda Local Government area in Ibadan where ten (10) among the earlier established private secondary schools were selected and convenience sampling technique was used to select one hundred (100) respondents from the selected schools. A close-ended questionnaire was developed and used for the study. Standard multiple regression was used to analyze the hypotheses formulated for the study. The study therefore revealed that financial compensation has a significant impact on employee retention and non-financial compensation has a significant effect on employee retention. The study conclude that majority of the employers only provide financial compensation to their employees without focusing more on the aspect of non-financial compensation which is also observed to be an important aspect of workers psychological attachment. The study recommended that owners of private secondary schools should be reviewing their compensation plans regularly in order to retain their talented employees and to protect them from their industry competitors.
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