Abstract
In the modern business world, organizations are faced with a major challenge of retaining the best performing employees who are highly skilled and competent and capable of driving their productivity to higher levels. This study aimed at determining the elements of the compensation package that influences employee retention. The study adopted a descriptive research design. The target population for this study comprised of 289 regular employees. Data for the study was collected by means of a self-administered questionnaire. The data gathered was coded and analyzed using Statistical Package for Social Sciences (SPSS) version 23. Descriptive statistics such as frequencies, mean and standard deviations were used. The study adopted the use of Linear regression analysis as well as the use of Analysis of Variance (ANOVA). The study established that there is significant difference between levels of education on employee’s perception of influence of compensation package on retention (p=0.001). There is also a significant difference between designations of employees with regard to employee bonuses (p=0.002). The regression model revealed a positive and significant influence of compensation policy employee retention (0.190, 0.020). The adjusted R Square of 0.343 of the regression model indicated that 34% of the variation in the employee retention variable is explained by the independent variables. The study concluded that the element with a significant influence on employee retention is the compensation policy. The study recommended that organizations should consider conducting regular assessments of their compensation policies to align them with employee expectations and industry standards.
Published Version
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