RETENTION STRATEGIES AND PERFORMANCE OF UNIONISED ORGANISATIONS IN THE FOBTOB INDUSTRY IN LAGOS STATE

Abstract

The study examined the relationship between retention strategies and performance of organisations in the FOBTOB industry. The effect of retention strategies on performance of unionised organisations in the FOBTOB industry was also examined. The survey research design was adopted. A total of 420 research subjects were drawn from fourteen respondent companies using the simple random sampling and proportional stratified sampling techniques. The research instrument was subjected to validity and reliability tests. The domain of validity also called intrinsic validity was used for the validity estimate as well as content validity. The domain of validity was obtained by calculating the square root of reliability. The Cronbach Alpha was used for the reliability test. It was hypothesised that that there is no relationship between retention strategies and performance of unionised organisations in the industry studied. The result of hypothesis test shows that retention strategies are statistically and significantly related with all the measures of performance, such as growth in number of employees (r =0.370; p< 0.01); profitability (r = 0.264; p< 0.01); innovativeness (r = 0.279; p< 0.01); performance stability (r = 0.241; p< 0.01); and rate of sales (r = 0.207; p< 0.01) while the Chisquare test result is (χ2=231.507, df=3, p< 0.01) confirmed the results of the correlation test. It was also hypothesised that retention strategies do not affect performance of unionised organisations in the Industry studied. The results of the regression test revealed that retention strategies affect performance of unionised organisations in the FOBTOB industry. It is recommended that organisations should not rely only on intrinsic variables to influence employee retention; rather, a combination of both intrinsic and extrinsic variables should be considered as an effective retention strategy if optimal performance indices are to be achieved