The role of commission-based pay on employee retention in the Ghanaian banking industry: The case of GCB Bank Limited

Abstract

Background: Human Resource is one of the valuable assets for organisations to facilitate the achievement of competitive advantage. Managing human resources is very challenging and must be done with care in organisations. Retention of human resources has is integral to the development and the accomplishment of the organisation’s goals and objectives. The main determinants for employee retention such as Career Development Opportunities, Superior Support, Work Environment, Rewards, and Work-Life Policies and recognition have a great paradigm to retain the employees for longer periods of time. Aim: In this article, an attempt has been made to assess the impact of HRM practices and its effectiveness on employee retention in Ghana Commercial Bank (GCB). Setting: The study was conducted in the Ghana Commercial Bank head office in Accra Methods: The study made use of both the qualitative and quantitative research methods in data collection. Both primary and secondary data were collected to assess the role of commission-based pay on employee retention in the Ghanaian banking industry. The researcher sampled 10 senior management and 50 junior staff who are relationship managers and relationship officers of the bank for the sampling size. Results: The study further revealed that commission-based pay involves meeting challenging targets which may contribute to demotivation if targets are not met. The study concludes that the form of motivation adopted by a company to remunerate staff on commission-based pay is essential to their work performance and retention. Conclusion: The study recommends that banks should train and develop employees and create structures that will create organisational citizenship.