INFLUENCE OF COMPENSATION ON EMPLOYEE TURNOVER

Citation:
Twalib MH, Magutu J. "INFLUENCE OF COMPENSATION ON EMPLOYEE TURNOVER." Influence of Compensation on Employee Turnover . 2017;2(6):125-135.

Abstract:

The main objective of the study was to determine the influence of compensation on employee
turnover and the hypothesis that emanated from this was stated as compensation influences
employee turnover. The study used a descriptive survey. From a target population of 65
employees a sample of 26employees was selected, which is 40% of the target population.
Primary data was collected using self-administered structured questionnaires. Descriptive
statistics was used to analyse the data and the hypothesis formulated was analysed using simple
linear regression analysis. The results confirmed the hypothesis that compensation influences
employee turnover (R2=.866, F=167.783, P≤0.05). The correlation coefficient for the model was
0.93 which also confirms that there is a strong relationship between compensation and employee
turnover. The study recommends that organizations should consider compensation as a strategy
of ensuring employee loyalty which will lead to competitive advantage of the organization. The paper suggests that the same study should be replicated in other larger organizations with more
population.

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