Effect of Compensation on Employee Retention at Ghana Education Service [GES] in Cape Coast Metropolis

Abstract

The study examined the effect of compensation on employee retention at Ghana Education Service [GES] in Cape Coast Metropolis. An explanatory research design was employed due to the non-interventional causal nature of the study. The study employed the quantitative research approach based on the nature of the study purpose under consideration. The targeted population included 106 permanent employees of the GES. Sample size of 84 workers were surveyed through structured questionnaire administration. Stratified sampling method was used for the selection of the respondents. Pearson product-moment correlation, multiple regression and independent samples t test were conducted in respect of the specific research objectives. It was discovered that there are statistically significant positive strong linear correlations between the components of employee compensation and retention among workers in GES in Cape Coast Metropolis. Compensation accounts for a statistically substantial positive variance in employee retention at GES in Cape Coast Metropolis. Only benefits administration is a significant positive predictor of employee retention. There is no statistically significant difference in compensation satisfaction and employee retention for male staff and female staff in GES in Cape Coast Metropolis. Junior staff has higher level of retention significantly than that of senior staff in the GES in Cape Coast Metropolis. It is recommended that the Ghana Education Service must continue the usage of the current compensation system if they are to improve the level of employee retention.