Abstract:
The rate at which employees in tertiary institutions in Ghana move
from one institution to another is quite high and this could be as a result of
compensation packages employed by different institutions to attract competent
employees. The aim of this study was to examine the effect of compensation
packages on employees’ intention to quit in a tertiary institution in the Central
Region, Ghana, precisely Cape Coast Polytechnic. Employing a descriptive
survey design, data on the variables were collected using one hundred selfadministered
valid questionnaires which were completed by academic staff of
Cape Coast Polytechnic. The study was censused to ensure a fair
representative of the view of each respondent.
The collected data was carefully analyzed using simultaneous regression
techniques, supported by structural equation modeling (SEM) to test the
research questions and relationships that may exist among the variables under
consideration. The results showed significant relationships between the
compensation practices and employees’ intention to quit.
The summary of key findings is that, there was a direct positive significant
correlation between the tested dependent and independent variables (i.e.,
salary, incentives, allowance and fringe benefits). Recommendations were
made to management and decision makers to endeavour to review
compensation packages at various levels in order to earn employees’
satisfaction to help prevent high labour turnover among members of staff.
