Effect of Reward on Employee Retention at Takoradi Technical University

Abstract

The study was conducted to examine the effect of reward on employee retention at Takoradi Technical University. The objectives were to determine the components of reward packages, examine staff willingness to remain in the institution for the foreseeable future and examine the effect of reward on staff retention at Takoradi Technical University. Both descriptive and explanatory research design were adopted in this study with much reliance on quantitative research approach. The study adopted simple random sampling technique. The total number of employees were four hundred and fifty-five (455) out of which 218 workers were selected to participate in the study. Structured questionnaire was used and Statistical Package for Social Sciences was used for the primary data processing. Statistical techniques used were linear regression analysis, mean, standard deviation, frequency and percentage. The study found that diverse reward packages were given to staff which were both intrinsic and extrinsic: sense of personal satisfaction, self-esteem and pride and extrinsic: competitive pay, fringe benefits, promotions, merit bonuses. The findings further revealed that employees were willing to be with the institution and that they are happy and satisfied for the institution. Lastly, it was found that both intrinsic and extrinsic reward predicts positive effect on employee retention, however a weak one. The study concluded that both intrinsic and extrinsic reward predict retention of employees. However, extrinsic reward predicts more than the intrinsic reward. The study recommended that management of Takoradi Technical University should augment the provision of reward packages to their staff so as to boost retention of employees since the prediction was weak.