IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 7 NO. 3 2021

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Effects of Compensation on Employees Retention in Organization: A Study of Guinness Nigeria Plc and Nigerian Breweries Aba, Abia State, Nigeria

Eke Chinwe Abigail, Dialoke Ikechukwu (Ph.D), Ikoro Emenike Innocent (Ph.D)

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Abstract

Compensation of employees has a serious positive and negative consequence to organizational attraction, retention and motivation of people to join the organization considering the competitive nature of most businesses with the same or similar products and goals. Many brewery industries such as Guinness Nigeria Plc and Nigerian Breweries Plc depends on a formidable compensation strategy to have competitive edge amidst her competitors in retaining their employees. Numerous compensation strategies relevant to employee’s retention in breweries industries abounds, yet, differences exist in some indigenous approaches to employee’s compensation and retention among brewery industries. This study therefore, aimed to evaluate the effect of compensation on employee’s retention in Guinness Nigeria Plc and Nigeria breweries Plc in Abia State, Nigeria. Two (2) objectives were formulated in this study to provide guidance to the study. Descriptive research design was used to investigate the effects of compensation on employee retention in organization. Primary and secondary data were used for the study. A total of 1940 respondents consisting of 880 respondents from Guinness Nigeria Plc and 1060 respondents from Nigerian Breweries Plc was used for the study after retrieving the questionnaire. Data obtained were analyzed using descriptive statistics such as frequency counts, percentages and mean scores in line with the specific objectives, while independent sample z-test and ordinary least squares (OLS) simple regression analysis technique were employed in testing the hypotheses of the study. The study examined salary payment on employee retention and also examined job security on employee retentions. The study found out that to a high extent salary payment and job security affected employees’ retention in both Guinness Nigeria Plc and Nigerian Breweries Plc with mean scores > 3.00. The research hypotheses testing done using t-test in the simple regression analysis showed that indepe

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