The Effect of Compensation Practices on Professional Employees’ Turnover Intention: The Case of GOAL Ethiopia, an International Non-Governmental Organization

Tsegaye, Hagere (2017) The Effect of Compensation Practices on Professional Employees’ Turnover Intention: The Case of GOAL Ethiopia, an International Non-Governmental Organization. Masters thesis, Addis Ababa University.

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Abstract

The study was designed with a general objective of examining the effect of compensation practices (focusing on salary, benefit, career growth opportunity, supervisor support and non-financial recognition practice) on professional employees’ turnover intention. It was conducted in an organization called GOAL Ethiopia. The research design is descriptive in its nature and qualitative and quantitative data was collected as a primary and secondary data resources. Questionnaires were distributed to the professional employees’ and interview was also conducted with the Senior Administration and HR staff to gain the management’s view and make the data more comprehensive. The collected data was summarized and analyzed using descriptive and inferential statistics. The result then is presented in the form of tables followed by discussions for further interpretation on the findings. Using SPSS version 20.0 data analysis method, descriptive statistics were used to present the demographic characteristics of the participants. One sample t-test was used to check on the significance level of difference on employees’ agreement level against the different questions raised on the questionnaires. Correlation analysis was also done to see the relationship between the selected compensation practices and the professional employees’ turnover intention. Additionally, regression analysis was done to identify the extent that the selected compensation practices influence the professional employees’ turnover intention and test the hypothesis raised under the conceptual frame work. The major findings of the research were, professional employees’ aggregate agreement to the expected practice with regard to salary and benefit package practice, is not significantly different from moderate level of agreement. However, their agreement level is significantly above moderate level towards the supervisory support and career growth opportunity practices of the organization. On the other hand, their agreement level is significantly below the moderate level when it comes to the non-financial recognition practice of the organization. There is also a strong inverse relationship between all the selected compensation practices, except the non-financial recognition, which has a moderate correlation with professional employees’ turnover intention. The employees’ turnover intention due to the selected variables was 55.8% in total. Salary takes the main share in being the number one influencer for the employees’ turnover intention followed by supervisory support, career growth opportunity and non-financial recognition in a respective manner. Thus, the researcher mainly recommended for the organization to develop a retention strategy that mixes the financial and non-financial compensation practices as appropriate to be followed by a regular revision.

Item Type:	Thesis (Masters)
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce H Social Sciences > HM Sociology
Divisions:	Africana
Depositing User:	Tim Khabala
Date Deposited:	04 Jul 2018 08:07
Last Modified:	04 Jul 2018 08:07
URI:	http://thesisbank.jhia.ac.ke/id/eprint/6539

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