Financial rewards and employee retention in private higher institutions of learning in Uganda. a case study of Mukono YMCA College

Abstract

The intent to this study was to determine relationship between financial rewards and employee retention in private higher institutions of learning in Uganda using a case study of Mukono The Young Men's Christian Association (YMCA) College. The specific objectives of the study were to determine the relationship between salaries and wages and employee retention, establish the relationship between allowances and employee retention and establish the relationship between fringe benefits and employee retention Mukono YMCA College. The study adopted a case study design and both qualitative and quantitative approaches were used. Data was collected using both questionnaire and interview guide from a sample of 66 and a total of 51 respondents working at Mukono YMCA College giving were able to participate response rate. The study findings revealed a strong positive relationship between salaries and wages and employee retention observed at correlation coefficient of 0.857". The results also indicate a positive relationship between allowances and employee retention obtained correlation coefficient of 0.857"". The findings revealed strong a positive relationship between fringe benefits and employee retention at correlation coefficient of 0.951 " . However, from the conclusion, the study results indicated that salaries and wages given to employees are not pleasing, employees are not always paid for an extra work done and not satisfied with the fringe benefits the institution gives to them. This study recommends that private institution may that human resources and remuneration specialists in private higher institutions oflearning need to design novel remuneration packages to attract and retain the best candidates and satisfy their employee's expectations, in that they are fair, equitable and free of bias. The institution may introduce housing or house rent allowances to help an individual meet one of the basic needs a roof over one's head in order to enable them have access a reasonable accommodation and senior employees may be provided with accommodation which may be owned by the organization. The study continues to recommend that the private institutions may review the current fringe benefits package.