Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt

Ovunda Amadi; Isaac Zeb-Obipi; Sorbarikor Lebura; Godwin Poi

doi:doi:10.11648/j.jhrm.20210902.14

| Peer-Reviewed

Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt

Ovunda Amadi, Isaac Zeb-Obipi, Sorbarikor Lebura, Godwin Poi

Published in Journal of Human Resource Management (Volume 9, Issue 2)

Received: 27 May 2021 Accepted: 10 June 2021 Published: 25 June 2021

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Workers are considered as strategic assets in any organization because the accomplishment of an organization’s objectives largely depends on the employees, so employers always strive to ensure that they retain their best employees. However, such employees can only become strategic assets if they are motivated to deliver on their tasks and specific assignments. Therefore, it is important to identify factors which motivate employees for the achievement of set organisational goals. The objective of this study is to investigate the extent to which organisational reward systems impact on employee retention in the banking industry in Port Harcourt, Nigeria. To achieve this objective, this study has examined the relationship between remuneration, promotion and recognition as the dimensions of reward systems and employee retention. In terms of methodology, the survey research design was utilized, with the structured questionnaire used as the primary data collection method. The generated data was analyzed using descriptive and inferential statistics as well as the spearman’s test statistics. The results revealed that there is a positive relationship between remuneration, promotion, and recognition as dimensions of reward systems and employee retention. The conclusion reached is that for banks in Port Harcourt to retain their best employees, they would need to improve their reward systems, specifically the remuneration, promotion and recognition that they offer their employees. It is recommended that there should be further empirical research to test the applicability of the findings of this study in other sectors of the Nigerian economy as well as the relationship between other dimensions of reward systems and employee retention.

Published in	Journal of Human Resource Management (Volume 9, Issue 2)
DOI	10.11648/j.jhrm.20210902.14
Page(s)	50-57
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Promotion, Recognition, Remuneration, Retention, Reward

References

[1]	Agwu, M.O. (2013). Impact of Fair Reward System on Employees Job Performance in Nigerian Agip Oil Company Limited Port-Harcourt. British Journal of Education, Society & Behavioral Science, 3 (1), 47-64.
[2]	Ajila, C., & Abiola A. (2004). Influence of rewards on work performance in an organization. Journal of Social Science, 8 (1), 7-12.
[3]	Armstrong, M. (2008). Employee reward management and practice (3rd ed.). New Delhi: Kogan page.
[4]	Ax, C., Christer, J., & Kullvén, H. (2005). DNE – Den Nya Ekonomistyrningen (3rd ed.). Malmö: Liber AB.
[5]	A'yuninnisa, R. N., & Saptoto, R. (2015). The effects of pay satisfaction and affective commitment on turnover intention. International Journal of Research Studies in Psychology, 4 (2), 57-70.
[6]	Azasu S. (2009). Rewards and performance of Swedish real estate firms. Compensation and Benefits Review, 41 (4), 19-28.
[7]	Babagana, A., & Dungus, B. (2015). Staff Remuneration and the Performance of Ramat Polytechnic Maiduguri Students from 1995 to 2011 European Journal of Research and Reflection in Management Science, 3 (5) 1-10.
[8]	Babangida, M. M., Ibrahim, A. & Abubakar, B. (2014). Effect of Motivational Incentives on Staff Turnover in Hotel. IOSR Journal of Business and Management (IOSR-JBM), 16 (3), 36-42.
[9]	Baridam, D. M., & Nwibere, B. M. (2008). Understanding and Managing Organizational Behaviour. Port Harcourt: Sherbrooke Associates.
[10]	Bright, H. (2012). Motivating Organizational Employees. New York: Park View Publishers.
[11]	Chaminade, B. (2007). A Retention Checklist: How Do You Rate? Retrieved on 11th December, 2020, from http://www.humanresourcesmagazine.co.au.
[12]	Chiboiwa, M. W., Samuel, M. O., & Chipunza, C. (2010). An Examination of Employee Retention Strategy in a Private organization in Zimbabwe. African Journal of Business Management, 4 (10), 2103-2109.
[13]	Cho, S., Woods, R., Jang, S., & Erdem, M. (2006). Measuring the impact of human resource management practices on hospitality firms’ performances. International Journal of Hospitality Management, 25 (2), 262-277.
[14]	Edirisooriya, W. A. (2014). Impact of Rewards on Employee Performance: With Special Reference to ElectriCo. Reshaping Management and Economic Thinking through Integrating Eco-Friendly and Ethical Practices Proceedings of the 3rd International Conference on Management and Economics. Faculty of Management and Finance, University of Ruhuna, Sri Lanka.
[15]	Ejiofor, P. N. O., &, Mbachu, A. U. (2001). Imperative of Human Resource Practices in the Ne Millennium. Journal of the Management Sciences, 5 (1), 121-126.
[16]	Ejumudo, K. B. O. (2011). Performance Appraisal in the Delta State Civil Service. Journal of Management, 5(2), 21-28.
[17]	Erbasi, Ali & Arat, T. (2012). The effect of financial and non-financial incentives on job satisfaction. An examination of food chain premises in Turkey. International Business Research, 5 (10), 136-145.
[18]	Farooqui, S., & Nagendra, A., (2014). The Impact of Person Organization Fit on Job Satisfaction and Performance of the Employees. Procedia Economics and Finance, 11, 122-129.
[19]	Frank, F. D., Finnegan, R. P. & Taylor, C. R. (2004). The Race for Talent: Retaining and Engaging Workers in the 21st Century. Human Resource Planning, 27 (3), 12-25.
[20]	Furtado, F., Aquino, G., & Meira, S. (2009). Incentive Systems in Software Organizations. ICSEA 2009 - The Fourth International Conference on Software Engineering Advances. Porto, Portugal. September, 2009.
[21]	Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: test of a theory. Organizational Behavior and Human Performance, 16 (2), 250-279.
[22]	Hafiza, N. S., Shah, S. S., Jamsheed, H., & Zaman, K. (2011). Relationship Between Rewardsand Employee’s Motivation in the Non-Profit Organizations of Pakistan. Business Intelligence Journal, 4 (2), 327-334.
[23]	Hameed, A., Ramzan, M., Zubair, H. M. K., Ali, G. & Arslan, M. (2014). Impact ofCompensation on Employee Performance (Empirical Evidence from Banking Sector of Pakistan). International Journal of Business and Social Science. 5 (2), 302-309.
[24]	Jaghult, B. (2005). Management of Rewards in Organizations. Sollentuna: Non-Stop Communications.
[25]	Khan, I., Shahid, M., Nawab, S. & Wali, S.S. (2013). Influence of intrinsic and extrinsic rewards on employee performance: The banking sector of Pakistan. Academic Research International, 4 (1), 282 - 292.
[26]	Lawler, E.E. (2008). Talent: Making People your Competitive Advantage. San Francisco: Jossey-Bass.
[27]	Merchant, V.D.S. (2007). Management Control System, performance measurement, Evaluation and Incentive. New York: Financial Times/Prentice.
[28]	Milman, A. (2003). Hourly employee retention in small and medium attractions: The Central Florida example. International Journal of Hospitality Management, 22, 17-35.
[29]	Milman, A., & Ricci, P. (2004). Predicting job retention of hourly employees in the lodging industry. Journal of Hospitality and Tourism Management, 11 (1), 23-41.
[30]	Mohammad, A. & Afshan, B. (2014). The impact of incentives on Employees turnover at Pakistan International Container Terminal Limited (“PICT”) with respect to the different age brackets. IOSR Journal of Business and Management (IOSR-JBM), 16 (1), 53-60.
[31]	Nawab, S., Ahmad, J., & Shafi, K. (2011). An Analysis of Differences in Work Motivation between Public and Private Sector Organizations. Interdisciplinary Journal of Contemporary Research in Business, 2 (11), 110-127.
[32]	Ong, S., & Teh, H. (2012). Reward System and Performance Within Malaysian Manufacturing Companies, IDOSI Publications, 1Faculty of Economics and Management, University Putra Malaysia, Malaysia.
[33]	Osibanjo, A. O., Salau, O. P., Falola, S., & Hezekiah, O. (2014). Modeling the Relationship between Motivating Factors, Employee’ Retention, and Job Satisfaction in the Nigerian Banking Industry. Journal of Management Policies and Practices 2 (2), 63-83.
[34]	Jabbar, M. N., & Hussin, F. (2018). Effect of organizational leadership behavior and empowerment on job satisfaction. Opción, 34 (16), 472-491.
[35]	Richard, M., Ryan & Deci (2010). Intrinsic and Extrinsic Motivations: Class Definitions and New Directions. Contemporary Educational Psychology, 25, 54-67.
[36]	Rukhmani, K., Ramesh, M., & Jayakrishman, J. (2010). Effect of Leadership Styles on organizational Effectiveness. European Journal of Social Sciences, 15 (3), 365-369.
[37]	Sajuyigbe, A. S., Bosede, O. O. & Adeyemi, M. A. (2013). Impact of Reward on Employees Performance in a Selected Manufacturing Companies in Ibadan, Oyo State, Nigeria. International Journal of Arts and Commerce, 2, 2.
[38]	Samuel, M. O. (2008). Using Motivational Strategy as Panacea for Employee Retention and Turnover in Selected Public and Private Sector Organizations in Eastern Cape Province of South Africa. Unpublished M.Sc. Thesis, University of Fort Hare.
[39]	Sikula, A. E. (2000). Personnel administration and human resources management. Toronto: John Wiley & Sons, Inc.
[40]	Surbhi, S. (2015). Differences between Salaries and Wages. Retrieved on 24th December, 2020 from http://keydifferences.com/difference-between-salary-andwages.html#ixzz4IG1CT6Vu
[41]	Susskind, A. M., Borchgrevink, C. P., Kacmar, K. M., & Brymer, R.A. (2000, March). Customer service employees’ behavioral intentions and attitudes: An examination of construct validity and a path model. International Journal of Hospitality Management, 19 (1). 53-77.
[42]	Walsh, K., & Taylor, M. (2007). Developing in-house careers and retaining management talent. Cornell Hotel and Restaurant Administration Quarterly, 48 (2), 163-82.
[43]	Wang, Y. (2014). Observations on the Organizational Commitment of Chinese Employees: Comparative Studies of State-Owned Enterprises and Foreign-Invested Enterprises. The International Journal of Human Resource Management, 15 (4), 649–664.
[44]	Wildes, V. J. (2007). Attracting and retaining food servers: how internal service quality moderates occupational stigma. International Journal of Hospitality Management, 26 (1), 4–19.
[45]	Williamson, I. O., Burnett, M. F., & Bartol, K. M. (2009). The interactive effect of collectivism and organizational rewards on affective organizational commitment. Cross Cultural Management: An International Journal, 16 (1), 28-43. doi: 10.1108/13527600910930022
[46]	Kaplan, R. S., & Atkinson, A. A. (1998). Advanced management accounting (3rd ed.). Upper Saddle River: Prentice-Hall.
[47]	Cardy, R. L., & Lengnick-Hall, M. L. (2011). Will they stay or will they go? Exploring a customer-oriented approach to employee retention. Journal of Business and Psychology, 26 (2), 213-217.
[48]	Özutku, H. (2012). The influence of intrinsic and extrinsic rewards on employee results: An empirical analysis in Turkish manufacturing industry. Business and Economics Research Journal, 3 (3), 29-48.
[49]	Becker, B., and Huselid, M. (1999), An interview with Mike Losey, Tony Rucci, and Dave Ulrich: three experts respond to HRMJ's special issue on HR strategy in five leading firms, Human Resource Management, 38 (4), 353-65.
[50]	Pradhan, R. K., Jena, L. K., & Pattnaik, R. (2017). Employee Retention Strategies in Service Industries: Opportunities and Challenges. Employees and Employers in Service Organizations, 53-70.
[51]	Kaur, K., & Asdhir, V. (2018). A Study of impact of labour welfare measures on job motivation. International Journal of Management, IT and Engineering, 8 (8), 286-293.
[52]	Malinga, K. S., Stander, M., & Nell, W. (2019). Positive leadership: Moving towards an integrated definition and interventions. Theoretical Approaches to Multi-Cultural Positive Psychological Interventions, 201-228.
[53]	Riaz, H., Akhtar, C., & Aslam, R. (2018). Total rewards and employee performance: Investigating the mediating role of employee motivation in telecom sector. Pakistan Administrative Review, 2 (3), 342-356.
[54]	Mabaso, C. M., & Dlamini, B. I. (2018). Total rewards and its effects on organisational commitment in higher education institutions. SA Journal of Human Resource Management, 16 (1), 1-8.
[55]	Iqbal, S., Guohao, L., & Akhtar, S. (2017). Effects of job organizational culture, benefits, salary on job satisfaction ultimately affecting employee retention. Review of Public Administration and Management, 5 (3), 1-7.
[56]	Asaari, M. H. A. H., Desa, N. M., & Subramaniam, L. (2019). Influence of salary, promotion, and recognition toward work motivation among government trade agency employees. International Journal of Business and Management, 14 (4), 48-59.
[57]	Wilson, G. (2010). The Effects of External Rewards on Intrinsic Motivation. Retrieved from http://www.abcbodybuilding.com/ on 23/03/2021.
[58]	Sawaneh, I. A., & Kamara, F. K. (2019). An effective employee retention policy as a way to boost organizational performance. Journal of Human Resource Management, 7 (2), 41-48.
[59]	Leidner, D. E., Gonzalez, E., & Koch, H. (2020). An affordance perspective of enterprise social media and organizational socialization. In Strategic Information Management (pp. 364-402). Routledge.

Cite This Article

Plain Text BibTeX RIS

APA Style

Ovunda Amadi, Isaac Zeb-Obipi, Sorbarikor Lebura, Godwin Poi. (2021). Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt. Journal of Human Resource Management, 9(2), 50-57. https://doi.org/10.11648/j.jhrm.20210902.14

Copy | Download

ACS Style

Ovunda Amadi; Isaac Zeb-Obipi; Sorbarikor Lebura; Godwin Poi. Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt. J. Hum. Resour. Manag. 2021, 9(2), 50-57. doi: 10.11648/j.jhrm.20210902.14

Copy | Download

AMA Style

Ovunda Amadi, Isaac Zeb-Obipi, Sorbarikor Lebura, Godwin Poi. Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt. J Hum Resour Manag. 2021;9(2):50-57. doi: 10.11648/j.jhrm.20210902.14

Copy | Download

@article{10.11648/j.jhrm.20210902.14,
  author = {Ovunda Amadi and Isaac Zeb-Obipi and Sorbarikor Lebura and Godwin Poi},
  title = {Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt},
  journal = {Journal of Human Resource Management},
  volume = {9},
  number = {2},
  pages = {50-57},
  doi = {10.11648/j.jhrm.20210902.14},
  url = {https://doi.org/10.11648/j.jhrm.20210902.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jhrm.20210902.14},
  abstract = {Workers are considered as strategic assets in any organization because the accomplishment of an organization’s objectives largely depends on the employees, so employers always strive to ensure that they retain their best employees. However, such employees can only become strategic assets if they are motivated to deliver on their tasks and specific assignments. Therefore, it is important to identify factors which motivate employees for the achievement of set organisational goals. The objective of this study is to investigate the extent to which organisational reward systems impact on employee retention in the banking industry in Port Harcourt, Nigeria. To achieve this objective, this study has examined the relationship between remuneration, promotion and recognition as the dimensions of reward systems and employee retention. In terms of methodology, the survey research design was utilized, with the structured questionnaire used as the primary data collection method. The generated data was analyzed using descriptive and inferential statistics as well as the spearman’s test statistics. The results revealed that there is a positive relationship between remuneration, promotion, and recognition as dimensions of reward systems and employee retention. The conclusion reached is that for banks in Port Harcourt to retain their best employees, they would need to improve their reward systems, specifically the remuneration, promotion and recognition that they offer their employees. It is recommended that there should be further empirical research to test the applicability of the findings of this study in other sectors of the Nigerian economy as well as the relationship between other dimensions of reward systems and employee retention.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt
AU  - Ovunda Amadi
AU  - Isaac Zeb-Obipi
AU  - Sorbarikor Lebura
AU  - Godwin Poi
Y1  - 2021/06/25
PY  - 2021
N1  - https://doi.org/10.11648/j.jhrm.20210902.14
DO  - 10.11648/j.jhrm.20210902.14
T2  - Journal of Human Resource Management
JF  - Journal of Human Resource Management
JO  - Journal of Human Resource Management
SP  - 50
EP  - 57
PB  - Science Publishing Group
SN  - 2331-0715
UR  - https://doi.org/10.11648/j.jhrm.20210902.14
AB  - Workers are considered as strategic assets in any organization because the accomplishment of an organization’s objectives largely depends on the employees, so employers always strive to ensure that they retain their best employees. However, such employees can only become strategic assets if they are motivated to deliver on their tasks and specific assignments. Therefore, it is important to identify factors which motivate employees for the achievement of set organisational goals. The objective of this study is to investigate the extent to which organisational reward systems impact on employee retention in the banking industry in Port Harcourt, Nigeria. To achieve this objective, this study has examined the relationship between remuneration, promotion and recognition as the dimensions of reward systems and employee retention. In terms of methodology, the survey research design was utilized, with the structured questionnaire used as the primary data collection method. The generated data was analyzed using descriptive and inferential statistics as well as the spearman’s test statistics. The results revealed that there is a positive relationship between remuneration, promotion, and recognition as dimensions of reward systems and employee retention. The conclusion reached is that for banks in Port Harcourt to retain their best employees, they would need to improve their reward systems, specifically the remuneration, promotion and recognition that they offer their employees. It is recommended that there should be further empirical research to test the applicability of the findings of this study in other sectors of the Nigerian economy as well as the relationship between other dimensions of reward systems and employee retention.
VL  - 9
IS  - 2
ER  -

Copy | Download

Author Information

Ovunda Amadi

OK Foods Ltd., Matori Mushin, Lagos, Nigeria
Isaac Zeb-Obipi

Department of Management, Faculty of Management Sciences, Rivers State University, Port Harcourt, Nigeria
Sorbarikor Lebura

Department of Management, Faculty of Management Sciences, Rivers State University, Port Harcourt, Nigeria
Godwin Poi

Department of Business Administration, Faculty of Social and Management Sciences, University of Africa, Toru-Orua, Nigeria

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Ovunda Amadi, Isaac Zeb-Obipi, Sorbarikor Lebura, Godwin Poi. (2021). Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt. Journal of Human Resource Management, 9(2), 50-57. https://doi.org/10.11648/j.jhrm.20210902.14

Copy | Download

ACS Style

Ovunda Amadi; Isaac Zeb-Obipi; Sorbarikor Lebura; Godwin Poi. Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt. J. Hum. Resour. Manag. 2021, 9(2), 50-57. doi: 10.11648/j.jhrm.20210902.14

Copy | Download

AMA Style

Ovunda Amadi, Isaac Zeb-Obipi, Sorbarikor Lebura, Godwin Poi. Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt. J Hum Resour Manag. 2021;9(2):50-57. doi: 10.11648/j.jhrm.20210902.14

Copy | Download

@article{10.11648/j.jhrm.20210902.14,
  author = {Ovunda Amadi and Isaac Zeb-Obipi and Sorbarikor Lebura and Godwin Poi},
  title = {Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt},
  journal = {Journal of Human Resource Management},
  volume = {9},
  number = {2},
  pages = {50-57},
  doi = {10.11648/j.jhrm.20210902.14},
  url = {https://doi.org/10.11648/j.jhrm.20210902.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jhrm.20210902.14},
  abstract = {Workers are considered as strategic assets in any organization because the accomplishment of an organization’s objectives largely depends on the employees, so employers always strive to ensure that they retain their best employees. However, such employees can only become strategic assets if they are motivated to deliver on their tasks and specific assignments. Therefore, it is important to identify factors which motivate employees for the achievement of set organisational goals. The objective of this study is to investigate the extent to which organisational reward systems impact on employee retention in the banking industry in Port Harcourt, Nigeria. To achieve this objective, this study has examined the relationship between remuneration, promotion and recognition as the dimensions of reward systems and employee retention. In terms of methodology, the survey research design was utilized, with the structured questionnaire used as the primary data collection method. The generated data was analyzed using descriptive and inferential statistics as well as the spearman’s test statistics. The results revealed that there is a positive relationship between remuneration, promotion, and recognition as dimensions of reward systems and employee retention. The conclusion reached is that for banks in Port Harcourt to retain their best employees, they would need to improve their reward systems, specifically the remuneration, promotion and recognition that they offer their employees. It is recommended that there should be further empirical research to test the applicability of the findings of this study in other sectors of the Nigerian economy as well as the relationship between other dimensions of reward systems and employee retention.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Reward System: A Tool for Employee Retention as Observed from the Banking Sector in Port Harcourt
AU  - Ovunda Amadi
AU  - Isaac Zeb-Obipi
AU  - Sorbarikor Lebura
AU  - Godwin Poi
Y1  - 2021/06/25
PY  - 2021
N1  - https://doi.org/10.11648/j.jhrm.20210902.14
DO  - 10.11648/j.jhrm.20210902.14
T2  - Journal of Human Resource Management
JF  - Journal of Human Resource Management
JO  - Journal of Human Resource Management
SP  - 50
EP  - 57
PB  - Science Publishing Group
SN  - 2331-0715
UR  - https://doi.org/10.11648/j.jhrm.20210902.14
AB  - Workers are considered as strategic assets in any organization because the accomplishment of an organization’s objectives largely depends on the employees, so employers always strive to ensure that they retain their best employees. However, such employees can only become strategic assets if they are motivated to deliver on their tasks and specific assignments. Therefore, it is important to identify factors which motivate employees for the achievement of set organisational goals. The objective of this study is to investigate the extent to which organisational reward systems impact on employee retention in the banking industry in Port Harcourt, Nigeria. To achieve this objective, this study has examined the relationship between remuneration, promotion and recognition as the dimensions of reward systems and employee retention. In terms of methodology, the survey research design was utilized, with the structured questionnaire used as the primary data collection method. The generated data was analyzed using descriptive and inferential statistics as well as the spearman’s test statistics. The results revealed that there is a positive relationship between remuneration, promotion, and recognition as dimensions of reward systems and employee retention. The conclusion reached is that for banks in Port Harcourt to retain their best employees, they would need to improve their reward systems, specifically the remuneration, promotion and recognition that they offer their employees. It is recommended that there should be further empirical research to test the applicability of the findings of this study in other sectors of the Nigerian economy as well as the relationship between other dimensions of reward systems and employee retention.
VL  - 9
IS  - 2
ER  -

Copy | Download