Employees Perception towards Base Pay versus Benefits and its effect on their Turnover Intention: a Case of Bank of Abyssinia S.C
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Date
2017-06-09
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Addis Ababa University
Abstract
This study has tried to establish the relationship & influence of Base Pay and Benefit Packages to employees’ turnover intention as a case in Bank of Abyssinia, a major financial institution in Ethiopia. In doing so, the study tried to investigate possible perception differences between managerial & clerical category of employees regarding relationship & influence of base pay & benefit packages to turnover intention. An assessment of employees’ perception to the overall reward practice of the Bank is also made. To answer these research questions, data was collected through questionnaire & interview from a sample of the Bank’s employees who are selected through stratified & simple random sampling methods. Quantitative data was presented using Statistical Package for Social Sciences (SPSS) and is described &analyzed using various statistical measures & methods. The findings of the research showed the Bank’s overall reward management practice is perceived satisfactorily by its employees and the overall turnover intention of the Bank’s employees is relatively low. It was established base pay & benefit packages have a strong relationship to employees’ turnover intention. Yet, the research showed a perception difference of the said relationship among the managerial & clerical category of employees. As such, benefit packages have a stronger relationship & effect to the turnover intention for clerical category of employees and base pay has a stronger relationship & influence to turnover intention of managerial category of employees. In conclusion, the research has shown the Bank’s reward management system is perceived satisfactorily by employees& hence contributed to a low turnover intention. The Bank is recommended to develop compensation strategies that address the separate perceptions of the clerical & managerial categories of employees towards base pay & benefit packages
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Keywords
Base Pay, Turnover Intention