COMPENSATION MANAGEMENT AND EMPLOYEE TURNOVER IN PLASTIC MANUFACTURING FIRMS IN ANAMBRA STATE

Abstract

The study investigates the compensation management and employee turnover in plastic manufacturing firms in Anambra State. The main objective of the study is to examine the effect of Job-based compensation on voluntary turnover, performance based compensation on involuntary turnover, equity based compensation on desirable turnover in Plastic manufacturing firms in Anambra State. Relevant conceptual, theoretical and empirical literature was reviewed taking cognizance of the problem and the hypotheses of the study. The study is anchored on Expectancy theory. Descriptive research survey was adopted in this study. The population of the study comprised 1648, while the sample size consists of 321 employees in Plastic manufacturing firms. Borg and Gall was used to obtain the sample size. Face and content validity method was used to ensure validity of the instrument. The reliability of the instrument was achieved through test re-rest method. Simple percentage analysis was employed to answer the research questions. Multiple regression analysis was conducted to assess the relative predictive power of the independent variables on the dependent variable. It was discovered that job-based compensation has a significant positive effect on voluntary turnover. Performance based compensation has a significant positive influence on involuntary turnover. Equity based compensation has a significant positive influence on desirable turnover. The study therefore concludes that compensation management has significant positive effect on employee turnover in plastic manufacturing firms Anambra State. The study recommends that management should put in place job-based compensation and other factors that are not monetary inclined which will enhance the performance of employees positively. Factors like employee's sense of belonging, job safety, leadership, control and decision making. Every organization should have performance-based compensation plans program at every level of an organization. Every organization should make equity-based compensation as compulsory policy since equity-based compensation are used more extensively in firms for ensuring maximum performance.