COMPENSATION PRACTICES AND EMPLOYEES’ INTENTION TO QUIT AT THE CAPE COAST POLYTECHNIC

ABSTRACT The rate at which employees in tertiary institutions in Ghana move from one institution to another is quite high and this could be as a result of compensation packages employed by different institutions to attract competent employees. The aim of this study was to examine the effect of compensation packages on employees’ intention to quit in a tertiary institution in the Central Region, Ghana, precisely Cape Coast Polytechnic. Employing a descriptive survey design, data on the variables were collected using one hundred selfadministered valid questionnaires which were completed by academic staff of Cape Coast Polytechnic. The study was censused to ensure a fair representative of the view of each respondent. The collected data was carefully analyzed using simultaneous regression techniques, supported by structural equation modeling (SEM) to test the research questions and relationships that may exist among the variables under consideration. The results showed significant relationships between the compensation practices and employees’ intention to quit. The summary of key findings is that, there was a direct positive significant correlation between the tested dependent and independent variables (i.e., salary, incentives, allowance and fringe benefits). Recommendations were made to management and decision makers to endeavour to review compensation packages at various levels in order to earn employees’ satisfaction to help prevent high labour turnover among members of staff.