Remuneration and Employee Retention in Private Health Units in Jinja Municipality

ABSTRACT This study was set out to establish the extent to which remuneration affect employee retention in private health units in Jinja municipality. Specifically the study wanted to establish the effect of (i) financial remuneration and (ii) non financial remuneration, on employee retention in Jinja municipality. The study was done by developing a conceptual frame relating remuneration and employee retention. The study employed a descriptive correlational design; data were collected from 254 respondents using self administered questionnaires as the main data collection instruments. Data were analyzed at univariate level using frequency counts and summary statistics and Pearson Linear Correlation coefficient at bi-variate level. The study revealed that both financial and non financial remuneration affect employee retention. From the above findings appropriate conclusions and recommendations including those for further research were made. Recommendations from the study were (i) there is need for management of the private health units in Jinja to remunerate employees a scale similar to that given in public units as well as ensuring that the employees are paid in time, (ii) there is a need to institute or put in place different forms of financial remuneration since such as piece rate pay, incentives, bonuses and the like since the findings indicated that employees believed they can be motivated in different way using different means (iii) Employees should go for further training in their respective areas of specialization to improve on their skills and knowledge to become indispensible which ability can help them negotiate for a better pay as well as helping them improve their performance hence retention, (iv) on the second hypothesis, the researcher recommends that management of private health units in Jinja municipality should establish and give employees remuneration in forms which employees give value such as sponsoring them for further studies, recognizing their efforts and allowing them to work according to their abilities and conscience, and (v) Employee and employers in the private health unit in Jinja should put in place a cordial working relationship since the success of any organization depends on staff members who enjoy their jobs and feel rewarded by their efforts.

 TABLE OF CONTENTS

DECLARATION

DECLARATION

APPROVAL SHEET

DEDICATION iv

TABLE OF CONTEN1S

LIST OF ABBREVIATIONS xi

CHAPTER ONE 1

INTRODUCTION

1.0 INTRODUCTION 1

1.1 BACKGROUND OFTHE STUDY

1.1.1 Historical perspective

1.1.2 Theoretical perspective

1.1.3 Conceptual perspective~2

1.1.4 Contextual perspective~3

1.2 STATEMENT OF THE PROBLEM 3

1.3 PURPOSE OFTHE STUDY 3

1.4 OBJECTIVES OF THE STUDY 4

1.5 RESEARCH QUESTIONS 4

1.6 HYPOTHESES 4

i) Financial remuneration significantly influences employee retention in selected private health

units in Jinja 4

1.7 SCOPE OF THE STUDY 4

1.8 SIGNIFICANCE OF THE STUDY 5

CHAPTER TWO 6

LITERATURE REVIEW 6

2.0 INRODUCIION 6

2.1 THEORETICAL REVIEW 6

2.2 CONCEPTUAL FRAMEWORK 7

2.3 RELATED LITERATURE 9

2.3.1 Financial motivation and employee retention 9

2.3.1.1 Pay and employee retention 9

2.3.1.2 Incentives and employee retention 10

2.3.1.2 .1 Commissions and employee retention 10

2.3.1.2 .2 Bonuses and employee retention 11

2.3.1.2 .3 Profit-sharing and employee retention 11

2.3.1.3 Employee benefits and employee retention 12

2.3.2 Non-financial remuneration and employee retention 12

2.3.2.1 Autonomy and employee retention 13

2.3.2.2 Responsibility and employee retention 13

2.3.2.3 Recognition and employee retention 14

2.3.2.4 Achievement and employee retention 14

2.3.2.5 Promotion and employee retention 15

2.3.2.6 Career development and employee retention 15

CHAPTER THREE 17

METHODOLOGY 17

3.0 INTRODUCTION .17

3.2 POPULATION

3.1 RESEARCH DESIGN 17

3.3 SAMPLING STRATEGIES

3.4 DATA COLLECTION METHODS 18

The researcher used secondary and primary data collection approaches 18

3.4.1 Data collection instrument...............,,...,,..,......,........,.,.........,........, 18

3.4.2 Validity and reliability 18

3.4.3 Research procedure 19

3.5 DATA ANALYSIS 19

3.6 ETHICAL CONSIDERATIONS 19

3.7 LIMITATIONS 20

CHAPTER FOUR 21

PRESENTATION, INTERPRETATION AND ANALYSIS OF RESULTS 21

4.0 INTRODUCTION 21

4.1 DESCRIPTION OF RESPONDENTS 21

4.1.1 Description of employees by sex 21

4.1.1 Description of employees by age 22

4.1.2 Description of Employees by income level 22

4.1.3 Description of Employees by designation 22

4.2 DESCRIPTION OF THE DEPENDENT VARIABLE 23

4.3 DESCRIPTION OF THE INDEPENDENT VARIABLE 24

Table 4.5: Level of financial remuneration 25

Table 4.6: Level of non financial remuneration 27

4.4 TESTING OF HYPOTHESES .30

CHAPTER FIVE 32

FINDINGS, CONLUSIONS AND RECOMMENDATIONS 32

5.1 INTRODUCTION 32

5.2 FINDINGS 32

5.2 CONCLUSIONS 32

5.2.1 Financial remuneration and employee retention in health 33

units in Jinja municipality 33

5.2.2 Non-financial remuneration and employee retention in health 33

units in Jinja municipality 33

5.3 RECOMMENDATIONS 33

5.3.1 Hypothesis one 33

5.3.2 Hypothesis two 34

REFERENCES 35

APPENDIX 1 39

TRANSITTAL LETTER 39

APPENDIX II~ 40

QUESTIONNAIRE 40

RESEARCHER’S CURRICULUM VITAE 55