Effectiveness of Financial Compensation to Employee Retention at Digital Solutions Ltd.

Abstract

The purpose of the study was to determine effectiveness of financial compensation to employee retention at “digital solutions ltd”. The objectives of the study were; to find out how effective Salaries are in retaining employees at digital solutions, to find out how effective Wages are in retaining employees at digital solutions, to find out how effective financial employee benefits are in retaining employees at digital solutions The study adopted a descriptive cross sectional survey design and quantitative approach. Simple random sampling was used to select respondents from each selected sample from each category of the respondents. The study adopted self-administered questionnaire. The study the target population was employees of Digital Solutions Ltd which is a privately owned company. Quantitative data was analyzed using descriptive statistics. From the findings the study concludes that there are many components of financial compensation to employees practiced at digital solutions ltd and that employees do not leave the organization because of dissatisfaction with different components. These components include salary payment, wage payment and employee benefits. The study recommends that in order to enhance employees retention, Digital Solutions Limited should ensure that salaries are paid promptly, provision of housing facilities at subsidized rent rates, revision of benefits scale, increase salary, provision of growth and development opportunities for staff and a good reward scheme, staff participation in decision making, incentives to motivate staff, transparency in matters relating to staff benefits, establishment of loyalty clubs/team building and good working conditions. Other benefits that the organization should provide to increase employee retention can include car loan, flexible work plan, educational fees, employee assistance programme, relocation benefits and recreational programmes and mortgage facilities which have a maturity period of 6 years.