IJESMR - International Journal of Engineering Sciences & Management Research
Abstract
Compensation is the remuneration workers receive for their services or contributions to an organisation. Extant literature points to the fact that compensation packages have relationships with job retention. A study established a theoretical framework based on the equity theory and used it to examine how compensation influences workers’ retention. The aim of this research was to investigate the impacts of compensation on retention among public sector construction workers in Jigawa state of Nigeria. The Positivist paradigm guided this empirical research. A questionnaire was developed, pilot-tested and administered to gather data on workers’ retention regarding four compensable aspects, namely: salary, allowances, gratuity and pension. A total of 265 questionnaires were administered and 260 were collected, representing a response rate of 98%. The respondents were selected using the stratified random sampling technique. The data collected was analysed using both descriptive statistics and Structural Equation Modelling SEM. The Structural Equation Modelling established that pension and gratuity do positively and significantly influence public construction workers’ retention in Jigawa state, Nigeria. The study focused on the public construction sector of Jigawa State, Nigeria. Therefore, the findings cannot be extended to the whole country
