Remuneration Strategies and Employee Turnover

lucre St rankgies and Employee TurnoverCOMPARATIVE STUDY ON THE REMUNERATION STRATEGIES AND EMPLOYEE TURNOVER in the midst of PRIVATE AND PUBLIC INSTITUTIONS A SURVEY OF PUBLIC AND PRIVATE UNIVERSITIES IN NAIROBI COUNTYBackground of the studyPublic orbit utilizationment accounts for a earthshaking portion of net employment in developing countries (Mizala, et al.,2011 Ramoni-Perazzi and Bellante, 2007). The study power to attract and retain highly skilled personnel is a study challenge in increasing government capa urban center to produce and utilise good policies, including wage intention policy. In employment, a major moot revolves around man- surreptitious sphere wage derivatives that ar significant for attracting and retaining talent. Wage determination processes inside the two spheres are distinct and ( hold back the potential to) give jump-start to differentials in pay rewards mingled with comparable worker categories (Hyder and Reilly, 2005 Skyt Nielsen and Ro sholm, 2001 Van der Gaag and Vijverberg, 1988). go surveys from developed countries show that usual sector wages are on average higher than those in the one-on-one sector, evidence from developing countries is oftentimes limited or entirely lacking.The general perception is that employees in the cloak-and-dagger sector, particularly the highly skilled ones, earn much higher salaries than their populace sector counterparts. The former tend to negotiate for higher salaries whenever they move from the globe to the confidential sector. These perceptions do not, however, take into consideration the fact that although salaries in the earthly concern sector may be depressioner, the total compensation package may include transactional and relational returns, which are not uncommitted in the snobbish sector. The higher packages to cliquish or semi national sector workers are apparent to introduce wage distortions and disparities in public- occult sector wage employment, while confidential information to low morale and output in the affected sector.Statement of the paradoxA recent survey by KIPPRA (2013) indicated that the general public sector pays slightly higher than the private sector when comparing radical net and allowances. However, the private sector pays a higher basic salary. Further, there is a large vertical wage inequality in both the public and private sector between the lowest and highest cadres. These wage differentials have caused a distortion in the wage economy, defying the principles of wage determination. The report indicates that education and have it off are no longer major considerations in wage determination. Moreover, the topical employment policy seems inadequate in addressing youngs around wage differentials within the public sector and between public and private sectors. The report barely reveals that there is a positive correlation between wage differential and the cost of labour, as the higher the wage differential the greater the likeliness for agitation for higher wages. The report also shows that basic salaries alone are not a sufficient motivator for retaining employees. Incentives and allowances play a significant role in ensuring employee retention within the public sector. Non-monetary incentives such as working environment, challenging assignments, job security and flexible working hours have contributed to high employee motivation. In addition, motivation is upped due to the wide range of allowances available to the employee in the public sector. In most cases, the proportion of allowances accounts for at least(prenominal) 50% of the total take home pay across the public serveDue to lack of an explicit Kenyan policy on wage determination, distortions exist between employees bearing similar qualifications, experience and levels of competence. check to work done by the Institute of Economic Affairs (2006), there are substantial differences in the remuneration of individual public sec tor workers across different departments and institutions. A comparison of wages in the public sector across the central government, the Judiciary, Parliament, Local Authorities, Disciplined Forces, and State Corporations shows that the basic pay in central government is substantially lower for the comparable educational qualifications, experience and ability. urther, the study notes that there are discrepancies across the operative pay scales.Despite the overall implications of wage differentials, limited studies have been undertaken in the recent past to establish whether the remunerations strategies differ between public and private in Kenya, the nature and size of their distorttionary effects, and how their influence employee turnover level . unique(predicate) objectivesTo explore various remuneration strategies employed in both private and public institutionsTo establish the turnover rate in both private and public institutionsTo determine the effect of remuneration strateg ies on turnover rate in both private and public institutionsTo establish the effect of employees remuneration satisfaction level on turnover rateTo determine theReasons For and meaning of the StudyThe performance of the public sector workers in Kenya has been a major concern to the Kenyan people. It has been characterized by low work performance and inadequate service delivery. The problem indicators include absenteeism from work, lateness, corruption, theft, a high rate of complaints, low quality work output and high turn-over of professional rung. There is call for therefore to undertake inquiry aimed at developing renumeration strategies for motivating the public sector workers in Kenya. The main objective of this look study pull up stakes be to develop strategies for enhancing staff retention in order to change the work performance of the public sector workers. Opiyo (2004, p. 18) observes that the public service wage bill is 9.6 per cent of the GDP. He states that all f urther increase in the wage bill could lead to negative economic consequences, such as the rise in inflation rates and general increase in price levels of goods and services. The government therefore is not in a typeset to spend much money in salary increases to enhance motivation. This is because at the moment the government has no resources to offer salary increase and any further increases (as indicated above) bequeath cause negative economic impact. Therefore, a schema that lead assist in enhancing motivation of employees in the public sector without spending more resources becomes even more appealing.MethodologiesStudy AreaThe research willinging be carried out in Nairobi. As the capital city of KenyaResearch designThis study will adopt a relative research design. A comparative study will enable the research worker to assess the difference that exists on remuneration strategies between in private universities and those used in public universities to gain competitive advantage (Orodho, 2003). butt end PopulationThe main target unit for analysis of the study will be both teaching and non-teaching staff and human resources top heed officials of the selected universities. The non-teaching staff and other staff will serve as recognise informants to provide more information in regard to the remunerations strategies employed in their institutions to retain employeesSampling Design and ProcedureThe study will employ stratified, simple and purposive sampling technique to select a private university and a public university and teaching and non teaching staff respectively.Data Types and SourcesThis research study will be conducted using two sources of data capital and secondary dataPrimary DataPrimary data will be collected by conducting interviews with the senior administrative staff and HR staff respectively. On the other hand, questionnaires will be issued to the non-teaching and teaching staff .Secondary DataSecondary data will be self-collected f rom a variety of sources including analysis of case studies, reviewing websites, books, journals, and brochures of universitiesData Collection InstrumentsThe researcher will use questionnaires and interviews as the main instruments for collecting data.Validity and reliabilityValidity and ReliabilityIt will be done through fly of instruments to improve their efficiency in data collection. The researcher will issue 30 questionnaires to a university other than the ones selected for the study. Reliability, which entails the accuracy and precision of the measurement procedure, will be carried out using the cronbachs alpha running, whereby a coefficient of 0.7 will indicate reliability of the questionnaire. Cronbachs alpha is widely believed to indirectly indicate the spot to which a set of items measures a single uni-dimensional latent construct. Cronbachs alpha loosely increases as the inter-correlations among test items increase, and is thus known as aninternal consistencyestimate of reliability of test scores. Because inter-correlations among test items are maximized when all items measure the same construct, that is, the higher the coefficients, the repair the measuring instrument (Zinbarg et al., 2005).Data AnalysisThe data that will be collected will be analyzed using descriptive and inferential statistics with the help of statistical package of social sciences (SPSS) and Microsoft Excel package too. descriptive statistics include frequencies, percentages, pie charts and graphs, which will enable the researcher to meaningfully describe scattering of measurements using a few indices or statistics. Inferential statistics will be important in determining the nature and magnitude of the relationship between the marketing strategies used in public university and private university for competitive advantage. The researcher will calculate a co-relation co-efficient (r) using pearsons corelation co-efficient method, whereby a coefficient of more than +1 will in dicate a positive relationship between marketing strategies and competitive advantage.A coefficient (r) of 0 will indicate no relationship, and a coefficient (r ) of -1 will indicate negative relationship between the variables world tested.