Influence of reward policy on employee turnover intention: a case study of private companies in Kampala central division

Abstract

This study focused on investigating the effect of reward practices on employee’s turnover intention in private companies in Kampala central division. The study was based on different objectives that included; examining the effect of job promotion on employee turnover intention; to establish how remuneration influences employee turnover intention; and to examine the effect of employee recognition on employee turnover intention in private companies in Kampala The quantitative study used a well-designed questionnaire to collect data from a sample of 90 employees of private companies in Kampala Central division. The study revealed that majority of employees in private companies are male (80.0 %). And the age of 36.7% of employees are in the range of 31 -40 years and 47.8% of the employees have 5-10 years working experience. 58.9% of the employees are had a bachelor’s degree. It was established that there are significant negative relationships between job promotion, remuneration, and employee recognition and turnover intention of employees. The overall relationships of different practices of reward system showed that employee recognition has the strongest negative relationship with turnover intention. Analysis of the collected data revealed that reward system or practices has a significant impact on the employees’ turnover intention. The study concluded that the reward system of private companies in Kampala need to be improved both financially and non-financially because there is a strong negative relationship between reward practices and turnover intention of employees. That means if the reward practices or system is effective and attractive to employees their turnover intention will be reduced gradually