Compensation packages and recruitment-selection practices towards employee retention and economic sustainability

Abstract

The study aims to examine the nexus between compensation packages and recruitment-selection practices with a focus on employee retention and economic sustainability, where manufacturing organisations were the unit of analysis. This is because economic sustainability and manufacturing organisations are vital to the economic growth of any country; hence, the need for the study. The study made use of a research survey design. A structured research questionnaire was used to collect data from 349 respondents in the manufacturing organisations in Lagos, Nigeria obtained through a multistage sampling technique and analysed through the use of descriptive and inferential statistics. The results of the study, through statistical analysis, indicated that among all the components of compensation packages, job security and salary remain as the main drivers of retention and economic sustainability. Job security has a direct relationship with employee retention and economic sustainability, while salary relationship with recruitment practice is inverse; to imply salary increase will lead to a decrease in recruitment and selection practices, signifying good employee retention and economic sustainability by saving associated costs with recruitment exercises. The study implies that compensation packages offered by an organisation will determine the quality of attraction to the organisation and enhance employee retention, and guarantee economic sustainability. The main limitation of the study is its focus on manufacturing organisations in the commercial nerve of Nigeria, which is Lagos. This study has contributed to the body of knowledge both theoretically and empirically, as well as to concept development and linkage. The scope covered by the study makes it unique and different from previous ones, especially in its link to economic sustainability.