Financial benefits, emoluments and labour turnover: a study of selected banks in Alimosho local government area of Lagos state

Abstract

This study examined the relationship between salaries and emoluments in organizations and labour turnover among selected banks in Alimosho local government area of Lagos. Effective management of any industry or organization’s welfare system is undoubtedly one of the most complex and problematic issues organizations have to grapple with. This study tried to investigate the reasons for labour turnover, examined the role salaries plays in retaining employees in the banks under study. The levels of employee’s satisfaction with the salary structure adopted by the bank were also interrogated. This study adopted the survey research design. The sample for this study was drawn from selected banks in Alimosho local government area of Lagos. 300 questionnaires were administered using the total population sampling methods but only 286 were adjudged suitable for analysis. The analysis indicates that majority of the respondents were of the view that employee’s salary in the banking industry is a strong determinant of labour turnover. Majority of the staff 130(45.5%) in the selected banks strongly agreed that prompt payment of salary will reduce labour turnover. A large proportion 219(76.6%) of the respondents intends to leave their job in search of a better offer because they are not satisfied with their salary. This study recommends that prompt payment of employee’s salary will help to reduce high rate of labour turnover.

Keywords: Welfare, Employees, Labour Turnover, Industry