Influence of Compensation Satisfaction and Financial Incentives on the Retention of Private School Employees

Employee retention plagues private institutions. The influence of compensation satisfaction and financial incentives on the retention of private school employees was examined. This study employed diagnostic research design involving 209 private school employees selected through total enumeration sampling. The data collected through survey were analyzed using multiple linear regression approach. Results revealed that the determinants have moderate (36.3%) and significant combined influence on the criterion, supporting Herzberg’s Two-Factor Theory. Other variables not covered in the study may be tested to account the remaining 63.7% unexplained variance. School leaders may prioritize improving compensation satisfaction as the strongest predictor of employee retention.

Influence of compensation satisfaction, financial incentives, retention of private school employees

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