The impact of extrinsic motivation on employee turnover in commercial banks. A case study of Centenary bank

Abstract

The study was on the impact of extrinsic motivation on employee turnover in commercial banks with specific reference to Centenary Bank. It was guided by objectives; the effect of Remuneration on employee turnover, the effect of promotions on employee turnover and the relationship between benefits and employee turnover in Centenary Bank. Data was obtained from a total of 94 employees of Centenary Bank using structured questionnaires to determine impact of extrinsic motivation on employee turnover in commercial banks. The results showed that extrinsic motivation has greatly impacted on employee turnover in Centenary Bank as shown by its, large extent 49(52.1%), equally remuneration has impact on employee turnover as recorded a large extent 76(81%), promotion recordedkj; a moderate extent49(52.1%), and employee benefits recorded some extent 55(58.5%) responses. Besides results from SPSS analysis were presented, present value close to positive one showing variations of each variable on employee turnover for instance Promotion and employee turnover (r=0.601; p<0.01), remuneration and employee turnover (r=0.501; p<0.01), employee benefits and employee turnover (r=0.615; p<0.01) while human resource management impacts on extrinsic Motivation and employee turnover presented (r=0.78; p<0.01). The study concludes that it is only a comprehensive blend of intrinsic and extrinsic motivational variables that can enhance retention and reduce the high rate of employee turnover in commercial banks, Centenary Bank in particular. Based on the findings, the study recommended thus; management of Centenary Bank should pay much attention to the career plans as well as provide motivational packages for their workers to help retain them, the payment of transportation allowances, an opportunity to improve competencies through training as well as attending workshops and seminars should be ensured and improved, the bank should develop a culture of recognizing employees’ performance through giving monetary benefits such as incentives, cash prize also motivate the employees to a large extent and they may prefer sticking to the organization.