The Influence of Direct Monetary Compensation on Employee Retention in Public Secondary Schools in Rangwe, Homabay
Abstract
Employee retention is a critical factor in ensuring the stability and effectiveness of the education sector, where teachers play a pivotal role in shaping the future of learners. High turnover rates among teachers can disrupt learning continuity and compromise educational outcomes. Thus, this study investigated the influence of direct monetary compensation on employee retention, with a specific focus on public secondary school teachers in Rangwe Sub-County, Homa Bay County. The study used Herzberg's Two-Factor Theory as the study's foundations and offered a strong theoretical framework. The study used a descriptive cross-sectional study design to gather quantitative data. Taro Yamane's formula was used to calculate the sample size 205 teachers from the target group, which included 422 public secondary school teachers. To validate the research tools, 20 teachers from Mbita Sub-County participated in a pilot study. Structured questionnaires were used to gather data. The data analysis was evaluated using statistical package for social sciences (SPSS) and displayed in tables and figures. The reliability test confirmed that the research instruments were consistent and dependable for data collection. Descriptive statistics revealed moderate perceptions of direct monetary compensation (M = 2.910) and employee recognition (M = 2.971). Correlation analysis showed a moderate positive and significant relationship between direct monetary compensation and employee retention (r = 0.305, p < 0.05). Regression analysis indicated that direct monetary compensation significantly predicted employee retention (β = 0.177, p = 0.000), although the effect size was relatively modest. The model's R Square was 0.093, and the Adjusted R Square was 0.088, indicating that only 8.8% of the variance in employee retention could be explained by direct monetary compensation. sustainable teacher retention in rural schools. The study recommends that the Teachers Service Commission and school management should establish transparent compensation frameworks addressing salary equity and standardized overtime payment systems. Educational administrators should invest substantially in professional development programs, mentorship systems, clear promotion pathways, and recognition mechanisms addressing the unexplained retention variance. Schools should prioritize improving working conditions through infrastructure upgrades, adequate resources, and reliable utilities while cultivating organizational cultures featuring participatory decision-making and collegial support.
Keywords: Direct Monetary Compensation, Employee Retention, Public Secondary Schools, Rangwe, Homabay
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