AN ASSESSMENT OF THE NEXUS BETWEEN STAFF WELFARE AND EMPLOYEE RETENTION OF SELECTED COMMERCIAL BANKS IN DOUALA, CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

In the current highly competitive business environment, organizations make significant efforts to acquire and retain exceptional individuals who can contribute to their achievements. Although financial compensation and job duties are important factors in employee satisfaction and retention, a comprehensive welfare package can have an enormous impact. This classic benefits package is both captivating and distinctive, enhancing the overall employee experience and promoting a feeling of inclusion, wellness, and individual development (Poi, 2020).The traditional notion of a welfare package typically centers on customary perks such as medical coverage, pension schemes, and compensated leave. Although these factors are clearly crucial, progressive organizations acknowledge that a uniform strategy may no longer be adequate. Instead, they strive to establish an atmosphere in which employeesl are esteemed, assisted, and inspired to offer their utmost contributions. This shift in paradigm has led to the emergence of new welfare programmes that span a broad range of projects. It may encompass flexible work arrangements, comprehensive wellness programmes, continuous skill development opportunities, mental health assistance, and a dynamic work culture that values diversity and inclusion (Ejiofor, 2018). The key factor for success rests in customization, where welfare products are tailored to meet the specific requirements and objectives of each employee. When employees believe that the organization values their well-being and development, a strong connection is established, resulting in increased job satisfaction (Akintoye and Afobruku,2022). Furthermore, a compelling welfare package not only enhances the well-being of individual employees but also reinforces the cohesive structure of the organization. An integrated team motivated by a common goal and backed by a flexible welfare programme fosters a favourable work atmosphere conducive to collaboration, innovation, and creativity (Gbarage & Ololube,2022). As employees flourish, the organization too prospers, establishing a virtuous circle of achievement. Nevertheless, it is important to acknowledge that only providing a welfare package may not ensure elevated levels of job satisfaction and retention. Supportive leadership, great work culture, fair salary, and chances for meaningful work are all significant factors. In order to effectively enhance employee retention, it is important for the welfare package to be in accordance with the overarching organizational principles as well as the requirements and aspirations of the employees (Iqbal et al., 2019). Therefore, a survey will be conducted in order to assess the nexus between staff welfare and employee retention of selected commercial banks in Douala, Cameroon.

1.2 Statement of the Problem

Lately, human resource professionals have recognized the importance of establishing competitive compensation rates to effectively recruit and retain top talent. According to the Society of Human Resource Management (SHRM, 2022), implementing a strong employee retention programme is essential for attracting and retaining valuable staff members, while also reducing turnover and its related expenses.However, various factors impact an organization's production and profitability. Retaining a high-quality employee is a more economically efficient option compared to the expenses involved in recruiting, training, and familiarizing a new employee of similar competence (Ololube, 2019). These measures are crucial for employee retention. Employee retention plans should encompass factors such as job satisfaction and employee engagement (Dwivedi, Chaturvedi & Vashist, 2019). Prior research examining the correlation between remuneration and employee retention has yielded inconsistent and varied results. A study conducted by Chiekezie, Emejulu, and Nwanneka (2018) found a negative correlation between wages and employee satisfaction in commercial banks in Anambra State, Nigeria. Their research findings indicate that a high salary does not have any influence on employee satisfaction. Based on the research, welfare services serve as a reliable indicator of employee retention. Thus, it is in the light of these that the study seeks to assess the nexus between staff welfare and employee retention of selected commercial banks in Douala, Cameroon.

1.3 Objectives of the Study

The main purpose of this study is to assess the nexus between staff welfare and employee retention of selected commercial banks in Douala, Cameroon. Specifically, the study will;

Assess the extent to which  staff welfare impacts employees retention.

Investigate the relationship between between staff welfare and employee retention

Determine the impact of staff welfare practices on employee job performance and productivity.

1.4 Research Questions

The following questions have been prepared for the study:

To what extent does staff welfare impact employee retention?

What is the relationship between staff welfare and employee retention?

How do staff welfare practices impact employee job performance and productivity?

1.5 Research Hypotheses

Ho: There is no significant relationship between staff welfare and employee retention of selected commercial banks in Douala, Cameroon.

Ha: There is a significant relationship between staff welfare and employee retention of selected commercial banks in Douala, Cameroon.

1.6 Significance of the Study

The study aims to assist bank executives or managers in identifying areas that require improvement and implementing measures to increase the well-being of their employees. Additionally, it empowers HR professionals to develop and implement strategies and activities aimed at improving employee well-being and satisfaction. This include initiatives including as welfare programmes, adaptable work schedules, and employee assistance programmes that are expressly designed to improve employee well-being and enhance employee retention rates.Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the nexus between staff welfare and employee retention of selected commercial banks in Douala, Cameroon.

1.7 Scope of the study

The scope of this study is boarded on the nexus between staff welfare and employee retention of selected commercial banks in Douala, Cameroon. Empirically, this study will assess the extent to which  staff welfare impacts employees retention, investigate the relationship between between staff welfare and employee retention and determine the impact of staff welfare practices on employee job performance and productivity.

Geographically, the study will be delimited to employees of some selected commercial banks in Douala, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.9 Definition of Terms

Staff welfare: refers to the well-being, happiness, and overall quality of life of employees in an organization.

Employee retention: is the ability of an organization to keep its employees engaged and committed to their jobs for an extended period. 

Employee turnover: the rate at which employees leave an organization and need to be replaced.