Compensation and Retention of Human Resource for Health in Decentralized Health System in Dodoma City, Tanzania.

Abstract

Employees’ compensation is central to workers retention in human resource management practices. This study was set to assess the influence of compensation on employee retention in decentralized health system in Dodoma city. This study was guided by the expectancy theory which clearly stipulates that for employees to remain with the organization and perform effectively, his/her expectations in terms of compensation must be satisfied. To achieve study objective, a quantitative approach was adopted where a cross-sectional research design was used to guide the study. A sample of 190 respondents was selected where data were collected through questionnaire survey and analyzed using descriptive and inferential statistics. Results revealed that compensation greatly influence employee retention. Compensation factors such as career development, promotion and work-life balance positively and significantly contribute to employee retention. Furthermore, findings showed that lack of extra duty allowance, delayed of incentive packages, lack of statutory benefits, and lack of travelling and leave allowances are factors that affect employee retention in Local Government Authorities in the Dodoma City. The study concludes that compensation is an impetus factor for employee retention among health workers in the Local Government Authorities. Therefore, the study recommends that Dodoma City Council should focus on developing compensation practices that attract key health personnel to remain and work in their administrative area of jurisdiction.