The Role of Incentives in Employee Retention in Ghana: A Case Study of SMEs within Ghana Industrial and Commercial Estate Limited

Abstract

The main purpose of this study was to examine the role incentives in employee retention of Small to Medium Size Enterprises (SMEs). Research for the study included a literature study of both content and process theories of motivation in order to identify those factors that are important when evaluating incentives on employee retention. Survey design was employed for this study and stratified and convenience sampling techniques were used in selecting seventy-five respondents from SMEs within Ghana Industrial and Commercial Estate. Data was elicited from respondents using questionnaires and analyzed with descriptive statistics. The major findings indicate that, incentives have an impact on employee retention in SMEs. It was revealed that SMEs do not have incentive packages for their employees and the major cause of employee turnover is job insecurity. However, to prevent high employee turnover, the most effective strategies are to provide employees with bonus and job security. The study recommended that, employers should study the needs of their employees to enable them to know the most effective incentive programs that will help retain their key employees.