HEALTHCARE BENEFIT AND EMPLOYEE RETENTION OF MULTINATIONAL OIL AND GAS COMPANIES IN NIGERIA

Barine, G. L.

Department of Business Administration, Faculty of Administration and Management, Rivers State University, Port Harcourt, Nigeria

Lebura, S.

Department of Business Administration, Faculty of Administration and Management, Rivers State University, Port Harcourt, Nigeria

and

Baridam, L. Q.

Department of Business Administration, Faculty of Administration and Management, Rivers State University, Port Harcourt, Nigeria

ABSTRACT

This study examined the relationship between healthcare benefit and employee retention in multinational oil and gas companies in Niger. The study adopted a cross-sectional survey design research. Primary data  was  generated  through  structured  questionnaire  The population for this study was 10,238 employees of five multinational oil and gas companies in Nigeria, . The sample size of 385 was determined using Taro Yamen’s 1970 formula.  The research instrument was validated by supervisors’ vetting and approval while the reliability of the instrument was achieved by the use of the Cronbach alpha coefficient with all items scoring above 0.70 (a > 0.70). The hypotheses were tested using the Spearman Rank Order Correlation Statistics while partial correlation was used to test the moderating effect through Statistical Package for Social Sciences (SPSS). The tests were carried out at 0.05 significance level.  The findings revealed that there is a strong positive significant relationship between indirect compensation system and employee retention in multinational oil and gas companies in Nigeria. Therefore, the study   concludes that healthcare benefit positively enhance employees to remain with the organization for a longer period in multinational oil and gas companies in Nigeria. Thus, the study recommends that Multinational oil and gas companies HR managers should prioritize the improvement of healthcare benefit offered to employees to motivate their employees to remain with the company for longer period.  This may involve investing in indirect compensation system   that is capable of motivating employees and making them to be loyal the organizations.

Keywords: Healthcare benefit, employee retention, employee satisfaction, voluntary turnover rate, average employee tenure