Exploring the effects of motivation on employee retention: A case study of Internal Revenue Service

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The importance of motivation in retaining core employees cannot be over-emphasized. Therefore keeping the best employees continue to remain a challenge for most managers. The study aimed at exploring the effects of motivation on employee retention. The Internal Revenue Service, Upper East Region, was selected as a case study organization with the entire members of the organization (48) constituting the sample size for the study. Both primary and secondary data were used in the study. Self-administered questionnaire were primarily used in collecting data from respondents although interviews and situational observations were made to have a first-hand insight about the natural day to day operation and working environment of the Service. A selected number of managers, senior as well as junior staff were also interviewed as part of the data gathering process. Data collected were subjected to statistical analysis using Statistical Package for Social Scientist (SPSS) software. According to the study 70.8% of the respondents said that they were not satisfied with their current motivation packages. Respondents strongly agreed that good manager-employee relationship can cause core employees to be retained. About 81.2% of the respondents were not satisfied with the mode of selection for training and development and has led to feeling of inequity, de-motivation and labour turnover. It is therefore recommended that Internal Revenue Service should establish appropriate selection criteria that would ensure a fair balance in the selection of staff for training and development; ensure that all staff are promoted on time; and that Internal Revenue Service sets aside funds to provide incentive bonuses to hardworking districts. The study also recommended that a competitive and attractive salary should be provided by management in order to retain the core employees of IRS.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration,