Fringe Benefits, Employee Loyalty and Employee Retention: The Case of Viettel Cameroon S. A.

Abstract:

Employee loyalty and retention are critical issues in human resource management in an organization. High employee turnover is rampant in many organizations especially in developing countries like Cameroon. With the shortage of qualified personnel, organizations increasingly face the challenge of finding and retaining qualified workers who are committed to the missions and vision of the organization. Fringe benefits are important in improving employee loyalty and in causing them to want to stay in the organization. The main objective of this study was to examine the interrelationships among employee loyalty, fringe benefits and employee retention in Viettel Cameroun SA. Specifically, the study sought to investigate the influence of fringe benefits on employee loyalty, the influence of fringe benefits on employee retention and the moderating role of employee loyalty on the link between fringe benefits and employee retention. The OLS estimation showed that an additional fringe benefit increases the employee loyalty score by 0.418 units. The logistic regression analysis revealed that an additional fringe benefit increases the probability of employee retention by 10%, and that employee loyalty enhances the influence of fringe benefits on employee retention from 10% to 17.6%. The study recommends that Viettel and similar organizations provide regular fringe benefits to their workers, make their salaries more stable, improve communication and appreciation of workers in order to improve their loyalty and increase their chances of staying in the organization.