Effect of Employees Retention Strategies on Organisational Performance in Selected Federal Tertiary Hospitals in Southwestern Nigeria

Abstract

Employee retention remains a persistent challenge in Nigeria’s healthcare sector, particularly within federal tertiary hospitals where workforce instability undermines institutional performance and service delivery. This study investigated the effect of employee retention strategies on organisational performance in selected Federal Tertiary Hospitals in Southwestern Nigeria. Adopting a descriptive survey research design, data were collected through structured questionnaires administered to 333 medical doctors and complemented by qualitative interviews with hospital management. Linear regression analysis was employed to examine the impact of various retention strategies—including compensation, recognition, leadership support, and working conditions—on organisational performance indicators. The findings revealed that non-financial strategies such as reward and recognition, team building and effective communication, infrastructure investment, leadership support, and provision of residential accommodation significantly enhance organisational performance. Conversely, while training and development, remuneration, and recruitment and selection exhibited positive relationships, their effects were not statistically significant. The study concluded that a multidimensional retention framework integrating both intrinsic and extrinsic motivators is essential for optimising performance in Nigeria’s public healthcare institutions.