Corporate Governance and Employee Retention in Multinational Enterprises in Nigeria: Exploring the Role of Board Diversity and Incentive Mechanisms

Abstract

This article examines the relationship between corporate governance, employee retention, and the influence of board diversity and incentive mechanisms in multinational enterprises (MNEs) operating in Nigeria. With the increasing significance of MNEs in Nigeria's economy, understanding the factors that impact employee retention within these organizations is vital for sustainable growth and success. This study investigates the role of corporate governance practices, specifically board diversity and incentive mechanisms, in promoting employee retention. The research utilizes a mixed-methods approach, combining qualitative interviews with key stakeholders and a quantitative survey of employees in selected MNEs in Nigeria. The qualitative phase aims to explore the perceptions and experiences of managers, employees, and board members regarding corporate governance practices and employee retention. The quantitative phase employs statistical analysis techniques to examine the relationship between board diversity, incentive mechanisms, and employee retention, while controlling for other relevant factors. The findings of this study contribute to the existing literature on corporate governance and employee retention in the Nigerian context. They highlight the importance of board diversity in fostering an inclusive decision-making process that considers the diverse needs and perspectives of employees. Furthermore, the study explores how incentive mechanisms, such as performance-based compensation and career development opportunities, influence employee retention within MNEs. The results of this research will provide valuable insights for MNEs operating in Nigeria, offering practical recommendations for enhancing corporate governance practices and improving employee retention. By understanding the impact of board diversity and incentive mechanisms on employee retention, MNEs can develop effective strategies to attract and retain talented employees, ultimately contributing to their long-term success and sustainable growth in the Nigerian market.

Keywords: Corporate governance, employee retention, multinational enterprises, board diversity, incentive mechanisms.

DOI: 10.7176/EJBM/15-11-04

Publication date:June 30^th 2023