This paper investigates the effects of monetary rewards and non-monetary rewards on employee retention within the public sector in Tanzania, specifically focusing on selected district councils in the Dodoma region. Drawing upon existing literature and empirical findings, this study aims to demonstrate how financial incentives (overtime pay, bonuses, and allowances), training and development, and recognition influence employees' decisions to remain with their current employers. The research employs a quantitative approach, utilizing a cross-sectional design to gather data from 347 public sector employees. Findings indicate a significant positive correlation between attractive monetary rewards, training and development, recognition, and higher employee retention rates, underscoring the critical role of competitive and equitable compensation structures in fostering a stable and motivated public workforce. The paper concludes with recommendations for policymakers and human resource managers to enhance reward systems, thereby improving employee loyalty and service delivery in the Tanzanian public sector.
Msuya et al. (Sat,) studied this question.