Distributive Justice and Procedural Justice on Employee Turnover in the Pension Industry in Nigeria

Turnover has become a more serious issue as organizations and businesses continue to evolve, especially in Nigerian organization and particularly in the pension industry where the retention of competent employees is very important and strategic to attaining and maintaining competitive advantage. This study examined the effect of distributive justice and procedural justice on employee turnover in the pension industry in Nigeria specifically in Leadway Pensure PFA. Using social exchange theory. Multiple linear regression was adopted for this study, as it helped to assess the strength of the relationship between employee turnover, distributive justice and procedural justice. It also established the importance of each variable to the relationship. The data for this study was collected through primary source using a structured questionnaire distribution and was analyzed using Statistical Package for Social Sciences (SPSS) software version 27. The descriptive findings showed high internal consistency for all the scales and reliability for each multi-item scale was assessed using Cronbach’s alpha, where strong reliability is demonstrated. The findings showed that there is a statistically significant relationship between distributive justice and procedural justice on employee turnover. Results also revealed that distributive justice and procedural justice constitute veritable policy instruments for retention and could be used as strategies which have the tendency to reduce employee’s intention to quit. This study recommended that among others, the Management of Leadway Pensure PFA should endeavor to establish policies that encourages distributive justice and can further enhance employee’s perception of procedural justice in the organization in order to reduce negativity which may lead to high employee turnover.