Effects on benefit scheme practices on employees in the banking industry: a case of Barelays Bank, Dar es Salaam Region

Abstract

This study explored the effects of benefit scheme practices on employees in the banking industry using a case of Barelays Bank, Dar es Salaam Region. Specifically, the study assessed the extent to which transport and housing allowance, group insurance, education funding has influenced the employee retention at Barelays bank in Tanzania. The study employed questionnaire, key informants, Focused Group Discussion’s as well as documentations. Both purposive and random samplings were used to select respondents of the study. The study findings indicated that Barelays bank had a recruitment policy which provided equal chance for employees with different levels of education, gender and age. But the age below fourty years were the most preferred by the bank. Also the finding indicated that transport allowance, housing allowance, group insurance as well as education funding played important role in retaining the bank employees. However, the study revealed that the amount paid the bank did not meet the employee requirements as compared to the housing market prices. Therefore, they subsidized the difference of what they were paid for housing allowance from their basic salaries to meet the housing market prices. The study also provides the recommendations of what should be done to improve benefit scheme of the bank under the study. Human resources department should play a paramount role in educating employees on the available benefits. The bank should offer incentives even to those who do not receive them but should use different rates