Corporate Governance Mechanisms and Employees’ Retention in Selected Healthcare Institutions

THIS study investigates the relationship between corporate governance mechanisms and employee retention in health care firms listed on the Nigerian Exchange Group from 2014 to 2023. This study specifically examines how four key governance proxies board size, board independence, board gender diversity, and board of directors' share ownership affects employees’ retention. The objectives of the study were to; examine the relationship between board size and employee retention in the selected health care institutions in Nigeria; ascertain what extent board independence impact employee retention in the selected health care institutions in Nigeria; examine how board diversity influences employee retention in the selected health care institution in Nigeria and; examine the extent ownership structure affect employee retention in the selected health care institutions in Nigeria. This study adopts ex-post facto and descriptive research design, utilizing secondary data collected from annual financial reports of the sampled health care firms. The sample consists of five listed health care firms, selected based on their consistent submission of annual reports during the study period. This study employs random-effects robust regression analysis technique to test the hypothesized relationships between the governance variables and employee retention. The regression results reveal that board size has a significant positive effect on employee retention, indicating that larger boards are associated with better employee retention outcomes. Conversely, board gender diversity shows a significant negative effect, suggesting that increasing the representation of female directors, without meaningful integration into decision- making processes, might negatively impact employee retention. On the other hand, both board independence and board ownership demonstrate statistically insignificant relationships with employee retention, implying that these governance variables do not play a significant role in influencing employee retention within the health care sector. Thus, this study carefully recommends that stakeholders in the Nigerian health care industry should strategically increase board size to ensure a more diverse range of expertise and perspectives, as this has a positive impact on employee retention. It also suggests that efforts to enhance board gender diversity should go beyond mere representation by promoting the meaningful integration of female directors into decision-making roles. Further, given the statistically insignificant effect of board independence and board ownership on employee retention, the study advises stakeholders to focus on other governance factors that might more effectively influence retention, rather than emphasizing changes in these areas.