IMPACT OF COMPENSATION ON EMPLOYEES TURNOVER INTENTION IN PAKISTANI FIRMS

Abstract

In the fiercely competitive banking sector, the phenomenon of employee turnover looms large as a pressing concern, affecting approximately 35% of companies. This issue is multifaceted, stemming from factors such as job satisfaction, organizational culture, and the adequacy of rewards systems. Turnover intention, a precursor to actual turnover, manifests when employees experience diminished commitment and dissatisfaction within their organizational contexts, thereby exerting detrimental effects on overall performance and productivity. Drawing on the insights of Dania Farheen and Aisha Moten's research conducted in 2019, this study endeavors to delve into the intricate dynamics of turnover intention within the banking sector, particularly by scrutinizing the mediating role of organizational commitment. In this investigation, monetary and non-monetary rewards are posited as independent variables, influencing both organizational commitment and turnover intention. Employing a methodological framework anchored in the utilization of a cross-sectional questionnaire and Smart PLS analysis, the study embarks on an empirical exploration involving 275 participants, who were enlisted through non-probability convenient sampling techniques. The overarching aim is to empirically scrutinize and validate the hypothesized relationships between organizational commitment, rewards, and turnover intention, thus contributing to a nuanced understanding of employee turnover dynamics in the banking industry.