A Study on Impact of Compensation Package on Employee Retention in Organized Retail Sector

Abstract

“Employee retention, especially of ― “The best”, most desirable employees, is a key challenge in organiza5ons today. The rate at which employees in government organisation jump from one organisation to another is becoming more disturbing and this could be as a result of compensation packages of different organisations to attract competent employees. This study explored the impact of compensation package on employee retention. The major objectives of this study were to determine the impact of compensation package on employee retention, to establish whether there is a relationship between Compensation package and job satisfaction, to establish the relationship between job satisfaction and employee retention. The population under the study was 71 employees of Bangalore City. Primary data was collected using questionnaire and the collected data was analysed using SPSS (Mean, Standard deviation, Chi square, and Correlation). Hypotheses were formulated to test the relationships between the independent variable and the dependent variables. Result of the study revealed that there is a significant relationship exist between compensation package and employee retention, the more an employee is rewarded or compensated, the longer they remain in an organization and there is a positive result exist between compensation package and job satisfaction. The result of the study again proved that there is a significant relationship exists between job satisfaction and employee retention, the more an employee is satisfied, the longer they remain in an organization.”
Keywords: compensation, compensation planning for retention, employee retention, reward.