IJSTR

International Journal of Scientific & Technology Research

IJSTR@Facebook IJSTR@Twitter IJSTR@Linkedin
Home About Us Scope Editorial Board Blog/Latest News Contact Us
CALL FOR PAPERS
AUTHORS
DOWNLOADS
CONTACT
QR CODE
IJSTR-QR Code

IJSTR >> Volume 6 - Issue 9, September 2017 Edition



International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616



The Impact Of Reward System On Employee Turnover Intention: A Study On Logistics Industry Of Sri Lanka

[Full Text]

 

AUTHOR(S)

M.V.S. Mendis

 

KEYWORDS

Logistics Industry, Reward system, Sri Lanka, Turnover intention.

 

ABSTRACT

Human capital is a paramount important part of todays’ business world. For any company to achieve its corporate strategies, it is important to have motivated, committed workforce within the company. Therefore keep employees satisfy is a necessity for any organization. Otherwise they may leave the company as there are lots of job opportunities remain in this modern business world. This study focus on how reward system of an organization impact on employee turnover intention. This study empirically evaluated five independent variables (remuneration, cash incentives, work life balance, supervisor support and employee recognition) and their relationship to the turnover intention of non-executives in the logistics industry of Sri Lanka. The sample consists of 97 non-executive staff in the logistics industry of Sri Lanka. The data collection was done by using a self-administrated structured questionnaire. The results indicated that remuneration, cash incentives, work life balance, supervisor support and employee recognition variables were negatively and significantly correlated with turnover intention. And those relationships were strong. Results of regressing the reward system on turnover intention showed that reward system is a powerful predictor of labour turnover in logistics industry of Sri Lanka. The research findings give evidence that better financial and non-financial rewards have strong impact on employee turnover intention. Therefore to reduce employee’s high intention to leave the company, the management needs to develop well balanced reward system in both financial and non-financial aspects.

 

REFERENCES

[1] Armstrong, M. (2002). Employee reward. CIPD Publishing.

[2] Armstrong, M. (2007). Hand Book Of Employee Reward Management and Practices (2nd ed.). USA: Kogan Page Limited.

[3] A'yuninnisa, R. N., & Saptoto, R. (2015). The effects of pay satisfaction and affective commitment on turnover intention. International Journal of Research Studies in Psychology, 4(2), 57-70.

[4] Babangida Mohammed Musa, Ibrahim Ahmed and Abubakar Bala (Feb. 2014). Effect of Motivational Incentives on Staff Turnover in Hotel. IOSR Journal of Business and Management (IOSR-JBM), 16(3), 36-42.

[5] Clutterbuck, D. (2003). Managing work-life balance: a guide for HR in achieving organisational and individual change. CIPD Publishing.

[6] Cotton, J. L., & Tuttle, J. M. (1986). Employee turnover: A meta-analysis and review with implications for research. Academy of management Review, 11(1), 55-70.

[7] Gary Dessler, B. V. (2011). Human Resource management (12th ed.). Florida International University.
[8] Ghayyur, M., & Jamal, W. (2012). Work-Family Conflicts: A Case of Employees' Turnover Intention. International Journal of Social Science and Humanity, 2(3), 168.

[9] Henryhand, C. J. (2009). The effect of employee recognition and employee engagement on job satisfaction and intent to leave in the public sector (Doctoral dissertation, Capella University).

[10] Hom, P. W., & Griffeth, R. W. (1995). Employee turnover. South-Western Pub.

[11] Jayalal. (2015). Development drive to cover all sectors. Colombo: Sunday observer-Lake house .

[12] Klopping, L. (2011). Work Life Balance. Norderstedt, Germany: Druck and Binding.

[13] Lee, C. C., Huang, S. H., & Zhao, C. Y. (2012). A study on factors affecting turnover intention of hotel empolyees. Asian Economic and Financial Review, 2(7), 866.

[14] Lee, L. J. (2014). Main causes of voluntary employee turnover a study of factors and their relationship with expectations and preferences. SANTIAGO.

[15] Logistics performance index: Overall (1=low to 5=high). Retrieved from https://www.indexmundi.com/facts/sri-lanka/logistics-performance-index.

[16] Maertz, C. P., Griffeth, R. W., Campbell, N. S., & Allen, D. G. (2007). The effects of perceived organizational support and perceived supervisor support on employee turnover. Journal of Organizational Behavior, 28(8), 1059-1075.

[17] Mohammad Atiq and Afshan Bhatti (Feb. 2014). The impact of incentives on Employees turnover at Pakistan International Container Terminal Limited (“PICT”) with respect to the different age brackets. IOSR Journal of Business and Management (IOSR-JBM), 16(1), 53-60.

[18] Mosley, E. (2016). 3 Ways That Recognition Reduces Employee Turnover. Retrieved from http://www.huffingtonpost.com/eric-mosley/3-ways-that-recognition-r_b_7965532.html

[19] Naeem Akhtar, Abdul Waheed Ahmad Awan, Muhammad Akmal Anwar, Sohail Saeed, Sajid Ali & Muhammad Qurban (2016). Impact of Job Satisfaction & Remuneration on Turnover Intention: A Survey of (Private) Schools of (Okara) Pakistan. International Review of Management and Business Research, 5(2), 653-675.

[20] Noor, K. M. (2011). Work-life balance and intention to leave among academics in Malaysian public higher education institutions. International journal of business and social science, 2(11).

[21] Rajapaksha, U. G. (2015). ANALYSIS OF FACTORS AFFECTING TO EMPLOYEE. Ratmalana, Sri Lanka: Department of Management and Finance, Kotelawala Defence University.

[22] Rashid, S., Rab, N. L., Khalil, A. A., Zahid, M., & Moeed, A. (2013). Work life balance and stress with turnover rate of the employees. World Applied Sciences Journal, 26(6), 834-839.

[23] Smith, J. L. (2009). 12 Reasons Employees Leave Organizations. Retrieved from http://www.peoriamagazines.com/ibi/2009/dec/12-reasons-employees-leave-organizations

[24] Son, S. Y. (2014). The effects of perceived organizational support and abusive supervision on employee’s turnover intention: the mediating roles of psychological contract and emotional exhaustion. International Journal of Social, Human Science and Engineering, 8(4), 1050-1056.

[25] Wallelegn, B. (2013). Assessment of professional employees turnover causes at Bank of Abyssinia (Doctoral dissertation, ST. MARY’S UNIVERSITY).