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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]



M.V.S. Mendis



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



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.



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