Impact of Rewards on Employee Turnover Intention of Sales Representatives of a Selected Beverage Sector Organization in Sri Lanka

Abstract

The selected Organization is one of Sri Lanka`s most extensive and trusted food and beverage manufacturing and trading giants, contributing immensely to the economy. However, the Organization`s Human Resources Department has identified a high turnover rate of the Sales Representatives of the Beverages sector over the past years which can ultimately impact their overall productivity. Therefore, this study was conducted to ascertain the impact of rewards on the Turnover Intention of Sales Representatives. A mixed methodology approach incorporating questionnaires to 71 sales representatives and interviews with relevant parties were conducted. Basic salary, Bonuses, Training, Promotional opportunities, and Supervisor relationship were chosen as the independent variables to ascertain the correlation with Turnover Intention. The Correlation analysis indicated a negative relationship between Turnover Intention and all the independent variables. Basic salary and promotions had a significant impact on the Turnover Intention of the Sales Representative of this Organization, whereas bonuses, training, and supervisor relationships did not have any effect. Qualitative analysis also proved a strong influence from financial and non-financial rewards on the Turnover Intention of the Sales Representatives. Hence, it can be concluded that this Organization should take corrective actions to amend their existing basic salary and promotional policies and take further initiatives to strengthen their bonus, training, and supervisor relationship aspects.