Abstract:
The main purpose of this empirical research was to investigate the impact of extrinsic and intrinsic
rewards on employee retention among generation Z of Textile industry in Sri Lanka. As per the thorough review
of the literature it was found that the right mix of reward is critical for employee retention. Employee retention is
one of the most important features in modern organizations because of their corporate goals. Employers must be
aware of the necessity to offer or design new employee rewarding mechanisms in order to retain generational Z
individuals in their businesses, since trained and educated human capital is a businesses' most valuable asset. one
of the most effective techniques to retain employees in organizations are extrinsic and intrinsic rewards. The
researcher was able to determine the effect of extrinsic and intrinsic rewards on generational Z employee retention
using already tested and validated indicators. According to research onion theory positivism philosophy, deductive
approach and survey strategy were utilized, the study design incorporates the mono method, which solely
employed quantitative data collected at a single time. A self-administered Likert scale questionnaire was used to
collect data from 161 employees from the selected textile manufacturing organization in Sri Lanka. The study's
main findings revealed that Extrinsic reward had a favorable positive impact on generation Z employee retention
in Sri Lanka's textile industry. By finding the elements that increase current Generation Z retention, the study
helped to identify the rewarding aspects that increase Generation Z employee retention in the selected organization
and to minimize the present generation Z labour turnover. In future researchers should explore the effects of
extrinsic and intrinsic rewards on other contemporary workplace characteristics, such as employee motivation and
work-life balance.
