Impact of Extrinsic and Intrinsic Rewards on Employee Retention among Generation Z: Special reference to the Textile Industry in Sri Lanka

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.