Abstract:
This study focus on how employee rewards in an organization impact on employee turnover
intention. This research empirically evaluated four independent variables (Basic pay, Allowance,
Promotion opportunity and Job autonomy) and their relationship to the turnover intention of staff
category employees in the payroll division of ABC Company. The sample includes of 20 staff
members in the payroll division. The data collection was done by using a questionnaire and
interviews. The result indicated that basic pay, allowance, promotion opportunity and job
autonomy variables have negatively and significantly correlated with turnover intention. And those
relationships were strong. Result of regressing the reward system on turnover intention showed
that reward system is a powerful predictor of employee turnover intention in the company. The
research findings give evidence that better financial and non-financial rewards have strong impact
on employee turnover intention. Therefore, to reduce employees’ high turnover intention to leave
the company, the management must develop well balanced reward system in both financial and
non-financial aspects.
