IMPACT OF EMPLOYEE REWARDS ON STAFF TURNOVER INTENTION OF A SELECTED COMPANY PAYROLL DIVISION

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.