TITLE:
The Effectiveness of Compensation in Maintaining Employee Retention
AUTHORS:
Meng Kheang Sorn, Adoree R. L. Fienena, Yasin Ali, Muhammad Rafay, Guanghui Fu
KEYWORDS:
Compensation, Benefits, Employee, Employer, Organization, Retention, Effect, Impact
JOURNAL NAME:
Open Access Library Journal,
Vol.10 No.7,
July
11,
2023
ABSTRACT: Employee retention is a major problem for businesses of all sizes. While there are many factors that contribute to employee retention, compensation is one of the most important. This review article examines the research on the effectiveness of compensation in maintaining employee retention. The article begins by discussing the importance of compensation in employee retention. It then reviews the research on the determinants of employee retention and the impact of compensation on employee retention. The article concludes by discussing the implications of the research for organizations. The research reviewed in this article suggests that compensation is an important factor in employee retention. Studies have shown that compensation plays a significant role in employee retention. Employees who are paid more are more likely to stay with their organizations. However, it is clear that organizations must also focus on other factors beyond compensation, including job satisfaction, work-life balance, opportunities for career development, employee engagement, recognition, and communication also play a significant role in retaining employees. Furthermore, company culture, leadership, and other benefits can also affect employee retention. Organizations can improve their employee retention rates by offering competitive compensation packages. However, it is important to remember that compensation is not the only factor that affects employee retention. Organizations seeking to improve their employee retention rates should adopt a comprehensive approach that includes competitive compensation as well as addressing other factors important to employees that values and retains top talent, leading to long-term success and sustainability.