Non-financial Compensation as Determinant of Job Retention

Abstract

Objective- This study was conducted to identify the relationship between non-financial compensation and job retention. The non-financial compensation elements are recognition, job enrichment and pay equity. Methodology/Technique- A total of 131 respondents from Jabatan Penjara Simpang Renggam, Johor were chosen as a sample using simple random sampling method. A survey questionnaire was used as a research instrument to collect the data from respondents. Findings - The results from Pearson correlation analysis revealed that there were significant relationship between non-financial compensation elements, namely recognition, job enrichment, pay equity and job retention. Pay equity was identified as the dominant factor that influences job retention. Novelty - This study was carried out to find out the variable that makes the strongest unique contribution to explain the job retention using multiple regression analysis. The organization should put more concern on the non-financial compensation when designing the pay structure to help organization retaining their employees. Type of Paper - Empirical paper Keywords - Job Enrichment, Pay Equity and Job Retention.