Tangible Rewards or Intangible Rewards – Which Play Most Significant Role in Increasing Job-Hopping Behavior in Generation Y Employees in Pakistan?

Abstract

Job hopping in the modern world is one of the major challenges that can be observed in the current labor market in generation Y. The aim of this research is to explore among tangible or intangible rewards, which plays the most significant role in increasing job-hopping behavior in generation Y employees in Pakistan. Tangible rewards were factored in 1. Market Competitive Pay, 2. Monetary Benefits and 3. Performance Incentives, whereas intangible rewards include 1. Quality of Work, 2. Work-Life Balance, 3. Inspiration & Values, 4. Organization Environment and 5. Future Growth & Opportunity. The data was collected by means of a close-ended Likert scale-based questionnaire from 201 employees who belong to different industries in Pakistan. Confirmatory factor analysis and Structured Equation Modelling were used for the analysis. The study found that job-hopping is positively associated with intangible rewards in generation Y employees and negatively associated with tangible rewards. This research provides insight to employers which factors must be considered while developing strategies for employees’ compensation and retention in order to retain their competent employees and minimize job-hopping behavior in Generation Y employees.