The Impact of Rewards on Retention of Operational Level Employees in Three Apparel Sector Companies in Export Processing Zone in Biyagama, Sri Lanka

Abstract

Area of the Study As a significant determinant of retention intention of an employee, this study is to discuss the impact of employee rewards on retention of operative level employees in three apparel sector companies in Export Processing Zone in Biyagama, Sri Lanka. Problem of the Study This research study attempts to explore the impact of employee rewards on employee retain intention of operative level employees in three apparel sector companies in Export Processing Zone in Biyagama. Therefore, the research problem of this study was; “Do the employee rewards have a significant impact on retention intention of operative level employees in three apparel sector companies in Export Processing Zone in Biyagama, Sri Lanka”. Method of the study The data were collected from a convenience sample of 196 production employees in apparel companies with a structured questionnaire, which was consisted of 42 questions with five point Likert scales. Univariate analysis as well as bivariate analysis applied to analyze data with the SPSS 16.0 (Version) Findings of the Study According to the results of the regression analysis, the R Square of the employee welfare facilities is 0.082 which means that 8.2% of the variance of employee retention is explained by employee welfare facilities, 13.2% variance of employee retention is explained by employee incentives, 37.5% variance of employee retention is explained by employee pay of operative level employees which is significant at 1% (Sig. F= 0.000). As overall 48.2% variance of employee retention is explained by the employee rewards. Conclusion of the Study Various studies examined that employee compensation, rewards and recognition affects employee turnover and retention. Employee commitment is promoted by highly competitive wage systems and it results in attraction and retention of a superior workforce. Hence the study represents that rewards have a positive effect on employee retention. Keywords: Employee Rewards, Employee Pay, Employee Incentives, Employee Welfare Facilities, Employee Retention