The Role of Reward Satisfaction on Employee’s Turnover Intention: A Study of Banking Sector of Pakistan

Abstract

Considering the prior research on the importance of financial reward satisfaction, the study highlighted the value of material and psychological rewards in this study. It is hypothesized that these two rewards also have the same effect on employees’ attitudes and behavior. For this purpose, the study collected data from 22 banks in Punjab through a questionnaire from a sample consisting of 336 banking sector employees and applied regression analysis. ANOVA test shows that employees having a salary above 41000 are more satisfied with their financial and material rewards, and this satisfaction with both rewards creates positive behavior in employees, and this positive behavior will cause low turnover intention. Moreover, the turnover intention is significantly higher in those respondents who have Bachelor and Master degrees as compared to Intermediate. It means more educated employees are more conscious about the reward system. So the manager should make reward policies according to the requirement of the employees. Managers can use the results of our study for taking decisions and also regarding employee welfare and human resource planning.