Impact of Merit Based Rewards on Voluntary Turnover with Mediating Effects Of Job Satisfaction in Banking Industry of Pakistan

Abstract

In our research, we will discuss the impact of benefits that are mainly based on the reward system, job satisfaction, which results in voluntary employee turnover. The reward system is one of the most commonly used methods to pay a worker based on their individual performance. The main objective of a compensation program is to make the payment in a manner that corresponds to the mission of the organization. In general, two conditions are required for the system to work. First is changes in employee performance must be measurable, second is managers need to have the necessary tools to make suitable rewards visible. The merit-based rewards are to provide workers with a permanent salary increase supported by past benefits. Typically, the company's performance rating system is used to determine performance levels. Thus, the employees benefit from an increase, for example, a double salary increase. A potential disadvantage of pay is that workers come back to expect pay to rise. In companies that offer annual increases in benefits without any special increases, wages ultimately help to adjust the cost of living and create ownership even for the poorest workers. Waiting for them the creation of a more practical remuneration, therefore, depends on creating a truly performance-based system and planning a relatively objective evaluation system. Job satisfaction refers to the satisfaction of a person with the task, which is a BAHRIA UNIVERSITY Department of Business Aministeration 13 motivation to develop in their work/job. It is not contentment, happiness or self-happiness, regardless of the task. The term refers to the whole relationship between staff and the leader and whom he has rewarded. Satisfaction will be the same as a light feeling - an accompanying state to the achievement of a goal, a final state that goes hand in hand with the recognition of its goals. Dissatisfaction in the workplace means a lack of motivation at work. Job satisfaction reduces the ratio of absenteeism, job rotation, and accidents. Job satisfaction rises morale, productivity, etc. Individual job satisfaction creates innovative ideas among employees. People can be very loyal to the organization, and employees are very happy when they get what they hoped for. The satisfaction of the employees depends on the inner feelings of the employees. Of course, it is a happy employee who shows the greatest efficiency and power in his work. The majority of respondents believe that employees involved in many apprehensions that are regarding rewards instead of other factors affecting their satisfaction, such as canteen facilities, bonuses, operating conditions, and so on. These conditions are more modest when they are paid. (D.R, 2011)