Influence of Reward System on Employee Retention Mediating Role of Job Satisfaction in Oil and Gas Industry in Pakistan

Abstract

Employee Retention remains critical challenge in Oil and Gas Industry due to its demanding work environment and competitive landscape. Reward system and employee turnover; a look at the role of the mediating construct: job satisfaction. Therefore, the aim of the research is to compare the effects of financial and or non-financial incentives on the job satisfaction and turnover intention of the employees in order to help organizations in the design of an effective human resource strategies. Quantitative data was collected from a cross-sectional survey of 300 employees of organizations in the Oil and Gas sector. The quantitative data were analyzed by using Correlation and Regression tests. The fact is that the results of this study pointed out the significant relationship between both the financial and non-financial incentive systems and employee turnover, but they show that job satisfaction moderates this relation. The aspect of financial reward was also revealed to be more influential as compared to other forms of incentives. The other incentives like recognition and development opportunities, actually reinforced job satisfaction with positive impacts on retention levels.