IMPACT OF COMPENSATION PRACTICES ON EMPLOYEE'S RETENTION AT EXCEL TEX

Abstract

Purpose: This research study attempts to highlight and discuss the importance of compensation and its impact on retention in textile industry of Pakistan. It further attempts to highlight the relationship of different compensation packages with employee motivation, productivity and job satisfaction. Methodology: This is an explanatory research because several researches have been done on this topic. The study involved use of questionnaire filled by 70 respondents to get the primary data of EXCEL TEX. For the sampling of data collection, convenience sampling was used. The respondent individuals belonged to different age groups, different departments and levels of EXCEL TEX. To check the reliability, and to find out the correct outcomes, SPSS software version 20.0 was used. CORRELATION was used for data analysis. Results/ Findings: The research findings have clearly shown that basic salary of employees have direct relationship with employees’ retention. The level of performance varies with the good packages organization is providing to its employees. Better compensation not only improve their performance but also it helps to develop positive relationship, high level of commitment and long term retention. Practical Implications: The discussion of this result will help the organizations to know the factors which employees prefer for their compensation packages. Their retention is due to salary and other benefits the organization is providing them. Employee can retained in an organization ifthey have strong compensation package.