Abstract:
Purpose:
The purpose of this Investigation is to understand and study the impact of Compensation
practices on Employee Retention on employees working in Pakistan Civil Aviation Authority,
Karachi.
Methodology/sample:
The nature of this investigation is quantitative in nature and is referred to as explanatory
research. This data collected is considered as primary data and further processed through data
analysis software i.e. SPSS version 20 for further necessary actions. Statistical tools used for the
analysis include Cronbach’s Alpha for reliability testing, Pearson Correlation for observation of
correlation, Regression Analysis for hypothesis testing. The sample size includes staff from
various levels under hierarchy of PCAA. The population of Karachi based staff is 1600 and
sample size is 310.
Findings:
The results provided evidence that Compensation practices at PCAA are well structured and well
taken care off. The employee working at PCAA seem motivated, they are happy with what they
are doing, they are satisfied which can be seen with extremely low turnover rate and overall
compensation practices of PCAA. The retention rate as a result is very high indicating that there
is a strong positive relation between Salary, benefits, and non financial benefits that lead to
employee satisfaction which further leads to employee retention. All proposed hypothesis are
accepted.
Practical Implications:
This investigation can lay foundation for management of PCAA to further review their
compensation practices which can further help in motivating employees and thus that further
leads to employee retention. The management of PCAA being a learning organization can
consider all the observations made in this research paper as their case study to further transform
up grade and review the practices that are on going to further enhance them. The PCAA management can get a feedback from this research as to what actually their employees feel about compensation practices and retention and further implications can be made on the recommendations provided at the end of this research work. For future researchers this research can act as a benchmark where they can use this research to further study the competitive aviation industry or to study the compensation practices of various airlines or aviation related companies.
