The Impact of Fringe Benefits on Employee Retention in NonProfit Organizations of Islamabad and Rawalpindi

Abstract

Today’s organizations specially the NonProfit organizations are focusing on creating good relationship between the employees and the employer and they are investing a lot on the employee trainings and development, another thing is that the employees after being groomed in an organization become a very valuable asset and the organizations don’t want to leave them and have found out that by providing them with Fringe benefits they can be retained. Fringe benefits are the non-monetary benefits provided by the organizations to their employees. Employee retention rate is also very important for the organizations and the higher the retention rate the higher the organizations performance. We can say that fringe benefits have an impact on employee retention that is why the organization are focusing on them a lot. According to the literature reviewed of the previous researches on fringe benefits and employee retention I have come to know that there are very few researches in which both of them are compared with each other. I came to know that fringe benefits are now being preferred over salary by both employer and the employee and it saves tax as well as seem attractive. Fringe benefits like health coverage, transport reimbursement, house rent reimbursement, and communication reimbursement, education support etc. are desired by the employees because now most firms offer market competitive salaries and there is not much difference is you job hop on the same designation however fringe benefits vary from firm to firm. This is a mix of primary and secondary research and has used quantitative questionnaires as the method of collection of responses from the target audience. Non-probability Convenience sampling technique was used to select the sample and about 250 questionnaires were filled. The findings of the research have proved that our hypothesis was correct and the fringe benefits do have a positive and significant impact on the employee retention in the nonprofit sector but due to limitation of time, location, and sector selection we could not present a thesis that could highlight all of the employers and employees of the world. I Page | 4 would recommend that future researchers should conduct this research all over the world from all sectors so that we could be surer of the findings.