Abstract:
The purpose of this study was to investigate the impact of
rewards on employee retention and to construct a model which could be
used to predict the retention intention of operative level employees in
apparel industry. This was carried out as a cross sectional field study among
a sample of 320 operative level employees in the apparel industry.
Convenience sampling was applied to select the sample and the investigation
was done in three leading garment factories in the industry. A self
administered pre tested questionnaire was used to collect data which was
met the accepted standards of validity and reliability. Correlation test was
used to analyse data with the stepwise regression analysis to fit a regression
model. P–value was used to test mentioned hypotheses. It was found that
basic salary, welfare and incentives significantly correlated with the
retention of employees. The fitted regression model explained 67.7%
variation in dependent variable where basic salary and welfare were taken as
the best two predictors of retention intention in the tested domain. Basic
salary was more important in predicting employee retention than the welfare
as standardized coefficient of beta was greater. It could be recommended to
review basic salaries and welfare facilities given for operative level workers
in garment factories
