The Impact of Rewards on Job Satisfaction and Employee Retention.

Learning from the article.

The biggest challenge in human capital management was to retain and attract quality
employees as thereis a stiff competition for scarce skills. This has cause a high turnover rate
which mostly happens in public organisation.
Voluntary turnover had incurred very high which will impact organisation profit. Organisation
will not be able to capitalize on human assets if they not able to retain its employees. This
later will caused organisation lost their profit due to valuable employee exits that will result in
lost of production.For the company to recruit another employess this will incurred them a
very high cost and consuming a lot of time.
Dilemma also happens as organisation facing a competition that had attracts and retains
highly skilled workers as they fail to match the salaries being offered by their competitors or
to offer more than that. Therefore the organisation needs to shape and use an efficient
strategy for retaining that highly skilled workers.Some of the countries also had facing
migration of skilled labour. This brain drain also needs to pay attention by the government
and private sector as this means lost of resources to the countries.
Money is an important factor that had influences employee behaviour through shaping their
altitudes (Parker & Wright, 2001). Therefore a lucrative remuneration package is needed to
attract and retain the employees. The package must not only focus on financial and
materials needs of the employees but must also offer a social status and position of power.
As mention by Allen, Shore and Griffeth (2003) reported that to retain a quality employees
different compensation strategy from others need to use. This of course will give them a
unique strategy from others.
From the learning, result show that no relationship between rewards and employee retention
this mean that employee rewars do no result in job satisfaction. Reward also not the only
focus point of the job satisfaction in the nursing sector. According to Pillay (2009) in his study
with nurses found that there is no positive significant relationship between rewards and job
satisfaction.
The finding also shows that there is positive relationship between rewards and employee
retention. This means that the more an employee is rewarded, the more likely they are to
remain. Therefore to retain employees for period a lucrative and attractive rewards need to
offered to employees. This will help reducing turnover rates.

As for the relationship job satisfaction and employee the result show that to employee
retention improved when there is a high level of job satisfaction. Therefore to keep highly
qualified and valued staff, employer needs to satisfy them.

Suggestion for the improvement.

.Allen, Shore and Griffeth (2003) had identified training and development opportunities,
promotion and performance management as factors that contribute to employee job
satisfaction. Therefore to management need to develop a retention strategy that addresses
employee compensation and job satisfaction as major factors. When creating a total reward
structure employer must include not just compensation. Compensation and benefits package
of employees should be in lucrative retention strategy. This will help organisation differentiate
it self from others.
An exit interviews should also be arrange whenever an employee resigns, reasons for
leaving the organisation are known. These to ensure that employer keep track of the ever
changing needs of employees as organisations are unable to predict the future needs of
their employees in real time. Therefore feed back from employees is needed.
Employer must not just offer non-monetary rewards in compensation and benefits package
as employees also consider theire happiness when making decision to leave the company. A
complimentary holiday to staff and their family, expense fully cover by the organisations
could be included in the package. Others example can include child care facilities, extended
leave and recreation facilities.
Salary increment can also be consider as part of the retention strategy as the result show
that compensation is a major factor that employees consider when making the decision to
leave or remain in an organisation. However employer needs to be careful to avoid the
organisation increment being use by the employees to negotiate with others organisation.