The Impact of Employee Non-Financial Incentives on Employee Turnover in Apparel Industry: With Special Reference to Operational Level Employees of Apparel Firms in Biyagama Export Processing Zone

Abstract

The main objective of this study is to examine the impact of non-financial incentives on turnover intention through job satisfaction. For this purpose, this study empirically evaluated the three dimensions of non-financial incentives (Job Enrichment, Worker’s Participation in Management and Employee Recognition), job satisfaction and impact on the turnover intention. The sample consisted of 100 operational level employees working in apparel firms in Biyagama Export Processing Zone in Sri Lanka. Data were gathered by using a convenience sampling technique through self-administering questionnaires. Descriptive Statistical Analysis were used to analysis the existing situation of three dimensions. The strength of the linear relationship between two variables were measured by the Pearson’s Correlation Coefficient and the mediation effect of job satisfaction was assessed through Baron and Kenny mediation assessment technique. The analysis exposes that there is a strong negative relationship between employee non-financial incentives and turnover intention. Further it evident that job satisfaction partially mediates the relationship between non-financial incentives and turnover intention. Researcher discussed and suggested that the apparel sector companies should be taken the appropriate strategies to develop the competitive advantage and employee work life improvement