Impact of Reward & Recognition and Work Life Balance on Employee Retention Intention: Evidence from Apparel Industry in Southern Province of Sri Lanka

Abstract

Organizations strive to attain competitive advantage by applying different strategic tools in today's competitive environment. Due extensive competitive pressure organizations are trying to gain competitive edge by using employees’ skills, abilities and expertise and trying to retain valuable and talented employees. The core objective of the current study is to explore the impact to reward and recognition and work-life balance on the intention of employee retention in the Apparel industry in Sri Lanka. Further, it examines the mediating role of job satisfaction on the relationship between reward and recognition and intention of employee retention and the relationship between work-life balance and intention of employee retention. A theoretical model is proposed to identify significant relationships and develop some hypotheses. The hypotheses were tested with a correlation and regression analysis using a randomly selected survey data set of 278 respondents, where variables in the questionnaire have been considered from previous empirical studies. The study results showed a significant and positive impact between reward and recognition and work work-life balance and intention of employee retention. Hypothesis of mediation effect of Job satisfaction on reward and recognition and intention of employee retention was accepted. Also, the mediation effect of job satisfaction on work-life balance and intention of employee retention was accepted.