Title: The influence of rewards and the organisational environment on employee retention

Authors: Álvaro Dias; Sara Barros; Leandro Pereira; Renato Lopes Da Costa; Rui Gonçalves

Addresses: Universidade Lusófona, ECEO/TRIE, ISCTE – Instituto Universitário de Lisboa, Lisbon, Portugal ' ISG Business and Economics, Av. Mal. Craveiro Lopes 2A, 1700-284, Lisboa, Portugal ' ISCTE – Instituto Universitário de Lisboa, WINNING Lab, Cidade Universitária de Lisboa, Av. das Forças Armadas, 1649-026, Lisboa, Portugal ' Business Research Unit – BRU-IUL, ISCTE – Instituto Universitário de Lisboa, Lisboa, Portugal ' ISCTE – Instituto Universitário de Lisboa, Cidade Universitária de Lisboa, Av. das Forças Armadas, 1649-026, Lisboa, Portugal

Abstract: The loss of a qualified employee reveals itself as loss, once the company has invested time and money in training, attribution of benefits, among others. Thus, understanding employee retention factors represents a key dimension in human resources management. However, the study of factors influencing employee retention still needs further consolidation, especially regarding the role of rewards and the organisational environment. Using the survey data to test the hypothesis through PLS-SEM, the findings reveal that rewards are directly linked to the organisational commitment and employee retention. Organisational environment influences significantly and positively organisational justice and organisational commitment. Furthermore, organisational justice was found to have a positive influence on retention, and organisational commitment reveals a positive relationship with retention. The organisational commitment mediation effect was also identified in the relations between rewards and employee retention, and organisational environment on employee retention.

Keywords: rewards; organisational environment; organisational commitment; employee retention.

DOI: 10.1504/IJPQM.2022.122757

International Journal of Productivity and Quality Management, 2022 Vol.35 No.4, pp.517 - 542

Received: 08 Sep 2020
Accepted: 20 Nov 2020

Published online: 04 May 2022 *

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