Title: Assessing the impact of compensation management in enhancing employee loyalty among Gen Z through PLS predict analysis: having organisational learning culture as a mediator with special reference to the Indian IT industry

Authors: A. Shakti Priya; B. Prabu Christopher

Addresses: VIT Business School, Vellore Institute of Technology, Vellore – 632 014, India ' VIT Business School, Vellore Institute of Technology, Vellore – 632 014, India

Abstract: Involuntary attrition and layoffs in the global IT sector adversely impact Generation Z's employability, primarily due to their limited work experience. This research applies social exchange theory to examine how organisational learning culture (OLC) influences the relationship between compensation management (CM) practices and employee loyalty (EL) among Generation Z in India's IT sector, addressing the research gap in existing literature with this demographic context. The study, involving 293 respondents in tier 1 cities, reveals that a 1% increase in CM directly influences EL by 0.34% and indirectly by 0.27%, with OLC as a mediator. The total effect of CM on EL, mediated through OLC, is enhanced by 0.61%. The findings suggest that companies can strengthen compensation structures and learning environments by providing both monetary and non-monetary incentives aligned with Generation Z's career goals. Implementing coaching and mentoring programs can further build connections, alleviate anxiety, and boost employee loyalty and performance.

Keywords: organisational learning culture; OLC; compensation management; employee loyalty; social exchange theory; SET; Generation Z; IT industry; PLS predict.

DOI: 10.1504/IJMED.2025.148962

International Journal of Management and Enterprise Development, 2025 Vol.24 No.4, pp.390 - 421

Received: 26 Dec 2024
Accepted: 23 Feb 2025
Published online: 06 Oct 2025 *

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