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Effects of Job Organizational Culture, Benefits, Salary on Job Satisfaction Ultimately Affecting Employee Retention

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Employee retention is very critical issue these days. Cost of losing talented, experienced and skilled workers is much higher then the cost of hiring new ones. Therefore, it is more critical for the organizations to retain their best talent with them. In this study a relationship is developed between job satisfaction, organization culture, benefits and salary to check their influence on employee retention. The relatedness of these variables with the motivational theories has also been measured. Employee retention is critical in today’s competitive advantage. Job satisfaction is the key variable which makes the higher or lower levels of employee retention at any organization. Moreover, organizational culture also plays an effective role in retaining the best talent within the organization. As loyalty and strategic commitment among all employees regardless of job can be enhanced through the organizational cultures as it emphasizes on teamwork, security and respect of individual employees. Besides this, benefits and salary are also strong determinant of employee retention at organization. There is a significant relationship between rewards offered by a firm and employee satisfaction for the employees to work for the organizations for longer time duration. High level of pay and benefits as compare to other companies in the market, attract and retain high quality employees. Thus, these elements are directly related to employee retention at any organization.
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Volume 5 • Issue 3 • 1000229
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ISSN: 2315-7844
Iqbal et al., Review Pub Administration Manag 2017, 5:3
DOI: 10.4172/2315-7844.1000229
Effects of Job Organizational Culture, Benefits, Salary on Job Satisfaction
Ultimately Affecting Employee Retention
Shuja Iqbal*, Li Guohao and Shamim Akhtar
School of Management, Jiangsu University, Zhenjiang, P.R. China
Abstract
Employee retention is very critical issue these days. Cost of losing talented, experienced and skilled workers is much
higher then the cost of hiring new ones. Therefore, it is more critical for the organizations to retain their best talent with them.
In this study a relationship is developed between job satisfaction, organization culture, benets and salary to check their
inuence on employee retention. The relatedness of these variables with the motivational theories has also been measured.
Employee retention is critical in today’s competitive advantage. Job satisfaction is the key variable which makes the higher
or lower levels of employee retention at any organization. Moreover, organizational culture also plays an effective role in
retaining the best talent within the organization. As loyalty and strategic commitment among all employees regardless of
job can be enhanced through the organizational cultures as it emphasizes on teamwork, security and respect of individual
employees.
Besides this, benets and salary are also strong determinant of employee retention at organization. There is a signicant
relationship between rewards offered by a rm and employee satisfaction for the employees to work for the organizations
for longer time duration. High level of pay and benets as compare to other companies in the market, attract and retain high
quality employees. Thus, these elements are directly related to employee retention at any organization.
Keywords: Organizational culture; Salary; Benets; Job satisfaction;
Employee retention; Rewards
Introduction
Research objectives
Employee retention is the main consideration of human resource
(HR) debate nowadays rather than recruiting eectively. e
main objective of this study is to check the eects of organizational
culture, benets and salary on job satisfaction to nd the ultimate
eect on employee retention. e study focuses to check the eects
of above mentioned factors on both the employees from education
and industrial sector. In order to, nd out the most crucial factors in
employee retention to raise or reduce them accordingly. It will result in
cost saving, knowledge enhancement, skilled workers, productivity and
the good will of the company.
Problem Statement
1: Does organization culture have positive and signicant eect on
job satisfaction leading to employee retention?
2: Does other benets and salary have positive and signicant
impact on job satisfaction?
3: Does job satisfaction have positive and signicant impact on
employee retention in both educational and industrial sector?
Signicance of Study
is research study is very important in terms of topic and the
variables selected for the model. Because all the factors like organizational
culture, benets and salary are aecting job satisfaction directly and in
result employee turnover rate decreases or increases. is study is unique
in terms of the variable selection and intermediation of job satisfaction.
e accurate result calculation has dened the puried results.
e results show the equal importance of organizational culture,
benets and salary to increase job satisfaction which ultimately
increases the employee retention rates in education and industrial
sector. ese results can provide help to implement the reward system,
salary attractive packages and good organizational culture to retain the
experienced workers with the organization.
is paper will signicantly contribute to the applied business
research with aid of empirical ndings which were not yet explored
altogether in one model. us, it will open avenues for further research
dimensions and provide practical approach and implications for the
real-world scenarios. e variables used in the proposed model are
diverse and integrated in a way to have interesting ndings in this
competitive area of research.
Relatedness to Motivational eories
Job satisfaction
Psychologist Abraham Maslow rst introduced his concept of a
hierarchy of needs in 1943 paper “A eory of Human Motivation”
and his subsequent book Motivation and Personality. is hierarchy
suggests that people are motivated to fulll basic needs before moving
on to other, more advanced needs. is hierarchy is most oen
displayed as a pyramid. e lowest levels of the pyramid are made up
of the most basic needs, while the more complex needs are located at
the top of the pyramid.
is theory is highly related to the job satisfaction at workplace
if employees are satised by accomplishing each step of this pyramid
they will be at the peak of employer loyalty and will retain with the
*Corresponding author: Shuja Iqbal, School of Management, Jiangsu
University, Zhenjiang, P.R. China, Tel: +8618605240210, Email:
shujaiqbal88@hotmail.com
Received November 01, 2017; Accepted November 08, 2017; Published
November 18, 2017
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture,
Benets, Salary on Job Satisfaction Ultimately Affecting Employee Retention.
Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Copyright: © 2017 Iqbal S, et al. This is an open-access article distributed under
the terms of the Creative Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium, provided the original author and
source are credited.
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture, Benets, Salary on Job Satisfaction Ultimately Affecting Employee
Retention. Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Page 2 of 7
Volume 5 • Issue 3 • 1000229
Review Pub Administration Manag, an open access journal
ISSN: 2315-7844
more pragmatic, they are more tolerant of change and the retention
rates are higher in these organizations.
Masculinity (MAS), vs. femininity: Masculine cultures’ values
are competitiveness, assertiveness, materialism, ambition and power,
whereas feminine cultures place more value on relationships and quality
of life. In masculine cultures, the dierences between gender roles are
more dramatic and less uid than in feminine cultures where men and
women have the same values emphasizing modesty and caring. As a
result of the taboo on sexuality in many cultures, particularly masculine
ones, and because of the obvious gender generalizations implied by
Hofstede’s terminology, this dimension is oen renamed by users of
Hofstede’s work, e.g. to quantity of life vs. quality of life.
Long term orientation (LTO), vs. short term orientation: First
called “Confucian dynamism”, it describes societies’ time horizon.
Long term oriented societies attach more importance to the future.
ey foster pragmatic values oriented towards rewards, including
persistence, saving and capacity for adaptation. In short term oriented
societies, values promoted are related to the past and the present,
including steadiness, respect for tradition, preservation of one’s face,
reciprocation and fullling social obligations.
Benets and salary: Henry Herzberg’s theory of motivation is related
to these two factors for employee retention at any organization. is theory
is sometimes called two factor theories. He looked the motivating factors
and hygiene factors. Hygiene factors are also called dis satisers like less
pay according to education of individual which do not match with his/her
skills or expertise. Not sucient and favorable physical environment, no
proper or good system or rewards or benets etc.
e motivators are called as satisers which increases the job
satisfaction like, competitive salary packages, attractive and appealing
reward system, these are the key motivators at any company which
motivates employees to do their work more enthusiastically and leads
to employee retention.
Employee retention
Global economy is known by continuous change, because of
mergers, acquisitions, downsizing and breach of trust. We have noticed
one important shi in human resource demand in recent years. It is
now focused to develop human resource initiatives to address retention
issues. Several important factors are involved in this shi; the reality
that many employees focus on short-term benets instead of life long
thought of organizational commitment. Increasing needs to nd
employment opportunities, which provide a constructive environment
to eectively use the abilities, skills and interests (Duggan CHRP).
Today’s competitive advantage to organizations is to retain and
engage the high potential talent. Human resource department is now
in action to retain employees through making the policies for employee
betterment, so employee feel satised and stay for longer time period
with the organization. It is also the retention of valued skills. If a
company retains its employees it will increase the communication,
employee commitment and workforce support for the organization.
e number of employees leaving organizations is larger than the
number joining the organizations. Shortage of labor will result in war
of talent in near future. ere are many options for talented people
so organizations always try to retain them [1] when a company loses
employees it loses the skills, knowledge, and “corporate memory”. e
overall size of these losses in the crucial management issues, directly
impact the productivity, protability and product and service quality.
High turnover can negatively aect the employment relationship,
organization for longer time spans. All the levels of Maslow’s theory are
directly related to the fulllment of the needs and wants of employees,
which force them to be happy and staying with the organization.
Organizational culture
Greet Hosted proposed a systematic framework for assessing and
dierentiating national cultures in relation to organizational culture
known as the cultural dimensions theory. He gathered and analyzed
extensive data on the world’s values and cultures, particularly through
the IBM survey study, in order to build a comprehensive model which
argues that people dier across on the extent to which they endorse six
dimensions of values – power (equality versus inequality), collectivism
versus individualism, uncertainty avoidance versus tolerance,
masculinity versus femininity, temporal orientation, and indulgence
versus restraint. ese cultural dimensions can help organizations to
develop an atmosphere where the employees can feel more energized
and satised so that they should remain with the organizations for
long term. e main elements of this model are linked to this study as
following:
Power distance index (PDI)
“Power distance is the extent to which the less powerful members
of organizations and institutions (like the family) accept and feels
that power is distributed unequally.” Cultures that endorse high
power distance accept power relations that are less consultative or
democratic. People relate to one another more as equals regardless of
formal positions. Subordinates are more comfortable with, demand
the right to contribute to and critique the decision making of those
in power. In this kind of organizations job satisfaction is high which
ultimately leads to the high employee retention. In high power distance
organizations, less powerful accept power relations that are more
autocratic and paternalistic. Subordinates acknowledge the power
of others simply based on where they are situated in certain formal,
hierarchical positions. is type of organizations provides lower levels
of job satisfaction which tends to decrease the employee retention.
Individualism (IDV) vs. collectivism: e degree to which
individuals are integrated into groups is called collectivism.
In individualistic organizations, the stress is put on personal
achievements and individual rights. People are expected to stand up
for themselves and their immediate family, and to choose their own
aliations. Organizations following this approach do not have long
term relationships with their employees. e atmosphere of individual
success, feeling of jealousy tends to unrest between employee relations
which creates job dissatisfaction. In contrast, in collectivist societies,
individuals act predominantly as members of a life-long and cohesive
group or organization. People have large extended families, which are
used as a protection in exchange for unquestioning loyalty.
Uncertainty avoidance index (UAI)
An organization’s tolerance for uncertainty and ambiguity is called
the uncertainty avoidance. It reects the extent to which employees
of an organization attempt to cope with anxiety by minimizing
uncertainty. Employees in cultures with high uncertainty avoidance
tend to be more emotional. ey try to minimize the occurrence of
unknown and unusual circumstances and to proceed with careful
changes step by step with planning and implementing rules, laws and
regulations. In contrast, low uncertainty avoidance cultures accept and
feel comfortable in unstructured situations or changeable environments
and try to have as few rules as possible. Employees in these cultures are
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture, Benets, Salary on Job Satisfaction Ultimately Affecting Employee
Retention. Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Page 3 of 7
Volume 5 • Issue 3 • 1000229
Review Pub Administration Manag, an open access journal
ISSN: 2315-7844
moral and work place safety. Businesses have to bear high cost of hiring
new employees, the diculties linked with nding and training new
employees can be large, the particular work place required skills and
knowledge workers who has moved can take years to replace.
Employee retention is the most serious problem faced by the
organizational leaders’ due to many reasons like shortage of skilled
labor, economic growth and employee turnover. Handling employee
turnover is a serious issue for organizations as dierent organizations
use dierent approaches to retain their employees. Organization’s
human resource strategies consider retention as their overall module.
It starts with hiring new and right people and putting eorts to keep
them engaged and loyal to the organization. Nowadays worker’s
demands are much more than earlier. It is in many aspects not only
regarding salaries and benets but also the work experience and the
cultural context in which it occurs. e dynamic work environment
can be a critical strength to attract and retain valuable employees. It
is important to realize the dierent needs and wants of employees to
schedule an eective retention plan for toady’s employment market.
If the retention strategies are not properly designed all the eorts from
the hiring of employees will ultimately become useless [2]. Retention is
dened as “the ability to hold onto those employees you want to keep,
for longer than your competitors”.
Job satisfaction
e element “job satisfaction” is concerned for both employees
of the organizations and the people who study them. is variable
is frequently studied for organizational behavior. Job satisfaction is
major concern for organizational research but also very important
for employee performance and employee satisfaction. e feelings of
employees what they perceive, what are their experiences at job either
positive or negative, all these factors inuence employee satisfaction in
the organization [1].
Job satisfaction can also be explained as ‘‘the agreeable emotional
condition resulting from the assessment of one’s job as attaining or
facilitating the accomplishment of one’s job values’’ [3]. It also depends
on variety of factors such as pay practices, the relationship of employee
to supervision, work environment; increased productivity is associated
with higher job satisfaction, lower absenteeism and lower turnover.
Wong discovers the inuence of job satisfaction on intention to change
jobs among secondary school teachers in Hong Kong. His study
arms that low job satisfaction in teachers’ tend to have low level of
commitment and productivity. Moreover, teachers responded that they
are prepared to leave teaching if a job alternative which oers a higher
salary became available. Glance, Hogg and Huberman [4] mentioned
the relationship between turnover and productivity asserted that the
lower turnover is positively correlated with productivity.
Amah stressed that job satisfaction was found to have a direct
negative relationship with turnover intention. ese results indicate
that the eect of job satisfaction on turnover can be enhanced in two
ways; namely, when employees nd congruence between their job and
their self-identity, and when involvement in such jobs enhances their
overall life satisfaction. On the other hand, turnover can be considered
as cost of running a business [5].
Job satisfaction and dissatisfaction depends upon the expectation of
employee that what this job will supply them. Failure of organizations
to keep competent employees will lead them to dissatisfaction and
ultimately will hamper the organization’s productivity and quality. To
keep the employees intact with their job dissatisfaction is an important
factor to increase the employee failure rate at any organization.
Employee’s commitment with their jobs and to satisfy with their work
structure is an important determinant. Job satisfaction also aects the
quality of service provided by the employees. According to Al-Hussami
the low wages and less job satisfaction are the major components that
are aecting the retention [1].
Job satisfaction is complex phenomenon with multi facets (Fisher
and Locke; Xie and Johns), it is inuenced by the factors like salary,
working environment, autonomy, communication, and organizational
commitment many researchers identify in several ways in denition
of job satisfaction. Greenberg and Baron dene job satisfaction as an
individual’s cognitive, aective, and evaluative reactions towards his or
her job. Strong and valuable loyalty with the organization is developed
by the employees who are satised with their jobs and they intend to
serve the organization for longer duration at the workplace [6].
Organizational culture: Interaction between people at all levels
denes the organization’s culture and this interaction also denes
the organization’s attitude towards its people and process. Normally
cultural issues lead people to leave organizations (Duggan CHRP).
Variation in employee retention at dierent organizations may be
the resultant of organizational cultural values. ese values aect that
organization’s human resource strategies, development and promotion
procedures, and reward systems. In dierent organizations the dierent
levels of commitment and retention among employees, are fostered
by psychological contracts which are the resultant of dierent human
resource strategies. is can also moderate the gap between retention
rates of weak and strong performers [7].
Loyalty and strategic commitment among all employees regardless
of job can be enhanced through the organizational cultures which
focus on teamwork, security and respect of individual employees. On
other hand, the organizations which emphasis on values like individual
initiatives and individual rewards for achieving particular work tasks,
these values foster entrepreneurial norms and attitudes. Employees
do not show their loyalty because organizations do not provide
them long term security. And the weaker performers will leave such
kind of environment soon and the rest will stay in order to “exploit
the organization until better rewards could be gotten elsewhere”.
An atmosphere where resources to work were provided nicely with
exible working environment created the employee retention. A factor
of fun or enjoyment at workplace may be helpful to increase the job
satisfaction among employees [8].
Benets
ere employees who are motivated by rewards oered by the rm
they tend to work for the organizations for long term or to continue
their work for industry. In recent years rewards got importance due the
economic conditions of both the employees and the organizations. It is
very important factor for retaining employees as well for job satisfaction
[1]. e rewards are very signicant and wished by the employees to be
given them on special contributions and performance made by them. It
can be internal or external like it can be cash, in the forms of bonuses or
some recognizing some employee name of the month [2].
Viable compensation and benet packages including salary,
bonuses, stock options, and the traditional health insurance and
retirement packages are tools that some companies use to help keep
employees retained. Bonus or prot sharing programs which are
developed carefully provide encouraging, goal-oriented initiatives for
employees to aim towards. e objectives for achievement set out by
the manager and the employee are more achievable if sensible and
useful incentives are oered. Benet programs are worthy to employees
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture, Benets, Salary on Job Satisfaction Ultimately Affecting Employee
Retention. Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Page 4 of 7
Volume 5 • Issue 3 • 1000229
Review Pub Administration Manag, an open access journal
ISSN: 2315-7844
because benets can broaden beyond the traditional health insurance
and retirement programs and can include:
Employees feel respected, valued, and appreciated
Employees get to be players and not just hired hands
Employees get to make a dierence
Attractive non-monetary benets and recognition programs can
be powerful tools. Increasingly, companies are using informal methods
for rewarding sta while nancial compensation is becoming less the
norm for valuing employee activities. Reward systems that are person-
based proving to be successful especially when recognition is linked to
personal needs or wants such as
Time o
Flexible work hours
Job-sharing
Oce space
Home oce
Special projects, committee Involvement
Public acknowledgment
Career development and training
Company organized discounts such as tness memberships,
discounts on company products/services, discounts on client’s
products/services
Community and charity involvement
One of Fortune’s 2001 “100 Best Companies to Work for in
America” companies have established the “Head start for the Holidays”
program which matches up company employees with hundreds of
needy children over the holidays [2].
Salary
e factor of pay is about 31.8% for employee retention at any
organization (Nowack). One of the human resource management
practices is the pay practice which deals with pay normally, wage, salary
and benets etc. it has an important role in implementation strategies.
High level of pay and benets as compare to other companies in the
market, attract and retain high quality employees. But this might have
a negative impact on company’s overall labor costs. Pay practice is
very important factor for companies to hire and retain high quality
employees from the level of applying for the job. While on the other
hand employees also have to work hard to maintain their high level
of performance otherwise they will lose their work. It also has some
correlation with job satisfaction. As supported by Ting [9] declares
the signicant of pay that it is strong determinant of job satisfaction.
Moreover, he explains two dierent type of pay practices eect on job
satisfaction; satisfaction with pay itself and satisfaction with nancial
prospects in the upcoming. ere is a longstanding interest of two
items which are correlated with job satisfaction.
To enhance employee motivation which will increase the employee
productivity, the relationship between pay practice and job satisfaction
is very important. According to wage eciency theories states that
paying high can increase the productivity sometimes. As it has a great
eect on employee turnover. ese theories state that this is not easy
for the employees receiving high pay to leave their jobs. Indeed, the
relationship between pay practices and job satisfaction in eciency
wage theories is confusing. ere are some diverse studies such as
Steijin inspect the overall job satisfaction of Dutch public workers
with respect to their pay. e results show that there is positive eect
of the existence of HRM practice which refers to pay practice on the
job satisfaction. Likewise, Bradley, Petrescu and Simmons observe the
impact of human resource management practices and pay inequality
on workers’ job satisfaction [5]. But simultaneously some other factors
also aect professional employee retention like gender and marital
status, some market factors like labor supply and initial salary level.
Hypothesis
H1: Organization culture has positive and signicant eect on job
satisfaction leading to employee retention?
H2: Other benets and salary have positive and signicant impact
on job satisfaction?
H3: Job satisfaction has positive and signicant impact on employee
retention (Figure 1).
Methodology
Random sampling technique
A simple random is a technique from which a sample of size n
drawn from a population of size N in such a way that every possible
sample of size n has the same chance of being selected. In this technique
sample is selected truly on the bases of random selection.
Why random sampling
Random sampling is commonly used for data gathering for being
much easier. It is selected so that random representatives of high,
middle and lower level employees can respond to the questionnaires by
their will. So, they can provide fair results without biasness, that they
were not forced to provide information.
Data collection sources
Data has been collected through questionnaires. e questionnaires
were distributed by the representatives of dierent educational
Institutions and factories. e data has been collected form government
and private sector organizations and universities in Pakistan in the year
2015.
Response rate
e response rate was 50%. Out of 300 only 152 questionnaires
were received completely lled. e respondents include the top
management, middle management, lower management, lecturers,
professors, principles and other administrative sta.
Data analysis
Data has been analyzed for correlations and regression between
Figure 1: Theoretical framework.
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture, Benets, Salary on Job Satisfaction Ultimately Affecting Employee
Retention. Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Page 5 of 7
Volume 5 • Issue 3 • 1000229
Review Pub Administration Manag, an open access journal
ISSN: 2315-7844
the independent variables; organizational culture, benets and salary,
the intermediating variable job satisfaction and the dependent variable
employee retention.
Results
e data analysis showed the following results:
e responses for job satisfaction from 1-2
e results of the responses of job satisfaction from 1-2 shows
that organizational culture, benets and salary has no eect on job
satisfaction. erefore, employee retention has also no eect due to
these variables because there is no job satisfaction at all. e results
were completely insignicant. In this case all three hypotheses are
rejected because all three variables have no positive relation with job
satisfaction (Table 1).
e response for job satisfaction from 2.1-3
e results of the responses from 2.1 to 3 have shown some level of
signicance. It means that organizational culture and salary has impact on
job satisfaction whereas benets have no impact on job satisfaction. So, the
employee retention is aected by the job satisfaction is aected to some
extent. In this case hypothesis H I and H III are accepted to some extent
due to the signicance level of the results and hypothesis H II has been
rejected due to negative relation with job satisfaction (Table 2).
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.343a0.118 -0.086 0.76986
a. Predictors: (Constant), salary, Benets, O. Culture
ANOVAb
Model Sum of Squares Df Mean Square F Sig.
Regression 1.030 3 0.343 0.580 0.639a
Residual 7.705 13 0.593 - -
Total 8.735 16 - - -
a. Predictors: (Constant), salary, Benets, O. Culture
b. Dependent Variable: Retention
Coefcientsa
Unstandardized Coefcients Standardized Coefcients
Model B Std. Error Beta t Sig.
(Constant) 2.336 1.372 - 1.703 0.112
O. Culture -0.181 0.498 -0.095 0.363 0.723
Benets -0.094 0.251 -0.098 -0.376 0.713
Salary 0.362 0.289 0.329 1.254 0.232
a. Dependent Variable: Retention
Correlations
O. Culture Benets Salary Retention
O. Culture
Pearson Correlation 1 0.027 0.092 -0.067
Sig. (2-tailed) - 0.918 0.725 0.798
N 17 17 17 17
Benets
Pearson Correlation 0.027 1 0.053 -0.083
Sig. (2-tailed) 0.918 - 0.841 0.750
N 17 17 17 17
Salary
Pearson Correlation 0.092 0.053 1 0.315
Sig. (2-tailed) 0.725 0.841 - 0.219
N 17 17 17 17
Retention
Pearson Correlation -0.067 -0.083 0.315 1
Sig. (2-tailed) 0.798 0.750 0.219 -
N 17 17 17 17
Table 1: The responses for job satisfaction from 1-2.
Correlations
O. Culture Benets Salary Retention
O. Culture
Pearson Correlation
1
0.488
**
0.316
**
0.372
**
Sig. (2-tailed)
- 0.000 0.002
0.000
N
90 90 90 90
Benets
Pearson Correlation
0.488
**
1
0.436
**
0.396
**
Sig. (2-tailed)
0.000 - 0.000
0.000
N
90 90 90 90
Salary
Pearson Correlation
0.316
**
0.436
**
1 0.477
**
Sig. (2-tailed)
0.002 0.000 -
0.000
N
90 90 90 90
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture, Benets, Salary on Job Satisfaction Ultimately Affecting Employee
Retention. Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Page 6 of 7
Volume 5 • Issue 3 • 1000229
Review Pub Administration Manag, an open access journal
ISSN: 2315-7844
Correlations
O. Culture Benets Salary Retention
O. Culture
Pearson Correlation 1 0.579** 0.574** 0.487**
Sig. (2-tailed) - 0 0 0.001
N 44 44 44 44
Benets
Pearson Correlation 0.579** 1 0.654** 0.579**
Sig. (2-tailed) 0 - 0 0
N 44 44 44 44
Salary
Pearson Correlation 0.574** 0.654** 1 0.598**
Sig. (2-tailed) 0 0 - 0
N 44 44 44 44
Retention
Pearson Correlation 0.487** 0.579** 0.598** 1
Sig. (2-tailed) 0.001 0 0 -
N 44 44 44 44
**. Correlation is signicant at the 0.01 level (2-tailed)
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 0.655a 0.429 0.387 0.82721
a. Predictors: (Constant), Salary, O. Culture, Benets
ANOVAb
Variables Sum of Squares Df Mean Square F Sig.
Regression 20.601 3 6.867 10.035
0.000
a
Residual 27.371 40 0.684 - -
Total 47.972 43 - - -
a. Predictors: (Constant), Salary, O. Culture, Benets
b. Dependent Variable: Retention
Coefcientsa
Unstandardized Coefcients Standardized
Coefcients
Model B Std. Error
Beta
t Sig.
(Constant) -0.372 0.831 - -0.447 0.657
O. Culture 0.244 0.293 0.129 0.833 0.41
Benets 0.44 0.26 0.282 1.689 0.099
Salary 0.471 0.231 0.34 2.041 0.048
a. Dependent Variable: Retention
Table 3: The responses of job satisfaction from 3.1-5.
Table 2: The response for job satisfaction from 2.1-3.
Retention
Pearson Correlation
0.372
**
0.396
**
0.477
**
1
Sig. (2-tailed)
0.000 0.000 0.000 -
N
90 90 90 90
Correlation is signicant at the 0.01 level (2-tailed)
Model Summary
R R Square Adjusted R Square Std. Error of the Estimate
0.545
a
0.297 0.273 0.69993
a. Predictors: (Constant), salary, O. Culture, Benets
ANOVAb
Model
Sum of Squares
Df Mean Square F Sig.
Regression
17.824
3
5.941 12.128
0.000
a
Residual 42.132
86
0.490 - -
Total
59.956
89
- - -
a. Predictors: (Constant), salary, O. Culture, Benets
b. Dependent Variable: Retention
Coefcients
Unstandardized Coefcients
Standardized
Coefcients
Model B Std. Error
Beta
t Sig.
(Constant)
0.223 0.504 - 0.443 0.659
O. Culture 0.356 0.199 0.187
1.786
0.078
Benets
0.165 0.119 0.152
1.380
0.171
Salary 0.457 0.132 0.352
3.470
0.001
a.Dependent Variable: Retention
Citation: Iqbal S, Guohao L, Akhtar S (2017) Effects of Job Organizational Culture, Benets, Salary on Job Satisfaction Ultimately Affecting Employee
Retention. Review Pub Administration Manag 5: 229. doi:10.4172/2315-7844.1000229
Page 7 of 7
Volume 5 • Issue 3 • 1000229
Review Pub Administration Manag, an open access journal
ISSN: 2315-7844
e responses of job satisfaction from 3.1-5
e results of 3.1-5 are fully signicant. It means that organizational
culture, benets and salary has strong direct impact on job satisfaction.
And therefore, employee retention is increased due to more satised
employees. In this case all three hypotheses are accepted due to the
signicance level of the results (Table 3).
Discussion
Future direction
is study can be used in future with same and some other
combinations of variables. ese variables are the core variables in any
time period these will remain same. Some other factors can be joined
to have more accurate and specic results to any of these factors. For
instance, organization culture can be further elaborated by the styles of
management, employee’s relations with peers, subordinates or bosses,
power distance and gender discriminations etc. salary will remain the
same. Benets can be more diversied, like non-nancial and nancial
benets can be discriminated. Benets can be categorized to conduct
research that which category is aecting the employee retention most.
Suggestions from employees can play an important role in this regard.
Education and industrial both sectors can implement these steps to
reduce employee turnover.
Limitation
is study has focused on only three independent and one
intermediating variable, because these have direct relation with
employee retention. Some other variables can also be taken as part of
this study but they from one or another angle have direct or indirect
relation with organizational culture, benets and salary. We can say
that these are the four key points in employee retention. Selection
of other indirect factors can make the study more complicated and
dicult to grasp the core purposes by having lot many justications
of various result sheets. Similarly, the more the variables the lengthier
will be questionnaire, interview or survey. is will reduce the response
rate. And ultimately the results will be disturbed.
Conclusion
Aer reviewing the literature, conducting questionnaires to
get some fresh data to support our study, we have found that if
organizational culture, benets and salary are suitable enough to
raise the job satisfaction. the employee retention will be high, and
organizations can lead by having a competitive advantage of having
more satised and retained workforce. So, if any organizations want to
succeed in the market place it has to maintain desired levels of benets,
attractive salary packages, maintain a good organizational culture,
and satisfy their employees as much as they can. is will increase the
employee loyalty and higher retention rates.
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Determinants of employee retention in telecom sector of Pakistan
  • M Shoaib
  • A Noor
  • S A Tirmizi
  • S Bashir
Shoaib M, Noor A, Tirmizi SA, Bashir S (2009) Determinants of employee retention in telecom sector of Pakistan. Proceedings 2 nd CBRC, Pakistan.
Determinants of job satisfaction of federal government employees
  • Y Ting
Ting Y (1997) Determinants of job satisfaction of federal government employees. Public Pers Manage 26: 313-334.