Factors Affecting Employee Retention in Pharmaceutical Sector in Pakistan
Keywords:Employee retention; organizational commitment; work environment; compensation; employee satisfaction; Pakistan
Background: In this advanced and digital era, employers and organizations are reluctant to retain their skilled and high performing employees due to the advancements in technology. Less people can perform the work of several employees with the help of technology.
Objectives: This study explains that various factors are involved when employees leave organizations. Methods: Convenience sampling technique was used in this research and survey was conducted with the employees of pharmaceutical sector. PLS SEM approach was used to test the hypotheses. Data was collected from 200 respondents, out of which 192 were considered valid responses.
Results: The results show that Career Opportunities (β= 0.395, p < 0.05), Compensation (β= 0.312, p < 0.05), Organizational Commitment (β= -0.144, p < 0.05), and Work Environment (β=, p< 0.05) significantly affect the Motivation of the employees (i.e., p < 0.05). Moreover, motivation of the employees (β= 0.759, p < 0.05) significantly affects Employee Satisfaction that eventually affect employee retention (β= 0.164, p < 0.05).
Conclusions: One of the top reasons of employees leaving companies is their relationship with their supervisor or managers. Proper communication with managers is the key to build good bond. On the other hand, managers should suggest ways to improve. This research is limited to respondents from pharmaceutical industry and does not comply to every industry. Further it has been assumed that all the respondents gave accurate responses and they know well about their organizations