The Impact of Compensation Benefits on Retaining Talented Employees: The Case of Lebanon

Abstract

Increased competition for jobs within the country as the economy improves is a major factor driving up employee turnover rates in Lebanon. This is often ascribed to corporations competing with one another in terms of monetary benefits, but from a total rewards viewpoint, little is known about the role nonmonetary rewards play. To this end, employee involvement in one's job might serve as a useful explanatory variable in place of loyalty to one's employer. The goal of this research is to examine the role that financial and non-financial incentives play in determining whether or not workers in Lebanon choose to remain with their current employers, as measured by their level of engagement at work. Using data from 357 respondents, we discover that both monetary and non-monetary factors contribute significantly to an employee's likelihood of leaving their current position. Companies that are serious about keeping their workers should make employee engagement a top priority.