Impact of Pay Satisfaction on Employee Engagement and Employee Intention to Turnover

Abstract

Purpose: The purpose of this research paper was to investigate the impact of pay satisfaction on employee engagement and employee intention to turnover. With the current tight labor market, competition for top talent is fierce. Organizations that can offer competitive pay and benefits packages are more likely to attract and retain the best employees. High turnover rates can be costly for organizations, both in terms of the direct costs of recruiting and training new employees, as well as the indirect costs of lost productivity and customer service. By offering competitive pay, organizations can reduce turnover rates and keep their best employees. Employee engagement is crucial for organizational success. Pay satisfaction is one of the key drivers of employee engagement, so organizations that can offer competitive pay and benefits are more likely to have engaged employees who are more productive and provide higher quality customer service. Design/Methodology/Approach: This study is exploratory study and was conducted on the employees of the five private banks in Mumbai. A sample of 200 employees was randomly selected to study their pay satisfaction, employee engagement and turnover intention.  Originality/value The study surveyed impact of pay satisfaction on employee engagement and turnover intentions of employees.