Compensation Management: A strategic conduit towards achieving employee retention and Job Satisfaction in Banking Sector of Pakistan

Abstract

This paper explores some basic facts about one of the very important aspect of HRM that is Compensation Management and how it affects the job satisfaction and employee retention in banking sector of Pakistan. This paper seeks to add some contribution towards the compensation management in the banking sector of Pakistan. Researchers have analyzed the success factors of one of the leading bank of Pakistan as a case study in current research in order to explore the leading satisfactory factors, issues and challenges regarding compensation policy of the case study bank. A sample of 450 employees of case study bank has been selected for current research using questionnaire and in depth interviews as leading technique of data collection. Research reveals the changing trend of employees from financial rewards to non financial rewards as well. Along with various success factors by which bank retains its employees, results have shown that work overload, lack of practical approach towards training and seniority oriented incentive plans are some of the major issues which need immediate attention by the administration.