The Influence of Compensation Management Strategy on Talent Retention: Exploring the Mediating Role of Structural Capital

Abstract

Background: Retention of the employees is recognized as one of the significant problems of the present business world. The retention phenomena are observed to be impacted by the compensation practices employed by the firm. Objective: Based on this, the study aims to assess the compensation management strategies among Jordan commercial banks using structural capital approach. Methods: The study employed a quantitative design for assessing the employee retention. For this, data collection has been done using a survey based on a questionnaire. Results: The study has found a significant and positive impact of work life balance, satisfaction, and benefits on structural capital and talent retention. Moreover, the study failed to report a significant impact of salary on opportunity and job nature. Conclusion: The structure of the compensation management in the banking sector must encourage a new design for improving its impact intensity.