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ORIGINAL ARTICLE
Policies, rewards, and
opportunities: Antecedents of employee
retention
Rabia Asif1, Sabahat Nisar2
1
Department of Management Sciences, Lahore College for Women University, Lahore, Pakistan, 2 PhD Scholar, Lahore
School of Accountancy and Finance, University of Lahore, Pakistan

Abstract
Purpose: Human resources are possibly among the most critical resources of any organization. The Human Resource
Department is responsible to both attract and retain talented employees within the organization. As retention of ‘skilled
employees’ is linked with organizational success, we aim to reveal the antecedents of employee retention by carefully
analyzing the impact of various HR practices, such as career development opportunities, work-life policies, good
supervision, and rewards. Design/Methodology: We collected data, using primary sources through self-administered
questionnaire survey. Additionally, we employed multiple regression analysis to test research hypotheses. Findings:
We specifically sought to determine the variables that have a significant influence on employee retention. Thus,
our findings do support the positive influence of rewards and work-life balance on employee’s retention, while
supervisor’s support and career opportunities do not promote employee retention, especially within private schools in
Pakistan. Limitations: Our research was limited in scope, as we obtained the data primarily from the teaching staff,
working in private schools from Lahore. Secondly, besides our findings, there may be other antecedents affecting
the employees’ work-life balance, vis a vis their retention. Originality: Since, the academic staffs at secondary
school level play an important role in influencing the moral character of students, a job security would provide
them with an edge to incorporate healthy practices in shaping the students’ future life. Thus, this study contributes
to retention practices of private schools’ employees, which would ensure a secured working environment leading to
better performance.

Key words: Antecedents, good supervision and support, HR practices, opportunities, retention, work-life policies

INTRODUCTION organizations are facing lots of problems regarding

turnover rate (Shokunbi, 2016). Excessive turnover is
Employee turnover is a global phenomenon; almost all often considered a symptom of fundamental problems
organizations go through the problem of turnover intention about the organization’s working environment. However,
(Janjhua et al., 2016). Turnover can either be positive at times, turnover may be triggered by employees’
or negative in terms of organizational success (Kossivi career objectives, whereby they prefer to move to other
et al., 2016). In today’s world of intense competition, organizations (Rothmann et al., 2019). Nevertheless, most

*Corresponding author:
Rabia Asif, Department of Management Sciences, Lahore College for Women University, Lahore, Pakistan.
E-mail: [email protected]
Received: November 04, 2021; Accepted: November 30, 2021
DOI: 10.18843/ijcms/v13i1/03

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 Asif and Nisar: Antecedents of employee retention

times, the turnover intention is triggered by employees hand, is a multifaceted phenomenon that is affected by
feeling dissatisfied with existing organizational practices various other variables, besides ‘contentment’. It includes
and policies, like promotions, remuneration, learning the workplace environment, pay, communication, and
opportunities, among others, which compel them to organizational commitment (Vidal et al., 2007; Lane et al.,
explore other alternatives (Mobley et al., 1979: Fouche 2010). However, if organizations nurture their employees
et al., 2017). Briefly, it may be stated that employees’ with factors that satisfy them, no one would leave the
dissatisfaction is the root cause of high turnover rates institution. Employees demand a good salary package,
(Akila, 2012). development opportunities, supervisor’s support, good
work environment, job security, etc. Gardner et al. (2004)
With the passage of time, Human Resource Management found that salary is considered an imperative motivating
(HRM) practices are gaining more importance, with factor for employee retention strategy. There is a close and
employees being considered as critical assets of an positive relation between growth opportunities and job
organization (Anis et al., 2011). Hence, there is a need satisfaction, which in turn, helps in retaining employees
to foster employee demands, which actually boost their (Pergamit and Veum, 1999). Miller et al. (2001) stated
motivation level to avoid turnover (Enu-Kwesi et al., 2014). that employees feel secure at work, when the workplace
Historically, the concept of retention gained importance environment provides them a sense of comfort and
in the early 1970s with a rise of SMEs as competitive belonging.
employers, leading to the provision of sustainable
employment opportunities (Coff, 1997). This factor This study contributes to the ongoing debate on the issue
accelerated to the ascendancy in employee’s mobility from of employee retention by exploring employee retention
job and voluntary job changes. Consequently, organizations strategies in private sector schools in Lahore, Pakistan.
began to face the effect of the rise in voluntary employee’s We look to explore employee retention by incorporating
turnover. Further, the power in the authoritarian “status important explanatory variables, such as career
quo” working relationship shifted from employer toward opportunities, work-life practices and policies, rewards,
the employee; so there was a need to develop a matching and good supervision and support. Specifically, through the
management tool, manifested in the form of ‘employee private schools of Lahore, we aim to understand how they
retention’ (Connell and Phillip, 2003). The very concept try to retain their employees, using different antecedents,
of employee retention is intrinsically attached with the and how these antecedents actually go on to influence
existence of an organization (Raikes and Vernier, 2004). employee retention. Notably, the focus of study has been
An employer today is expected to know how to retain its restricted to private schools, because of the unavailability
prolific employees (Shoaib et al., 2009). Hence, it may be of formal HR and administration department in public
stated that the costs of employee turnover are significantly schools. Public schools are monitored by the country’s
affecting an organization’s bottom line today (Sullivan, education department, which makes general rules for
2009). all the schools. Another specific study will be required
to cover the turnover in public sector, to obtain concise
Previous studies revealed the role of different antecedents results. However, if we include both the sectors, it may
in retaining employees. Factors that have an undeviating widen the scope of study and result in biased outcome.
influence on employee retention include career Both the sectors have separate reasons of turnover and
opportunities, work environment, and work-life balance cannot be covered under one study. Hence, to achieve the
(Cappelli, 2000). Cole (2000) stated that employees would correct and unbiased results, this study will only cover
be loyal with institutions, where they feel pride, and thereby the private sector. Second, to limit the scope of study
work to their fullest potential. Retaining employees must to private schools is due to high turnover rate in private
thereby be the top priority for organizations, because at schools therefore, it is important to explore the retention at
times only the earnings or the position doesn’t suffice for secondary school level.
employees to choose to continue their jobs (Ashraf et al.,
2016). Private schools in Pakistan have emerged as a result
of the deregulation of prevailing education system. In
Possibly the first and the foremost thing that enables an Punjab province for instance, private schools are currently
employee to stay on in an organization is ‘job satisfaction’, operating within a highly competitive environment;
triggered through ‘job contentment’. Job contentment this signals some form of management success in
refers to optimistic feelings that employees have toward terms of enhancing employee retention for the sake of
their jobs (Feldman, 1985). Job satisfaction on the other competitive advantage. Still heavy workload and low

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 Asif and Nisar: Antecedents of employee retention

remuneration are considered as major issues which are Rewards (monetary and non-monetary) both are essential
creating disappointment among the employees of these for employee retention. Employers need to both understand
private schools. The situation is getting worse due to poor and appreciate that employees need motivation for their
working environment and lack of financial advantage for efforts; thus, they should be motivated by rewards that could
the employees of the private schools. The adverse effect include incentives in salary and/or recognition. Rewards
of these operating issues results in brain drain of skilled boost the motivation level; and thus, it may be affirmed that
employees in many of the private schools, leading to an organization’s reward system does greatly influence
raising concerns about human resource retention. Hence, employees’ performance and retention (Bamberger et al.,
the problem of employee retention is getting worse in 2014; MacDuffie, 1995). Hence, we posit:
public schools which the school management must be H2: Increased rewards have a positive significant impact on
resolved to ensure quality teaching. employee retention.

This study will help the stakeholders to better understand Employees cannot reach to their fullest potential without
the importance of employee retention in private schools their supervisor’s support. Employees need motivation
and to focus on those antecedents that help to retain from their supervisors. Supervisor’s support is the
employees. Hence, it would enable many private greatest strength to retain employees. Supervisors should
institutions to identify the major reasons that need to be develop good relation with employees that will influence
used in retaining employees through better knowledge employee retention (Fatima, 2011). A good supervisor is
of inspirational aspects toward improving our education considered very effective in reducing employee’s turnover.
system (Holtom and Darabi, 2018). If there is a good relationship between employees and the
supervisor, then the employees will never leave their jobs
and if the relationship is not satisfactory, then employees
OBJECTIVES OF THE STUDY will go for some new opportunity for sure. Hence, we
posit:
Need of the hour is to extend the knowledge regarding how H3: Increased supervisor support results into higher
employees will stick to their jobs and which motivational employee retention.
factors play a key role in retaining them? The major aims of
the study are as follows: Career growth opportunities are always helpful in
• To ascertain the influence of work-life policies, growth retaining employees. If employees are provided with
opportunities, rewards, and supervisor’s support on opportunities that help them in their career growth,
employee retention they would definitely stay. Prince (2005) argued that
• To highlight the most important determinant that plays employees want growth opportunities to move up in
a key role in retaining employees their career. Thus, one of the key aspects in employee
• To find out the importance of retention in private retention is investment on employees’ training and career
institutions. development (Messmer, 2000). Organizations must invest
on training and development opportunities for employees.
THEORETICAL DEVELOPMENT Summarily, it may be affirmed that both career
development, along with training and learning
Work-life policies are a broader term that covers opportunities do provide important outcomes for both
different aspects, but this research covers a few of parties (i.e. employer & employee); hence, we posit:
them, such as working environment, job security, and H4: 
Increased growth opportunities results into higher
standard working hours. These aspects have a positive employee retention.
effect on employee retention. They may be termed as
the primary factors behind employees’ satisfaction and
retention. Additionally, job flexibility is another key
MATERIALS AND METHODS
factor in employee retention. Previous researches have
shown that greater the access of work-life policies,
including flexibility at work, the greater would be the Participants
organizational commitment from employees (Grover
and Crooker, 1995). Hence, we posit: The main focus of the study was to find out how much the
H1: Increased work-life policies have a significant impact private schools are capable in retaining in their employees
on employee retention. using different determinants, and how these determinants

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 Asif and Nisar: Antecedents of employee retention

actually influence employee retention? Teachers working information along with 32 questions. The questions were
in private schools in Lahore, Pakistan were the participants based on each variable’s dimensions, that is,
of this study. Specifically, we chose six private schools for • Employee retention (ER): Job promotion, job
data collection through convenience sampling. The schools satisfaction, timely feedback, optimistic thinking, and
include Bloomfield Hall School, Resource Academia, City professional experience.
School, Lahore Grammar School, Beacon House School, • Career opportunities (CO): Providing opportunities
and Linderhof Lahore School System. Notably, we chose to improve interpersonal skills, providing training for
to restrict ourselves to private schools because of high delivering lectures, and training workshops.
turnover rates as the employees decide to move from one • Work-life polices (WL): Comfortable work
organization to another if their promises and expectations environment, standard working hours, job security, and
are not fulfilled or for their career objective too. good job description.
• Rewards (RW): Recognition of work, attractive salary
Reliability Analysis packages, bonuses, increased motivation levels, and
appreciation for employees’ performance.
Before approaching the teachers of the schools (mentioned • Good supervision and support (GS): Freedom to share
earlier), we conducted a pilot study with 30 respondents. ideas, listening suggestions, motivating employees,
The questionnaires herein were randomly filled by timely and smooth communication, positive attitude of
teachers working in private schools. On the basis of those supervisors, trust, and good relationship, considering
responses, we effectively verified the reliability of the employees suggestions.
main questionnaire. Further, to ensure reliability, we also
adopted the Cronbach’s alpha technique, as it represents a Based on the selected variables, the regression equation of
coefficient of consistency specifically meant to determine the study is framed as follows:
reliability. The instrument is said to be reliable if the ER = α+β1CO+β2WL+β3 RW+β4GS+€
coefficient alpha proves to be more than 60% (Cronbach,
1951). Typically, alphas of 0.6 or greater are retained for Descriptive Analysis
analysis (Table 1). Through SPSS reliability of whole
instrument is checked which is 0.889 which means that the The tables given below show the distribution of demographic
questionnaire is strongly reliable and further studies can be information.
done with the same instrument.
In Table 2, out of 325 employees, the percentage of women
Procedures in was 89.2%, while men were only 10.8%. This could
be because of high turnover, as many a time women have
We distributed about 400 questionnaires across these six to leave their job after getting married or due to family
schools; out of the 400 questionnaires floated, we got 350 pressures. Similarly, the concentration of single employees
responses, out which, we had to reject 25 as they were was 42% while married represented 58%. About 39.1%
incomplete. Hence, the response rate was (325/400 = belonged to 20–30 age category, highest 40.3% belonged to
81.25%), which is sufficient to continue with the collected 30–40 category. About 12% of employees were those who
data. had 1 year or less than 1-year experience with the school.
36.9% had 2–5 years of experience, while about 56%
possessed Masters’ degree, 23.7% were graduates and only
Measures 16.3% were MS/M.Phil.
The structured questionnaire on employee retention
was constructed based on our observations from extant Correlation Analysis
literature. Shoaib et al. (2009) had examined the influence
of supervisors’ support, rewards, career opportunities, The Pearson correlation results are explained in Table
work-life policies, and work environment on retention of 3. From the table, it is clear that the highest correlation
employees in the telecom sector of Pakistan. The purpose exists between work-life policies and employee retention,
of collecting data through questionnaires is that to gather that is, 0.344 and it is significant at 0.01 level. However,
direct feedback from the respondents with convenience correlation among rewards, supervisor’s support, growth
and within short time period. The structured questionnaire opportunities, and employee retention are 0.175, 0.184,
which is used in this research includes some demographic and 0.111, respectively. The private schools will flourish

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 Asif and Nisar: Antecedents of employee retention

if employee retention would be increased by practicing Hypothesis 03

independent variables more appropriately.
The third hypothesis stated that increase in supervisor’s
support would have a positive and significant effect on
Regression Analysis
employee retention. It means that the more a supervisor
supports an employee, more would be the employee’s
Regression analysis is one to find out the effect of
intent to remain in the organization. In terms of results, that
independent variables on the dependent variable and to
is, r = 0.184 means that relationship is significant up to 0.01
study their relationships (Table 4). The first table in the
level. Further, from the results, it is revealed that the p value
regression analysis is labeled as “model summary.” It gives
is greater than the significance level, which means that
us the measures of how well our model fits, and how well
our predictor (i.e. employee retention) is able to predict the
independent variables. The value of adjusted R-square is
0.13. It means that 13% of the variance in employee retention Table 1: Reliability statistics
can be explained by work-life policies and rewards. Table 5 Cronbach’s alpha N of items
shows the regression estimates. Using stepwise regression, 0.889 30
the first model considers only one predictor variable that
is, work-life policies with R square value 11.8%. However,
the second model includes two predictor variables, that is, Table 2: Demographic analysis
work-life policies and rewards with R square value 13%. Frequency Percentage
Reaming variable shows insignificant values therefore Gender
omitted from the model. Male 35 10.8
Female 290 89.2
Hypothesis 01
Total 325 100.0
Hypothesis 01 stated that increase in work-life policies will Marital Status
have a positive significant effect on employee retention. It Single 136 41.8
means that more the work-life policies in an organization, Married 189 58.2
more would the employees want to be retained. This
Total 325 100.0
statement is supported as shown by the results, that is, r =
0.344 means that correlation is significant up to 0.01 level. Age
The B value for work-life policies is 0.551, which means 20–30 127 39.1
that WLP has a 55.1% influence on employee retention. The 30–40 131 40.3
table also showed the t value, that is, 6.065, it means that
40–50 47 14.5
it is significant up to 0.01 level. Hence, our results proved
the predicted hypothesis; hence, we accept the alternative 50 and above 20 6.2
hypothesis (HI). Total 325 100.0
Years of Experience
Hypothesis 02 1 year or less 42 12.9
2–5 120 36.9
Hypothesis 02 stated that increased rewards would have 5–10 88 27.1
a positive and significant effect on employee retention.
10–20 66 20.3
It means that the more rewards are given to employees,
more would they be willing to be retained. The statement 20–30 9 2.8
is supported as the correlation is significant up to 0.01 Total 325 100.0
level, that is, 0.175. The B value of rewards is 0.135, Education Level
which showed that rewards have 13.5% influence on staff Bachelors 77 23.7
retention. The table also shows the t value, that is, 2.083
Masters 2 56
and is significant up to the level of 0.05. Hence, even in
this case, the results proved the prediction, and we thereby MS/M.Phil 53 16.3
accept the alternative hypothesis (H2). Other 13 4
Total 325 100.0

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 Asif and Nisar: Antecedents of employee retention

increased supervisor’s support does not result into higher that is, growth opportunities and supervisor’s support do not
employee retention, and thereby the null hypothesis (Ho) show any impact on employee retention in the private school’s
is accepted. setting. Table 6 summarizes the overall conclusion regarding
the acceptance of stated hypotheses.
Hypothesis 04

Hypothesis 4 stated that increased growth opportunities have a DISCUSSION

positive and significant effect on employee retention. In other
words, it means that the more the opportunities employees are The study has contributed both theoretically and
given to grow, more would they be interested in staying back. methodologically to the literature. The wide purpose of
This is reflected by the outcome, that is, r = 0.175 meaning that the study as stated earlier was to identify the determinants
the relationship is significant up to 0.05 level. This variable is of employee retention. Similarly, the study sought to
excluded as the results are not significant, which means that determine those variables that have a noteworthy positive
the increased growth opportunities do not necessarily result influence on employee retention in the private schools.
in higher employee retention. Hence, the null hypothesis HO The findings of the study would possibly help the school’s
is accepted. The variables of hypotheses 3 and 4 are rejected management in formulating effectual retention approach
as they are not statistically significant. These two variables, using the suitable variables. In addition, the study would
also help in bridging the gap in literature, and advance the
boundary of knowledge.
Table 3: Pearson’s correlation
ER CO WL RW GS
ER 1 Four hypotheses were generated from the literature review.
CO 0.111* 1 Out of four, two alternative and null hypotheses each are
WL 0.344** 0.185** 1 accepted. We found that work-life policies and rewards act
RW 0.175** 0.477** 0.199** 1 as important motivational variables that have a positive and
significant influence on employee retention in private sector
GS 0.184** 0.625** 0.387** 0.678** 1
institutions. The results were supported by the previous
**Correlation is significant at the 0.01 level (two tailed). studies, for example, supportive work-life policies can be
*Correlation is significant at the 0.05 level (two tailed)
the reason in retaining employees for longer time period
(Richman et al., 2008). Monetary rewards significantly
Table 4: Model summary increase employee retention (Pillay, 2009).
Model R R square Adjusted Std. error of
R square the estimate The foremost rationale behind this study was to explore the
1 0.344 a
0.118 0.115 3.26 impact of rewards, work-life policies, supervisors’ support,
and career opportunities on employee retention. The results
2 0.360b 0.130 0.124 3.24

Table 5: Coefficients
Model Unstandardized Standardized coefficients T Sig.
coefficients
B Std. error Beta
1
Constant 29.1 1.966 14.851 0.000
WLP 0.589 0.089 0.344 6.578 0.000
2
Constant 27.17 2.183 12.448 0.000
WLP 0.551 0.091 0.322 6.065 0.000**
R 0.135 0.065 0.111 2.083 0.038*
**Significant at the 0.01 level. *Significant at the 0.05 level

Indian Journal of Commerce & Management Studies • Vol XIII • Issue 1 • January 2022 • 23
 Asif and Nisar: Antecedents of employee retention

of this study show that work-life policies have a positive The researcher is limited in scope of research work as the
significant effect on retaining private schools’ staff. It current study is limited only to obtain data from the teaching
means that work-life policies are the foremost determinant staff working in private schools from Lahore region. Further,
of employee retention in private schools. Institutions need there are other antecedents within the employee work-life
to monitor the level of work-life policies to strengthen the that may have specified impact on employee retention; these
relationship between employees and the institution. antecedents must be incorporated in future research.

The results also found that rewards have a positive

significant influence on employee retention. An enhanced CONCLUSION
reward system within an institution/organization does
enhance job commitment (Boyd and Sutherland, 2006). It Employee retention is a phenomenon which is perceived to
means that increased rewards result into higher employee negatively impact the success of the organization. Previous
retention in private sector schools. It also means that most attempts in this regard have shown divergent antecedents
employees feel valued whenever they receive rewards. In of employee retention with respect to the nature of the
fact, Kreitner and Kinicki (2006) stated that rewards are one environment. This study contributes to the ongoing
of the most important factors that create job commitment. debate by seeking to determine those variables that have
a noteworthy influence on employee’s retention in private
Furthermore, the results also affirm that supervisor’s
schools of Pakistan. To find how an organization can retain
support does not necessarily help in retaining employees.
their employees, this study examined different antecedents,
Specifically, we noted that there is no substantial relationship
which could be helpful to organizations in retaining their
between employee retention and supervisor’s support. From
employees. The antecedents used included rewards, work-
the third hypothesis, it is revealed that supervisor’s support
life policies, good supervision and support, and career
does not result into higher employee retention in private
opportunities. The findings support the positive influence
schools setting. Thus, it is not proved to be the influential
of rewards and work-life balance on employee’s retention,
variable in retaining employees. However, descriptive
analysis showed that supervisor’s support does play a key while supervisor’s support and career opportunities do not
role in retaining employees, as it has the highest mean value promote employees retention in private schools in Pakistan.
amongst the independent variables. Additionally, the results
showed that career opportunities do not influence employee
retention among private schools’ employees. There doesn’t AUTHORS’ CONTRIBUTIONS
seem to be any association between career opportunities
and employee retention. From hypothesis 4, it is revealed The authors state that the submitted work is an original
that career opportunities do not result into higher employee work. All the articles or journals referred to have been
retention in private schools setting. duly cited in text and in references attached. The authors
further state that they have no issue in regard to publication
Limitation and Directions of Future Research of the article under the Indian Journal of Commerce and
Management. The authors declare that they have no known
competing financial interests or personal relationships that
Table 6: Summary of results could have appeared to influence the work reported in this
Hypothesis Results Supported paper.
H1: Increase in work‑life policies r=0.344 Yes
will have a strong influence on P=0.000
employee retention FINANCIAL SUPPORT
H2: Increased rewards have a r=0.175 Yes
positive significant impact on P=0.038 The authors have to meet all expenditures themselves. No
employee retention. funding source is available.
H3: Increased growth r=0.111 No
opportunities results into higher P=0.764
employee retention ACKNOWLEDGMENTS
H4: Increase in supervisor’s r=0.184 No
support results into higher P=0.474 Authors duly acknowledge the support of the institutions
employee retention for giving us the opportunity to complete the research

Indian Journal of Commerce & Management Studies • Vol XIII • Issue 1 • January 2022 • 24
 Asif and Nisar: Antecedents of employee retention

and providing us with all necessary facilities regarding school teachers. SA Journal of Industrial Psychology,
respondents and space for survey. 43(1), 1-10.
Gardner, D. G., Dyne, L., & Pierce, J. L. (2004). The effects
of pay level on organization‐based self‐esteem and
CONFLICTS OF INTEREST performance: A field study. Journal of Occupational
and Organizational Psychology, 77(3), 307-322.
There are no conflicts of interest. Grover, S. L., & Crooker, K. J. (1995). Who appreciates
family‐responsive human resource policies: The
impact of family‐friendly policies on the organizational
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