A Study on Relation between Compensation and Retention of Employees in Manufacturing Sector

Abstract

This study determines the relationship between employee compensation and retention.Employee compensation refers to the benefits that an employee receives in exchange for their employer's services (cash, vacation, etc.). Employee salary is usually one of the most expensive charges or expenses for a firm. Employee retention refers to an organization's ability to avoid employee turnover, which is defined as the number of people who leave their jobs, either freely or involuntarily, within a set period of time. A company's performance and success are directly influenced by employee retention. And to Check whetherthe employees are satisfied with their salary. standardized questionnaire was used to gather data from 150 responses. The statistical method used in the research included descriptive statistics and correlation. The study found positive association to occur.