THE EFFECT OF FINANCIAL COMPENSATION AND PERCEIVED CAREER PROGRESSION ON EMPLOYEE TURNOVER INTENTIONS WITH SELF ACTUALIZATION AS A MEDIATOR

Abstract

Organizations desire that turnover intentions of its workforce do no arise, as the continuation of employees enables the organization to focus on productive tasks rather than having to recruit and train employees again. The study aims to measure the relationship between turnover intentions, financial compensation and perceived career progression. The study also aims to test the mediating effect of self-actualization in the relationships of financial compensation and career progression with turnover intentions. The data was collected through self-administered questionnaire from 167 employees in the software industry using non probability purposive sampling. The survey instrument used for collection of primary information comprised of 28 items Likert scale with 5 demographic questions. Significant correlation was found between financial compensation and perceived career progression with self-actualization i.e., an inverse relationship between employees self-actualization, financial compensation and perceived career progression with turnover intentions. Regression analysis found that self-actualization mediated the relationship between financial compensation and turnover intentions and between perceived career progression and turnover intentions which was endorsed by the values of SOBEL test.