Navigating the Brain Drain Challenge: The Role of Compensation, Job Embeddedness, and Commitment in Employee Retention in Pakistan's Telecom Sector
DOI:
https://doi.org/10.55737/qjssh.915007448Keywords:
Compensation (Job-based pay), Commitment (Normative), Job Embeddedness, Employee RetentionAbstract
Organizations have a serious problem with employee retention, especially in Pakistan's telecom industry. Through the eyes of job embeddedness and commitment, this study explores how compensation, specifically job-based pay, affects employee retention. According to research, offering technical workers attractive salary packages is essential for luring and keeping them. A significant number of technicians are leaving Pakistan, though, in search of better-paying jobs abroad, endangering the viability of the organizations. Recommendations include updating compensation guidelines, making skill development investments, and putting job embedding programs in place. Offering attractive packages and rewarding success are essential elements to increase retention. This study emphasizes how important it is to match compensation to global norms in order to encourage job embedding and commitment, ultimately ensuring the lifespan of businesses in the developing telecom sector.
References
Abu Hassan Asaari, M. H., Mat Desa, N., & Subramaniam, L. (2019). Influence of Salary, Promotion, and Recognition toward Work Motivation among Government Trade Agency Employees. International Journal of Business and Management, 14(4), 48. https://doi.org/10.5539/ijbm.v14n4p48
Adams, G. A., Webster, J. R., & Buyarski, D. M. (2010). Development of an occupational embeddedness measure. Career Development International, 15(5), 420–436. https://doi.org/10.1108/13620431011075312
Aman-Ullah, A., Aziz, A., & Ibrahim, H. (2020). A Systematic Review of Employee Retention: What’s Next in Pakistan? Journal of Contemporary Issues and Thought, 10(2), 36–45. https://doi.org/10.37134/jcit.vol10.sp.4.2020
APP. (2021). CJP concerned over poor law and order situation in country. https://dailytimes.com.pk/840587/cjp-concerned-over-poor-law-and-order-situation-in-country/
Bambacas, M., & Kulik, T. C. (2013). Job embeddedness in China: how HR practices impact turnover intentions. The International Journal of Human Resource Management, 24(10), 1933–1952. https://doi.org/10.1080/09585192.2012.725074
Bank, W. (2023). Pakistan Economic Growth. https://www.macrotrends.net/countries/PAK/pakistan/economic-growth-rate
Basher Rubel, M. R., & Hung Kee, D. M. (2015). High Commitment Compensation Practices and Employee Turnover Intention: Mediating Role of Job Satisfaction. Mediterranean Journal of Social Sciences. 6(6 S4), 321. https://doi.org/10.5901/mjss.2015.v6n6s4p321
Bibi, P., Pangil, F., Johari, J., Ahmad, A. J. J. o. E., & Perspectives, M. (2017). The impact of compensation and promotional opportunities on employee retention in academic institutions: The moderating role of work environment. 11(1), 378-391. https://www.proquest.com/docview/1964555540
Cheah, J.-H., Sarstedt, M., Ringle, C. M., Ramayah, T., & Ting, H. (2018). Convergent validity assessment of formatively measured constructs in PLS-SEM. International Journal of Contemporary Hospitality Management, 30(11), 3192–3210. https://doi.org/10.1108/ijchm-10-2017-0649
Chin, W. W. (2009). How to write up and report PLS analyses. In Handbook of partial least squares: Concepts, methods and applications (655-690): Springer.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2013). Applied multiple regression/correlation analysis for the behavioral sciences: Routledge. https://www.taylorfrancis.com/books/mono/10.4324/9780203774441/applied-multiple-regression-correlation-analysis-behavioral-sciences-jacob-cohen-patricia-cohen-stephen-west-leona-aiken
Dechawatanapaisal, D. (2018). Examining the relationships between HR practices, organizational job embeddedness, job satisfaction, and quit intention. Asia-Pacific Journal of Business Administration, 10(2/3), 130–148. https://doi.org/10.1108/apjba-11-2017-0114
Diaye, M.-A., Lasram, H., & Pekovic, S. (2023). How does CSR affect workers’ compensation? An approach by the theory of incentives. International Journal of Production Economics, 260, 108860. https://doi.org/10.1016/j.ijpe.2023.108860
Ezeuduji, I. O., & Mbane, T. L. J. A. U. D. Œ. (2017). Length of service versus employee retention factors: Hotels in Cape Town, South Africa. 13(2), 5-16. https://econpapers.repec.org/article/dugactaec/y_3a2017_3ai_3a2_3ap_3a5-16.htm
Ferdian, F., Abrian, Y., Suyuthie, H., Kasmita, K., & Sinensis, R. A. (2022). The Effect of Work Compensation on Intention to Stay in the Hotel Industry During the COVID 19 Pandemic with Job Embeddedness as Mediation. Jurnal Organisasi Dan Manajemen, 18(1), 60–73. https://doi.org/10.33830/jom.v18i1.2134.2022
Gaur, A. S., & Gaur, S. S. (2006). Statistical methods for practice and research: A guide to data analysis using SPSS: Sage.
Gerhart, B., & Bretz Jr, R. J. N. Y. (1994). Employee compensation. https://ecommons.cornell.edu/items/a51fb09c-c86c-44e2-89c2-64fb1ed449d4
GOP (Producer). (2023, Aug). Bureau of Emigration & Overseas Employment. Retrieved from https://beoe.gov.pk/files/statistics/2023/category.pdf
Götz, O., Liehr-Gobbers, K., & Krafft, M. (2009). Evaluation of structural equation models using the partial least squares (PLS) approach. In Handbook of partial least squares: Concepts, methods and applications (pp. 691-711): Springer. DOI:10.1007/978-3-540-32827-8_30
Hair Jr, F. J., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM). European Business Review, 26(2), 106–121. https://doi.org/10.1108/ebr-10-2013-0128
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Harris, F. (2012). Global environmental issues: John Wiley & Sons.
Henseler, J. (2009). On the convergence of the partial least squares path modeling algorithm. Computational Statistics, 25(1), 107–120. https://doi.org/10.1007/s00180-009-0164-x
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. In New challenges to international marketing (Vol. 20, pp. 277-319): Emerald Group Publishing Limited. DOI:10.1108/S1474-7979(2009)0000020014
IACOBUCCI, D., SALDANHA, N., & DENG, X. (2007). A Meditation on Mediation: Evidence That Structural Equations Models Perform Better Than Regressions. Journal of Consumer Psychology, 17(2), 139–153. https://doi.org/10.1016/s1057-7408(07)70020-7
Iftikhar, S., Ziaullah, M., & Hayyat, A. J. J. o. S. S. R. (2023). The Price of Change: Assessing the Cost of Compensation Reduction on Employee. Turnover and Productivity. 3(1), 1013-1035.
Jex, S. M., & Britt, T. W. (2014). Organizational psychology: A scientist-practitioner approach: John Wiley & Sons. https://psycnet.apa.org/record/2014-32528-000
Jiang, K., Liu, D., McKay, P. F., Lee, T. W., & Mitchell, T. R. J. J. o. A. p. (2012). When and how is job embeddedness predictive of turnover? A meta-analytic investigation. 97(5), 1077. DOI:10.1037/a0028610
Joarder, M. (2012). Mediating effects of organizational commitment and perceived organizational support on HRM practices and turnover intention: a study of private universities in Bangladesh. PhD Thesis, The University Utara Malaysia, Malaysia, https://etd.uum.edu.my/3517/
Kaban, L. M., & Kulsum, U. J. J. M. M. (2023). Study on Compensation, Organizational Commitment, and Work Motivation for Employee Retention at a Local Hospital. 3(4), 857-870. https://doi.org/10.55927/mudima.v3i4.3852
Kee, L. B., Ahmad, R. bin, & Abdullah, S. M. (2016). Relationship between Financial Compensation and Organizational Commitment among Malaysian Bank Workers. Asian Business Research, 1(1), 75. https://doi.org/10.20849/abr.v1i1.29
Khattak, F. U., Qaiser Mehmood, Aamir Mumtaz, Ijaz Ur Rehman, & Kashif Ur Rehman. (2012). Shrinking Employees Turnover Intention by applying Tools of Job Embeddedness (Used as a Mediator). Information Management and Business Review, 4(7), 370–378. https://doi.org/10.22610/imbr.v4i7.991
Klarner, P., & Raisch, S. (2013). Move to the Beat—Rhythms of Change and Firm Performance. Academy of Management Journal, 56(1), 160–184. https://doi.org/10.5465/amj.2010.0767
Lambert, E., & Hogan, N. (2008). The Importance of Job Satisfaction and Organizational Commitment in Shaping Turnover Intent. Criminal Justice Review, 34(1), 96–118. https://doi.org/10.1177/0734016808324230
Latham, G. P. (2012). Work motivation: History, theory, research, and practice: Sage.
Leritz, L. (2012). Introduction to Skill-Based Pay. In: ERI-Economic Research Institute, Redmond, WA.
Llanos, L. F., & Bin Ahmad, R. (2016). Financial Compensation and Organizational Commitment: Differences Among Mexican and Malaysian Bankers. Compensation & Benefits Review, 48(5-6), 155–170. https://doi.org/10.1177/0886368717740473
M Pd, A., Si, M., & Rahmiatin, S. P. (2020). MANAJEMEN SUMBER DAYA MANUSIA: PENGADAAN DAN RETENSI SDM DI PERGURUAN TINGGI SWASTA (TEORI DAN PRAKTEK). In: Penerbit Alfabeta, Bandung. http://repo.darmajaya.ac.id/id/eprint/4508
MacKinnon, D. P., Lockwood, C. M., & Williams, J. (2004). Confidence Limits for the Indirect Effect: Distribution of the Product and Resampling Methods. Multivariate Behavioral Research, 39(1), 99–128. https://doi.org/10.1207/s15327906mbr3901_4
Martin, M. J., & Kaufman, E. K. (2013). Do job satisfaction and commitment to the organization matter when it comes to retaining employees? DOI:10.34068/joe.51.04.28
Maulana, T. I. (2020). PENGARUH KOMPENSASI DAN LINGKUNGAN KERJA TERHADAP KINERJA PERAWAT RUMAH SAKIT AMALIA MEDIKA PELALAWAN. Universitas Islam Negeri Sultan Syarif Kasim Riau, http://repository.uin-suska.ac.id/40583/2/File%20lengkap%20sampai%20lampiran%20kecuali%20hasil%20penelitian%20%28%20Bab%20V%20dan%20atau%20Bab%20VI%29.pdf
Meyer, J. P., Stanley, D. J., Herscovitch, L., & Topolnytsky, L. J. J. o. v. b. (2002). Affective, continuance, and normative commitment to the organization: A meta-analysis of antecedents, correlates, and consequences. 61(1), 20-52. doi:10.1006/jvbe.2001.1842
Mitchell, T. R., Holtom, B. C., Lee, T. W., Sablynski, C. J., & Erez, M. J. A. o. m. j. (2001). Why people stay: Using job embeddedness to predict voluntary turnover. 44(6), 1102-1121. https://www.jstor.org/stable/3069391
Mohaimen, M. A., Saad, A. T., & Huq, M. M. (2023). Beyond Job Embeddedness: Unwrapping the Deviant Factors Affecting Employee Retention in the Banking Sectors of Bangladesh. https://www.jetir.org/papers/JETIR2309026.pdf
Ng, T. W. H., & Feldman, D. C. (2010). The impact of job embeddedness on innovation-related behaviors. Human Resource Management, 49(6), 1067–1087. https://doi.org/10.1002/hrm.20390
Nurlina, N. (2022). Examining Linkage Between Transactional Leadership, Organizational Culture, Commitment and Compensation on Work Satisfaction and Performance. Golden Ratio of Human Resource Management, 2(2), 108–122. https://doi.org/10.52970/grhrm.v2i2.182
Osibanjo, O. A., Adeniji, A. A., Falola, H. O., & Heirsmac, P. T. J. L. J. o. S. (2014). Compensation packages: a strategic tool for employees’ performance and retention. 25(1), 65-84.
Ramlall, S. J. J. o. A. a. o. b. (2004). A review of employee motivation theories and their implications for employee retention within organizations. 5(1/2), 52-63.
Rialdy, N. (2021). Faktor–Faktor Yang Mempengaruhi Retensi Karyawan Pada PT. Bank Syariah Indonesia Regional Office II Medan. UMSU, http://repository.umsu.ac.id/handle/123456789/15893
Riyani, A. F., & Azizah, S. N. J. J. I. M. M., Bisnis dan Akuntansi. (2022). Pengaruh Perceived Organizational Support, Lingkungan Kerja Non Fisik, dan Komitmen Afektif Terhadap Retensi Karyawan: Studi Pada Karyawan Non PNS UPTD Puskesmas Kutowinangun. 4(2), 190-206. https://doi.org/10.32639/jimmba.v4i2.90
Rombaut, E., & Guerry, M.-A. (2020). The effectiveness of employee retention through an uplift modeling approach. International Journal of Manpower, 41(8), 1199–1220. https://doi.org/10.1108/ijm-04-2019-0184
Rubel, M. R. B., & Kee, D. M. H. J. M. J. o. S. S. (2015). High commitment compensation practices and employee turnover intention: Mediating role of job satisfaction.
Sabiu, M. S., Mei, T. S., & Joarder, M. H. R. J. M. J. o. S. S. (2016). Moderating role of ethical climates on HRM practices and organizational performance: A proposed conceptual model. 7(1), 291. https://doi.org/10.5901/mjss.2016.v7n1p291
Sajjad, N. J. D. (2011). Causes and solutions to intellectual brain drain in Pakistan. 6(1), 31-55. https://www.qurtuba.edu.pk/thedialogue/The%20Dialogue/6_1/Dialogue_January_March2011_31-55.pdf
Sari, I., Dewi, I. J. A. J. o. H., & Research, S. S. (2020). The effect of career development, work environment, and organisational commitment to employee retention. 4(6), 129-134. DOI:10.2991/aebmr.k.200305.140
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research (pp. 587-632): Springer. DOI:10.1007/978-3-319-05542-8_15-2
Schober, P. (2023). How to Make Your Workplace So Inspiring That It Attracts and Retains the Best Talent? In The Art of Leadership Through Public Relations (pp. 101-127): Emerald Publishing Limited.
Shortland, S. 2018. What seals the deal? How compensation and benefits affect women’s decisions to accept expatriation in the oil and gas industry. Personnel Review. 47 (3), pp. 765-783. https://doi.org/10.1108/PR-11-2016-0294
Sindhu, G., Lakhera, A., Karthik, S., Murthy, M. Y. S., & Padma, S. (2023). A study on impact of employee job embeddedness on employee retention. In: Seybold. https://seyboldreport.net/pdf/2023/36.pdf
Sobel, M. E. (1982). Asymptotic Confidence Intervals for Indirect Effects in Structural Equation Models. Sociological Methodology, 13, 290–312. https://doi.org/10.2307/270723
Straub, D., Boudreau, M.-C., & Gefen, D. (2004). Validation guidelines for IS positivist research. Communications of the Association for Information systems, 13(1), 24. https://doi.org/10.17705/1cais.01324
Suryani, N. N., Gama, I., Parwita, G. J. I. J. o. C. R., & Review. (2019). The effect of organizational compensation and commitment to organizational citizenship behavior in the cooperative and small, middle enterprises department of Bali province. 10(1), 21210-21218. https://doi.org/10.15520/ijcrr.v10i01.643
Susanto, P. C. (2022). Employee Engagement Strategy: Analysis Of Organizational Commitment, Compensation, Career Development. INTERNATIONAL CONFERENCE OF HUMANITIES AND SOCIAL SCIENCE (ICHSS), 96–103. Retrieved from https://programdoktorpbiuns.org/index.php/proceedings/article/view/134
Tessema, M. T., & Soeters, J. (2006). Challenges and prospects of HRM in developing countries: testing the HRM–performance link in the Eritrean civil service. International Journal of Human Resource Management, 17(1), 86–105. https://doi.org/10.1080/09585190500366532
Thakur, S. J., & Bhatnagar, J. (2017). Mediator analysis of job embeddedness. Employee Relations, 39(5), 718-731. https://doi.org/10.1108/er-11-2016-0223
Tian, A. W., Cordery, J., & Gamble, J. (2016). Staying and performing. Personnel Review, 45(5), 947-968. https://doi.org/10.1108/pr-09-2014-0194
Whitener, E. M. (2001). Do “high commitment” human resource practices affect employee commitment? A cross-level analysis using hierarchical linear modeling. Journal of Management, 27(5), 515–535. https://doi.org/10.1016/s0149-2063(01)00106-4
Yu, J., Lee, A., Han, H., & Kim, H. (2019). Organizational Justice and Performance of Hotel enterprises: Impact of Job Embeddedness. Journal of Quality Assurance in Hospitality & Tourism, 21(3), 337–360. https://doi.org/10.1080/1528008x.2019.1663571
Downloads
Published
Issue
Section
License
Copyright (c) 2023 Hira Kanwal, Asghar Hayyat, Muatar Kiran
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
