Employee Motivation And Retention: Evaluating The Impact Of Reward Systems And Job Satisfaction

Abstract

Particularly in a changing environment, organizations face critical challenges to employee motivation and retention. The study 
focuses on the effect of reward systems and job satisfaction on employee retention intention, as a way of filling the gap in the 
holistic talent management strategies. Data were collected from 350 employees across a variety of industries using structured 
surveys, and a cross-sectional research design was used. Correlation and regression analyses were used to investigate relationships 
among reward systems, job satisfaction, and retention. The results showed that reward systems correlated positively and 
significantly with job satisfaction (r = 0.68) and job satisfaction with retention intentions (r = 0.73). The results of regression 
analysis indicate that job satisfaction (β = 0.59) had a greater impact on retention than reward systems (β = 0.42). Retention 
intentions were explained by 52% of the variance with the model including intrinsic motivators, supportive leadership, 
meaningful work, as well as traditional reward mechanisms. The study finds that while reward systems are a fundamental 
part of attracting employees, job satisfaction is key to maintaining commitment over the long term. To achieve satisfaction 
and retention organizations are encouraged to implement tailored reward strategies, invest in leadership development, and 
cultivate an inclusive, flexible work environment. Further research needs to be conducted on the longitudinal and sector 
dependencies, leadership styles, cultural influence, and the incorporation of digital tools into employee engagement.