Abstract In different parts of the world different companies are facing the difficulty of turnover of employees and there

are different reasons for it. This paper includes the reasons that why Packages Limited are facing are facing the same problem showing the relationship between monetary, non-monetary benefits given to the employees, where as job involvement and training also plays an important part in the turnover of employees.

Acknowledgments First of all, I would like to thank to Almighty Allah for writing a research paper. And then I would like to thank friends and family members who helped me in gathering data throughout the time I shall be thankful to employees of the Packages Limited for giving me the information and interviews whenever I needed, most importantly the questionnaires filled. Lastly, I would be grateful to Ms. Amina Talat for helping me in the process of writing this research paper and for her constant efforts throughout this semester.

Introduction Job satisfaction is a positive feeling which comes from job resulting from an evaluation of the persons characteristics. Appealing jobs that provide confidence, diversity, self-determination, control and training satisfy most employees. In other words, majority of the people prefer work which is interesting and difficult as compared to conventional and normal routine work whereas, a dissatisfied worker may engage himself in counter-productive activities, or complain about physical disturbances like sleeplessness and depression, tedious and monotonous work and stiffness in muscles or joints. Dissatisfaction gives rise to employee turnover. High turnover brings damage to an organization in the form of high costs. The organizations spend a large amount of money on selection, recruitment, induction and training of new employees. When turnover raises these costs also go up combined with low morale and more work pressure on the remaining employees. Hence, the organization needs to identify these dissatisfied employees and work on them to make sure that they retain their jobs for longer periods of time. When an employee feels that their needs from the job do not match well with the outcome then they experience dissatisfaction. It is a state of mind and could be changed with different motivators. However, if dissatisfaction prevails then the employees become less interested in their jobs and could involve in deviant behavior at workplace that ranges from tardiness, stealing at work or substance abuse. Eventually the dissatisfied employee is likely to leave the organization. An important indicator of dissatisfaction is the job performance of the employee. The employees who are giving high level of performance are less satisfied as compared to the employees who are giving poor performance. Measuring job performance of each employee can give the organization an idea about the level of satisfaction of each employee.

Variety of factors can influence whether a person is satisfied with his job or not, for example what kind of relationship does an employee has with their superiors, the pay which is being paid to him for the work he is doing, , In which kind of physical environment is the person working. When the employees feel that they are paid well, respected and have a foreseeable future with an organization, they perform well and are said to be satisfied. If, however, the employees state of mind points toward unfair treatment by their supervisor or less compensation against their efforts then they tend to be disinterested in their jobs and hence perform poorly which is an indicator of job dissatisfaction. If dissatisfied workers are not given attention then they are not likely to remain with that organization posing a threat to them in the form of increased expenditure and low morale for others.

Purpose The purpose of the study is to understand the relationship between the two variables which are dependent and independent variables. Employee turnover is the dependent variable where as the independent variables are Monetary funds, Job Involvement, Job training and Non monetary funds.

Literature Review

Monetary Funding and Turnover In the previous studies done, monetary funding which includes the pay, wages etc have been researched that they are linked to turnover through job satisfaction, which means that people who are unsatisfied with their jobs they intend to leave the job first and then after taking some time takes the decision f the conditions remains the same. The pay level also sets up the standard of the work as a research was done on the topic that increased pay wages help in recruiting more qualified and technical employees in their specific field and it is difficult for the companies to work with them so a change should be made in between the time they are performing good and bad with rewards etc. According to the wage perform theory it is proved he tried to prove that increase in wages can raise the productivity of the employee which elaborates that the increase in wage will cause the employee to work more as he has a feeling that more responsibility is being expected by him/her which causes the increase in pay (Kartz, 1987). Secondly another other research was done which highlights that increase in pay of the employee increase the loyalty of him which increases the productivity of the employees eventually increasing companys productivity by lowering the turnover cost as well (Akerlof, 1987). Research have been done on job satisfaction and pay wages in past as well which is also linked to turnover giving it the name of efficiency wage theory which explains that an employees wage and efficiency is linked directly to each other eventually leading the turnover rate to decrease (Steijin, 2002)

Job Involvement

Job involvement is a strategy that can be used by the firms to affect the turnover rate of its employees. High involvement in job causes the turnover rate of the employees to decrease which is supported by a research which has been done which states that the employees who are less involved in the job are willing to leave their job as compared to the involved ones who are more involved (Lynch,1997) . It has been clarified the negative relationship of job involvement and turnover (Hequent, 1993). The relationship between job involvement and employee turnover has been studied in the previous investigation and research done by different people. A research has been conducted which states that team collaboration which comes under the category of job involvement increases the productivity of the employee as well as his job satisfaction (Bratt, 2002)

Job Training

A research was conducted according to which learning from the current job has an important effect on the job satisfaction of the employees as it continuously involves the person and process further learning keeps on moving, decreasing the turnover employees automatically (Petrescu and Simmons, 2004). Likewise, it was also found out that educating the employees and training them about the job is more eefective when it is done on-the job-training as compared to off-thejob training (Doeringer, Evans-Klock and Terkla, 1998). Past researchers have found evidence on the impact of training on productivity and where employees and employers were able to share the benefits from training. According to another research it was concluded that the impact of training on productivity and employers who got the benefit from the training of the employees(Ballot, Fakhfakh and Taymaz, 2005).

Non Monetary Benefits

Employees are more expected to be motivated in improving their performance through the use of nonmonetary rewards such as being appreciated publicly in a function arranged at departmental level, having dinner with the heads of the organization or getting an extra day off. The desired outcome of rewards and acknowledgment programs is to improve performance of the employee. Non-monetary recognition can be very encouraging, helping in building the confidence and satisfaction. Non monetary funds include transportation, medical facilities etc. Non monetary fund play an important role in employee retention which is further linked to employee turnover in a negative relationship (Gregerson and Black, 1990)

Research Objectives The objective of the thesis and research is to discuss the details of the factors that lead to the dissatisfaction/satisfaction which eventually will be affecting the turnover rate of the companies. Investigates relationship between job satisfaction/dissatisfaction and turnover Factors affecting Job satisfaction/dissatisfaction Explain how these factors influence employees perception about getting their jobs Explain why it is important to retain workers What steps should firms take to reduce turnover

Managerial Concerns Importance was not given to the topic related to the turnover of employees as the companies and managements used to think that this discussion is not important as other topics were. However in the recent years, managers have realized its importance especially the managers working in Pakistan because trends have changed that employees are nowadays switching jobs a lot showing that they are not satisfied with the benefits being offered by the company for which they are working. The topic I have chosen is of immense importance in a sense that companies are spending a lot of money in satisfying their employees and still they are struggling in it and bearing huge losses when the employees leave their organization as money have been spent in training them and when they are to serve the company, they leave it giving the reason that they are not satisfied in the working condition and climate of the company in which they are working. The paper is useful in a sense that it states the factors which are important for keeping an employee satisfied working in the organization and how they should be kept satisfied.

Theoretical Framework

RELATIONSHIP BETWEEN JOB SATISFACTION AND EMPLOYEE TURNOVER We have already established that when an employee is not satisfied he is likely to quit for his job i.e. increasing turnover. We can say that there is negative association between job satisfaction and staff turnover. Moreover, lower turnover is positively correlated with productivity. The employees who are more likely to remain with the organization are those who are praised by their superiors, paid well and have independence in their working decisions. In view of this discussion we can further elaborate on the dependent and independent variables in the relationship between job satisfaction and employee turnover. DEPENDENT AND INDEPENDENT VARIABLES In the study between job satisfaction and employee turnover, the dependent variable is employee turnover as it is affected or influenced by the independent variables which are monetary and nonmonetary benefits, job involvement and job training.

Independent Variables Job Satisfaction Monetary Benefits Non-monetary Benefits Job Involvement Job Training

Dependent Variable Employee Turnover

RELATIONSHIP BETWEEN INDEPENDENT VARIABLES AND DEPENDENT VARIABLE: After defining the independent variables and dependent variable, we can further see how these are associated with each other.

Monetary Benefits and Employee Turnover: Monetary Benefits being offered and given to the employees for the services they are offering to the company comes under the category of direct compensation. The monetary benefits can be explained as the term which includes money for example basic salary of the employee, house rent allowance, conveyance, leave travel allowance, medical reimbursements, special allowances, bonus, Gratuity, etc. These monetary payments are a form of reward for the employees in return for their services. The employees make a comparison between these monetary payments and their services. If they feel that they are paid according to the services

they are performing then they feel satisfied and do not have any intention of leaving the organization (lower turnover). However, if they feel that their pay is not up to the mark to the efforts they put in their work, they become dissatisfied and think of quitting the job (higher turnover). In other words, monetary benefits have a positive association with job satisfaction and a negative relation with employee turnover.

Non-monetary Benefits and Employee Turnover: Non-monetary Benefits are opposite to the monetary benefits, these are not related to the term money and can be categorized under the category of indirect compensation being gicen to the employees for serving an organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Flexible time schedules, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes. These rewards give employees a reason to stay on the job (lower turnover). In the absence of these rewards, the employees tend to get dissatisfied with their jobs as their current needs are not being met by just their direct compensation and they instead prefer to leave their jobs (higher turnover). Hence, non-monetary payments are positively related to job satisfaction but negatively related to employee turnover. Job Involvement and Employee Turnover: The point at which the employees recognize themselves with the job they are doing and consider their job as an important part to their self-worth. Employees who are more involved in their jobs are given importance that how they carry out a work or task they do. An employee who is more involved in a job is more likely to perform better than the other employees. If the employee feels that his job is important and he has the independence to make decisions then his job performance would increase as he would feel satisfied with the job that he identifies with and as a result he would stick to that job with no intention of leaving (lower turnover). On the other hand, if the employee does not feel that his job has any relevance to him then he would become dissatisfied and eventually leave that job which holds no worth to him and seek other employment (high turnover). Hence, we can say that job involvement has a positive relation with the job satisfaction but a negative relation with employee turnover.

Job Training and Employee Turnover: Training is a vital input which improves the productivity of an organization as it leads towards the enhancing skill and knowledge of the employees. In general, training can also be taken as a planned effort by the company in learning of the employees related to job knowledge, expertise and professional behavior being shown by the employee. Being trained for a job gives employees motivation and enhances their commitment as they perceive their jobs to be important. Companies are spending a lot of funds on training of people working and hence their job performance is enhanced as their knowledge and skills are polished. This in turn increases the job satisfaction and the employee feels committed to his organization and does not think of leaving it unnecessarily (lower turnover). However, an unskilled employee would give poor performance and would have less motivation to work for the organization and eventually leave the organization to a job that he could perform better (higher turnover). In other words, job involvement has a positive relation with job satisfaction and performance but negatively related to employee turnover.

Multiple Regression - Employee Turnover Dependent variable: Employee Turnover Independent variables: Monetary Benefits Non-Monetary benefits Job Involvement Job Training Job satisfaction Standard Estimate Error 4.38671 0.393641 -0.222864 0.072504 3 -0.32986 0.124366 T Statistic P-Value 11.1439 0.0000 -3.07381 0.0028 -2.65234 0.0094

Parameter CONSTANT Monetary Benefits Non-Monetary benefits Job Involvement Job Training Job satisfaction

0.117451 0.8694 0.0193578 0.164816 0.33252 0.089782 3.70361 0.0004 6 0.141866 0.102016 1.39062 0.1676

Analysis of Variance Source Sum of Squares Model 18.068 Residual 52.772 Total 70.84 (Corr.)

Df Mean Square 5 3.61361 94 0.561404 99

FRatio 6.44

P-Value 0.0000

Further ANOVA for Variables in the Order Fitted Source Sum of Df Mean FSquares Square Ratio Monetary Benefits 4.97595 1 4.97595 8.86 Non-Monetary 2.23503 1 2.23503 3.98 benefits Job Involvement 0.00440698 1 0.00440698 0.01 Job Training 9.76698 1 9.76698 17.40 Job satisfaction 1.08566 1 1.08566 1.93 Model 18.068 5

PValue 0.0037 0.0489 0.9296 0.0001 0.1676

Correlation matrix for coefficient estimates CONSTANT Monetary Benefits 1.0000 -0.3273 -0.3273 1.0000 -0.0518 -0.2352 -0.6578 -0.5706 0.1902 0.1436 -0.1977 0.1464 Non-Monetary benefits -0.0518 -0.2352 1.0000 -0.1653 0.0486 -0.6304 Job Involvement -0.6578 0.1436 -0.1653 1.0000 0.1514 -0.3676

CONSTANT Monetary Benefits Non-Monetary benefits Job Involvement Job Training Job satisfaction

CONSTANT Monetary Benefits Non-Monetary benefits Job Involvement Job Training Job satisfaction

Job Training -0.5706 -0.1977 0.0486 0.1514 1.0000 -0.2448

Job satisfaction 0.1902 0.1464 -0.6304 -0.3676 -0.2448 1.0000

Regression Results for Employee Turnover Fitted Stnd. Error Row Value CL for Forecast Lower 95.0% Upper 95.0% Lower 95.0% CL for CL for CL for Forecast Forecast Mean Upper 95.0% CL for Mean

Unusual Residuals Predicte Studentized d Row Y Y Residual Residual 11 3.0 4.48897 -2.05 1.48897 19 3.0 4.68122 -2.35 1.68122 24 3.0 4.48897 -2.05 1.48897 28 2.0 3.83944 -2.60 1.83944 29 2.0 4.2661 -2.2661 -3.27 31 5.0 3.59058 1.40942 2.08 57 3.0 4.30641 -2.11 1.30641 97 1.0 4.06496 -4.70 3.06496 100 5.0 3.37701 1.62299 2.36

Unusual Residuals Predicte Studentized d Row Y Y Residual Residual 11 3.0 4.48897 -2.05 1.48897 19 3.0 4.68122 -2.35 1.68122 24 3.0 4.48897 -2.05 1.48897 28 2.0 3.83944 -2.60 1.83944 29 2.0 4.2661 -2.2661 -3.27 31 5.0 3.59058 1.40942 2.08 57 3.0 4.30641 -2.11 1.30641 97 1.0 4.06496 -4.70 3.06496 100 5.0 3.37701 1.62299 2.36

Conclusion: Employee Turnover = 4.38671 - 0.222864*Monetary Benefits - 0.32986*Non-Monetary benefits - 0.0193578*Job Involvement + 0.33252*Job Training + 0.141866*Job satisfaction

Since the p value is less then 5 percent it shows that there is significant relation between the dependent variable and independent variables being chosen. It shows that monetary benefits, non monetary benefits and job involvement has positive relation with employee turnover where as job training and satisfaction has a negative relation with employee turnover.