Abstract:

The primary aim of this article is to focus on relationship between reward management system and turnover intension in insurance sector of Pakistan. Study also tested the mediating role of motivation. Literature has shown that companies use reward management system to motivate their employees resulting in improved employee’s performance. It is also found that rewards could reduce employee turnover intension. This study adds to the existing literature by examining the relation between Reward Management System and turnover intension by taking employee motivation as mediator. Reward management system is further segregated in financial, non-financial rewards and extrinsic rewards while motivation is examined in two dimensions i.e. intrinsic and extrinsic motivation. Results showed that reward management system applications have a negative relation with turnover intention and motivation partially mediates the relationship between reward management system and turnover intension. It also showed that proper rewarding the employees declines their turnover intentions. This study will be helpful for the Human Resource department of insurance companies because it will provide insight into the importance of reward management having an effect on turnover intention of employees. Key Words: Reward Management System, Financial Rewards, Non-Financial Rewards, Intrinsic Motivation, Extrinsic Motivation, Turnover Intentions.

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