Employee compensation satisfaction and turnover intention in the readymade garment industry: which role is associated to organisational commitment

The present study investigates the relationship between pay satisfaction and turnover intention of employees who are engaging in the readymade garment industry in Bangladesh. In addition, the effect of organisational commitment as a mediator in this relationship is also examined. A total number of 151 junior executives from 32 conveniently selected readymade garment factories in Bangladesh took part in the study. Findings supported that pay satisfaction, organisational commitment (affective, normative and continuance), and employees' turnover intention were significantly correlated to each other. Moreover, results of the regression analysis revealed that pay satisfaction influenced both organisational commitment and turnover intention of employees. It was also found that only affective commitment mediates the relationship between pay satisfaction and turnover intention; whereas normative and continuance commitment have no mediating effect. Therefore, industry managers and entrepreneurs are called upon to increase the pay satisfaction of their employees to upgrade their retention inside their organisation.