Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-7, 2017
ISSN: 2454-1362, http://www.onlinejournal.in
Effect of Non-Monetary Rewards on Employee
Retention with a Mediating Role of Motivation
in the Banking Sector of Pakistan
Imran Khan1, Syed Kashif2, Dr Ashfaq Ahamd3, Dr Anwar ul haque4
1
Department of Management Science, Lecturer at Superior College Sialkot, Pakistan
2
Department of Management Sciences Lecturer at Superior College Sialkot, Pakistan
3
Department of Management Sciences University of Gujrat Pakistan
4
Department of Management Sciences University of Gujrat Pakistan
Abstract-This study was conducted in the Private
corporate Banking sectors of Pakistan to highlight
importance of the non-monetary rewards in terms
of their effectiveness as well as efficiency. The
purpose of this study was to find out the effects of
various non monetary rewards on the employee’s
retention along with the mediating role of
motivation as well as to what extent the banks are
taking care of this source of employee motivation.
The various independent dimensions included
opportunity for career advancement, development
opportunity and recognition. Questionnaire
contents were adopted from Paul E. Spector
employee recognition program handbook. 253
respondents filled the questionnaire out of 325
respondents from banking employees and the
response rate was 77 percent. Non probability
sampling was applied and Spss version 16.0
software was used to analyze the data for
descriptive and inferential statistics. The results
showed that all the variables were significantly
correlated to each other and have positive
correlations with very high r values. The
regression analysis showed that there was a
significant relationship among the Independent,
Mediating and Dependent Variable.(Baron and
Kenny, 1986) method was applied for mediating
testing and the results of regression showed that no
mediation was taking place in the relationship of
independent and dependent variables. This
research can be supportive and fruitful for HR
managers in banking corporate sector by designing
an effective compensation package to retain their
competent employees. Management can improve
the use of effective non-rewards compensation
system during the process of their performance
management to motivate their employees.
Index Terms- Opportunity for Career
Advancement, Development Opportunity,
Recognition, Motivation, Employees Retention
Imperial Journal of Interdisciplinary Research (IJIR)
1. INTRODUCTION
1.1Background of the Study
Awareness regarding rights and duties among
employees is enhancing very rapidly day by day
with the flourishment of the concept of HR in
Pakistan. In Pakistan’s economy the service sector
has started to nurture recently therefore among the
financial market banking sector is one of the most
growing service sector in Pakistan. Services sector
is trying to provide quality service to the customer
which is the ultimate and definitive goal of
banking. Due to exhaustive inflow of multinational
banks in Pakistan, introduction of an innovative
culture in the banking sector regarding
performance based rewards system is being
launched. This also has brought higher, increases in
income level, employment opportunities, and
changes in consumption pattern and consequently
there emerges a competitive environment in the
service sector industry.
Taken as a whole the triumph for any organization
is implied in achieving its strategic objective and
goal, this can be achieved while relying and
focusing on motivation level of its employees,
motivation which is considered as an energetic
intrinsic force and drives through our action and
conduct. So, most people join those organizations
which provide non-monetary rewards which keep
them motivated to perform more than their ability
to perform. For this purpose incentive programs,
while considering them the most attractive schemes
to motivate and retain the workforce, are being
launched by many organizations. It has been found
out through research that many organizations are
investing billion of rupees on employees, retention
through incentive schemes. To assemble a long
lasting alliance and association with an
organization, the necessary thing for an employee
is that they must be committed with it and [1]
generate new thoughts and ideas regarding
organizational service. A “McKinsey Quarterly”
study established that motivation program must be
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ISSN: 2454-1362, http://www.onlinejournal.in
launched to motivate employee, therefore almost
70% organizations plane for motivation
programmed to motivate their employee [2].
1.2 Non-Monetary Reward
[3] “Total reward” which includes not only
monetary incentives and rewards but also employee
training and development scheme, career
enhancement opportunities, and non financial
recognition. Whereas non-monetary gains are
concerned, these create influence on employees of
organization and in the form of giving more
responsibilities, promotion, praise and recognition
in front of public [4]. [5]Non-monetary rewards or
recognition proves to be a better motivator than
money. In this study it was observed that money
alone is not the only way to motivate high
performance [6] bur also preferred by those
employees who are well establish and have some
sound position [7] and are highly qualified in the
organization.
Dzurnain & Stuart [8] recommended that the level
of organizational performance in employees can be
raised by giving them both monetary and non
monetary rewards. Although level of motivation
due to rewards is different for different employees,
some of them prefer financial rewards over
nonmonetary rewards while other prefers non
monetary rewards over financial rewards. So if
organizations want to retain its employees these
must enhance the motivation level of its employees
by offering them both types of rewards although
some one prefer one type of rewards over other.
But in our study, it was also focused and
recommended that by using effective and decisive
non financial reward system in organization, it can
achieve its utmost objectives to the great extent
which will also persuade employees, behavior
together with his association with his organization
[9] to enhance the employee commitment and
performance the role of non-financial rewards is
very high, he is follower of the notion that “ total
reward says that there is more to rewarding people
than throwing money at them”.
1.3 Research Problem
In the present era it is noteworthy that due to such
existing good economic conditions retention may
be lower due to heavy competition and more
employment opportunities are available in the
market. Although (Kumar and Arora[10] focused
that the basic point of issue which is being realized
and also dilemma for most of the organization’s
administrators and managers is that, the shortage of
talented employees and brain drain from their
organization. Having efficient and competent staff
become the competitive advantage for any
organization now. Utmost thing is that existence of
organization is possible due to availability of
Imperial Journal of Interdisciplinary Research (IJIR)
effective and efficient workforce capital. It’s all
due to employees are considered to be a significant
asset towards the attainment of organizational goals
in both the public and the private sector. De-
motivated or less motivated employees are
probably will insert little bit or no effort in their
jobs and show less interest in their performance,
and produce low quality work, number of
absenteeism will be increased , turnover intention
will be increased also. On the other hand,
employees who are highly motivated and loyal will
perform their work with great zest and zeal, which
would likely to be determinant, innovative and
competent enough. Bettencourt and Brown [11]
observed that for furtherance of employee’s
motivation and productivity an effective non
financial reward system is necessary which
contributes for enhancing commitment and
ultimately these employees play an important role
in ensuring for delivering service quality.
Ondimu [12] conducted a study at OXFAM
(Oxford Committee for Famine Relief )
international , to check the effect of carrier
development on employee commitment and
retention, they observed that implementation of
carrier development program, enhanced employees,
willing to work with and retention at OXFAM.
Danish & Usman [13] are of the view that on
implementation of effective rewards and
recognition system within an organization, a
favorable working environment is created which
motivates employees to get excel form others in
their performance. Shujaat & Alam [14] have
found and supported in their study that Non-
monetary rewards and effective recognition has a
significant positive impact on job related
motivation level of employees of banks. Before
than that, a study conducted by Lock & Latham
[15] found that motivation can also be achieved not
only by non-financial rewards but also recognition
like personal growth, achievement, praise,
responsibility etc. In this study it was found that
non-financial reward will depict overall fairness in
process of reward distribution and will also create
perception in mind about reward, which will lead
towards employee motivation to carry on work.
Many studies have been conducted on the
employee retention and rewards while this under
taken study specifies various dimensions of
rewards in order to find out the extent to which it
influences commitment. It therefore aimed to
answer the question: What effect of Non Monetary
rewards on employee’s retention in banking sector
of Pakistan.
1.4 Research Objectives
This research has the following objectives
 To examine the effect on non monetary
rewards on employees retention
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ISSN: 2454-1362, http://www.onlinejournal.in
 To examine the effect of opportunity for
career advancement on employees
retention
 To examine the effect of Development
opportunities on employees retention
 To examine the effect of recognition on
employees retention
 To examine the mediating effect of
motivation on the relation between non
monetary reward and employees retention
 To examine the mediating effect of
motivation on the relation between
opportunity for career advancement and
employees retention
 To examine the mediating effect of
motivation on the relation between
development opportunities and employees
retention
 To examine the mediating effect of
motivation on the relation between
recognition and employees retention
1.5 Significance of the Study
The findings of this study would be advantageous
to promote management of banking sector of
Pakistan which will also enhance the ability to gain
insight about their concerned organization, that,
how the policy makers will come up with well-
versed policies and decision making on rewards
for keeping and retaining workforce motivating, in
their concerned institutions. The longer employee’s
retention within an organization, the more valuable
they will be in terms of seniority, knowledge and
skill
This study will ponder over the importance of
maintaining an effective reward system that will
bequeath and endow with the preferred results and
competitive advantage in the present era of
upbringing competitive business environment.
More significantly, the finding of this research will
also contribute to the literature on the very
interesting and attractive topic on non financial
rewards in developing countries. Moreover the
findings of this study will be valuable to
academicians, who may be able to find a useful
research gaps that may stimulate interest in further
research in future.
1.6 Research questions
 To determine the effect of non monetary
rewards on employees retention
 To analyze the effect of opportunity for
career advancement on employees
retention
 To examine the effect of Development
opportunities on employees retention
 To find out the effect of recognition on
employees retention
Imperial Journal of Interdisciplinary Research (IJIR)
 To test the mediating effect of motivation
on the relation between non monetary
reward and employees retention
 To analyze effect of motivation on the
relation between opportunity for career
advancement and employees retention
 To evaluate the mediating effect of
motivation on the relation between
recognition and employees retention
 To determine the mediating effect of
motivation on the relation between
development opportunities and employees
retention
2: LITERATURE REVIEW
2.1Theoretical Foundation
Kilbourn [16] posits that the in the perspective of
theoretical research, the theoretical interpretation is
crucial.
2.1.1Expectancy Theory of Motivation
According to vroom’s expectancy theory of
motivation, there is a strong link between
performance and reward, so employees are more
likely to be motivated when they perceive and
expect that their performance will follow reward
[17] which is the strength and attractiveness of
individual’s expectation and determines one’s
motivational soundness[18]. According to
Expectancy Theory performance depends upon
high motivation, possession of necessary skills,
ability to understand and perform appropriate role
[19] and motivation depends on attractiveness and
probability of obtaining those rewards [20].
2.1.2 Equity Theory
Equity theory dealt with perspective of
organizational justice, where the individuals realize
that whether they are being treated fairly at work or
not and that influence on level of effort of
employees at a given working environment.
Marshall et al.,[21] posits that employee not only
evaluates the fringe benefit they acquired from
their employer but also compare and measures it
with employees within organization and outside
organization. If he observes imbalance in the input-
outcomes ratio he becomes de motivated.
2.2 Non-Monetary Rewards
Farooq and Khan [22] conducted a study on impact
of rewards on employee motivation, according to
which it was found that there is positive significant
relationship between rewards and employee
motivation. According to their findings, motivated
employees are more enthusiastic and productive in
their performance. Not only this, they will perform
more than their ability to perform. In contrast to
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Vol-3, Issue-7, 2017
ISSN: 2454-1362, http://www.onlinejournal.in
this study [23] with the linkage of other literature
of human resource practices, he has been able to
find out that for better performance of employee
money is not only a best motivator. This point of
confliction has consistency with Maria Paviour on
her discussion on very critic topic of employee
management. She forced and put stress on the way
of rewarding and paying people because it is
proved through previous research that larger and
better bonuses do not motivate employee. Bonus
instead of creating innovation in organization these
brings low performance level in employee [24].
2.3 Opportunity for Career Advancement
Since employees ought to have appreciation and
recognition for the goal achievable effort he has
done. Indeed, even the most experienced and
knowledgeable employee desires that he should be
notified that he is doing well [25]. Absence of job
having no real future opportunity for advancement
and promotion chances through pre-eminence or
otherwise may bring about disappointment which
results in dissatisfaction that simmers in an
employee’s mind until he finally leaves [26][27]
and that if there are ample opportunities for
personal as well as professional growth for him
satisfaction level will be increased [28][29]
because satisfaction with promotion provides
opportunities for personal growth, more
responsibilities and increased social status also that
Promotional chances reduce turnover intention
[30].
2.4 Development Opportunities
Training and development to employees cause
widen their abilities and knowledge to perform
more efficiently at individual and team level than
those employees who do not get self-development
training [31]. Career development is a workforce
development and well thought out approach which
is used to attain individual goals in compliance
with organizational needs [32]. Employee
development in any establishment cause enhance
employee’s morale, confidence, motivation,
lowering cost of production by better and
economical using organizational resources and
decreasing waste Cole et al., [33] in addition he
observed that training and development of
employees reduce turnover.
2.5 Recognition
Recognition is the exhibition and revelation by
appraisal of performance, in the contribution and
achievement of an objective which is influential
and commanding tool for any organization for
motivation and retention of employee [34] such
recognition can be formal or informal, expressed or
implied. Individuals want to enlighten and
celebrate their achievements with others and when
this need is satisfied, it works as a tremendous
motivator. In the same stream, Mason [35] find out
Imperial Journal of Interdisciplinary Research (IJIR)
in his study that motivation, retention of employee
and recognition is influential and commanding tool
for any organization. Recognizing the efforts of
highly qualified and talented employees is very
convenient and economical tool strategy, so
organizations must adopt recognizing policy. [36]
Relationship between rewards, recognition and
motivation at an insurance company in the Western
Cape, indicated towards a study conducted by the
US Department of Labor; in which main causes of
turnover was highly enlighten. Their Study
proposed that almost 47% of employees left their
jobs because appreciation was not given to them.
2.6 Motivation
Motivation is the intrinsic force and a
psychological phenomenon that drives from the
stimulation, direction, and persistence of behavior
[37]. Savaneviciene and Stankeviciute [38] find out
in his study the basic and utmost factor, which
determine intention of employee (both level of
manager and non manager) whether he should stay
or leave his organization, is motivation. According
to Cristescu et al., [39] employee of the
organization can be motivated either intrinsically or
extrinsically; to the extent of intrinsic factors of
motivation are concerned these exhibit relation
among different factors of individual behavior and
work with his perception, feelings and expectation
where as Extrinsic motivations are concerned, these
are based on relation among individual with his
organization. Any organization can achieve
extraordinary performance if their employees are
well committed and motivated.[40][41] highlighted
that to meet particular objectives organization
implements merit pay system to reward employees,
which create high influence on motivational level
of an employee.
2.7 Employee Retention
According to Cran [42] keeping in view the
apparent randomly changing economic situation
and employee’s attitude the biggest and prevalent
challenge for an organization is to continuously
keeping up focus on retention policies and
procedures [43] for top talented and valued
employees [44] for meeting organizational goal
successfully and without whom organization’s
strategic mission becomes impossible to achieve
and whose replacement is very difficult [45].
Employees are not satisfied they will not retain in
that organization rather quit, because retention is
combination of mutual harmony among employee
and employer which arises without any threat or
coercion [46]. Mullins [47] scrutinizes employee
retention succinctly by giving self respect to
employees while at work. It was stated by Cran
[48] that people do not leave their jobs they leave
their leaders, so leaders must improve their
leadership skill.
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2.8 Non-Monetary Rewards and Employee 3: RESEARCH METHODOLOGY

Retention
Organization must focus on those strategies of 3.1 Sampling technique
rewards and recognition due to which motivational About 325 sets of questionnaires were distributed
level of employee raises, with high rate of among the banking employees of different cities
employee retention [49]. Correspondingly, and in total 253 responses were obtained. The
Employee retention problem can be solved by response rate was 77%. Non-probability sampling
adopting various proactive retention policies and techniques have been used for this research through
procedure [50]. Parry [51] stated in his study that survey samples which is important tool in
those organizations, who invest money on their analyzing data from selected individuals and are
employees, save much more and can enhance both widely accepted as a key tool [52] [53]. Five point
employee motivation and employee retention. Likert scale is used ranging from Strongly
2.8 Theoretical Model Dissatisfied to Strongly Satisfied. Questionnaire
contents were adopted from [54] and “Employee
recognition program handbook” developed by
department of human resource management of
NON-
MONETARY (Virginia, 2000). To test mediation hypotheses
REWARADS Baron and Kenny, 1986 [55] analysis was used,
which was used and cited frequently in the modern
Opportunity for EMPLOYEE psychological literature, according to the Science
career RETENTION
advancement MOTIVATION Citation Index [56].

Development 4: DATA ANALYSIS

opportunities
4.1 Descriptive Statistics
Recognition
This part proposed to cover insights with respect to
descriptive analysis of the demographic properties
of the sample of this study, comprised of 253
2.9 Hypotheses
respondents among of which 183 male and 70
H1: There is significant relationship between female respondents. Descriptive analysis
Opportunity for career advancement and incorporates data with regards to gender, age,
Motivation designation and experience status of the
H2: There is significant relationship between respondents with their Mean value.
Development Opportunity and Motivation The various parts of descriptive statistics for this
H3: There is significant relationship between study are discussed in detail below.
Recognition and Motivation The following table provides the Demographic
H4: There is significant relationship between profiles of Respondents
Opportunity for Career Advancement and Table 4.1
Respondent’s Demographic Mean
Employees Retention
Frequency Percentage
H5: There is significant relationship between
Development Opportunity and Employees Gender
Retention Male 183 72.3

H6: There is significant relationship between Female 70 27.7

Total 253 100 1.28
Recognition and Retention Age Under 30 68 26.9
H7: There is significant relationship between years

Motivation and Employees Retention

H8: There is mediating impact between, 30-39 85 33.6
Opportunity for Career Advancement, Motivation 40-49 100 39.5
Total 253 100 2.13
and Employees retention Designation 9 3.6
H9: There is mediating impact between General
Development Opportunity, Motivation and Manager

Employees retention Manager 46 18.2

H10: There is mediating impact between Deputy 64 25.3
Manager
Recognition Motivation and Employees retention Assistant 134 53.0
Manager
Total 253 100 2.95
Experience 10 years 44 17.4

Less than 10 135 53.4

years

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More than 10 74 29.2

years
The outcomes from the analysis demonstrate that
Total 253 100 2.12 every one of the variables is positively related with
one another. There is a positive correlation among
4.2 Inferential Statistics different variables and this is in accordance with
For this study inferential statistics was applied the hypothesis of this study. Case in point there is
which covered many different following areas such that there is a moderate positive correlation among
as. opportunity for career advancement and Motivation
The reliability analysis of the variables was with a value of 0.629 which falls in between - 1
performed in SPSS and the outcome was as per the and +1. This demonstrates when Opportunity for
following. The table portrays the under research career advancement increases Motivation will also
Cronbach Alpha values for the variables increase because the significance value for this
Table 4.2 situation is 0.00 which is under 0.05. There is
No. Dimension No of Cronbach likewise an exceedingly positive correlation
items alpha between the relationship of Development
1 Opportunity for Career 5 0.898
Advancement (OCA) opportunity and motivation with a value of 0.949.
2 Development 6 0.911 Likewise a profoundly significant relationship
Opportunities(DO) exists among Recognition and Motivation with a
3 Recognition (REC) 5 0.945 value of 0.969. In the same way Motivation and
4 Motivation (MOT) 6 0.972 Employees Retention has a high positive
significant connection with one another with a
5 Employees Retention 5 0.933
(ER) value of 0.985. It negates that as motivation
increases; Retention additionally tends to increase
The results of the reliability analysis demonstrate in a positive course. The correlation among the
that every one of the variables for this study have a independent variables and the dependent variables
value of cronbach alpha higher than 0.7 which is were additionally measured and the outcomes
essential for any instrument to be a valid for a demonstrate that there is a moderate correlation
specific study. Fundamentally cronbach alpha is a among opportunity for career advancement and
measure of internal consistency in a given study. Employees Retention with a value of
4.3 Correlation Matrix 0.624.Similarly there is likewise a positive
The table 4.3 demonstrates the results of correlation among Development Opportunity and
correlations and is examined in point of interest Employees Retention with a value of 0.948, there is
underneath. profoundly correlation among Recognition and
Table 4.3 Employees Retention with a value of 0.970.
4.4 Regression Analysis
Opport The underneath table demonstrates the results of
unity regression for dependent and independent
Empl for Develo
variables.
oyees career pment
Motiv Reten advanc opport Recog Table4.4
ation tion ement unity nition Model Summary
Motiva 1
tion No. Items Values
1 R 0.978
Emplo .985** 1
yees
2 R SquareR2 0.965
Retenti
on
3 Adjusted R Square 0.97
Opport .629** .624** 1
unity 4 F-Value 181.024
for
Career 5 Sig ( p-value) Anova 0.000
Advanc
ement
Develo .949** .948** .637** 1
pment The outcomes above demonstrate the values of R,
Opport R squareR2 , Adjusted R Square, F- value and the
unity Sig Value which has been derived carefully from
Recogn .969** .970** .608** .969** 1 the analysis of Variance table (Anova Table). In the
ition model R Value speaks to the basic correlation and
for this situation it is 0.978 which is high and it
speaks to a high level of correlation. The R2value

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Imperial Journal of Interdisciplinary Research (IJIR)
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ISSN: 2454-1362, http://www.onlinejournal.in
or the R Square Value demonstrates the aggregate
sum of variation in the dependent variable that can
be observed due to the independent variables. By
results the change is 0.965 which means that 96.5
percent variation in the dependent variable can be
explained by the independent variables. The
adjusted R square Value is acquired subsequently
by expelling certain variances from the
independent variables. The F- value or the F-
statistics has a value of 181.04 and the sig (p-
Value) acquired from the Anova yield is 0.000
which expresses to be good fit of the model.
Table 4.5 then again explains the standard Error,
the t values, the beta values of regression, and the
sig (p-values) for testing the hypothesis of our
study. The coefficients table is appeared below
with examining the detailed of results in point of
interest.
Table 4.5
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta
1 (Constant) - .929
.641
DO .236 .059 .369
MOTV .180 .070 .279
OCA .340 .080 .371
REC - .089 -.294
.390
a. Dependent Variable: Employee Retention
The unstandardized coefficient elaborates the level
of difference in dependent variable with an
independent variable, while keeping all other
independent variable constant. For instance it can
be elaborated that by increase in Development
Opportunity there is an increase of 0.236 in the
level of Employees Retention. Likewise it can be
translated that for a comparative increment in the
levels of Recognition there is 0.390 level of
reduction in employee's retention. Beside from one
Independent variable recognition which has a
negative B Value all other independent variables
have a positive B Value. It can be seen that for all
the independent variables (p < 0.05). It
demonstrates that there is a significant impact of
these independent variables on the dependent
variable.
The regression results demonstrated that p Value <
0.05 which permits us to dismiss the null
Imperial Journal of Interdisciplinary Research (IJIR)
hypothesis and acknowledge H: 1 which expresses
that there exist significant relationships among
these two variables of Opportunity for Career
Advancement (OCD) and Motivation (MOTV).
Development opportunity and motivation had a p
Value under 0.05 i.e. p < 0.05 which
The p Value for Recognition (REC) and Motivation
(MOTV) was found out to be less than 0.05 p <
0.05 which permitted to acknowledge the substitute
hypothesis H: 3 which expressed that “there is a
significant relation among Recognition (REC) and
Motivation (MOTV)”. Regression was run again to
test for H: 4 and p value was again less than 0.05 p
< 0.05 which proved the hypothesis 4i.e “there is
significant relationship between Opportunity for
career advancement and Retention”. Whose R
square value was 0.489 which depicted that 48.9
percent change in dependent variable can be
interpreted by Employees Retention(ER). Finally it
can be found out that there exist a significant
relationship between independent variables and
mediator. Once again Regression was applied for
testing H:5 i.e, “there is a significant relationship
between Motivation and Employees Retention”.
The outcomes demonstrated that p < 0.05 which
proved H: 5 and rejected the null hypothesis.
Regression was again applied to find out the
t Sig.
-.679 .489
significance level among two variables these are
Independent and Dependent variable however this
time Mediating Variables was not included. The
3.851 .000 outcomes demonstrated a significant relation
among all Independent and Dependent variables
2.710 .000
because Independent variables had p < 0.05. So all
4.711 .000 the hypothesis arranged from H: 6 to H: 9 were
accepted, while rejecting Null hypothesis. Finally
- .000
4.245
the outcomes demonstrated that there was a
significant relationship between the independent
variables and the dependent variable.
Baron and Kenny analysis (1986)
Table 4.6 shows the results of regression for testing
the first (H1) assumption.
Table 4.6
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta t Sig.
1 (Constant) -4.429 1.223 -3.622 .000
OCA 1.201 .066 .831 18.174 .000
a. Dependent Variable: Motivation
In the above table 4.6 Motivations (Mediator) has
been kept as the dependent variable while on the
other hand opportunity for career advancement as
the independent variable. Results from the above
table demonstrate that value of p < 0.05, which
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demonstrates that there is a significant and positive 1 (Constant) .187 .421 .451 .659
relation among Opportunities for Career
MOTV .580 .029 .899 25.171 .000
Advancement (OCA) and Motivation (MOTV). In
a. Dependent Variable: Employees Retention
this way first assumption is fully satisfied.
Table 4.8 shows results of Regression for the First
(H2) assumption. For proving the second presumption Mediating
Table 4.7 variable Motivation is considered as independent in
Coefficientsa the box of regression whereas Employee’s
Retention is considered as dependent variable. The
findings demonstrate that there is a positive and
Unstandardized Standardized significant relationship among two above said
Coefficients Coefficients
Std.
variables Motivation and Employees Retention as p
Model B Error Beta t Sig. < 0.05. Hence the second assumption of Baron and
1 (Constant) - 2.612 -4.016 .000 Kenny is also proved.
10.478
Findings of the test are summarized in the table
DO 1.351 .127 .671 10.731 .000 4.10 which shows the regression for the third
a. Dependent Variable: Motivation assumption of Baron and Kenny test.
Table 4.10
In the above table Motivation stays as the Coefficientsa
dependent variable and Opportunities for Career
Advancement is supplanted by Development
Opportunity. Results demonstrate that value of p <
0.05 which demonstrates that relationship is highly Unstandardized
Coefficients
Standardized
Coefficients
significant and positive in this way first part of Std.
hypothesis is acknowledged. Model B Error Beta t Sig.

Findings of the test are summarized in the table 4.8 1 (Constant) -.384 .949 -.412 .691
which shows results of regression for the First (H3) OCA .370 .041 .591 10.899 .000
assumption. DO .417 .067 .452 6.145 .000
Table 4.8
Coefficientsa REC -.478 .086 -.368 -5.499 .000
a. Dependent Variable: Employees Retention

The dependent variable Employee’s Retention has

Unstandardized Standardized
Coefficients Coefficients a significant impact with all the Independent
Std. variables as p < 0.05 in every one of the cases.
Model
1 (Constant)
B
1.340
Error
.511
Beta t
2.662
Sig.
.004
Hence, the third assumption that “there is a
significant relationship between Independent and
REC .930 .031 .939 33.471 .000
Dependent variable” of Baron and Kenny test is
also proved after applying its test.
a. Dependent Variable: Motivation After fulfillment of all the assumption of Baron and
Kenny now, Mediation Model will be tried to apply
As per the table indicated, it can be concluded that with the help of Regression Analysis. After
Motivation has significant impact on Recognition applying Regression analysis, in case any
because p < 0.05 which depict significant relation insignificant results appear by running regression
between variables, so part of assumption is also then it would be a complete Mediation otherwise
satisfied. this Mediation Model would be strongly rejected
The Regression Analysis shows that the first which mean to rejection of hypothesis from H:8 to
assumption is entirely satisfied, proposed by H:10 and accepting of Null hypothesis. Now after
(Baron and Kenny, 1986). applying Regression analysis we came to this
Findings of the test are summarized in the table 4.9 conclusion there is a mediation effect of Motivation
which shows the results of Regression for the (Mediator) on both OCA, DO, REC (Dependent
second assumption. Variable) and Employee Retention (Independent
Table4.9 Variable).
Coefficientsa Table Findings of the test are summarized in the
4.11 which demonstrates the findings for the first
Unstandardized Standardized Regression analysis.
Coefficients Coefficients
Std.
Model B Error Beta t Sig.

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ISSN: 2454-1362, http://www.onlinejournal.in

Table 4.11 4.13

Coefficientsa

Coefficientsa
Unstandardized Standardized Unstandardized Standardized
Coefficients Coefficients Coefficients Coefficients
Std. Std.
Model B Error Beta t Sig. Model B Error Beta t Sig.
1 (Constant) - .591 -3.333 .001 1 (Constant) -1.639 1.004 -1.654 .103
1.971
MOTV .422 .040 .676 11.018 .000 MOTV .523 .029 .829 18.754 .000

OCA .270 .057 .290 4.799 .000 REC .127 .070 .092 2.012 .051

a. Dependent Variable: Employees Retention

As per the findings of the table 4.11 which
demonstrates that both variables Motivation
(Moderating) and Opportunity for Career
Advancement (Independent variable) mutually
have significant affect on dependent variable
Employee’s Retention and no change can be seen
in significance level as p < 0.05 which remains as it
is. Therefore the hypothesis H:8 will be dismisses
and its null hypothesis will be acknowledged,
which states that there is no mediating effect of
Motivation on the relationship of Opportunity for
Career Advancement and Employees Retention.
Table 4.12 shows the results of regression for the
mediating analysis.
Table 4.12
a. Dependent Variable: Employee Retention
Table 4.13 demonstrates the consequences of
Regression which depicts the mediating impact of
Motivation between Recognition and Employees
Retention. In spite of revealing higher significance
value even then it less than 0.05 this means p <
0.05. As compared to previous value of 0.00 it is
0.51 even then mediation is not found out.
Therefore the hypothesis H: 10 that “there is
significant relationship exist between Motivation,
Recognition and Employees Retention” will be
dismiss for this situation and its null hypothesis
will be acknowledged that is “there is no mediating
impact of motivation on the relationship of
recognition and employees retention”.

5: CONCLUSION & RECOMMENDATION

5.1 Conclusion
Coefficientsa The study comes to this conclusion that Career
Development, Development Opportunities offered
Unstandardized Standardized and Employee Recognition are the devices that
Coefficients Coefficients
administration of any organization can use to
Std.
Model B Error Beta t Sig. motivate and inspire employees in order to achieve
1 (Constant) .045 .408 .104 .898 organizational goal in a well efficient way. From
this study it can be effectively derived that Non
MOTV .388 .070 .616 5.600 .000 Monetary Rewards matters a great deal and ought
DO .193 .068 .317 3.017 .004 to be considered by both employers and employees
as well.
a. Dependent Variable: Employee Retention
The findings of this study also concluded that
The results of table 4.12 demonstrates that employees who received Non-monetary Rewards
Motivation and Development Opportunity were retained at bank while others who did not
significantly affect Employees Retention and in receive non monitory rewards were not retained on
spite of this fact that there is a little bit difference their duties in the institution.
in the level of significance which is 0.04 so there is These findings also concentrated that employees of
no mediating impact of Motivation in the banking sector provide incredible quality services
relationship of Development Opportunity and on the basis of rewards honored to them which
Employees Retention, thus hypothesis H:9 will be enhance their level of motivation and Retention. It
rejected, which says “there is a significant relation is therefore presumed that employees give
between Development Opportunity, Motivation extraordinary worth to the distinctive non-monetary
and Employees retention” and its null hypothesis rewards given to them by their managers. Thus,
will be acknowledged which expresses that there is when these rewards are not given, employees tend
no mediating impact of Motivation on the to express disappointment through non-retention to
relationship of Development Opportunity and their jobs.
Employees Retention. The discoveries of this study concentrate in these
Table 4.13 shows consequences of Regression for words that “employees who got Non-Monetary
testing the mediating between Motivation, Rewards from their Banks on their well
Recognition and Employees Retention. performance do not leave their organization as
compared to employees who do not get non

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Imperial Journal of Interdisciplinary Research (IJIR)
Vol-3, Issue-7, 2017
ISSN: 2454-1362, http://www.onlinejournal.in
monetary rewards are not well committed with
their Bank.
5.2 Recommendations
The after all effects and conclusion of this
examination could provide advantages to top
management and policy maker. The study suggests
that since Career Development opportunities
affected, Employees, Retention, so every service
associations would adopt the policy of bestowing
the chances of Career Development to their
employees as it positively affects retention, by
broadening this examination in different
administrative commercial enterprises like
Telecom, Hospital, Hotel industry and so on.
The study has investigated the impact of Non
Monetary Rewards on Employee Retention with
the role of Motivation as mediator in Banking
sector of Pakistan to offer a comprehensive detail
on the significance of keeping up an effective
reward framework that could present an effective
output and also will prove to be a competitive
advantage in the present era of competition.
5.3 Limitations and Future direction
The accompanying are the limitations which have
been experienced during the study,
The study has been made in the territorial
jurisdiction of Pakistan; in those capacities this
study requires enough care and caution. Time and
financial resources were the basic limitations which
confined us within the vicinity of the certain cities.
Like checking the relationship there is need of time
to see the mediating effect of employee
engagement because employee engagement is a
temporal phenomenon. Also, there are more other
non-monetary rewards those could be concentrated
in this specific study, different analyst might need
to take other variables into account during their
study as there are chances of different findings than
these findings.
The respondents' reactions may be based on
individual’s biasness their state of mind and
inclination towards certain aspect.
Limited geographical location is also a constraint
for the analysis. It makes less affirmative
generalizability of concluded findings.
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