Abstract:
Organizations today face challenges in retaining skilled employees due to the impacts
of globalization and digitalization. This led to a growing emphasis on employee
retention strategies, particularly through rewards and recognition. This study
investigates how reward management practices influence employee retention within
the Expectancy Theory (ET) framework. The research examines a sample of 140
clerical-level employees in the apparel manufacturing sector at the Mawathagama
BOI Zone in Sri Lanka. Through a structured questionnaire, the study evaluated key
variables including career development, promotion opportunities, remuneration, and
their impact on employee retention. These variables were measured on a 5-point
Likert scale, and the data were analyzed using statistical methods in SPSS Statistics,
Version 26 ensuring the reliability and validity of the instruments used. This study
provides new insights into employee retention in Sri Lanka's apparel sector by
examining the specific impact of reward management practices through the lenses of
Expectancy Theory. The results reveal that career development, promotion, and
remuneration significantly influence employee retention, with career development
demonstrating the most substantial impact, while remuneration has the least effect.
These findings underscore the critical importance of prioritizing career development
and promotion within HR policies and organizational strategies. By emphasizing
these aspects, organizations can foster a more supportive work environment, which
in turn enhances employee retention and satisfaction.
