How Job Satisfaction Mediates between Compensation and Worker Retention

Compensation and job satisfaction are among the variables that determine worker retention. The literature indicated studies that investigated how compensation affected worker retention. However, investigations on the mediating role of job satisfaction in the relationship between compensation and worker retention in work organisations were scanty. It prompted an investigation, in this regard, in a Nigerian company. A survey was conducted for the study. The questionnaire was used for data collection. The sample size was 347 employees selected by a simple random sampling technique. Data collection was on a four-point scale, from strongly disagree, 1, to strongly agree, 4. Regression technique was used for data analysis. The results indicated positive effect of compensation on worker retention; positive effect of compensation on job satisfaction; and a partial mediation effect of job satisfaction between compensation and worker retention. Given the indicated results of the study, conclusion was drawn. It indicated a need for adequacy of compensation factors such as such basic pay, fringe benefits, allowances, and monetary incentive as well as the importance of making factors that increase satisfaction with job available such as admirable workplace, educational sponsorship, and other opportunities for workers’ growth available. These factors would enhance the chances of maintaining high rates of worker retention.