Impact of organizational culture and compensation on job satisfaction and employee retention: A case of pharmaceutical industry of Pakistan

Abstract

The study aimed to examine the effect of compensation and organizational culture on employee retention with the mediating role of job satisfaction in the pharmaceutical sector of Pakistan. Based on survey methodology, the study has gathered 338 responses from SC professionals and executives of pharmaceutical firms in Karachi. The purposive sampling technique was used to choose samples. PLSSEM was used for data analysis through Smart PLS v3. The results showed that job satisfaction has a significant positive effect on employee retention, whereas compensation also has a significant positive effect on job satisfaction. Likewise, organizational culture has a significant positive impact on job satisfaction. In contrast, payment and OC positively and indirectly affect employee retention by mediating job satisfaction. Managers should implement creative and enticing compensation strategies to retain employees and inspire them with various rewards to enhance the individual effort. They should also be aware of the factors that increase ER and raise JS, such as the work environment.