Understanding the Relationship and the Influence of Total Rewards Management on Employee Retention in Modern Organizations

Abstract

The paper of total rewards in relation to employee retention has developed into a multidisciplinary area, integrating insights from psychology, economics, sociology, technology, sustainability, green HR practices, ethics, and management. The focus has expanded from early concerns with job satisfaction and turnover to a more comprehensive understanding of the factors influencing employee retention. This paper critically reviews the existing literature to provide deeper insights into the relationship between Total Rewards Management (TRM) and employee retention. The study draws on theoretical frameworks such as Expectancy Theory, Herzberg’s Two-Factor Theory, and Social Exchange Theory to synthesize current knowledge. Being theoretical in nature, the paper relies on content analysis of secondary data collected from textbooks, scholarly journals, and reputable online sources. Ultimately, the paper contributes to a better understanding of the topic, offers practical implications for organizations, and identifies directions for future research in this area.