LINKS AMONG TANGIBLE REWARDS, INTANGIBLE REWARDS, AND TURNOVER INTENTIONS: A MULTI-LEVEL STUDY IN THE ICT SECTOR

Abstract

This multi-level study explores the links among instead of between components of total rewards and the intention to leave among staff employed by information and communications technology (ICT) companies in Canada. We measured employee satisfaction with components of their tangible rewards (salary and benefits) and their intangible rewards (e.g., recognition, training, development). At the organizational level, we measured tangible rewards by dividing the payroll by the number of employees. The study was conducted through a questionnaire distributed to 223 employees working for 21 Canadian ICT companies. Results confirm that the higher the employees’ satisfaction with intangible rewards, the fewer they express an intention to leave their employer. In addition, employees who work for firms offering them a relatively “low” or “high” average salary per employee express less intention to leave their jobs than those employed by firms with “average” value wages. Finally, the negative relation between employee satisfaction with intangible rewards and their intention to leave is stronger among employers with “low” or “high” payrolls per employee than in those where it is “average”.