Organizational Psychology

Purpose. The purpose of the research is to investigate the effect of total rewards on retention. The scholar refers to Self Determination Theory to strengthen the assertion that retention is higher when employees experience satisfaction with total rewards. A mediation mechanism is proposed inwhich total rewards satisfaction leads to retention via needs satisfaction of “autonomy, competence and relatedness”. Methodology. This is a conceptual paper focussing on selected scholarly works publishedin various HR and OB journals over a period that provide theoretical support for the proposed model. Findings. The paper presents a model of total rewards and retention in which the constructs of total rewards satisfaction, need satisfaction for autonomy, need satisfaction for competence and need satisfaction for relatedness influence retention. The scholar offers several propositions to be empirically tested. The research questions are follows: 1) What is the impact of total rewards satisfaction on retention? 2) To what extent does total rewards satisfaction affects the needs for autonomy, competence, and relatedness? 3) To what extent do psychological needs as propose by Self Determination Theory impacts retention? 4) To what extent does Self Determination Theory’s need satisfaction mediate the relationships between total rewards satisfaction and retention? Originality. The paper adds to total rewards literature by extending the construct pay satisfaction by postulating an original relationship between total rewards satisfaction and retention. In this framework, need satisfaction for autonomy, need satisfaction for competence and need satisfaction for relatedness offer a unique perspective on the link between total rewards satisfaction and retention.