Assessment of the Mediating Effects of Compensation and Benefits on the Relationship of Job Satisfaction and Employee Retention Among Millennial Employees in BPO Call Center in Metro Manila: The Case of Infocomtech

• Main Authors: Inza-Cruz, Reanna Ericka D., Pasion, Allysa C., Tiu, Roxanne K.
• Format: text
• Published: Animo Repository 2022
• Subjects: compensation and benefits; job satisfaction; employee retention; millenial; BPO call center; Business
• Online Access: https://animorepository.dlsu.edu.ph/conf_shsrescon/2022/bus_research/13; https://animorepository.dlsu.edu.ph/cgi/viewcontent.cgi?article=1055&context=conf_shsrescon
• Institution: De La Salle University

Over the past decade, the Business Process Outsourcing (BPO) industry in the Philippines has experienced significant growth. However, the industry continues to experience high attrition rate. At this time, majority of the workforce in BPO call centers are millennials and observably, their level of job satisfaction deviates from the older generation. The main objective of the research is to assess whether compensation and benefits have a mediating effect on job satisfaction and employee retention particularly, among millennial employees in the BPO call centers in Metro Manila. This can potentially benefit not only BPO call centers but individual employees and industry. The researchers used a quantitative methodology approach through an online survey. Mediation analysis was done along with regression and correlation analysis to assess the relationship and effect of independent to dependent variables. Non-probability convenience sampling was done since Infocomtech employees were identified as target respondents. The sample size was determined using Slovin’s formula arriving at 316 minimum target sample respondents from a population size of 1,500 millennial employees. The survey questions were sourced from related literature, and underwent a reliability test through the pilot survey conducted and Cronbach alpha testing. The statistical analysis done indicates values that reject the null hypotheses of the research although the mediating effect is not at full level. This leads to the conclusion that compensation and benefits may have a mediating effect on the relationship between job satisfaction and employee retention among millennials in BPO call centers like Infocomtech but only to a certain extent.