Analyzing the role of monetary and non-monetary incentives in employee retention: An in-depth study on PRAN-RFL’s export department

Abstract

The internship report titled “Analyzing the Role of Monetary and Non-Monetary Incentives in Employee Retention: An In-Depth Study on PRAN-RFL’s Export Department” deals with the different ways that different types of incentives can affect the employee motivation and retention in one of the leading Bangladeshi conglomerates, PRAN-RFL Group. PRAN-RFL globally operates through more than 145 country and I had the opportunity to write the report during my three-month internship period in this leading company. The research was conducted based on the academic aspects of human resource management comparing with the everyday practice in the ever changing export department. The study uses both qualitative and quantitative data’s to understand the how monetary rewards such as, salaries, bonuses and commissions effects the non-monetory incentives such as employee recognition, training, upskilling, reskilling and career development affects on employee commitment, job satisfaction and retention. It is obvious that on the one hand monetary incentives attract and retain employees in the short run while on the other hand they do not create long-lasting loyalty. The use of non-monetary values like work-life balance, recognition and career growth opportunities turned out to be a crucial key for employee loyalty and retention. And on the other hand, Inconsistency in areas like how the incentive policies are applied and how they are communicated is seen as one of the main reasons why employees are not motivated to stay and leave the organization. The report also suggest the organization to start working on incentives, making them clear and use it as one of their key feature for employee retention. A system where career growth, appreciation and well-being initiatives among others would be considered alongside financial rewards. Incentives that are taking into account the company’s goals, non-monetary rewards that are the same across teams, and better HR communication can all lead to significant improvements in retention and employee satisfaction. To sum up, the research reveals that the sustainable retention of employees in PRAN-RFL's Export Department relies on an all-encompassing and well-thought-out incentive plan that not only caters to the financial desires of the employees but also supports their professional growth, gives them recognition, and secures their long-term commitment which are all very important for the company to keep its productivity and support in the global export market.