Compensation and Benefits as Determinants of Teacher Retention: A Human Resource Management Approach

Abstract

This study titled “Compensation and Benefits as Determinants of Teacher Retention: A Human Resource Management Approach” explores the role of HRM practices in enhancing teacher retention in educational institutions. The increasing challenges of teacher turnover and workforce instability highlight the need to examine how compensation and benefits influence retention decisions. The objectives of the study were: (1) to examine the level of compensation and benefits provided to teachers, (2) to assess teacher retention levels, and (3) to determine the relationship between compensation, benefits, and teacher retention. A quantitative correlational research design was adopted to analyze relationships among variables without manipulation. The population consisted of approximately 12,000 to 15,000 teachers working in nearly 650 public and private schools in Islamabad, Pakistan. A sample of 300 teachers was selected using stratified random sampling technique, equally divided between public (150) and private (150) schools. A structured questionnaire based on a five-point Likert scale was used as the research tool. Content validity was ensured through expert review, while reliability was confirmed through Cronbach’s alpha value above 0.70 obtained from a pilot study of 30 respondents. Data were analyzed using SPSS through descriptive statistics, Pearson correlation, and regression analysis. The findings revealed that compensation and benefits were perceived at a moderate level, indicating partial dissatisfaction among teachers, and it was recommended that school administrations improve salary structures and introduce comprehensive benefit packages to enhance teacher retention. The significance of the study lies in its contribution to educational management by providing empirical evidence for policymakers, school leaders, and HR practitioners to develop effective compensation systems that improve teacher satisfaction, reduce turnover, and strengthen institutional stability.