Effect of Compensation Packages on Job Satisfaction and Employees‟ Retention A Case of Jalalabad-based Private Universities of Afghanistan

The ratio of employees in private universities in Afghanistan move from one university to another university is more challenging than ever and could be as a result of not having proper remuneration system. The main objective of this research was to find out effect of compensation packages on job
satisfaction and employees’ retention. To achieve the purpose of the study, the researcher developed closed ended questionnaires consisting of 24 items and population of the study were both faculty and administrative staff of six private universities in Jalalabad city. 275 questionnaires were distributed, 257 were retrieved and 7 questionnaires were incomplete, therefore, 246 were valid which represent response rate of 89% of the sample and convenient sampling technique was used for data collection. Data was analysed using Statistical Package for Social Sciences (SPSS) version 20.0 for estimating regression and correlation models for testing hypotheses. The study found that compensation packages has significant positive relationship on job satisfaction and employees’ retention in private universities. The research suggested that compensation packages should be revised and updated according to the current labour market to attract, motivate and retain qualified employees for future success of academic institutions.

Keywords–Compensation, Job Satisfaction, Retention, and Private Universities.