Compensation management and continuance commitment of employees in Nepalese commercial banks: The mediating role of career development opportunities

Abstract

Understanding the relationship among compensation management, career development opportunities, and employee continuance commitment is crucial for fostering a productive and engaged workforce. Organizations that excel in compensation management are more likely to invest in their employees’ career opportunities. This study aims to examine the influence of career development opportunities on the relationship between compensation management and continuance commitment among the employees of Nepalese commercial banks. To achieve this objective, data were collected from 404 respondents using a structured questionnaire administered through a convenience sampling technique. The respondents included employees at the manager, officer, and assistant levels working in different commercial banks. The collected data were analyzed using Process Macro 4 at a 95% confidence interval with 5,000 bootstrapping samples. The results indicate that career development opportunities have a partial mediating effect on the relationship between compensation management and employees’ continuance commitment. This study demonstrates that organizations that are proficient in compensation management practices not only prioritize investing in their employees’ career growth but also enhance employees’ commitment to achieving organizational goals. This study further highlights the role of career development opportunities in strengthening the relationship between compensation management and employees’ psychological bonds to stay with the organization.