Building Sustainable Employee Retention Through Employee Well-Being, Compensation Fairness, Career Develompent Motivation, and Organizational Commitment- A Conceptual Framework

Darmanto Darmanto () and Didik Subiyanto ()
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Darmanto Darmanto: Universitas Sarjanawiyata Tamansiswa
Didik Subiyanto: Universitas Sarjanawiyata Tamansiswa

A chapter in Proceedings of the 1st International Conference on Business, Economic, and Social Sustainability (ICOBES 2025), 2026, pp 761-773 from Springer

Abstract: Abstract This study explores the integration of compensation fairness, career development motivation, and employee well-being as strategies for enhancing sustainable employee retention. The ultimate goal would be to know how they all interact and contribute to company loyalty vs. attrition. A conceptual framework is used, building upon the Establishment Theory and Social Exchange Theory; to posit that fair treatment in compensation and support for career development engender employees’ commitment towards the holding organization. A qualitative methodology using literature review and conceptual analysis is used to construct a comprehensive framework. The results indicate that experiencing fair compensation has a positive impact on organizational commitment and career development motivation, which have the same effect on employee turnover intentions. Besides, employee well-being acts as a moderator between compensation fairness and retention. This study is novel in integrating three key dimensions of compensation fairness, career development and well-being into a single model. The practical implications highlight the importance of fair compensation and career support in retaining talent, particularly in competitive industries. Theoretical contributions extend the understanding of employee retention beyond compensation to include career and well-being factors, offering a comprehensive strategy for organizations aiming to reduce turnover and improve sustainability.

Keywords: Employee well-being; compensation fairness; career development motivation; organizational commitment; sustainable employee retention (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-626-5_56

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DOI: 10.2991/978-94-6239-626-5_56

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