A Study on Evaluating the Effectiveness of Compensation and Benefits Schemes on Employee Motivation at KEMS FORGINGS LTD.

Abstract

Employee retention is a critical strategic priority in competitive manufacturing environments. Organisations that fail to retain skilled employees incur substantial costs related to recruitment, onboarding, and productivity loss, along with organisational knowledge erosion that undermines long-term competitiveness. This study investigates the organisational and HR-related determinants of employee retention at Silver Spark Apparel Ltd., Hosakote, Karnataka — a subsidiary of the Raymond Group and one of India's premier manufacturers of high-quality men's formal garments. A descriptive research design was employed using both primary and secondary data. Primary data were collected from 150 employees through a structured questionnaire on a 5-point Likert scale, using simple random sampling. Secondary data were sourced from company HR reports, peer-reviewed journals, and industry publications. Statistical tools including percentage analysis, mean score analysis, correlation, and multiple regression were applied using SPSS v26.0. Career development opportunities (Mean = 4.10), leadership support (Mean = 4.15), compensation (Mean = 4.20), and organisational culture (Mean = 4.05) emerged as the strongest predictors of employee retention. Work-life balance (Mean = 3.85) was identified as a moderately significant but improving factor. The regression model explained 71.4% of variance in retention intent (R² = 0.714, F = 57.28, p < 0.001). The study concludes that a multi-dimensional HR strategy encompassing competitive compensation, structured career development, supportive leadership, inclusive organisational culture, and effective work-life balance practices is essential for improving retention at Silver Spark Apparel Ltd. Strategic investment in these areas will substantially reduce attrition and enhance organisational performance.