Low Salary and Employee Turnover: An Empirical Study of the Telecom Sector in Pakistan

Abstract

Employee turnover is a persistent organizational challenge that negatively impacts productivity, service quality, and profitability. In Pakistan’s telecommunication sector, the problem of turnover has intensified, leading to a loss of skilled workers and high recruitment costs. This study examines the influence of low salary on employee turnover intentions within the telecom industry of Pakistan. Guided by Herzberg’s Motivation-Hygiene Theory and Adams’ Equity Theory, the research explores how compensation dissatisfaction drives employees to leave organizations. Using a quantitative design, primary data were collected from 200 employees across four major telecom companies—Jazz, Ufone, Zong, and Telenor. The findings reveal a significant positive relationship between low salary perceptions and turnover intentions. Employees who perceived their salary as unfair or below market standards were more likely to consider quitting. The study concludes that competitive pay structures, regular salary revisions, and transparent compensation systems are essential to reduce attrition in this critical sector.