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In recent years, the employee welfare needs to be assured to help make employees loyal to the company and increase their contribution and productivity. This can also be done through compensation. Existing research has demonstrated that low compensation is a significant factor for a high rate of turnover in the digital industry. Therefore, the present study aimed to investigate the two factors: compensation practices and turnover intention. The impact of perceived organizational support in mediating the relationship between compensation practices and turnover intention is also investigated in this study. The result shows that compensation has no significant impact on turnover intention. However, the researchers found that perceived organizational support could mediate the impact of compensation on turnover intention. The result of this study brings up a warning for companies to tackle these issues to improve the performance of their organization. Companies should engage more in the employees’ welfare to reduce turnover and to retain them, rather than focusing on compensation alone.

Turnover; Perceived Organizational Support; Compensation