Effect of Salary, Career Stagnation, and Work Environment on Staff Turnover Intentions in Non-Governmental Organizations (NGOs) in Peshawar, Khyber Pakhtunkhwa

Abstract

Background: High employee turnover remains a persistent challenge for non-governmental organizations (NGOs) in Pakistan, undermining organizational stability, increasing operational costs, and disrupting service delivery to vulnerable populations. In Khyber Pakhtunkhwa, where NGOs play a vital role in addressing complex socio-economic challenges, understanding the drivers of employee retention is critical for sector sustainability.

Purpose: This study investigates the impact of salary, career stagnation, and work environment on turnover intentions among NGO employees in Peshawar, Pakistan, providing context-specific evidence to inform retention strategies.

Methodology: Using quantitative, cross-sectional research design, data was collected via a structured questionnaire from 137 employees across three health-sector NGOs in Peshawar. The study employed Human Capital Theory (Becker, 1964) as its theoretical framework. Data was analyzed using Pearson's correlation and multiple regression analysis in SPSS, with model diagnostics confirming the robustness of the regression model.

Findings: The regression model explained 47.9% of the variance in turnover intentions (R² = .479). All three factors emerged as significant predictors, with salary satisfaction showing the strongest negative effect (β = -0.402, p < .001), followed by career stagnation (β = 0.231, p < .001) and work environment (β = -0.220, p < .001). The results confirm that NGO employees rationally evaluate the returns on their human capital investments when making retention decisions.

Practical Implications: The findings suggest that NGOs must adopt integrated retention strategies that ensure competitive compensation, provide clear career progression pathways, and foster supportive work environments. Neglecting any one of these factors creates vulnerability to talent loss, emphasizing the need for holistic human resource management approaches in the sector.

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