Explaining the Causes of Employee Turnover in Iranian Knowledge-Based Organization and Providing solutions: An Examination of the Role of Compensation System

The purpose of this study is to identify the reasons for employee’s turnover of Iranian knowledge companies in the field of compensation system and providing constructive strategies to reduce the rate of turnover. The methodology of the present study is mixed method. The statistical population of the study in qualitative and quantitative parts consisted of 220 knowledge workers in knowledge-based organizations of Sharif University of Technology who left their organizations. Sample size in the quantitative section consisted of 138 persons who were selected by random sampling. Sample size in the qualitative section consisted of 30 persons selected by snowball method. Data were collected through a questionnaire in the quantitative section and interviews in the qualitative section. Friedman and t-test were used to analyze the data in quantitative part and the thematic analysis was used in the qualitative part. The results show that all of eighteen components of compensation system were below average and they are main reasons for leaving knowledge workers. Proposed solutions presented in seven process, human, financial, cultural, technological, structural and legal-political themes. The results of this study can help improve compensation policies in order to maintain key forces in knowledge based organizations.