The Impact of Compensation on the Turnover Intentions of Outback Steakhouse Managers

Abstract

The primary purpose of this study was to examine the perceived notion that the compensation plan of Outback Steakhouse reduces the intention to turnover of its unit level managing partners. Specifically, the research focused on a survey of general managers' attitudes in regards to their intentions to seek new employment and the effect of the compensation plan on their intention to turnover. The findings showed that the managing partners are most influenced by the non-traditional attributes of the plan (deferred compensation, stock option and ownership stake) as opposed to the more traditional attributes of the compensation plans (base pay, insurance and retirement plans). The study also indicates that quality of life and quality of family life were the most influential factors in the managing partner's decision to leave.

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