The Impact of Incentive Bonuses and Religious Holiday Allowance (THR) on Employee Turnover

One of the common issues faced by companies today is the high employee turnover rate. This condition not only leads to increased recruitment and training costs but can also disrupt established team dynamics and lower the overall productivity of the company. This study discusses the impact of providing incentives in the form of bonuses and the distribution of Religious Holiday Allowance (THR) in reducing employee turnover within a company. The method applied in this article is a descriptive qualitative approach using a literature study or Library Exploration. The research results indicate that compensation in the form of bonuses and religious holiday allowances (THR) can reduce employee turnover. Practical implications: Small firms should prioritize transparent bonus distribution systems and timely THR payments as cost-effective retention strategies, while large corporations should integrate these incentives with comprehensive performance management systems. Policymakers should consider standardizing THR regulations across different business sectors to ensure equitable compensation practices and reduce turnover-related economic losses. Originality/value (State of the art): These findings provide insights for companies to design reward systems that align with the characteristics of their respective business sectors in order to enhance loyalty and retain employees in the long term.