EFFECT OF COMPENSATION ON EMPLOYEE’S SATISFACTION AND PERFORMANCE
“Choose satisfaction over salary. Better to be happy with little than miserable with much”
Globalization requires an individual to always keep up with times, starting from ideas and information to produce some useful new innovations to make it easier for people, particularly in a business, to do some work. Increased market rivalry due to rapid changes in technology and the world makes it important for a business to have good competitiveness. The old human resources trend positions workers as an asset to the business, but there has been a rising new norm for employees to be partners in a company. For business survival, human resource management now has a very strategic role. Professional human resources are the key motivating force for successful business growth in order to further promote the company.
Compensation is one aspect that can impact an employee’s work satisfaction. It is something an employee receives, either financially or without a cash reward for the dedication of the employee to the company. It is a company’s ability and obligation to contribute to its workers and to respect their success in order to accomplish their mission. By offering a fair and equitable compensation package, each company should aim to increase employee satisfaction. It is predicted that high job satisfaction would make workers more loyal to the company, more motivated at work, more comfortable at work, and eventually improve productivity.
Employee satisfaction is really influential when doing a job. It is an assessment that describes an individual feeling happy or sad, pleased or unhappy at work. This has a deep influence on the efficiency of workers. Employees are expected to work well and have the expertise to do the job.
In order to assess workplace satisfaction, there are five metrics, including payments, jobs, promotional opportunities, supervisors and colleagues. Performance represents how well workers follow a job’s specifications. Basically, every person has a different amount of work. It can be seen from the skills and ability of the person who directly impact their performance. Performance is a work of quality and quantity performed by an employee in carrying out their duties in accordance with the duties assigned.
Several research studies have shown a strong link between employee satisfaction and work satisfaction based on payments, skill-based payments and payments based on results. Employee compensation has impacted organizational dedication and employee satisfaction. It has also been explained that by offering a good compensation system such as salary, appreciation, promotional opportunities and sustainable jobs, employee satisfaction can be increased. But the key explanation for unsatisfied workers is that they do not get the proper structure of operation and do not have a real job. By offering indirect forms of benefits, the government should improve employee satisfaction. To fix concerns related to physician input, efficiency and promotion, governments should incorporate effective performance management programs.
Submitted by Samia Baig, Date 03 January 2021.