Impact of Compensation on Employee Engagement: (Evidence from Telecom Sector of Pakistan)

International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue IX, September 2018 | ISSN 2454–6186

Impact of Compensation on Employee Engagement: (Evidence from Telecom Sector of Pakistan)

 Asma Inayat

Bahauddin Zakariya University, Multan, Pakistan

Purpose – Employees are getting disengaged with their work that is causing the waste of human capital as well as a great loss of cost and low performance; hence there is a need to engage them in work by changing work environment and their perception about work. The current study has focused on the importance of compensation in changing employee perception about their work.
Design/methodology/approach –Descriptive study was conducted to check the impact of compensation on employee engagement. A survey questionnaire was adopted and validated through pilot data (α = .821). Convenience sampling was used to select the employees from middle and upper managerial levels of telecom sector of South Punjab, Pakistan. Overall 300 questionnaires were distributed, out of which 234 return back with 78% response rate. A simple regression analysis was done to predict the relationship between the concerned variables.
Findings – After the analysis has been done it was found that compensation is the determinant of employee engagement (r2 = .087), thus having a significant positive impact on employee engagement.
Practical implications – Special attention and effort is required to improve the policies about remuneration system. In addition, the reward and compensation system of the organization should be organized in such a way that the employees working under the same rank and performing the same work duties should get the same remuneration and promotional opportunities.
Originality/value – The research highlights the increasing importance of compensation in engaging employees and the need for creating such reward system which make employees fully devoted, engaged and efficient.

Keywords: – Employee engagement, Compensation, Telecom Sector, Regression Analysis

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