International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Impact of Compensation on Employee Performance (Empirical Evidence from Banking Sector of Pakistan)
Mr. Abdul Hameed, Mphil; Muhammad Ramzan, Hafiz M. Kashif Zubair, Ghazanfar Ali, Muhammad Arslan

Purpose: Compensation is very important for the performance of the employees. Therefore they are very important for the organization too. The purpose of this research is to measure the impact of compensation on employee performance.
Methodology: A questionnaire was designed to collect the data on the factors related to compensation like salary, rewards, Indirect Compensation and employee performance. The data was collected from different banks of Pakistan. The data collected were analyzed in SPSS 17.0 Version. Different analytical and descriptive techniques were used to analyze the data.
Findings: It is founded from different results that Compensation has positive impact on employee performance. It is proved from correlation analysis that all the independent variables have weak or moderate positive relationship to each other. Regression analysis shows that all the independent variables have insignificant and positive impact on employee performance. Descriptive analysis also reveals that all the independent variables have positive impact on employee performance. ANOVA results reveal that education have not same impact on employee performance.
Limitations/implications of the research: The major limitation of this research is that this study only covers the banking sector of Punjab. Another limitation is that it excludes many variables of compensation due to shortage of time. Funds were also another limitation. Apart from these limitations this research may provide insights to the managers to enhance the employee performance of their subordinates.

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