The Impact of Compensation and Benefits on the Job Satisfaction of the Non-Executive Employees at SLT Digital Service (PVT) LTD.

Abstract

Job satisfaction plays key role in achieving organizational goals and objectives. Because high level of job satisfaction leads to enhance employee’s moral and performance. According to that, the study was focused to evaluate impact of compensation on job satisfaction of nonexecutive employees at SLT Digital service (pvt) LTD, is well known as the National Directory publisher in Sri Lanka and currently experiencing high level of turnover rate rather than previous years with economic crisis of the country. The research aimed to evaluate nonexecutive employee’s present satisfaction level with their compensation package and to explore the relationship between direct, indirect and non-monitory compensation with overall job satisfaction. The study was designed to concentrate on job satisfaction level of nonexecutive employees excluding all other hierarchical level of the case company. In addition, only the compensation package was considered as the factor affecting job satisfaction, while excluding all other job satisfaction factors.

This is a research type thesis, and the theoretical structure of this study, was based on Equity Theory, that provides basis of evaluating how perception of fairness in compensation package affects job satisfaction. Quantitative research method was applied as the research approach and two types of data were used for the research. Furthermore, primary data were collected through online survey questionnaires among nonexecutive employees while, secondary data were collected from organizational reports, web sites and interview. The research used statistical analysis containing descriptive analysis, correlation and hypothesis tests to investigate relationships between compensation and job satisfaction.

The results of the study showed that, nonexecutive employees have weak positive and statistical insignificant relationship with direct compensation and job satisfaction. additionally, they have moderate strong positive and significant relationship with indirect and non-monitory compensation with job satisfaction. The findings of study highlights that direct compensation is not only, and key factor and indirect and nonfinancial compensation play a significant role in shaping job satisfaction of executive employees. Therefore, management of company must take necessary steps to establish of board compensation structure that go beyond financial compensation, and it should be focused to enhance employee wellbeing.