Effect of Compensation &

Benefit on Job Satisfaction

Farah Ayded
Omar Faruq
Rezuanul Hoq Ome
INTRODUCTION

Employees are valuable resource of any

organization. Labor productivity now a day has been
main concern of organizations. It is customarily
accepted that employees discover valuable source
of competitive edge for firms. There is current
discussion on how human resource management
policies impact the performance of employees. It is
argument that mostly individuals that getting higher
education they are not satisfied their jobs and their
turnover is more than so that organizations are
overcome to that problem design the
compensation plain to retain the employees as well
plays more to attract, retain and motivate to give
man power. Different organization objectives make
their benefits and compensation packages to attract
as possible (HRM Process BPR term report, 2009) .
INTRODUCTION

COMPENSATION JOB
SATISFACTION
 INTRODUCTION

COMPENSATION

Compensation is something accepted to employees,

whether in form financial or non financial a reward for
employee's contribution to organization. Management
of compensation is a very important activity to make
employees quite satisfied in their work. Generally,
purpose of compensation management is to assist
companies to achieve the strategic objectives of
corporate success and ensuring internal justice and
external justice.
 INTRODUCTION

JOB SATISFACTION
Satisfaction as an evaluation to describe a
person feeling for happy or unhappy,
satisfied or dissatisfied in work. The factors
affecting job satisfaction are: (1) salary,
(2)the job itself, (3) colleagues, (4) boss and
(5) promotion and work environment. The
factors affecting job satisfaction can be
divided into two groups, namely Intrinsic
and extrinsic factors. Related to
determinants of job satisfaction, some
researchers suggested that these can be
grouped into three groups: job
characteristics, organizational
characteristics and individual
characteristics.
 INTRODUCTION

To know the compensation policy of employees

To know the overall satisfaction level

To study the facors effecting job satisfaction

To analyze the effects of compensation and

correlation with job satisfaction
 STATEMENT OF THE PROBLEM

What benefit and facilities provided in

the working place?

What Gap exist?

What is the Co-relation between Job

satisfaction and working environment?

What is the reason for satisfy or

Dissatisfaction of employees?
RESEARCH QUESTION

To what extend is direct

compensation influence
employees’ job satisfaction?

What is the impact of

indirect compensation on
the employees’ job
satisfaction in Garments
factory in Chattogram?
 OBJECTIVE OF THE STUDY

Examine the influence of Evaluate the effect of

rewards on indirect compensation
employees’ job on employees’ job
satisfaction. satisfaction
 RESEARCH METHODOLOGY Analysis of Data

Test of Hypothesis
Data Collection

Sample Size Sampling Technique

Area of the study

RESEARCH METHODOLOGY
Area of the study: Chattogram

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v

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RESEARCH METHODOLOGY
Sample Size: 500

Sample
 RESEARCH METHODOLOGY
Population Convenient
Sampling Technique: Sampling

# Convenient Sampling
Method

Population

# Random Sampling
Method
 RESEARCH METHODOLOGY
Test of Hypothesis:

# HO1: Rewards do not have

significant influence on Rejected
employees’ job satisfaction

or
# HO2: There is no
significant relationship
Accept the
between indirect
compensation and test
employees’ job
Satisfaction
 RESEARCH METHODOLOGY
Data Collection:

# The Primary Data has been

collected through questionnaire
and interview

# The Secondary Data has been

collected with the help of
journals, magazines, books and
internet
RESEARCH METHODOLOGY

Analysis of Data:

Once the data has been

collected through questionnaire
and interview then the simplest
and most revealing devices for
summarizing data is the
statistical table. A table will be
systematic arrangement of data
in column and rows. The
purpose of a table will be
simplifying the presentation and
to facilitate results.
SIGNIFICANCE OF THE STUDY
The significance of this study is to
understand the compensation policy
and job satisfaction of employees in
Garments factory in Chattogram.
Through this study I came to know:

1. The compensation method of

employees.
2. What are the monetary factors or
reasons which influence the
employees force to leave the job?
Reference

Calvin Mzwenhlanhla Mabaso and Bongani Innocent Dlamini, Impacts of

compensations and benefits on jobs satisfactions
Tahira nazir , Saif-Ur- Rahman , Syed Fida Hussain Shah, Khalid Zaman, Impact of
rewards and compensation on Job Satisfaction
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Impact on Motivation Employee’s satisfaction and performance
Mary Makena Muguongo, Andrew T. Muguna , Dennis K. Muriithi, Effect of
Compensation on Job Satisfaction
Onsardi, Moch. Asmawi , Thamrin Abdullah, The effect of Compensation ,
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SULEIMAN,Olusegun: OCHIDI,Zekeri: AKINROLUYO, Bankole Issac: &
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