Abstract:
Purpose
The main object ofthis research study is to analyze the impact of compensation on employee
performance in FMCG sector ofPakistan. Various similar researches have been conducted in
the past but this research primarily focuses on how remuneration, incentive pay and indirect
compensation plays a role at employees’ performance working in the FMCG sector.
Methodology & Design
In this study deductive approach is being used and the nature of the research is explanatory
research because it helps in describing both independent and dependent variables.
Questionnaire was extracted from the previous researches and was shared with the target
population. Total number of responses are 284. This data analyses were done by using SPSS
Version 23.
Findings
In this research study Pearson correlation and linear regression test were used to analyze the
impact of compensation on employee performance. After thorough analysis ofthe data, it was
found that the compensation of an organization creates an impact on the level of performance
ofthe employee currently employed in FMCG sector ofPakistan.
Limitations
There are several limitations in the study, one the most obvious is the global pandemic.
Along with limited resources. The findings of this current study cannot be generalized. One
ofthe major constraints were limited resources and time constraint.
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Recommendations
Organization should focus on the development of employees’ compensation plans and try to
develop it accoiding to the preference ofthe employee because as time is changing, people’s
perception towards remuneration and incentive pay aie also changing with its nature of job
and societal class.