Impact of Compensation Awareness on Employee Productivity with the Mediation Effect of Employee Performance

Abstract

This study is based on human resource management in which we have briefly explained the impact of compensation awareness on employee productivity while employee performance mediates the both variables positively and strengthen them. Compensation is a very important pillar for human resource management to keep employees motivated to stay in the organization and to enhance productivity of the organization. There are many researches done by researchers in this field and from their researches, I found a gap which is actually compensation awareness. It has been found out that most of the employees think that compensation is in the form of salary or cash that they are receiving from their employer organizations but, the actual compensation is not only cash rather it comes in many different forms. In this study, we have attempted to define and explain this factor broadly in order to have a better understanding amongst the employees. Along with that, other variables have also been defined that are employee performance and employee productivity. After theoretical and statistical analysis, it could be concluded that the current study is valid since all the hypothesis made are accepted so, this study can be implemented at managerial and academic level. This study can also be implemented in various industries of Pakistan (either public or private) which are declining in terms of their productivity due to lack in this particular factor