IMPACT OF COMPENSATION AND WORK ENVIRONMENT ON EMPLOYEE PERFORMANCE

Abstract

Purpose The purpose of the research is to find out or to investigate the impact of compensation and work environment on employee performance. Methodology & Design 1 he research is explanatory where questionnaires were circulated among the working professionals to gather out data. The respondents were between 300 to 350. Findings The outcomes of the research concluded the fact that direct compensation may not have a significant effect on employee performance. However, indirect compensation and work environment plays a crucial role in influencing employee performance. Hence, Job Satisfaction acts as a moderator between the relationship of indirect compensation and employee performance and work environment and employee performance. Limitations The research was limited to compensation and work environment even though there are multiple other aspects which influence employee performance so a generalized perspective was not gathered. However, research was not able to consider other factors which also effect employee performance. The industry perspective was generalized not focused to one sector only which may also draw various results industry wise. Recommendations The organizations should treat employees fairly in terms of compensation and focus on intrinsic and extrinsic motivation as this would increase employee loyalty thus a good impact employee performance. Work Environment should be pleasant to make employees feel like home and work to the best oftheir potential without any difficulty.