Abstract:
This study examines how the work practices impacts the compensation plans. The principal
dimensions of work practices and compensation plans that give rise to distinct reactions among
employees are examined. The attention of this study is to predict the possibility, at an acceptable
level of confidence that work practices have positive association with the direct and indirect
compensation. Using survey data from 300 professionals working in financial and oil companies
of Pakistan, the results were analyzed using the regression analysis technique through SPSS 20
software. It is found that, as hypothesized, work practices impacts positively with compensation
plans. Hence, the hypotheses of this study which suggest that work practices augment the direct
and indirect compensation are sustained. Afterwards, the implications of this inquiry for the
academia, practitioners, and the policy makers are discussed in the field of human resource
management. The study offers a detailed insight to help academicians, policy makers and
practitioners to improve work practices within the organization for favorable results. Finally, the
possible avenues for future research in the existing field of inquiry are discussed briefly.
