Abstract:
The aim of the research is to determine the impact of compensation practices on employee motivation in Karachi Pharmaceutical industry. It further highlights the relationship of different compensation packages (salary, benefits, and nonfinancial incentives) with employee motivation. To cover the whole Pharma industries four leading Pharmaceutical industries located in Karachi were select for the research; these include Bosch, Getz, Novartis and Herbion. The employee motivation is essential for the overall organizational performance and it adds up value to the organization. Motivating factors may vary from industry to industry and class to class of employees. Methodology/sample: The research being explanatory in nature as several researches done in this topic. It involved quantitative data, and sample size is 160. In this study primary data is used and the questionnaire instrument was adopted. Regression and correlation test were performed to identify the impact of compensation practices on employee motivation. Findings: The study and analysis of the results have revealed that the impact of salary, benefits and nonfinancial incentives have positive effect on employee motivation It suggest that organization has to consider market competitive basic pay, allowances, rewards and training. Benefits plan which include vacation, health and/or retirement plan helps employees to focus on their and organizational goals. Better compensation packages not only motivate employees but also improve their performance, high level of job satisfaction and commitment and long term retention. Practical Implications: The findings/results of this research will helps management to successfully plan and implement compensation policy for employee motivation by recognizing the gap, it also help the organizations to know the factors which employee prefer for their compensation and their level of satisfaction due to the salary and other benefits that organization provides to their employees It will also help to efficiently alien benefits and nonfinancial incentive according to market situation to increase employee motivation so that they can achieve the organization goals
