IMPACT OF COMPENSATION PRACTICES ON EMPLOYEE JOB SATISFACTION IN PHARMACEUTICAL SECTOR OF PAKISTAN

Abstract

Purpose of study: This study attempts to highlight the importance of compensation and its impact on job satisfaction in Pakistani pharmaceutical industry. It further attempts to highlights the relationship of different compensation packages with employee motivation, commitment, loyalty, retention and productivity. To cover the entire pharmaceutical industry four leading companies of the industry were chosen for the research; these include Sanofi Aventis, Searle Pakistan, Getz Pharma and Pfizer Methodology: This is an explanatory research because several researches have been done on this topic, and researcher has done it again in the context of recent/ latest research. Deductive approach was adopted, whereby hypotheses were developed first followed by preparation of research instrument i.e. a well-structures questionnaire. The sample size for data collection was 30 employees of four leading pharmaceutical companies. Regression and ANOVA test were performed to identify the impact of compensation practices on employee satisfaction. Findings: The research findings have proved that compensation factors have direct impact on the job satisfaction. Their level of performance varies with the good package being offered by the organization varies. Pay & allowances, flexible benefits, reward, pay raises, bonuses and nonfinancial benefits have strong relationship with the job satisfaction. Implications: This research will help the management of pharmaceutical industry to know the factors which employees prefer for their compensation packages. The study is considered beneficial not only for pharmaceutical industry but organizations of other industries as well.