Abstract:
Purpose of study: This research study attempts to highlight and discuss the importance of
compensation and its impact on job satisfaction in Pakistani pharmaceutical industry. It
further attempts to highlight the relationship of different compensation packages with
employee motivation, commitment, loyalty, retention and productivity. To cover the entire
pharmaceutical industry six leading companies of the industry located in Karachi were
chosen for the research; these include Alcon, Pfizer, GSK, Ali Gohar, OBS Pakistan and
Abbott. As compensation contains both intrinsic and extrinsic compensation which may help
employees gain for performing their work.
Methodology: This is an explanatory research because several researches have been done on
this topic, and researcher has doing it again in the context of recent/ latest research. In this
research primary data is used. The closed ended questions were used to analyze and measure
job satisfaction of the employees through existing compensation practices. The sample size
for data collection is 384.
Findings: The research findings have proved that compensation factors like extrinsic as well
as intrinsic compensation have direct impact on the job satisfaction. Their level of
performance varies with the good package the organization is providing to employees.
Intrinsic and legal employee’s benefits have strong relation with the job satisfaction as
compare to the discretionary benefits, core compensation and adjustments to core
compensation. All these factors have relationship with the job satisfaction of employee. Better
compensation package not only improved their level of performance, but develops positive
relationship, high level of commitment and long term retention.
Practical implications: The discussion of this research will help the organizations to know
the factors which employees prefer for their compensation packages. Their level of
satisfaction is due to the salary and other benefits the organization is providing to them. Job
satisfaction of employees can be enhanced by providing them good compensation packages
like base pay, recognition, promotional activity, meaningful work, incentive pay and so on.
