Abstract:
Purpose: The study is about the impact of compensation on performance of employees. Employees are
considered as human assets of any organization. Employee performance is the key element of any successful
organization. There are some factors that impact performance of employees. In this study, significance and
impact of compensation is tried to be measured on employee performance.
Design/Methodology/Approach: The explanatory type of research is selected as this study will reveal the
impact of compensation on employee performance and deductive approach is used as the hypothesis is
'developed on the base of existing literature and the hypothesis will be proved right in contrast with the existing | literature.
Findings: During this research it was found that there is a significance impact of compensation in terms of
indirect compensation, salary and rewards on the performance of employees. As findings of this research, when
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employees are offered with compensation, they show a tremendous change in their performance which results
in overall organization productivity.
Research Limitations: There are certain limitations to this research, as this research targeted the employees of
Sui Southern Gas head office employees only due the limited time period available for this research.
Practical Implications: The study will facilitate the management of several organizations to understand that
compensation is one of the major factors that shows impact on employee performance which can be enhanced
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with measures taken.
