IMPACT OF COMPENSATION PRACTICES ON EMPLOYEE MOTIVATION IN GSK PHARMACEUTICAL COMPANY

Abstract

Purpose of study: This research study attempts to highlight the importance of compensation and its impact on employee motivation in GSK pharmaceutical industry. It further attempts to highlights the relationship of different compensation packages with employee motivation, commitment, loyalty, retention and productivity. I selected GSK pharmaceutical company for my research. Methodology: This is an explanatory research because several researches have been undertaken on this topic, and researcher has doing it again in the context of 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 160 employees of GSK leading pharmaceutical company. Regression and ANOVA test were performed to identify the impact of compensation practices on employee motivation. Findings: The research findings have proved that compensation factors have direct impact on the employee motivation. Their level of performance fluctuate with the good package being offered by the organization varies. Pay & allowances, flexible benefits, reward, pay raises, bonuses and non-financial benefits have strong connection with the employee motivation. 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.