How pay contributes to job satisfaction/turnover
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How pay contributes to job satisfaction/turnover.
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In any organization, human capital is the main resources for realizing other objectives. In corporate world, workers satisfaction fosters success of organisations (Mabaso and Dlamini 2017). Workers exhibit positive attitude when they are satisfied (Guha and Chakrabarti 2016). Hence, job satisfaction enhances the firm’s productivity as well as performance. On the other hand, compensation is useful in determining workers degree of job satisfaction. Compensation strategies associated with job satisfaction have been used by companies. Corporate entities are important for economic growth and skilled development. Therefore, modern day organisations require good compensation to retain skilled human capital. Indeed, the degree of employee job contentment of would considerably influence the performance of organisations (Lu et al. 2016). Additionally, compensation is one of human resource management. Compensation is not important for workers but also employers.
How pay contributes to job satisfaction/turnover.
For employers, compensation helps in attracting and retaining works. On the other hand, for employees compensation is what drives them to work (Brown, 2017). Previous research shows that companies are experiencing a number of challenges including changing workforce demographics, market environments, intense competition, merger and acquisition (Mafini and Dlodlo 2014). As a result, it is important for organisations to strategize their compensation programs to attract the right human capital, maximise returns and enhance job satisfaction. An important aspect for the success of organisational compensation strategy is its meaningfulness to the workers. One of the meaningful strategies to workers is the compensation (Adeoye and Fields 2014).
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover.
Order 100% Plagiarism free essay now
In any organization, human capital is the main resources for realizing other objectives. In corporate world, workers satisfaction fosters success of organisations (Mabaso and Dlamini 2017). Workers exhibit positive attitude when they are satisfied (Guha and Chakrabarti 2016). Hence, job satisfaction enhances the firm’s productivity as well as performance. On the other hand, compensation is useful in determining workers degree of job satisfaction. Compensation strategies associated with job satisfaction have been used by companies. Corporate entities are important for economic growth and skilled development. Therefore, modern day organisations require good compensation to retain skilled human capital. Indeed, the degree of employee job contentment of would considerably influence the performance of organisations (Lu et al. 2016). Additionally, compensation is one of human resource management. Compensation is not important for workers but also employers.
How pay contributes to job satisfaction/turnover.
For employers, compensation helps in attracting and retaining works. On the other hand, for employees compensation is what drives them to work (Brown, 2017). Previous research shows that companies are experiencing a number of challenges including changing workforce demographics, market environments, intense competition, merger and acquisition (Mafini and Dlodlo 2014). As a result, it is important for organisations to strategize their compensation programs to attract the right human capital, maximise returns and enhance job satisfaction. An important aspect for the success of organisational compensation strategy is its meaningfulness to the workers. One of the meaningful strategies to workers is the compensation (Adeoye and Fields 2014).
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover.
Order 100% Plagiarism free essay now
In any organization, human capital is the main resources for realizing other objectives. In corporate world, workers satisfaction fosters success of organisations (Mabaso and Dlamini 2017). Workers exhibit positive attitude when they are satisfied (Guha and Chakrabarti 2016). Hence, job satisfaction enhances the firm’s productivity as well as performance. On the other hand, compensation is useful in determining workers degree of job satisfaction. Compensation strategies associated with job satisfaction have been used by companies. Corporate entities are important for economic growth and skilled development. Therefore, modern day organisations require good compensation to retain skilled human capital. Indeed, the degree of employee job contentment of would considerably influence the performance of organisations (Lu et al. 2016). Additionally, compensation is one of human resource management. Compensation is not important for workers but also employers.
How pay contributes to job satisfaction/turnover.
For employers, compensation helps in attracting and retaining works. On the other hand, for employees compensation is what drives them to work (Brown, 2017). Previous research shows that companies are experiencing a number of challenges including changing workforce demographics, market environments, intense competition, merger and acquisition (Mafini and Dlodlo 2014). As a result, it is important for organisations to strategize their compensation programs to attract the right human capital, maximise returns and enhance job satisfaction. An important aspect for the success of organisational compensation strategy is its meaningfulness to the workers. One of the meaningful strategies to workers is the compensation (Adeoye and Fields 2014).
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
How pay contributes to job satisfaction/turnover
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These views are supported by Mabaso and Dlamini (2017) alleging that compensation is an essential tool that enablesorganisations to effectively and positivelyimpart employee productivity. Compensation helps in attracting and retaining workers in order to realizeorganisational goals. Good compensation motivates workers to remain with theorganisation for long. The right reward packagesresults in job satisfaction. A good package consists of benefits and bonuses. Nevertheless, to attract and retain there is a need for good reward programs that meet employee needs. Lu et al. (2016) argued that poor workplace conditions and unattractive compensation packagescontributes skill loss and eventuallyturnover. Skill shortages can prevent firms’ ability to remain sustainable in the competitive business landscape (Mabaso and Dlamini 2017).
How pay contributes to job satisfaction/turnover.
Kassa (2015) allege that even though compensation is powerful driver of organisational objectives, successful firms ensure that workers are part of their success. However, compensation can be a sensitive issue. In a previous survey by SHRM (2016) demonstrated that compensation and job satisfaction are related. Compensation based pay is a drive of employee job satisfaction. For instance, highly compensated are satisfied with their job compared to those that are not well paid.
Organisations use compensation based pay to not only recruit but also retains skilled workers. During times of economic crisis, firms use base pay to enhance loyalty, productivity and job satisfaction. According to SHRM survey, base pay is one useful predictors of employee job satisfaction. Nevertheless, to attract skilled talents organisations should offer good rewards. In turn, this enables companies to cut down recruitment expenses. Moreover, Ahmad and Abdurahman (2015) indicated that competitive and attractive compensation is the leading factor that effects job satisfaction as it meets the economic and material needs of workers.
How pay contributes to job satisfaction/turnover.
In addition, good compensation packages leads to improved worker motivation. Properly rewarded workers acknowledge that the organisation values them and willing to deliver outstanding results. Proper compensation also boosts loyalty and less investment in recruiting and hiring workers. In turn, loyalty leads to workforce retention and reduces turnover. Satisfied workers are productive. In relation to compensation, productivity beings when workers feel valued that enhance loyalty and motivation. With good compensation, employees are motivated to complete assigned tasks, work with the firm for a long period and more efficient. All these aspects contribute to productivity.
Regardless of the nature of the job, literature shows that job-based factors including pay, career development opportunities, job security impact employee satisfaction regardless (Salisu, Chinyio and Suresh 2015). On the other hand, research in developed economies has shown that base is positively correlated with job satisfaction while job difficulty, and risks to be related to dissatisfaction (Rahman, Akhter and Khan 2017).
How pay contributes to job satisfaction/turnover.
Similarly, the survey SHRM (2016) suggested that job security and compensation are major indicators of job satisfaction for several years. Furthermore, the survey indicated that from 2002, 63% of workers reported that compensation was essential for when it comes to the level of satisfaction. As companies financial positions increase, employees are looking for pay rises. In this survey roughly 60% of workers were satisfied with their compensation (SHRM 2016).
Additionally, job satisfaction increases once the compensation is increased. The association of these factors indicates that bay pay can help organisations to keep their workers satisfied. As firms put emphasis on employee retention, they should start with compensation.
Effective compensation programs combined with training and development opportunities can significantly enhance employee satisfaction (Contreras and Vega 2018). Compensation base pay can help organisations to retain workers due to the high rewards leading to improved loyalty, commitment and satisfaction (Salisu, Chinyio and Suresh 2015). Previous literature also shows that the overall pay is based on four compensation elements, which lead to job fulfilment. For instance, about 59% of workers reported that competitive base pay is imperative to job satisfaction while 56% were happy with the competitive market pay (SHRM 2016).
How pay contributes to job satisfaction/turnover.
Scholars allege that workforce turnover is disruptive and costly (Bryant and Allen 2013). In addition, the cost of labor turnover is more than the yearly salary of vacated positions. However, organisations do not recognise of the strategies of reducing turnover. A previous research found that pay plays an important role in managing turnover. Specifically, whereas competitive pay is important with respect to retaining workers, 10% high base pay is correlated with 1.5% increase in the possibility of employees staying with the current firm (Chamberlain 2017).
Huang et al (2016) asserts that the underlying goal of incentives is to trigger extrinsic stimulus by meeting the needs of an employee through pay. Li et al. (2016), states that external incentive is the significance attached on extrinsic remunerations, such as bonuses and promotion. From an agency perspective context, motivation contracts designed to promote external stimulus are quite handy to employees.
Correspondingly, expectancy theory asserts that linking incentives to performance stimulates employees to enhance their productivity (De et al. 2018). Moreover, according to Zheng et al. (2017), incentives offer mental benefits of security, accomplishment, increased responsibility and self-actualization. Voluntary turnover in most companies is necessitated by poor remuneration packages, which also lead to discontentment.
How pay contributes to job satisfaction/turnover.
Again, different payment schemes that are hierarchal in design, undermine the plight of front-line employees that in most cases tackle most responsibilities. Instead, payment scales in most organisations should be guided by a behavioral agency model that is embedded on compensation contracts created to leverage conflicting interests between risk and stimulus for persons or a groups of individuals with the aim of aligning the interests of directors and stakeholders (Pepper and Gore 2015).
Essentially, this suggests that in the long run, employees do not stay with organizations for promotions alone. Rather as they assume new roles, pay should also increase. If organisations do not offer promotions based on pay and roles, there is a high likelihood that they move to other firms.
From employee standpoint, new responsibilities are an aspect to look forward to. Each time employee transition they get a base pay increase. But in most cases, employees believe it is necessary to move to another employer to attain career growth. Evidence demonstrates that 73% of employment transition is attributed to workers leaving their current employer whilst 27% stay to be promoted to new roles (Chamberlain and Morgan 2017).The significant of attrition shows the problems human resource management experience; however, it portrays opportunity (Chamberlain 2017).
In the current labor market there are opportunities. Research also shows that compensation based pay influences different outcomes such as turnover, performance, knowledge acquisition and cooperation (Korsakienė et al., 2015). Compensation is considered as the main aspect that leads to turnover. On the contrary, previous literature demonstrates that based pay is the initial salary. The base pay can be expressed in terms of hours or yearly (Varma, Patil and Ulle 2018). Other forms of compensation exclude the base pay which involves on-call pay, bonuses and incentives reduce the rate of employee turnover.
How pay contributes to job satisfaction/turnover.
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