The Impact of Financial Compensation on Employee Satisfaction

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Analysis of the Effect of Financial Compensation Factors on Employee Satisfaction

Organizations today are in stiff competitive business settings facing new challenges owing to the changing external environment and weaknesses from within.

Only those which overcome the challenges and improve their weaknesses can survive of threats and maximize opportunities.

This is possible mainly through proper human capital management, the most important source of organizations’ competitive advantages and the backbone for the proper functioning of their sub systems.

Researchers who conducted researches to identify the relationship between employee job satisfaction and outcome measures of organizations found out that employees’ positive perception of their jobs benefits the employer organization via higher employee retention, increased customer loyalty, and improved financial outcomes (Harter, 2010).

Thus, employee satisfaction is the basic human resource management concern for organizations decision making.

This book clearly shows what factors of financial compensation package affects employee satisfaction and investigates the extent these factors influence employee satisfaction.

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