Compensation Implications of Rewards Benefits and Organizational Justice on Employee Engagement and the mediating role of Motivation and Job Satisfaction

Abstract

Post 1996-1997, Indian firms witnessed a tumultuous era in the form of intense newlinecompetition (Venkata Ratnam 1995; Budhwar and Sparrow 1998; Khandwalla 2002; newlineSom 2006). With the intensity of competition increasing over the past couple of newlinedecades, human capital has become a high asset the world over. In order to maximize newlinestrategic ability, organizations today need to create a set up at workplace that makes newlinethe employees feel motivated, loyal, satisfied and committed. Corporates should newlineclearly spell out their values, mission and goals, provide a good and healthy work newlineenvironment, help employees maintain a work life balance, invest in training and newlinedevelopment, devise an effective compensation strategy and ensure fairness and newlineequitable treatment. Effective organizational intervention such as being provided with newlinerewards and extrinsic compensation like pay increments, bonuses, allowances and newlinegrants along with an environment at the workplace which is challenging, provides job newlinesecurity and promotion opportunities leads to a feeling of higher satisfaction in the newlineminds of the employees. An effective compensation design has a direct positive newlineimpact on employee retention and consequently reduces turnover intentions. The newlineemployees feel satisfied and psychologically connected with their organizations if newlinethey find that their organizations value and reward their efforts. This in turn serves as newlinea competitive advantage in the long run. In an effort to increase the shareholder value newlineand reduce turnover, compensation for executives in the retail industry is rapidly newlinebecoming performance-based instead of seniority based. In addition, currently retail newlinecompensation is being designed with a perspective of improving employee newlinerecruitment and retention. newline