• Khushi Aluna

In the contemporary globalized business environment, where employee performance is central to organizational success, the design and implementation of effective compensation systems play a pivotal role. This study investigates the relationship between compensation, employee satisfaction, and performance, with a particular focus on the mediating role of employee satisfaction. Data was collected in terms of descriptive statistics and Pearson chi-square was used to test the significance of the relationship between compensation and employee job satisfaction. The results indicate a positive association between compensation, employee satisfaction, and performance, highlighting the significant impact of compensation on both aspects. Furthermore, the study reveals that employee satisfaction mediates the relationship between compensation and performance. However, addressing the broader spectrum of employee satisfaction, another study explored the intricate link between compensation and job satisfaction. Employing descriptive statistics and Pearson chi-square analysis, this study found that while overall compensation did not correlate significantly with job satisfaction, specific elements such as career development and job security significantly influenced job satisfaction levels. These findings underscore the importance of offering comprehensive compensation packages that cater to diverse employee needs, including avenues for career growth. Moreover, employee retention emerges as a critical concern in the current landscape marked by talent shortages and evolving workplace dynamics. Effective retention strategies, as defined by Schuler and Jackson (2006), encompass initiatives aimed at fostering an environment conducive to retaining qualified and productive employees. By aligning recruitment and retention efforts, organizations can attract and retain top talent. Furthermore, given the presence of a multi-generational workforce and evolving workplace norms, adapting retention strategies becomes imperative to accommodate diverse needs. The insights gleaned from these studies offer valuable guidance for organizations seeking to optimize employee satisfaction, performance, and retention amidst the ever-evolving global business landscape.

Compensation, Employee Satisfaction

"The Nexus Between Compensation Policies and Employee Satisfaction", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 4, page no.c737-c748, April-2024, Available :http://www.jetir.org/papers/JETIR2404281.pdf

"The Nexus Between Compensation Policies and Employee Satisfaction", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 4, page no. ppc737-c748, April-2024, Available at : http://www.jetir.org/papers/JETIR2404281.pdf