Effects of Compensation Packages on Employee’s Performance in Financial Institutions

Abstract

The purpose of research is to learn more about how different types of compensations effect on employee performance in financial institutions. In addition, the connection between compensation and employee performance is also examined. 117 employees of various Commercial Banks based at Sukkur were given structured questionnaire to implore data on salaries/wages, bonuses/incentives & indirect compensation and employee’s performance. Different statistical tools were used to look at the data. This model helps to analyze how certain factors are related to each other. According to the study, there is a moderate relationship between how much an employee is compensated and their performance. This study found that, on average, employees who are paid more in salaries and bonuses perform better than those who are paid less. The study therefore suggests that organization must to embrace the right compensation tool that meets the desire of their workers so as to increase their output.