Study on the Impact of Employee Compensation and Benefits System on Employee Innovation and Optimization Strategy

Abstract

The most direct and practical of the many incentive programs is compensation incentive, particularly total compensation incentive, which also has a high operability. Nevertheless, it is also constrained by the enterprise's overall viability and the cost of its human resources. More remuneration satisfaction does not always translate into better business performance; further research is needed to understand how it works. On the basis of an analysis of local and foreign research data, this paper investigates the connection between employee innovation performance and remuneration satisfaction. It also introduces work engagement as a mediating variable along the path of compensation satisfaction - work engagement - innovation performance. It has been established via empirical study and data analysis that employees' contentment with their salary and related factors can positively impact the link between that relationship and their innovation performance. It demonstrates that following the introduction of the new work engagement perspective, compensation management satisfaction affects innovation performance indirectly through the influence of work engagement. Through the in-depth exploration of its influence mechanism, it offers some guidance for the related enterprises to design the compensation system scientifically to motivate the innovation ability of employees and complements and improves the related theory.