Analysis Of Compensation And Benefits On Employee Work Motivation
Abstract
Ensuring that a company remains sustainable and continues to grow is not an easy task for both capital owners and management as those responsible for operational activities. The proper application of management science does not universally apply to all business sectors due to the interconnectedness of various managerial factors that create complexity. In reality, many companies compete to obtain significant profits but fail to adhere to proper management norms. Employees are no longer viewed as valuable assets essential to the company’s sustainability, but rather as passive objects that must tolerate unfavorable corporate policies. Cost‑cutting practices often justified by portraying the company’s financial condition as unstable are used to force employees to refrain from demanding rights such as compensation and benefits clearly stipulated in employment agreements. In the short term, a company may still achieve substantial profit, but the removal of compensation and benefits which are employees’ lawful rights directly reduces employee motivation. High employee turnover and increasing cases of asset loss are indicators of employee discomfort and a form of protest against harmful corporate policies. Fortunately, not all companies operate in this manner. Many continue to respect employee rights regarding compensation and benefits, and some even provide them beyond the regulatory minimums, such as wages above provincial and regional minimum wage standards. These employers recognize that employees are not merely labor providers but key contributors to the company’s growth. To address these issues, the authors present a comprehensive scientific analysis. This study employs a normative approach using primary data from literature sources, including statutory regulations, management theories, and expert opinions, supported by secondary data from various printed and digital sources. The study concludes that the provision of compensation and benefits significantly increases employee motivation, which subsequently boosts individual productivity and overall organizational growth.
Keywords: Compensation, Benefits, Work Motivation, Productivity.
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HUMANIS (Humanities, Management and Science Proceedings) is a national peer reviewed and open access journal that publishes significant and important research from all area of agroindustry.
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