Вы находитесь на странице: 1из 16

Introduction:

We did a research about Compensation and benifits which have now a days shaped in a new way.
Most of the companies have this system in a significent way because they know if they have to
retan or take the skilled, knowledge and abilityful employees to achieve the companies goal so
they have to maitain this system. In our country most of the companies which is globally run
their business they are mainly focus to this system. To in this way, most of the company prefer to
give their employees benefit because they thought that if they give them benefits so that
employees most of the expenses become reduce and income level become high and some of the
companies thought that based on the performance give them compensation which is most
effective rather then benefits. But it is difficult so say what is most important and what is not.
But in a survey we make that most of the employees prefer benefits rather then compensation. It
is mostly important for the big giant companies and this report give some ideas for the little
growing companies.
Now a days most of the growing and giant companies also cant retain their best employees
because they didnt give them proper benefits or compensation for that reason they cant not
fulfil their goal.

Scope of the study:

We thought that by reading this report anyone could easily understand about the importance of
compensation and benefit to motivate the employees in our daily life.This report has focused on
the employees who work in the organization and face the lack of compensation and benefits
system. We have targeted different people to gather information, which has based on our topic.
When anyone read our project report, they can learn easily about our project topic.

Objectives:
A. To provide an overview of the Far East Knitting and Dyeing Industries LTD, ACI.
B. To evaluate the employees about compensation and benefits issue.
C. To identify the factors influencing on the employee compensation and benefits of the
company.
D. To find out the results.
E. To provide an exact report.

Limitations:
We tried our best to make this research as perfect as possible still there are some
limitations of this project report. The limitations of this project report have given below:
We have faced many limitations when making this project report. We make some questions for
making this project report. Some of those limitations are mentioned as follows:
A. One of the major limitations faced while conducting the study was to communicate with the
selected corporate clients because they were very busy with their regular jobs.
B. Confidential information regarding past marketing and sales information was not accurately
C.
D.
E.
F.
G.

obtained.
They are tried to hide many information because they think it will hamper their reputation.
In addition, the company is located in a distant place. So it consumed more our time.
Some employees do not give every information; they skip some questions and suggestions.
Some employees try to keep private much information.
Seven weeks timeis not enough for such an extensive work of the study. It is very difficult to
collect all the required information in such a short period.

H. The survey will need some time due to personal visits.

Review of Related Literature:


2

According to Nzuve (2010) employee benefits are provided with the understanding, there is a
return to the organization in terms of improved employee commitment and productivity. The
organization should provide only those benefits which employees need and whose absence will
affect their performance. Benefits motivated the employees to work hard and give more afford in
their work
Employee benefits embrace flexibility or what is known as cafeteria approach to benefits. This
allows an employee to choose from array of benefits .An employee who is a bachelor may
choose money in lieu of childcare (Miner and Crane, 2005). This is a welcoming idea though it
could be more expensive for employers. By and large, employee compensation and benefits is
the ultimate in an organization whether monetary or non-monetary and it matters a lot to
individual workers.
Compensation as it were is a complex topic that has significant impact on organizational success
(Dessler, 2005), and for any organization to succeed.

Methodology:
This study provides useful implication for employee motivation by giving compensation or
benefits.

Primary Data:
We are using the data for term paper as the researcher went to the corporation and take interview
of employees. The researcher prepared set of questions and asked them to fill it up.

Secondary Data:
We searched the web site, books.

Study Approach:
Our study approach will be interview and research based.

Research instruments:
Questionnaire:
Preparing a set of around 20 questions and asked the interviewer to answer them.

Mechanical Instrument:
The researcher used computer and its software like Microsoft word and the internet for browsing
for information and topic relative books.

Sampling plan:
Sampling unit:
We focused on employee of Far East, DBL, ACI Company for our survey.

Sample size:
We took a sample size of 20 employees for our data collection process through interview.

Contact methods
Personal interview:
The research mainly base on personal interview as contact method for collecting data for our
term paper. The researcher gave the questionnaire and asked to fill it up.

Analysis and interpretation of data:


1) How flexible is the company with respect to your family responsibilities?

Family Responsibilites

Flexible; 38% Inflexible; 35%

Neither; 28%

Inflexible

Company Name
Far East
ACI
DBL

Inflexible
5
8
1

Neither

Flexible

NEITHER
4
5
2

Flexible
6
7
2

In this chart, we see that The Company will need to provide more flexibility for their employees
can maintain their work life balance. Because this chart shows the percentage of neither and
inflexible are low.

2) What do you think will motivate you to work harder and more dedication?
5

Motivation

Benefits; 35%
Financial rewards; 40%
Promoion; 13%

Financial rewards

Awards; 13%

Awards

Promoion

Benefits

Company Name

Financial

Awards

Promotion

Benefits

Far East

reward
8

ACI

DBL

From our questioner we found that benefit is 35% and financial rewards is 40%. If the company
will provide benefits more than they can motivate their employees more.

3) Is benefits or compensation plan applicable for all level of employees?

Benefits

Disagree; 13%

Agree

Moderate
Moderate; 35%

Company Name
Far East
ACI
DBL

Agree
10
5
6

Disagree
Agree; 53%

Moderate
5
4
5

Disagree
2
2
1

According to our survey reports, we found all levels of employees prefer benefit comparing with
compensation. Because we can see, the percentage of agree is in the position.

4) Does your company link your compensation with your productivity?

Productivity

36%
64%

Yes

Company Name
Far East
ACI
DBL

Yes
10
8
7

No

No
5
7
3

We found that every company link into compensation with employees productivity or
performance, which is positive for employees. Because yes is 64% that inform us every
company have better link with their employees productivity. So we can say that if the employee
provide more productivity for their organization they will get more compensation.

5) How do you rate your companys working conditions?

Working Condition
Poor; 7%

Very Good; 39%


Average; 22%

Good; 32%
Excellient

Company Name
Far East
ACI
DBL

Very Good

Excellent
0
0
0

Good

Very Good
8
5
3

Average

Good
5
5
3

Poor

Average
5
3
1

Poor
0
0
0

Working condition is related to benefit. If the working condition is comfortable, employee can
motivated to do work hard. In our survey, we found that employees are given more rates to very
good condition. Therefore, in this case we can assume that they are comfortable and get better
benefits from their working conditions.

Findings of Study:
We found different types of feedback according to our survey questions,
The main objective of compensation or benefits is to create motivation for employees, job
placement, proper policy and procedure and employee satisfaction that can help the corporation
to decrease turnover it is very important to create better payment policy for batter working
environment. From questions shows that employees want flexibility for maintaining their work
life balance. Therefore, many employees like benefits more than compensation. Employees do
not know which level of employees will get benefits or compensation. They know benefits are
the best plan for motivating. Based on productivity, compensation is given to employees.
Therefore, that if company Provide handsome amount of compensation to employees according
to their performance than employees will motivated to their work. Working environment will
motivate employees to work better.
1. Most of the employees prior more benefits than compensation.
2. Benefits are the best plan for motivating employees.
3. Employees want more flexibility in their work life balance.
4. Providing hand some amount of compensation to employees according to their performance
than employees will motivated to their work.

10

Conclusion:
Between compensation and benefits, an employee prefers benefits than compensation. By giving
benefits, employees will be motivated to their work. Therefore, we can say that, employee
benefits play an important role in the lives of employees as well as their families. For that reason,
the benefits you offer can be a deciding factor for a potential employee's decision to work at your
business. The purpose of employee benefit is to increase the economic security of employees. As
we know that benefits include group insurance, retirement plan, founding of education, disability
income, housing etc. By providing valuable benefits, companies will increase employees
satisfaction, corporate loyalty and worker retention. Between compensation and benefits, an
employee prefers benefits than compensation. By giving benefit, employee will be motivated to
their work.

11

RECOMANDATION:
Every corporation has to provide flexibility work life balance and benefits for their employees,
so that employee will motivated to provide better performance. Every Corporation should plan
satisfied leave policy for their employees. For retaining employees organization need to look
competitors what types of policy they are providing to their employees. They need to inform
employees what types of compensation policy they will give to them. Employees want benefits
and good environment with flexible working condition. Fact is not only compensation but also
benefits will give motivational inspiration to employees.
1. The company will need to provide flexibility for their employees can maintain their work life
balance.
2. From our questioner we found that benefit is 43%. Therefore, the company will need to
provide more benefit, which is more, motivate their employees.
3. According to our survey reports we found ha all level of employees get benefit or
compensation is moderate which is 63%. After getting information from the from the companies
we can say that companies will provide benefits for higher-level employee and compensation for
other levels.
4. We found that every company link into compensation with employees productivity or
performance, which is positive for employees. Because yes is 65% that inform us every
company have better link with their employees productivity. Therefore, we can say that if the
employee provides more productivity for their organization they will get more compensation.
5. Working condition is related to benefit. If the working condition is comfortable, employee can
motivated to do work hard. In our survey, we found that employees are given more rates to good
condition. Therefore, in this case we can assume that they are comfortable and get better benefits
from their working conditions.

12

Reference:

13

Appendix:
Dear Sir/madam,
It is my privilege that to interact with you and incorporate the kind inputs given by you in my
effort to study the compensation system. I would be very thankful to you if you would fill up the
following questionnaire and obliged me with appropriate responses.
1

How flexible is the company with respect to your family responsibilities?


A Inflexible.

B Neither.

What do you think will motivate you to work harder and more dedication?
A Financial rewards.

C Flexible.

B) Awards.

C) Promotion.

D) Benefits.

Are you satisfied with the number of vacation sick and personal days that you receive?
A) Agree.
B) Neutral.
C) Disagree.

4) Is it necessary to look into the competitors?


A) Agree.
C) Disagree.

B) Neutral.

5) Is benefits or compensation plan applicable for all level of employees?


A) Agree.
C) Disagree.

B) Moderate.

6) Are you happy your companys compensation plan?


A) Agree.

B) Moderate.

C) Disagree.

7) Do you agree that an employees performance is highly influenced by his/her salary and other
compensation benefits?
A. Strongly Agree
B. Agree
C. Neutral D. Disagree
E. Strongly Disagree
8) In your organization employees are considered for Reward and Recognition mostly
for________?
A. Innovation and Creativity
B. Increased productivity
D. The entire above
E. Other (Specify)

C. Customer Satisfaction

14

9) Does your company link your compensation with your productivity?


A. Yes
B. No
10) After what duration is the employees compensation package reviewed for an increment.
A. After Probation
B. 1-2 Years
C. 2-5 Years
D. After Promotion
11) What type of salary increases are granted to employees? (Tick all that apply)
A. Merit
B. Automatic Progression
C. General D. Cost of Living
E. Length of Service
12) Do you agree that the salary increments provided by the management are fair?
A. Strongly Agree B. Agree
C. Neutral
D. Disagree
E. Strongly Disagree
13) Does your company give a general increase in compensation in a year?
A. Yes

B. No

If yes, by what percentage


A. 1.5%-7%

B. 7%-9%

C. 9%-11%

14) Does your company have a bonus or incentive plan?


A. Yes

D. 11%-13%

B. No

15) Do you agree that the Promotion system followed in your company is fair?
A. Strongly Agree B. Agree C. Neutral
D. Disagree
E. Strongly Disagree
16) How do you rate your companys incentive systems, which are currently in place?
A. Excellent

B. Very Good

C. Good

D. Average

E. Poor

17) How do you rate your companys working conditions?


A. Excellent

B. Very Good

C. Good D. Average

E. Poor

18) Is there an extension of group medical benefits offered to retirees where premiums are at
least partially paid by company?
A. Yes, all employees

B. Yes, top management only

C. No

19) Does your company link your compensation with your productivity?
A. Yes

B. No

20) How would you rate the type of pension/retirement plan provided to you?
A. Excellent

B. Very Good C. Good

D. Average

E. Poor
15