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Abstract

The relationship between pay and job satisfaction is examined in this review, with a focus on how these relationships affect organizational and individual dynamics. Compensation, which includes both monetary and non-monetary benefits, is a major influence on how workers behave and think about themselves in the workplace. The relationship between an individual's subjective feelings and attitudes toward their work is facilitated by job satisfaction, a complex psychological state that is critical to the success of an organization. An overview of compensation is given in the review, along with a description of its various forms and an emphasis on how it affects employee motivation, retention, and attraction. It explores compensation procedures, emphasizing the strategic role that compensation management plays in fostering a welcoming and inclusive environment. Non-financial compensation, which includes opportunities for professional and personal growth as well as recognition and praise, is examined alongside monetary compensation, which includes salaries, bonuses, and incentives. A variety of factors are taken into account when analyzing job satisfaction, including the type of work, compensation, chances for advancement, supervision, and relationships with coworkers. Variables and factors that affect job satisfaction were identified. Work-life balance, opportunities for skill application, engaging tasks, and recognition and appreciation are emphasized as crucial elements that contribute to job satisfaction. It is stressed that providing opportunities for career growth and development is essential to proving an organization's commitment to its workers' professional satisfaction. The review establishes a link between compensation and job satisfaction. Scholars argue that compensation, when aligned with organizational objectives, significantly contributes to employees' contentment. The positive correlation between competitive salaries, performance-based incentives, and job satisfaction is consistently supported across diverse cultural contexts. Furthermore, the review identifies key factors and determinants influencing job satisfaction. Engaging in job tasks, opportunities for skill utilization, work-life balance, recognition, and appreciation are highlighted as critical contributors to job satisfaction. Opportunities for career growth and development are emphasized as pivotal in demonstrating organizational commitment to employees' professional satisfaction. The outcomes of job satisfaction are discussed, emphasizing its impact on employee performance, productivity, retention, and reduced turnover. Organizational commitment, creativity, innovation, and customer satisfaction are identified as tangible outcomes influenced by employees' job satisfaction.

Keywords

Compensation Job satisfaction employees financial and non-financial compensation

Article Details

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How to Cite
Poatob, E. (2024). The Role of Compensation on Job Satisfaction: A Review. International Journal of Multidisciplinary Studies and Innovative Research, 12(4), 22–28. https://doi.org/10.53075/Ijmsirq/09873545436
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