Abstract:
Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.
Compensation may be used to:
• Recruit and retain qualified employees.
• Increase or maintain morale/satisfaction.
• Reward and encourage peak performance.
• Achieve internal and external equity.
• Reduce turnover and encourage company loyalty.
A compensation system in an organization includes monetary and non-monetary benefits. A number of studies investigating compensation as a tool in retaining and motivating qualified employees have been carried out. This study investigates the effect of compensation component i.e. commission on employees’ retention and its consideration by employees as a pivotal component of overall compensation policy in IT industry. Additionally, study also identifies those factors of compensation system which are most important in retaining employees.
Survey and experimental study were carried out to d
