The Impact of Compensation and Training on Organizational Performance: The Mediating Role of Employee Performance During Covid

Abstract

Purpose:

This study aims to measure the impact of compensation and training on organization performance along with the mediating role of employee performance during Pandemic COVID-19.

Methodology:

This study was done by a simple survey-based questionnaire drafted through Google Forms, and throughout the entire research, a quantitative approach has been incorporated. whereas, for the data collection, two methods, namely primary and secondary, were used, among which the questionnaire filled out was a primary method. Furthermore, this quantitative research was conducted with a population of 231 people and a sample of 149 respondents with a non-convenience sampling method adopted to gather data from respondents.

Findings:

After statistical tests for hypothesis testing, the study found that two hypotheses H2–the considerable impact of training on organizational performance and H4 – the significant impact of salary on employee performance were accepted.

Conclusion:

The compensation provided to employees, either financial or non-financial, plays a key role in retaining employees’ confidence, reducing their turnover, and motivating them to work hard, which ultimately benefits the firm. Training, on the other hand, is a crucial step towards the development, betterment, and growth of the organization as a well-trained and up-to-date workforce guarantees a successful organization. Thus, it is concluded that employee training and compensation play an important role in the growth of employees and the organization.