To What Extent Do Employee Benefits, Salary, and Bonus Impact Employee Satisfaction, Motivation and Retention

Abstract

This research presented a comprehensive analytical overview of job benefits, salary, and bonuses and their varying impact on job satisfaction, motivation, and retention with argument and opposing arguments. The financial job benefits are non-cash elements included in a reward package that businesses provide to their employees in addition to their regular salary or income. These benefits, which are intended to enhance normal income or earnings, may incur financial costs for businesses. As with group insurance Employer-provided health, dental, life, and other forms of insurance coverage, pension schemes, 401(k) programmes and vacations Paid vacation. Salary structure refers to the process that firms use to set and administer compensation based on job functions, responsibilities, and market conditions. Bonuses are incentives that are used to recognise and reward employees for their achievements and efforts. Bonuses are extra payments offered to employees above and above their base salary, usually in reaction to individual or collective performance. Typical bonus types include performance-based incentives, profit-sharing bonuses, and discretionary bonuses. This research was based on social exchange theory as well as Maslow's hierarchy. Using quantitative primary research, the research concluded that there is a positive effect of job benefits, salary, and rewards on the satisfaction, motivation, and retention of employees working in the Kingdom of Saudi Arabia. The results were uneven in terms of impact. Salary had the greatest impact, followed by employee benefits and then the bonus. This research presented its recommendations to employers as well as to the human resources department. This research also touched on the limits of research and future research to expand the vision and perceptions of future researchers.