Impact of Compensation, Job Enrichment and Enlargement, and Training on Employee Motivation

-Business Perspectives and Research

The changing environment at the workplace drives organizations to seek new and effective ways to improve their performance. 

To attain this performance improvement, organizations must focus on upgrading employees’ abilities and enhance their motivational levels to achieve the desired goals. An organization's understanding of its employees is an essential tool for success.

Additionally, there is a need to link employee motivation with development factors such as compensation systems, job enrichment and enlargement practices, as well as training to encourage and motivate employees to increase their performance (Upneja & Ozdemir, 2014).

The importance of employee motivation in the organization comes from the significant and direct effects of employees’ attitudes and behaviors on the total productivity of the organization. Organizations need to attract prospective talented employees with the required skills to join the organization. Moreover, to increase the existing employees’ commitment to stay within the organization, it is highly essential to implement a suitable compensation system that works as a stimulus for the employees (Aslam et al., 2015).

In the same vein, job enrichment and enlargement policies, as well as effective training strategies, are helpful to an organization to enhance the interest and commitment of its employees.

Globalization and transformations in the work environment have inspired organizations to develop human capital capable to sustain a competitive edge in the domestic and international markets (Johnson, 2008). In a recent ever-changing market, organizations have to operate in a highly challenging and dynamic work environment encouraging organizations to transform their policies to remain competent.

Employee motivation is a critical influencer of organizational success and close attention needs to be paid to the factors that affect the motivational level of employees (Güngör, 2011). Furthermore, rapid changes in the work process make the adaptability of new technology and skills as essential tools for the organization to gain a competitive edge.

Unfortunately, in terms of human capital development, low progress has been noted among developing countries such as Libya (Alhgig & Mehta, 2018). Notably, the telecommunication sector in Libya, despite its massive contribution to the economy, is facing numerous challenges in terms of employee motivation resulting in low organizational performance (Almadani, 2017).

According to the annual report of telecommunication companies in Libya on employee motivation, employees have been found with low levels of motivation, especially after the revaluation phase in the country (Alhgig & Mehta, 2018). Low employee motivation is a challenge faced by the country due to complex circumstances that forced the current government to propose a new payroll law.

Connecting the employee motivation with the organizational pay system can help to ensure the validity of the salary, and whether or not the employees receive the deserved amount from their work (Milne, 2007). Low levels of employee motivation can result in disruption of organizational stability and growth.

Research conducted in the USA empirically proved that organizations have used the compensation system to improve the chief executive officer (CEO) performance and motivation was found positively linked with the total organization profitability (Upneja & Ozdemir, 2014). According to Achim et al. (2013), organizational performance relies on the motivational system; this leads organizations to encourage their employees to work hard for the achievement of organizational goals. Moreover, employees’ satisfaction and wellbeing through job enrichment and enlargement at the workplace can improve their organizational commitment and motivate them to put their sincere efforts for organizational success. Empirical findings from previous studies show that motivational systems adapted by organizations can be considered as a source to increase the total organizational performance through motivated employees (Paarlberg & Lavigna, 2010).

Given this, it seems pertinent to consider the factors affecting employee motivation. Even though some research has been carried out on employee motivation and its predictors, there is still an excessive need for an empirical investigation on leading factors that direct employee motivation in the context of developing countries such as Libya (Teclemichael Tessema & Soeters, 2006).

Therefore, the purpose of this study is to investigate compensation, job enrichment and enlargement, training, and their relationship with employee motivation. The study aims to fill the knowledge gap of prospects and consequences of employee motivation in the telecommunication sector in Libya. The findings could potentially assist the organizational leadership and policymakers in Libya to implement several motivational strategies to enhance the capabilities of employees and achieve the desired goals.

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