Measuring the impact of compensation and benefits on attraction, retention and engagement of employees : an exploratory study

• Main Authors: Chua, Xing Zhen, Tan, Kailin, Viknesh Subramaniam
• Other Authors: Hesan Ahmed Quazi
• Format: Final Year Project
• Language: English
• Published: 2011
• Subjects: DRNTU::Business::Management::Personnel management
• Online Access: http://hdl.handle.net/10356/43677
• Institution: Nanyang Technological University

Measuring the impact of Human Resource (HR) activities is critical to understanding its performance. In recent years, of utmost concern to many organizations is the rising costs involved in Compensation and Benefits (C&B), and the need to attract, retain, and engage employees, particularly high potentials. However, little/no research has sought to integrate these two concerns and develop a way to measure the impact of C&B on Attraction, Retention, and Engagement (ARE) of employees. Hence, in a bid to address these issues, the authors developed a model, called the Compensation Evaluation Model, to provide organizations with a mechanism to measure the impact of their C&B on the ARE of employees. Metrics are identified to measure ARE, and correlation surveys were created to illustrate the isolation of the impact of C&B. Results obtained from the Compensation Evaluation Model explain the proportion of ARE attributable to C&B. The authors also discuss the development of this model, its strengths and weaknesses, limitations and the possibilities for future research.