A Study on Compensation and Benefits Offered to Service Sector Employees in Chennai

The study investigates the impact of compensation and benefits on job productivity and satisfaction among employees in the service sector in Chennai. The study targeted to analyze the socio-economic profile, effect of compensation and benefits on job productivity, and the different components of compensation offered. Data is collected from 400 employees using a structured questionnaire and analyzed using statistical methods such as simple percentage analysis, factor analysis, and the Friedman test. The findings reveal a varied socio-economic profile of employees, with the majority being male, married, and earning lesser salary every month. Factor analysis identified seven key components of compensation and benefits, such as remuneration benefits, incentives and allowances, employee development and support, recognition and work-life balance, financial security, flexible work and stock ownership, and wellness initiatives. The results showed that compensation and benefits significantly influence job productivity, with the base salary package, merit-based rewards, and medical insurance plans having the highest impact on job satisfaction.